Company: INSP
Filing Date: 2025-08-04
Form Type: 10-Q
Source: 0001609550-25-000032
Chunk: 60

Company: Inspire Medical Systems, Inc.
Filing Date: 2025-08-04
Form: 10-Q
Item: Part I, Item 1
Chunk 60
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. This change was primarily due to an increase in state and local taxes.

Liquidity and Capital Resources

We believe our balance sheet and liquidity as of August 4, 2025 provides us with flexibility, and that our cash, cash equivalents, and investments will satisfy our operating needs and capital expenditures for at least the next 12 months.

Our liquidity and capital structure are evaluated regularly within the context of our annual operating and strategic planning processes. We consider the liquidity necessary to fund our operations, which includes working capital needs, investments in research and development, property, plant, and equipment, and other operating costs. Our sources of capital include sales of our Inspire system and registered offerings of our common stock. 

As of June 30, 2025, we had cash, cash equivalents, and available-for-sale debt securities of $410.7 million, a decrease of $105.8 million from $516.5 million as of December 31, 2024. Working capital totaled $479.8 million as of June 30, 2025, a decrease of $62.5 million from December 31, 2024. We define working capital as current assets less current liabilities. The decrease in working capital was primarily due to the following factors:

•a $101.4 million decrease in short-term available-for-sale investments and a $43.2 million decrease in cash and cash equivalents primarily due to the share repurchases made during the first quarter under our share repurchase program, as well as inventory purchases and the payment of taxes on net share settlements of equity awards, partially offset by proceeds from sales of the Inspire system, proceeds from the exercise of stock options, interest and dividend income, and the increase in long-term available for sale investments; and 

•a $14.5 million increase in accounts payable due to the timing of vendor invoices.

The decrease in working capital was partially offset by the following factors:

•a $44.6 million increase in accounts receivable, a majority of which is due to a temporary delay in the delivery timing of customer invoices following the implementation of a new invoice portal and delivery process, which has since been resolved, and higher sales which occurred during June 2025;

•a $41.5 million increase in inventory balances, as we increased inventory levels to support higher sales and the launch of Inspire V;

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•a $9.6 million decrease in accrued expenses which decreased primarily due to the payment of year-end bonuses and commissions; and

•a $