# EDGAR Filing Document

**Accession Number:** 0001742692
**File Stem:** 0001178913-23-000549
**Filing Date:** 2023-2
**Character Count:** 36169
**Document Hash:** 2d9bb19476c4cd056dfdacc5040e67d7
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001178913-23-000549.hdr.sgml**: 20230214

**ACCESSION NUMBER**: 0001178913-23-000549

**CONFORMED SUBMISSION TYPE**: 6-K

**PUBLIC DOCUMENT COUNT**: 2

**CONFORMED PERIOD OF REPORT**: 20230214

**FILED AS OF DATE**: 20230214

**DATE AS OF CHANGE**: 20230214

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** InMode Ltd.
- **CENTRAL INDEX KEY:** 0001742692
- **STANDARD INDUSTRIAL CLASSIFICATION:** ELECTROMEDICAL & ELECTROTHERAPEUTIC APPARATUS [3845]
- **IRS NUMBER:** 000000000
- **STATE OF INCORPORATION:** L3
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 6-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-39016
- **FILM NUMBER:** 23622216

**BUSINESS ADDRESS:**
- **STREET 1:** TAVOR BUILDING, SHA?AR YOKNEAM
- **STREET 2:** POB 533
- **CITY:** YOKNEAM
- **STATE:** L3
- **ZIP:** 2069200
- **BUSINESS PHONE:** 972-4-9097470

**MAIL ADDRESS:**
- **STREET 1:** TAVOR BUILDING, SHA?AR YOKNEAM
- **STREET 2:** POB 533
- **CITY:** YOKNEAM
- **STATE:** L3
- **ZIP:** 2069200

------

#### SECURITIES AND EXCHANGE COMMISSION <br> WASHINGTON, D.C. 20549

#### <br> FORM 6-K

#### <br> REPORT OF FOREIGN PRIVATE ISSUER<br> PURSUANT TO RULE 13a-16 OR 15d-16 OF<br> THE SECURITIES EXCHANGE ACT OF 1934

#### <br> For the month of February 2023

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### INMODE LTD.

------

(Exact name of registrant as specified in its charter)

#### Tavor Building, Sha'ar Yokneam

#### P.O. Box 533

#### Yokneam 2069206 Israel
(Address of Principal Executive Offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

**Form 20-F ⌧**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Form 40-F ☐**

Indicate by check mark whether the registrant by furnishing the information contained in this form is also thereby furnishing the information to the

Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934:

**Yes ☐**&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **No ⌧<br>** 

<br> ------

On February 14, 2023, InMode Ltd. announced its fourth quarter 2022 financial results. A copy of the press release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

---

| | |
|:---|:---|
| **Exhibit No.** | **Description of Exhibit** |
| [99.1](exhibit_99-1.htm) | [Press Release dated February 14, 2023](exhibit_99-1.htm) |

---

------

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

---

| | |
|:---|:---|
|  | **InMode Ltd.** |
|  | By: <u>/s/ Moshe Mizrahy</u> |
|  | Moshe Mizrahy |
| <br> February 14, 2023  | Chief Executive Officer and Chairman of<br> The Board of Directors |

---

------

## Exhibit 99.1

------

<u>**Exhibit 99.1**</u><br>

#### InMode Reports Fourth Quarter and Full Year 2022 Financial Results; Record Quarterly

#### Revenue of $133.6M Represents 21% Year-Over-Year Growth
**YOKNEAM, Israel, Feb. 14, 2023- InMode Ltd. (Nasdaq: INMD) ("InMode")**, a leading global provider of innovative medical technologies, today announced its consolidated financial results for the fourth quarter and full year ended December 31, 2022.

#### Fourth Quarter 2022 Highlights:

---

| |
|:---|
| ●&nbsp;&nbsp;&nbsp;&nbsp; Record quarterly revenue of $133.6 million, an increase of 21% compared to the fourth quarter of 2021. InMode's proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments represented 83% of quarterly revenues, while 9% came from InMode's hands-free platforms and 8% from InMode's traditional laser and non-invasive RF platforms. |
| ●&nbsp;&nbsp;&nbsp;&nbsp; GAAP net income of $37.7 million, compared to $52.7 million in the fourth quarter of 2021; record \*non-GAAP net income of $66.4 million, compared to $55.2 million in the fourth quarter of 2021. |
| ●&nbsp;&nbsp;&nbsp;&nbsp; GAAP diluted earnings per share of $0.44, compared to $0.61 in the fourth quarter of 2021; record \*non-GAAP diluted earnings per share of $0.78, compared to $0.64 in the fourth quarter of 2021. |
| ●&nbsp;&nbsp;&nbsp;&nbsp; Record quarterly revenues from consumables and service of $17.1 million, an increase of 43% compared to the fourth quarter of 2021. |

---

#### Full Year 2022 Highlights:
● Record full year revenues of $454.3 million, an increase of 27% as compared to 2021; 81% of revenues derived from our proprietary surgical technology platforms engaged in minimally invasive and subdermal ablative treatments, 10% from our hands-free platforms and 9% from our traditional laser and non-invasive RF platforms

● GAAP net income of $161.5 million, compared to $165 million in 2021; record \*non-GAAP net income of $207.5 million, compared to $176.3 million in 2021

● GAAP diluted earnings per share of $1.89, compared to $1.92 in 2021; record \*non-GAAP diluted earnings per share of $2.42, compared to $2.05 in 2021

● 29% increase in international (non-U.S.) revenues as compared to 2021

---

| | | | | |
|:---|:---|:---|:---|:---|
| **U.S. GAAP Results**<br> (U.S. dollars in thousands, except for per share data) | **U.S. GAAP Results**<br> (U.S. dollars in thousands, except for per share data) | **U.S. GAAP Results**<br> (U.S. dollars in thousands, except for per share data) | **U.S. GAAP Results**<br> (U.S. dollars in thousands, except for per share data) | **U.S. GAAP Results**<br> (U.S. dollars in thousands, except for per share data) |
|  | Q4 2022 | **Q4 2021** | **FY 2022** | **FY 2021** |
|  Revenues | $133571 | $110540 | $454271 | $357565 |
| Gross Margins | 84% | 85% | 84% | 85% |
| Net Income Attributable to InMode Ltd. | $37708 | $52685 | $161520 | $164971 |
| Earnings per Diluted Share | $0.44 | $0.61 | $1.89 | $1.92 |
| **\*Non-GAAP Results**<br> (U.S. dollars in thousands, except for per share data) | **\*Non-GAAP Results**<br> (U.S. dollars in thousands, except for per share data) | **\*Non-GAAP Results**<br> (U.S. dollars in thousands, except for per share data) | **\*Non-GAAP Results**<br> (U.S. dollars in thousands, except for per share data) | **\*Non-GAAP Results**<br> (U.S. dollars in thousands, except for per share data) |
|  | **Q4 2022** | **Q4 2021** | **FY 2022** | **FY 2021** |
| Gross Margins | 85% | 85% | 84% | 85% |
| Net Income Attributable to InMode Ltd. | $66370 | $55193 | $207486 | $176317 |
| Earnings per Diluted Share | $0.78 | $0.64 | $2.42 | $2.05 |

---

*\*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. Non-GAAP financial results exclude share-based compensation and certain tax adjustments. The Company applied the provisions of the amendment to the Investment Law to its exempt profits accrued prior to 2020 and made a one-time payment of $12.0 million to the Israeli Tax Authority. In addition, the Company reached agreement with the Israeli Tax Authority under which the Company paid during January 2023 approximately $14.3 million on its undistributed exempt income for the year ended December 31, 2021. As a result, approximately $313.2 million of the Company's undistributed exempt income for years 2012 through 2021 may be distributed or used by the Company without being subject to additional corporate tax.*

------

#### Management Comments
"We are happy to report another record revenue year and continuously high profitable growth as we scale globally and reach a yearly revenue run rate nearing $500 million. We are also very happy with the successful launch of the Empower RF, and we remain focused on expanding into additional aesthetic and wellness categories. We are proud to have successfully navigated through the worldwide supply chain challenges in 2022, therefore fulfilling customer orders on time," said Moshe Mizrahy, Chairman and Chief Executive Officer.

Shakil Lakhani, President of InMode North America, commented, "This year demonstrated InMode's ability to expand into new categories and solidified our leadership position in the aesthetics and wellness markets. As our platform sales benefit from a strengthening brand awareness, we also experienced a significant increase in our consumable sales, having sold over 230,000 consumables in the fourth quarter. To further support this market demand, we continue adding talent to our team in North America this year."

"The solid endorsement of the EmpowerRF platform significantly surpassed our most optimistic expectations for the year. Currently, we are conducting six clinical studies focusing on how this technology can positively impact a wide range of health issues for women. In addition, as we continue our strategy and expand into new areas of wellness, we plan to launch the Envision platform for the ophthalmology market during the first half of 2023, followed by the second generation of our hands-free platform for face treatments during the latter half of the year," said Dr. Spero Theodorou, Chief Medical Officer.

#### Fourth Quarter 2022 Financial Results
Total revenues for the fourth quarter of 2022 reached $133.6 million, an increase of 21% compared to the fourth quarter of 2021.

"We are proud to report another record quarter and year for total revenue, while again maintaining the target gross margin range of over 84%. This derives from our ability to control expenses during global supply chain constraints, while decisively responding to high demand and ensuring orders are delivered on time. Once again, we saw strength from our international operations in the quarter, and we expect that this trend will continue," said Yair Malca, Chief Financial Officer.

InMode applied the provisions of the amendment to the Investment Law to its exempt profits accrued prior to 2020 and made a one-time payment of $12.0 million to the Israeli Tax Authority. In addition, the Company reached agreement with the Israeli Tax Authority under which the Company paid during January 2023 approximately $14.3 million on its undistributed exempt income for the year ended December 31, 2021.

"I am very pleased that as a result, approximately $313.2 million of the Company's undistributed exempt income for years 2012 through 2021 may be distributed or used without being subject to additional corporate tax," Malca concluded.

GAAP gross margin for the fourth quarter of 2022 was 84% compared to a gross margin of 85% in the fourth quarter of 2021. \*Non-GAAP gross margin for the fourth quarter of 2022 and 2021 was 85%.

GAAP operating margin for the fourth quarter of 2022 was 45%, compared to an operating margin of 49% in the fourth quarter of 2021. \*Non-GAAP operating margin for the fourth quarter of 2022 was 50% and for the fourth quarter of 2021 was 51%. The decrease in GAAP operating margin is primarily attributable to change in share-based compensation expense.

------

InMode reported GAAP net income of $37.7 million, or $0.44 per diluted share, in the fourth quarter of 2022, compared to $52.7 million, or $0.61 per diluted share, in the fourth quarter of 2021. On a \*non-GAAP basis, InMode reported net income of $66.4 million, or $0.78 per diluted share, in the fourth quarter of 2022, compared to $55.2 million, or $0.64 per diluted share, in the fourth quarter of 2021. The decrease in GAAP net income is primarily attributable to undistributed exempt income.

#### Full Year 2022 Financial Results
Total revenues for 2022 were $454.3 million, an increase of 27% as compared to 2021. This increase was primarily attributable to strong demand for our minimally invasive platforms. In addition, InMode gained traction in international markets, with international revenues growing 29% year over year.

GAAP gross margin for 2022 was 84%, and the gross margin in 2021 was 85%. \*Non-GAAP gross margin for 2022 was 84% and the gross margin in 2021 was 85%.

GAAP operating margin for 2022 was 44%, compared to the operating margin of 47% in 2021. \*Non-GAAP operating margin for 2022 was 49%, compared to the operating margin of 50% in the full year of 2021. The decrease in GAAP operating margin is primarily attributable to a change in share-based compensation expense.

InMode reported GAAP net income attributable to InMode Ltd. of $161.5 million, or $1.89 per diluted share, in 2022. This is compared with GAAP net income attributable to InMode Ltd of $165 million, or $1.92 per diluted share, in 2021. On a \*non-GAAP basis, InMode reported net income attributable to InMode Ltd. of $207.5 million, or $2.42 per diluted share, in the full year of 2022, compared to net income attributable to InMode Ltd. of $176.3 million, or $2.05 per diluted share, in the full year of 2021.

As of December 31, 2022, InMode had cash and cash equivalents, marketable securities, and short-term bank deposits of $547.4 million.

#### 2023 Financial Outlook
Management provided an outlook for the full year of 2023 ending December 31, 2023. Based on current estimates, management expects:

&nbsp;&nbsp;&nbsp;&nbsp;● Revenue between $525 million and $530 million

&nbsp;&nbsp;&nbsp;&nbsp;● \*Non-GAAP gross margin between 83% and 85%

&nbsp;&nbsp;&nbsp;&nbsp;● \*Non-GAAP income from operations between $236 million and $238 million

&nbsp;&nbsp;&nbsp;&nbsp;● \*Non-GAAP earnings per diluted share between $2.58 and $2.60

*This outlook is not a guarantee of future performance and stockholders should not rely on such forward-looking statements. See "Forward-Looking Statements" for additional information.*

*\*Please refer to "Use of Non-GAAP Financial Measures" below for important information about non-GAAP financial measures. Non-GAAP financial results exclude share-based compensation and certain tax adjustments. The Company applied the provisions of the amendment to the Investment Law to its exempt profits accrued prior to 2020 and made a one-time payment of $12.0 million to the Israeli Tax Authority. In addition, the Company reached agreement with the Israeli Tax Authority under which the Company Paid during January 2023 approximately $14.3 million on its undistributed exempt income for the year ended December 31, 2021. As a result, approximately $313.2 million of the Company's undistributed exempt income for years 2012 through 2021 may be distributed or used by the Company without being subject to additional corporate tax.*

------

#### Use of Non-GAAP Financial Measures
In addition to InMode's operating results presented in accordance with GAAP, this release contains certain non-GAAP financial measures including non-GAAP net income, non-GAAP earnings per diluted share, and non-GAAP operating margin. Because these measures are used in InMode's internal analysis of financial and operating performance, management believes they provide investors with greater transparency of its view of InMode's economic performance. Management also believes the presentation of these measures, when analyzed in conjunction with InMode's GAAP operating results, allows investors to more effectively evaluate and compare InMode's performance to that of its peers, although InMode's presentation of its non-GAAP measures may not be strictly comparable to the similarly titled measures of other companies. Schedules reconciling each of these non-GAAP financial measures are provided as a supplement to this release.

#### Conference Call Information
Mr. Moshe Mizrahy, Chairman and Chief Executive Officer, Dr. Michael Kreindel, Co-Founder and Chief Technology Officer, Mr. Yair Malca, Chief Financial Officer, Mr. Shakil Lakhani, President of North America, and Dr. Spero Theodorou, Chief Medical Officer, will host a conference call today, February 14, 2023, at 8:30 a.m. Eastern Time to discuss the fourth quarter 2022 financial results.

The Company encourages participants to **pre-register for the conference call using the following link**:

<u>https://dpregister.com/sreg/10174372/f5819ac374</u>

 

<br> Callers will receive a unique dial-in number upon registration, which enables immediate access to the call. Participants may pre-register at any time, including up to and after the call start time.

For callers who opt out of pre-registration, please dial one of the following teleconferencing numbers. Please begin by placing your call 10 minutes before the conference call commences. If you are unable to connect using the toll-free number, please try the international dial-in number.

**U.S. Toll-Free Dial-in Number**: 1-833-316-0562

**Israel Toll- Free Dial-in Number**: 1-80-921-2373

**International Dial-in Number**: 1-412-317-5736

Webcast URL: <u>https://event.choruscall.com/mediaframe/webcast.html?webcastid=JnMDK7VQ</u>

 

<br> At:

8:30 a.m. Eastern Time

5:30 a.m. Pacific Time

3:30 p.m. Israel Time

The conference call will also be webcast live from a link on InMode's website at <u>https://inmodemd.com/investors/events-presentations/</u><u>.</u> A replay of the conference call will be available from February 14, 2023, at 12 p.m. Eastern Time to February 28, 2023, at 11:59 p.m. Eastern Time. To access the replay, please dial one of the following numbers:

**Replay Dial-in U.S TOLL-FREE:** 1-877-344-7529

**Replay Dial-in Canada TOLL-FREE:** 855-669-9658

**Replay Dial-in TOLL/INTERNATIONAL**: 1-412-317-0088

**Replay Pin Number**: 3700075

#### To access the replay using an international dial-in number, please select the link below:
<u>https://services.choruscall.com/ccforms/replay.html</u>

A replay of the conference call will also be available for 90 days on InMode's website at <u>https://inmodemd.com/investors/</u><u>.</u>

------

#### About InMode
InMode is a leading global provider of innovative medical technologies. InMode develops, manufactures and markets devices harnessing novel radio frequency ("RF") technology. InMode strives to enable new emerging surgical procedures as well as improve existing treatments. InMode has leveraged its medically accepted minimally invasive RF technologies to offer a comprehensive line of products across several categories for plastic surgery, gynecology, dermatology, otolaryngology, and ophthalmology. For more information about InMode, please visit <u>www.inmodemd.com</u>.

#### Forward-Looking Statements
The information in this press release includes forward-looking statements within the meaning of the federal securities laws. These statements generally relate to future events or InMode's future financial or operating performance, including the future performance described above under the heading titled "2021 Financial Outlook." Actual outcomes and results may differ materially from what is expressed or forecast in such forward-looking statements. In some cases, you can identify these statements because they contain words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "plan," "predict," "project," "will," "would" and similar expressions that concern our expectations, strategic plans or intentions. Forward-looking statements are based on management's current expectations and assumptions, and are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict, including with respect to the impact of the COVID-19 global outbreak. Consequently, actual results could differ materially from those indicated in these forward-looking statements. When considering these forward-looking statements, you should keep in mind the risk factors and other cautionary statements included in InMode's Annual Report on Form 20-F filed with the Securities and Exchange Commission on February 10, 2022, as well as risk factors relating to the COVID-19 global outbreak and our future public filings. InMode undertakes no obligation and does not intend to update these forward-looking statements to reflect events or circumstances occurring after this press release. You are cautioned not to place undue reliance on these forward-looking statements, which pertain only as of the date of this press release.

Company Contact: Yair Malca Chief Financial Officer Phone: (949) 305-0108 Email: <u>Yair.Malca@inmodemd.com</u> Investor Relations Contact: Miri Segal MS-IR LLC Phone: (917) 607-8654 Email: <u>ir@inmodemd.com</u>

------

#### INMODE LTD.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. dollars in thousands, except for per share data)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br> December 31,** | **Three months ended<br> December 31,** | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** |
|  | **2022** | **2021** | **2022** | **2021** |
| **REVENUES** | 133571 | 110540 | 454271 | 357565 |
| **COST OF REVENUES** | 21002 | 16847 | 73485 | 53592 |
| **GROSS PROFIT** | 112569 | 93693 | 380786 | 303973 |
| **OPERATING EXPENSES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Research and development | 3261 | 2528 | 12425 | 9532 |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 47012 | 35286 | 160576 | 119353 |
| &nbsp;&nbsp;&nbsp; General and administrative | 2398 | 2527 | 9931 | 8411 |
| &nbsp;&nbsp;&nbsp; Other Income | - | (800) | - | (800) |
| **TOTAL OPERATING EXPENSES** | 52671 | 39541 | 182932 | 136496 |
| **INCOME FROM OPERATIONS** | 59898 | 54152 | 197854 | 167477 |
| &nbsp;&nbsp;&nbsp; Finance income, net | 3962 | 118 | 3612 | 525 |
| **INCOME BEFORE TAXES** | 63860 | 54270 | 201466 | 168002 |
| **INCOME TAXES** | 26152 | 1585 | 39946 | 2928 |
| **NET INCOME** | 37708 | 52685 | 161520 | 165074 |
| &nbsp;&nbsp;&nbsp; Less: net income attributable to non-controlling interests | - | - | - | (103) |
| **NET INCOME ATTRIBUTABLE TO INMODE LTD.** | 37708 | 52685 | 161520 | 164971 |
| **NET INCOME PER SHARE:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Basic | 0.46 | 0.63 | 1.96 | 2.03 |
| &nbsp;&nbsp;&nbsp; Diluted | 0.44 | 0.61 | 1.89 | 1.92 |
| **WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Basic | 82449 | 83234 | 82482 | 81445 |
| &nbsp;&nbsp;&nbsp; Diluted | 85288 | 86384 | 85404 | 86017 |

---

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CONDENSED CONSOLIDATED BALANCE SHEETS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

---

| | | |
|:---|:---|:---|
|  | **December 31,**<br> **2022** | **December 31,**<br> **2021** |
| **Assets** | | |
| &nbsp;&nbsp;&nbsp; **CURRENT ASSETS:** | | |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Cash and cash equivalents | 97540 | 68136 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Marketable securities (amortized cost of $384,321 and $296,243, as of December 31, 2022 and 2021, respectively) | 374589 | 294530 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Short-term bank deposits | 75254 | 53248 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable, net of allowance for credit losses of $836 and $1,107, as of December 31, 2022 and 2021, respectively | 26997 | 20236 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other receivables | 15094 | 12938 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Inventories | 39897 | 21026 |
| **TOTAL CURRENT ASSETS** | 629371 | 470114 |
| **NON-CURRENT ASSETS:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts receivable net of allowance for credit losses of $482 and $0 at December 31, 2022 and 2021, respectively | 3973 | 768 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income tax asset, net | 3094 | 1334 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease right-of-use assets | 5073 | 4321 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Property and equipment, net | 2298 | 1404 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other investments | 600 | 600 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **TOTAL NON-CURRENT ASSETS** | 15038 | 8427 |
| **TOTAL ASSETS** | 644409 | 478541 |
| **Liabilities and shareholders' equity** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **CURRENT LIABILITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Accounts payable | 16242 | 8779 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities | 13798 | 13805 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 51980 | 29266 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **TOTAL CURRENT LIABILITIES** | 82020 | 51850 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **NON-CURRENT LIABILITIES:** |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Contract liabilities | 3959 | 2751 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other liabilities | 303 | 4831 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Operating lease liabilities | 3509 | 3307 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **TOTAL NON-CURRENT LIABILITIES** | 7771 | 10889 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **TOTAL LIABILITIES** | 89791 | 62739 |
| **TOTAL SHAREHOLDERS' EQUITY** | 554618 | 415802 |
| **TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY** | 644409 | 478541 |

---

------

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Three months ended<br> December 31,** | **Three months ended<br> December 31,** | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** |
|  | 2022 | 2021 | 2022 | **202**1 |
| **CASH FLOWS FROM OPERATING ACTIVITIES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Net income | 37708 | 52685 | 161520 | 165074 |
| &nbsp;&nbsp;&nbsp; Adjustments required to reconcile net income to net cash provided by operating activities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Depreciation and amortization | 218 | 139 | 680 | 517 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Share-based compensation expenses | 7148 | 3124 | 24452 | 11962 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Change in allowance for credit losses of trade receivable | 47 | 141 | 449 | 516 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Loss on marketable securities, net | 22 | 142 | 71 | 175 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Finance expenses (income), net | (2737) | (375) | (1210) | 1223 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Deferred income taxes, net | (72) | (379) | 84 | (770) |
| &nbsp;&nbsp;&nbsp; Changes in operating assets and liabilities: |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Decrease (increase) in accounts receivable | 805 | 1934 | (10415) | (10544) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in other receivables | (1081) | (1982) | (1787) | (6400) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in inventories | (4087) | (1848) | (18871) | (6043) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in accounts payable | 2946 | (105) | 7463 | 2369 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase (decrease) in other liabilities | 14575 | (2056) | 17941 | 14138 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Increase in contract liabilities | 1660 | 1473 | 1201 | 2668 |
| &nbsp;&nbsp;&nbsp; Net cash provided by operating activities | 57152 | 52893 | 181578 | 174885 |
| **CASH FLOWS FROM INVESTING ACTIVITIES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Investment in short-term deposits | - | (7000) | (93701) | (73090) |
| &nbsp;&nbsp;&nbsp; Proceeds from short-term deposits | - | 7000 | 73090 | 69180 |
| &nbsp;&nbsp;&nbsp; Purchase of fixed assets | (328) | (182) | (1575) | (939) |
| &nbsp;&nbsp;&nbsp; Purchase of marketable securities | (70944) | (70560) | (168680) | (273834) |
| &nbsp;&nbsp;&nbsp; Proceeds from sale of marketable securities | - | 33785 | 2303 | 93652 |
| &nbsp;&nbsp;&nbsp; Proceeds from maturity of marketable securities | 32997 | 6150 | 79089 | 24925 |
| &nbsp;&nbsp;&nbsp; Net cash used in investing activities | (38275) | (30807) | (109474) | (160106) |
| **CASH FLOWS FROM FINANCING ACTIVITIES:** |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Repurchase of ordinary shares | - | (23444) | (42637) | (35365) |
| &nbsp;&nbsp;&nbsp; Exercise of options | <br> 637<br>| 540 | <br> 1552<br>| 20343 |
| &nbsp;&nbsp;&nbsp; Net cash provided by (used in) financing activities | 637 | (22904) | (41085) | (15022) |
| **EFFECT OF EXCHANGE RATE CHANGES ON CASH** | 978 | 26 | (1615) | (559) |
| **NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS** | 20492 | (792) | 29404 | (802) |
| **CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD** | 77048 | 68928 | 68136 | 68938 |
| **CASH AND CASH EQUIVALENTS AT END OF PERIOD** | 97540 | 68136 | 97540 | 68136 |

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CONDENSED CONSOLIDATED FINANCIAL HIGHLIGHTS

(U.S. dollars in thousands, except for per share data)

(Unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended<br> December 31,** | **Three months ended<br> December 31,** | **Three months ended<br> December 31,** | **Three months ended<br> December 31,** | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** |
|  | **2022** | **2022** | **2021** | **2021** | **2022** | **2022** | **2021** | **2021** |
| **Revenues by Category:** |  |  |  |  |  |  |  |  |
| Capital Equipment revenues - United States | 80352 | 60% | 66810 | 60% | 260992 | 58% | 211424 | 59% |
| Capital Equipment revenues - International | 36094 | 27% | 31785 | 29% | 133220 | 29% | 107815 | 30% |
| **Total Capital Equipment revenues** | 116446 | 87% | 98595 | 89% | 394212 | 87% | 319239 | 89% |
| Consumables and service revenues | 17125 | 13% | 11945 | 11% | 60059 | 13% | 38326 | 11% |
| **Total Net Revenue** | 133571 | 100% | 110540 | 100% | 454271 | 100% | 357565 | 100% |

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| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Three months ended<br> December 31,** | **Three months ended<br> December 31,** | **Three months ended<br> December 31,** | **Three months ended<br> December 31,** | **Three months ended<br> December 31,** | **Three months ended<br> December 31,** | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** | **Year Ended<br> December 31,** |
|  | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** | **2022** | **2022** | **2022** | **2021** | **2021** | **2021** |
|  | **%** | **%** | **%** | **%** | **%** | **%** | **%** | **%** | **%** | **%** | **%** | **%** |
|  | United States | International | Total | United States | International | Total | United States | International | Total | United States | International | Total |
| **Revenues by Technology:** |  |  |  |  |  |  |  |  |  |  |  |  |
| Minimally Invasive | 86 | 76 | **83** | 74 | 70 | **73** | 85 | 74 | **81** | 71 | 73 | **72** |
| Hands-Free | 11 | 4 | **9** | 23 | 6 | **17** | 12 | 6 | **10** | 27 | 7 | **20** |
| Non-Invasive | 3 | 20 | 8 | 3 | 24 | 10 | 3 | 20 | 9 | 2 | 20 | 8 |
|  | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 |

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RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF

INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. dollars in thousands, except for per share data)

(Unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | <br> **Three months ended December 31, 2022** | <br> **Three months ended December 31, 2022** | <br> **Three months ended December 31, 2022** | <br> **Three months ended December 31, 2022** | <br> **Three months ended December 31, 2021** | <br> **Three months ended December 31, 2021** | <br> **Three months ended December 31, 2021** | <br> **Three months ended December 31, 2021** |
|  | <br>**GAAP** | <br>**Share Based<br> Compensation** | <br>**Undistributed Exempt Income** | <br>**Non-GAAP** | <br>**GAAP** | <br>**Share Based<br> Compensation** | <br>**Other Income Related to IP Transactions** | <br>**Non-GAAP** |
| **REVENUES** | 133571 | **-** | - | 133571 | 110540 | - | - | 110540 |
| **COST OF REVENUES** | 21002 | (553) | - | 20449 | 16847 | (304) | - | 16543 |
| **GROSS PROFIT** | 112569 | 553 | - | 113122 | 93693 | 304 | - | 93997 |
| **OPERATING EXPENSES:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Research and development | 3261 | (918) | - | 2343 | 2528 | (442) | - | 2086 |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 47012 | (5069) | - | 41943 | 35286 | (2120) | - | 33166 |
| &nbsp;&nbsp;&nbsp; General and administrative | 2398 | (608) | - | 1790 | 2527 | (258) | - | 2269 |
| &nbsp;&nbsp;&nbsp; Other Income | - | - | - | - | (800) | - | 800 | - |
| **TOTAL OPERATING<br> EXPENSES** | 52671 | (6595) | - | 46076 | 39541 | (2820) | 800 | 37521 |
| **INCOME FROM OPERATIONS** | 59898 | 7148 | - | 67046 | 54152 | 3124 | (800) | 56476 |
| &nbsp;&nbsp;&nbsp; Finance income, net | 3962 | - | - | 3962 | 118 |  | - | 118 |
| **INCOME BEFORE TAXES** | 63860 | 7148 | - | 71008 | 54270 | 3124 | (800) | 56594 |
| **INCOME TAXES** | 26152 | - | (21514) | 4638 | 1585 |  | (184) | 1401 |
| **NET INCOME** | 37708 | 7148 | 21514 | 66370 | 52685 | 3124 | (616) | 55193 |
| **NET INCOME PER SHARE:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Basic | 0.46 |  |  | 0.80 | 0.63 |  |  | 0.66 |
| &nbsp;&nbsp;&nbsp; Diluted | 0.44 |  |  | 0.78 | 0.61 |  |  | 0.64 |
| **WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Basic | 82449 |  |  | 82449 | 83234 |  |  | 83234 |
| &nbsp;&nbsp;&nbsp; Diluted | 85288 |  |  | 85515 | 86384 |  |  | 86519 |

---

------

RECONCILIATION OF GAAP CONDENSED CONSOLIDATED STATEMENTS OF

INCOME TO NON-GAAP CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(U.S. dollars in thousands, except for per share data)

(Unaudited)

---

| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | <br> **Year Ended December 31, 2022** | <br> **Year Ended December 31, 2022** | <br> **Year Ended December 31, 2022** | <br> **Year Ended December 31, 2022** | <br> **Year Ended December 31, 2021** | <br> **Year Ended December 31, 2021** | <br> **Year Ended December 31, 2021** | <br> **Year Ended December 31, 2021** |
|  | GAAP | Share Based<br> Compensation | Undistributed Exempt Income | Non-GAAP | GAAP | Share Based<br> Compensation | <br> **Other Income Related to IP Transactions** | Non-GAAP |
| **REVENUES** | 454271 | - | - | 454271 | 357565 | - | - | 357565 |
| **COST OF REVENUES** | 73485 | (1917) | - | 71568 | 53592 | (1108) | - | 52484 |
| **GROSS PROFIT** | 380786 | 1917 | - | 382703 | 303973 | 1108 |  | 305081 |
| **OPERATING EXPENSES:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Research and development | 12425 | (3166) | - | 9259 | 9532 | (1554) | - | <br> 7978 |
| &nbsp;&nbsp;&nbsp; Sales and marketing | 160576 | (17302) | - | 143274 | 119353 | (8274) | - | 111079 |
| &nbsp;&nbsp;&nbsp; General and administrative | 9931 | (2067) | - | 7864 | 8411 | (1026) | - | <br> 7385 |
| &nbsp;&nbsp;&nbsp; Other Income | - | - | - | - | (800) | - | 800 | - |
| **TOTAL OPERATING<br> EXPENSES** | 182932 | (22535) | - | 160397 | 136496 | (10854) | 800 | 126442 |
| **INCOME FROM OPERATIONS** | 197854 | 24452 | - | 222306 | 167477 | 11962 | (800) | 178639 |
| &nbsp;&nbsp;&nbsp; Finance income, net | 3612 | - | - | 3612 | 525 | - | - | 525 |
| **INCOME BEFORE TAXES** | 201466 | 24452 | - | 225918 | 168002 | 11962 | (800) | 179164 |
| **INCOME TAXES (TAX BENEFIT)** | 39946 | - | (21514) | 18432 | 2928 | - | (184) | 2744 |
| **NET INCOME** | 161520 | 24452 | 21514 | 207486 | 165074 | 11962 | (616) | 176420 |
| &nbsp;&nbsp;&nbsp; Less: net income attributable to non-controlling interests | - | - | - | - | (103) | - | - | (103) |
| **NET INCOME ATTRIBUTABLE TO INMODE LTD.** | 161520 | 24452 | 21514 | 207486 | 164971 | 11962 | (616) | 176317 |
| **NET INCOME PER<br> SHARE:** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Basic | 1.96 |  |  | 2.52 | 2.03 |  |  | 2.16 |
| &nbsp;&nbsp;&nbsp; Diluted | 1.89 |  |  | 2.42 | 1.92 |  |  | 2.05 |
| **WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING USED IN COMPUTATION OF NET INCOME PER SHARE (in thousands)** |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp; Basic | 82482 |  |  | 82482 | 81445 |  |  | 81445 |
| &nbsp;&nbsp;&nbsp; Diluted | 85404 |  |  | 85628 | 86017 |  |  | 86192 |

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