Company: INSP
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001609550-25-000053
Chunk: 41

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-11-03
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 unrecognized tax positions as of both September 30, 2025 and December 31, 2024. We do not anticipate significant changes to our unrecognized tax positions in the next 12 months.We file income tax returns in all applicable jurisdictions. The tax years from 2022 to 2024 remain open for examination by the tax authorities to which we are subject.

8. Segment Reporting and Revenue Disaggregation

We operate our business as one operating segment. An operating segment is defined as a component of an enterprise for which separate discrete financial information is available and evaluated regularly by the chief operating decision maker ("CODM") in deciding how to allocate resources and in assessing performance. Our CODM is the Company's President, Chief Executive Officer, and Chair of the Board of Directors. Reportable segment information is consistent with how management reviews the business, makes investing and resource allocation decisions and assesses operating performance. Our segment revenues are derived from the sales of our product, the Inspire system, to hospitals and ambulatory surgery centers in the U.S. and in select countries in Europe and the Asia Pacific region. We do not have any intra-entity sales or transfers.Our CODM uses consolidated net income as the measure of profit or loss. Our CODM assesses performance for the segment and allocates resources and monitors budget versus actual results using consolidated net income and operating income. The monitoring of budget versus actual results are used in establishing management's compensation. The measure of segment assets is reported on the balance sheet as total consolidated assets.Three Months EndedNine Months EndedSeptember 30,September 30,2025202420252024Revenue$224,501 $203,191 $642,904 $563,086 Less: (a)Cost of goods sold31,773 32,398 97,154 86,998 Research and development expense24,211 26,083 78,223 83,792 Selling, general and administrative expense (excluding advertising expense)122,464 107,111 380,619 315,997 Advertising expense36,409 23,281 82,065 72,100 Operating income9,644 14,318 4,843 4,199 Other income (b)(3,907)(6,008)(10,535)(17,618)Income taxes3,619 1,829 6,046 3,532 Segment net income9,932 18,497 9,332 18,