Q1false--12-310001294133one month0001294133us-gaap:EquipmentMember2025-01-012025-03-310001294133us-gaap:EmployeeStockMember2025-01-012025-03-310001294133us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001294133us-gaap:ResearchAndDevelopmentExpenseMember2025-01-012025-03-310001294133us-gaap:AccumulatedOtherComprehensiveIncomeMember2023-12-3100012941332024-03-3100012941332024-01-012024-12-310001294133us-gaap:GeneralAndAdministrativeExpenseMember2025-01-012025-03-310001294133us-gaap:RestrictedStockUnitsRSUMember2025-03-310001294133us-gaap:EquipmentMember2024-01-012024-03-310001294133us-gaap:MoneyMarketFundsMemberus-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2025-03-310001294133us-gaap:EmployeeStockMember2024-01-012024-03-310001294133ingn:PerformanceAndTimeBasedRestrictedStockUnitsMember2024-12-310001294133us-gaap:EquipmentMember2025-03-310001294133us-gaap:EquipmentMember2024-12-310001294133us-gaap:DevelopedTechnologyRightsMember2024-12-310001294133ingn:CostOfRevenueMember2025-01-012025-03-310001294133us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-01-012024-03-310001294133country:US2024-01-012024-03-310001294133ingn:LicensesMember2024-12-310001294133us-gaap:AdditionalPaidInCapitalMember2025-03-310001294133us-gaap:AdditionalPaidInCapitalMember2024-01-012024-03-310001294133us-gaap:DesignatedAsHedgingInstrumentMember2024-03-310001294133us-gaap:SellingAndMarketingExpenseMember2025-01-012025-03-310001294133ingn:InogenEuropeHoldingBVMember2025-01-012025-03-310001294133us-gaap:RetainedEarningsMember2025-01-012025-03-310001294133us-gaap:AdditionalPaidInCapitalMember2023-12-310001294133ingn:TwoThousandAndTwentyThreeIncentivePlanMember2025-03-310001294133us-gaap:FairValueMeasurementsRecurringMember2025-01-012025-03-310001294133srt:MinimumMemberus-gaap:CustomerRelationshipsMember2025-03-310001294133us-gaap:NonUsMember2025-01-012025-03-310001294133us-gaap:OtherNoncurrentAssetsMember2025-03-310001294133us-gaap:CommonStockMember2025-01-012025-03-310001294133us-gaap:NondesignatedMember2024-03-310001294133us-gaap:CommonStockMember2023-12-310001294133ingn:MedicaresServiceReimbursementProgramsMemberus-gaap:CustomerConcentrationRiskMember2025-03-310001294133srt:MinimumMember2025-03-310001294133ingn:CommercialMember2025-03-3100012941332025-01-012025-03-310001294133us-gaap:CommonStockMember2024-01-012024-03-310001294133ingn:SecuritiesPurchaseAgreementMember2025-01-252025-01-250001294133ingn:LicensesMember2025-03-310001294133ingn:MedicaresServiceReimbursementProgramsMemberus-gaap:CustomerConcentrationRiskMember2024-12-310001294133us-gaap:EmployeeStockOptionMember2024-01-012024-03-310001294133us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-03-310001294133ingn:PerformanceAndTimeBasedRestrictedStockAwardsMember2025-01-012025-03-310001294133us-gaap:RestrictedStockUnitsRSUMember2024-12-310001294133us-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-03-310001294133us-gaap:DevelopedTechnologyRightsMember2025-03-310001294133ingn:PatentsAndWebsitesMember2025-03-310001294133ingn:MedicaresServiceReimbursementProgramsMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-12-310001294133us-gaap:SoftwareDevelopmentMember2025-03-310001294133us-gaap:AccumulatedTranslationAdjustmentMember2025-03-310001294133us-gaap:AccumulatedTranslationAdjustmentMember2025-01-012025-03-310001294133ingn:ThirdPartyMember2025-03-310001294133us-gaap:CustomerRelationshipsMember2024-12-310001294133ingn:PhysioAssistSasMember2025-01-012025-03-310001294133srt:MaximumMember2025-03-310001294133us-gaap:ForwardContractsMember2024-12-310001294133us-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMemberingn:VendorOneMember2025-01-012025-03-310001294133srt:MaximumMemberus-gaap:CustomerRelationshipsMember2025-03-310001294133us-gaap:RestrictedStockUnitsRSUMember2025-01-012025-03-310001294133us-gaap:AccumulatedTranslationAdjustmentMember2024-12-310001294133us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-03-310001294133ingn:VendorThreeMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2024-01-012024-03-310001294133us-gaap:PropertyPlantAndEquipmentOtherTypesMember2024-12-310001294133us-gaap:FairValueMeasurementsRecurringMember2024-12-310001294133us-gaap:PropertyPlantAndEquipmentOtherTypesMember2024-01-012024-03-310001294133us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-03-310001294133us-gaap:RetainedEarningsMember2025-03-310001294133ingn:MedicaresServiceReimbursementProgramsMemberingn:RentalRevenuesMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-03-310001294133ingn:RestrictedStockUnitsAndRestrictedStockAwardsMemberingn:TwoThousandAndFourteenEquityIncentivePlanMember2025-03-310001294133us-gaap:OtherNoncurrentAssetsMember2024-12-310001294133srt:MinimumMemberus-gaap:CustomerRelationshipsMember2024-12-310001294133us-gaap:TradeNamesMember2024-12-310001294133us-gaap:RetainedEarningsMember2024-12-310001294133us-gaap:CustomerRelationshipsMembersrt:MaximumMember2024-12-310001294133us-gaap:CommonStockMember2024-12-310001294133ingn:PerformanceAndTimeBasedRestrictedStockUnitsMember2025-01-012025-03-310001294133ingn:RestrictedStockUnitsAndRestrictedStockAwardsMember2025-01-012025-03-310001294133us-gaap:AdditionalPaidInCapitalMember2024-12-310001294133us-gaap:SoftwareDevelopmentMember2024-12-310001294133us-gaap:RetainedEarningsMember2024-01-012024-03-310001294133us-gaap:AdditionalPaidInCapitalMember2025-01-012025-03-3100012941332024-12-310001294133us-gaap:CashMemberus-gaap:FairValueMeasurementsRecurringMember2025-03-310001294133us-gaap:RetainedEarningsMember2024-03-310001294133ingn:MedicaresServiceReimbursementProgramsMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-03-310001294133ingn:LifetimeWarrantiesMemberus-gaap:SalesChannelDirectlyToConsumerMember2025-03-310001294133ingn:CommercialMember2024-12-310001294133us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMembersrt:MaximumMemberingn:PhysioAssistSasMember2025-03-310001294133ingn:VendorTwoMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2025-01-012025-03-310001294133ingn:CustomerOneMemberus-gaap:CustomerConcentrationRiskMember2024-12-310001294133us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberingn:InstitutionalInsuredLiquidityDepositSavingsMember2024-12-310001294133ingn:RentalMember2024-12-310001294133srt:MaximumMember2025-01-012025-03-310001294133us-gaap:PropertyPlantAndEquipmentOtherTypesMember2025-01-012025-03-310001294133us-gaap:SellingAndMarketingExpenseMember2024-01-012024-03-310001294133country:US2025-01-012025-03-310001294133us-gaap:FairValueMeasurementsRecurringMember2025-03-310001294133ingn:RestrictedStockUnitsAndRestrictedStockAwardsMember2024-01-012024-03-3100012941332023-12-310001294133us-gaap:RetainedEarningsMember2023-12-310001294133ingn:TimeBasedRestrictedStockUnitsMember2025-03-310001294133ingn:MedicaresServiceReimbursementProgramsMemberingn:RentalRevenuesMemberus-gaap:CustomerConcentrationRiskMember2024-01-012024-03-310001294133us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember2025-01-012025-03-310001294133ingn:MedicaresServiceReimbursementProgramsMemberus-gaap:SalesRevenueNetMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-03-310001294133us-gaap:CommonStockMember2025-03-310001294133us-gaap:DesignatedAsHedgingInstrumentMember2025-03-310001294133us-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-03-310001294133ingn:TimeBasedRestrictedStockUnitsMember2024-12-310001294133ingn:PatentsAndWebsitesMember2024-12-310001294133us-gaap:AdditionalPaidInCapitalMember2024-03-310001294133ingn:CostOfRevenueMember2024-01-012024-03-310001294133us-gaap:CustomerRelationshipsMember2025-03-310001294133ingn:LifetimeWarrantiesMemberus-gaap:SalesChannelDirectlyToConsumerMember2024-12-310001294133us-gaap:PropertyPlantAndEquipmentOtherTypesMember2025-03-310001294133ingn:TimeBasedRestrictedStockUnitsMember2025-01-012025-03-310001294133us-gaap:NondesignatedMember2025-03-310001294133us-gaap:TradeNamesMember2025-03-310001294133us-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMemberingn:VendorOneMember2024-01-012024-03-310001294133us-gaap:ResearchAndDevelopmentExpenseMember2024-01-012024-03-310001294133us-gaap:CashMemberus-gaap:FairValueMeasurementsRecurringMember2024-12-310001294133us-gaap:GeneralAndAdministrativeExpenseMember2024-01-012024-03-310001294133us-gaap:CommonStockMember2024-03-310001294133ingn:VendorTwoMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2024-01-012024-03-310001294133ingn:TwoThousandAndFourteenEmployeeStockPurchasePlanMember2025-03-3100012941332025-03-310001294133ingn:BusinessToBusinessAndOtherReceivablesMember2024-12-310001294133us-gaap:AccumulatedOtherComprehensiveIncomeMember2025-01-012025-03-3100012941332024-01-012024-03-310001294133ingn:RentalMember2025-03-310001294133ingn:SecuritiesPurchaseAgreementMember2025-01-250001294133us-gaap:RestrictedStockUnitsRSUMember2025-01-012025-03-310001294133ingn:VendorThreeMemberus-gaap:CostOfGoodsTotalMemberus-gaap:SupplierConcentrationRiskMember2025-01-012025-03-310001294133us-gaap:NonUsMember2024-01-012024-03-310001294133us-gaap:AccumulatedOtherComprehensiveIncomeMember2024-12-310001294133us-gaap:ForwardContractsMember2025-03-3100012941332025-05-020001294133ingn:MedicaresServiceReimbursementProgramsMemberus-gaap:AccountsReceivableMemberus-gaap:CustomerConcentrationRiskMember2025-01-012025-03-310001294133ingn:CustomerOneMemberus-gaap:CustomerConcentrationRiskMember2025-03-310001294133ingn:BusinessToBusinessAndOtherReceivablesMember2025-03-310001294133us-gaap:FairValueInputsLevel2Memberus-gaap:FairValueMeasurementsRecurringMemberingn:InstitutionalInsuredLiquidityDepositSavingsMember2025-03-310001294133ingn:PerformanceAndTimeBasedRestrictedStockUnitsMember2025-03-310001294133us-gaap:RestrictedStockUnitsRSUMember2024-01-012024-03-31iso4217:USDxbrli:sharesxbrli:purexbrli:sharesingn:Customeriso4217:USDingn:Contract

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period From to

Commission file number: 001-36309

INOGEN, INC.

(Exact name of registrant as specified in its charter)


Delaware	33-0989359
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
859 Ward Drive Goleta, CA	93111
(Address of principal executive offices)	(Zip Code)

Registrant’s telephone number, including area code: (805) 562-0500

Securities registered pursuant to Section 12(b) of the Act:

     Title of each class

     Trading
Symbol(s)

     Name of each exchange on which registered

     Common Stock, $0.001 par value

     INGN

     The NASDAQ Stock Market LLC
(NASDAQ Global Select Market)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

As of May 2, 2025, the registrant had 26,887,242 shares of common stock, par value $0.001, outstanding.

TABLE OF CONTENTS


	Part I – Financial Information	Page
Item 1.	Financial Statements	3
	Consolidated Balance Sheets (unaudited) as of March 31, 2025 and December 31, 2024	3
	Consolidated Statements of Comprehensive Loss (unaudited) for the Three Months Ended March 31, 2025 and March 31, 2024	4
	Consolidated Statements of Stockholders’ Equity (unaudited) for the Three Months Ended March 31, 2025 and March 31, 2024	5
	Consolidated Statements of Cash Flows (unaudited) for the Three Months Ended March 31, 2025 and March 31, 2024	6
	Condensed Notes to the Consolidated Financial Statements (unaudited)	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	31
Item 4.	Controls and Procedures	32
	Part II – Other Information
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Defaults Upon Senior Securities	33
Item 4.	Mine Safety Disclosures	33
Item 5.	Other Information	33
Item 6.	Exhibits	34
SIGNATURES		35

INOGEN, INC.

PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

Inogen, Inc.

Consolidated Balance Sheets

(unaudited)

(amounts in thousands, except share and per share amounts)


	March 31, 2025			December 31, 2024
Assets
Current assets
Cash and cash equivalents	$	118,893		$	113,795
Restricted cash		3,646			3,620
Accounts receivable, net		36,623			29,563
Inventories, net		26,273			24,812
Income tax receivable		—			538
Prepaid expenses and other current assets		15,273			13,123
Total current assets		200,708			185,451
Property and equipment, net		41,099			44,400
Goodwill		9,860			9,465
Intangible assets, net		31,607			30,493
Operating lease right-of-use asset		18,120			18,295
Other assets		7,018			8,081
Total assets	$	308,412		$	296,185
Liabilities and stockholders' equity
Current liabilities
Accounts payable and accrued expenses	$	35,925		$	27,153
Accrued payroll		10,513			17,189
Warranty reserve - current		9,658			9,736
Operating lease liability - current		2,945			2,812
Earnout liability		—			13,000
Deferred revenue - current		6,410			6,654
Income tax payable		—			142
Total current liabilities		65,451			76,686
Long-term liabilities
Warranty reserve - noncurrent		16,226			16,350
Operating lease liability - noncurrent		16,267			16,594
Deferred revenue - noncurrent		5,107			5,747
Deferred tax liability		7,409			6,948
Total liabilities		110,460			122,325
Commitments and contingencies (Note 9)
Stockholders' equity
Common stock, $0.001 par value per share; 200,000,000 shares authorized; 26,887,242 and 23,902,338 shares issued and outstanding as of March 31, 2025 and December 31, 2024, respectively		27			24
Additional paid-in capital		357,447			328,174
Accumulated deficit		(159,011	)		(152,837	)
Accumulated other comprehensive loss		(511	)		(1,501	)
Total stockholders' equity		197,952			173,860
Total liabilities and stockholders' equity	$	308,412		$	296,185

See accompanying condensed notes to the consolidated financial statements.

Inogen, Inc.

Consolidated Statements of Comprehensive Loss

(unaudited)

(amounts in thousands, except share and per share amounts)


	Three months ended March 31,
	2025			2024
Revenue
Sales revenue	$	68,470		$	63,095
Rental revenue		13,810			14,930
Total revenue		82,280			78,025
Cost of revenue
Cost of sales revenue		38,083			35,244
Cost of rental revenue, including depreciation of $3,034 and $3,179, respectively		7,825			8,410
Total cost of revenue		45,908			43,654
Gross profit
Gross profit-sales revenue		30,387			27,851
Gross profit-rental revenue		5,985			6,520
Total gross profit		36,372			34,371
Operating expense
Research and development		4,034			6,578
Sales and marketing		23,757			26,936
General and administrative		16,237			17,131
Total operating expense		44,028			50,645
Loss from operations		(7,656	)		(16,274	)
Other income (expense)
Interest income, net		1,029			1,403
Other income		356			143
Total other income, net		1,385			1,546
Loss before benefit for income taxes		(6,271	)		(14,728	)
Benefit for income taxes		(97	)		(150	)
Net loss		(6,174	)		(14,578	)
Other comprehensive income (loss), net of tax
Change in foreign currency translation adjustment		1,855			(1,035	)
Change in net unrealized losses on foreign currency hedging		(732	)		—
Less: reclassification adjustment for net losses included in net loss		(133	)		—
Total net change in unrealized losses on foreign currency hedging		(865	)		—
Change in net unrealized losses on marketable securities		—			(2	)
Total other comprehensive income (loss), net of tax		990			(1,037	)
Comprehensive loss	$	(5,184	)	$	(15,615	)

Basic net loss per share attributable to common stockholders (Note 6)	$	(0.25	)	$	(0.62	)
Diluted net loss per share attributable to common stockholders (Note 6)	$	(0.25	)	$	(0.62	)
Weighted average number of shares used in calculating net loss per share attributable to common stockholders:
Basic shares of common stock		25,164,444			23,401,598
Diluted shares of common stock		25,164,444			23,401,598

See accompanying condensed notes to the consolidated financial statements.

Inogen, Inc.

Consolidated Statements of Stockholders’ Equity

(unaudited)

(amounts in thousands, except share amounts)


	Three months ended March 31, 2025 and March 31, 2024
												Accumulated
						Additional						other			Total
	Common stock					paid-in			Accumulated			comprehensive			stockholders'
	Shares			Amount		capital			deficit			income (loss)			equity
Balance, December 31, 2023		23,324,750		$	23	$	320,513		$	(116,949	)	$	1,225		$	204,812
Stock-based compensation		—			—		2,416			—			—			2,416
Stock issued		233,927			1		369			—			—			370
Tax withholding related to vesting of restricted stock units		(12,199	)		—		(85	)		—			—			(85	)
Net loss		—			—		—			(14,578	)		—			(14,578	)
Other comprehensive loss		—			—		—			—			(1,037	)		(1,037	)
Balance, March 31, 2024		23,546,478		$	24	$	323,213		$	(131,527	)	$	188		$	191,898

Balance, December 31, 2024		23,902,338		$	24	$	328,174		$	(152,837	)	$	(1,501	)	$	173,860
Stock-based compensation		—			—		2,147			—			—			2,147
Stock issued		426,855			—		489			—			—			489
Tax withholding related to vesting of restricted stock units		(68,376	)		—		(570	)		—			—			(570	)
Issuance of common stock from securities purchase agreement		2,626,425			3		27,207			—			—			27,210
Net loss		—			—		—			(6,174	)		—			(6,174	)
Other comprehensive income		—			—		—			—			990			990
Balance, March 31, 2025		26,887,242		$	27	$	357,447		$	(159,011	)	$	(511	)	$	197,952

See accompanying condensed notes to the consolidated financial statements.

Inogen, Inc.

Consolidated Statements of Cash Flows

(unaudited)

(amounts in thousands)


	Three months ended March 31,
	2025			2024
Cash flows from operating activities
Net loss	$	(6,174	)	$	(14,578	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		5,189			5,265
Loss on rental units and other assets		925			1,162
Gain on sale of former rental assets		—			(38	)
Provision for sales revenue returns and doubtful accounts		1,714			2,164
Provision for inventory losses		166			(53	)
Loss on purchase commitments		65			—
Stock-based compensation expense		2,147			2,416
Deferred income taxes		457			(201	)
Change in fair value of earnout liability		—			570
Changes in operating assets and liabilities:
Accounts receivable		(8,167	)		(267	)
Inventories		(1,085	)		(2,973	)
Income tax receivable		—			(312	)
Prepaid expenses and other current assets		(1,549	)		248
Operating lease right-of-use asset		742			(249	)
Other noncurrent assets		453			4
Accounts payable and accrued expenses		6,889			1,488
Accrued payroll		(6,751	)		(449	)
Warranty reserve		(202	)		2,052
Deferred revenue		(884	)		(1,172	)
Income tax payable		(142	)		(27	)
Operating lease liability		(761	)		201
Earnout liability		(9,822	)		—
Net cash used in operating activities		(16,790	)		(4,749	)
Cash flows from investing activities
Purchases of available-for-sale securities		—			(12,384	)
Maturities of available-for-sale securities		—			3,000
Investment in property and equipment		(292	)		(1,310	)
Production and purchase of rental equipment		(1,746	)		(2,820	)
Proceeds from sale of former assets		—			70
Net cash used in investing activities		(2,038	)		(13,444	)

(continued on next page)

See accompanying condensed notes to the consolidated financial statements.

Inogen, Inc.

Consolidated Statements of Cash Flows (continued)

(unaudited)

(amounts in thousands)


	Three months ended March 31,
	2025			2024
Cash flows from financing activities
Proceeds from employee stock purchases		489			370
Payment of employment taxes related to release of restricted stock		(570	)		(85	)
Payments of accrued earnout		(3,178	)		—
Proceeds from issuance of common stock from securities purchase agreement		27,210			—
Net cash provided by financing activities		23,951			285
Effect of exchange rates on cash		1			(140	)
Net increase (decrease) in cash, cash equivalents and restricted cash		5,124			(18,048	)
Cash, cash equivalents and restricted cash, beginning of period		117,415			125,492
Cash, cash equivalents and restricted cash, end of period	$	122,539		$	107,444

Supplemental disclosures of cash flow information
Cash paid during the period for income taxes, net of refunds received	$	400		$	422
Supplemental disclosure of non-cash transactions
Property and equipment in accounts payable and accrued expenses		590			100

See accompanying condensed notes to the consolidated financial statements.

Inogen, Inc.

Condensed Notes to the Consolidated Financial Statements

(unaudited)

(amounts in thousands, except share and per share amounts)

1. Business overview

Inogen, Inc., or the Company, is a medical technology business that primarily focuses on respiratory health. The Company develops, manufactures, and markets innovative respiratory health products, including portable oxygen concentrators, or POCs, used to deliver supplemental long-term oxygen therapy to patients suffering from chronic respiratory conditions and the Simeox® product for airway clearance treatment. The Company's proprietary Inogen One® and Inogen Rove® systems concentrate the air around the patient to offer a source of supplemental oxygen 24 hours a day, seven days a week with a battery and can be plugged into an outlet when at home, in a car, or in a public place with outlets available. While often used concomitantly with stationary oxygen concentrators and oxygen compressed gas tanks, the Company's POCs are designed to reduce the patient’s reliance on stationary concentrators and scheduled deliveries of tanks with a finite supply of oxygen, thereby improving patient quality of life and fostering mobility. The Company's Simeox product is a technology-enabled airway clearance and mucus management device predominantly aimed at serving patients with bronchiectasis, which is a condition that presents as the lung's bronchi are damaged and widened in patients with cystic fibrosis, chronic obstructive pulmonary disease, or other chronic respiratory diseases.

The Company was incorporated in Delaware on November 27, 2001. On February 14, 2014, the Company completed an initial public offering of common stock and began trading on the Nasdaq Global Select Market, trading under the ticker symbol “INGN”.

The Company incorporated Inogen Europe Holding B.V., a Dutch limited liability company, on April 13, 2017. On May 4, 2017, Inogen Europe Holding B.V. acquired all issued and outstanding capital stock of MedSupport Systems B.V., or MedSupport, and began operating under the name Inogen Europe B.V. The Company merged Inogen Europe Holding B.V. and Inogen Europe B.V. on December 28, 2018. Inogen Europe B.V. is the remaining legal entity. The Company completed the acquisition of New Aera, Inc., or New Aera, on August 9, 2019. On September 14, 2023, the Company completed the acquisition of all of the issued and outstanding capital stock of Physio-Assist SAS, or Physio-Assist, and its wholly-owned subsidiary PhysioAssist GmbH.

On January 25, 2025, the Company entered into a Strategic Collaboration Agreement, or the Collaboration Agreement, with Jiangsu Yuyue Medical Equipment & Supply Co., Ltd., or Yuwell. The collaboration with Yuwell is expected to broaden the Company's product portfolio through distribution of certain respiratory products in the United States and select other territories, expand and enhance the Company's innovation pipeline through research and development collaboration, and accelerate the entry of the Company's brand into the Chinese market. The Company will distribute certain products supplied by Yuwell in the United States and specified European countries and Yuwell will distribute certain products supplied by the Company in specified Asia Pacific countries.

2. Basis of presentation and summary of significant accounting policies

Basis of presentation

The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America, or U.S. GAAP.

The results of operations for the three months ended March 31, 2025 shown in this report are not necessarily indicative of results to be expected for the full year ending December 31, 2025. In the opinion of the Company’s management, the information contained herein reflects all adjustments, consisting of only normal recurring adjustments, necessary for a fair presentation of the Company’s results of operations, financial position, cash flows, and stockholders’ equity. Certain footnote disclosures normally included in annual consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to Securities and Exchange Commission, or SEC, rules and regulations relating to interim financial statements. The accompanying consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the SEC on February 28, 2025. Except as further described below, there have been no significant changes in the Company’s accounting policies from those disclosed in its Annual Report on Form 10-K filed with the SEC on February 28, 2025.

Basis of consolidation

The consolidated financial statements include the accounts of Inogen, Inc. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated.

Accounting estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Management bases these estimates and assumptions upon historical experience, existing and known circumstances, authoritative accounting pronouncements and other factors that management believes to be reasonable. Significant areas requiring the use of management estimates relate to revenue recognition, warranty reserves and expense, determining the stand-alone selling price, or SSP, and service period of performance obligations, rental asset valuations and write-downs, accounts receivable allowances for bad debts, returns and adjustments, impairment of goodwill, impairment of long-lived assets, stock-based compensation expense, income taxes, fair value of acquired intangible assets and goodwill, and financing receivable. Actual results could differ from these estimates.

3. Fair value measurements

Cash, cash equivalents and restricted cash

The following table summarizes fair value measurements by level for the assets measured at fair value on a recurring basis for cash, cash equivalents and restricted cash:


	As of March 31, 2025
					Cash
	Adjusted				and cash		Restricted
	cost		Fair value		equivalents		cash
Cash	$	21,260	$	21,260	$	21,260	$	—
Level 1:
Money market accounts		75,856		75,856		72,210		3,646

Level 2:
Institutional Insured Liquidity Deposit Savings		25,423		25,423		25,423		—
Total	$	122,539	$	122,539	$	118,893	$	3,646


	As of December 31, 2024
					Cash
	Adjusted				and cash		Restricted
	cost		Fair value		equivalents		cash
Cash	$	23,053	$	23,053	$	23,053	$	—
Level 1:
Money market accounts		72,129		72,129		68,509		3,620

Level 2:
Institutional Insured Liquidity Deposit Savings		22,233		22,233		22,233		—
Total	$	117,415	$	117,415	$	113,795	$	3,620

Derivative instruments and hedging activities

The Company records the assets or liabilities associated with derivative instruments and hedging activities at fair value based on Level 2 inputs in other current assets or other current liabilities, respectively, in the consolidated balance sheets. The Company had a related payable of $1,888 and a receivable of $351 as of March 31, 2025 and December 31, 2024, respectively.

Accumulated other comprehensive income (loss)

The components of accumulated other comprehensive income (loss) were as follows:


	Foreign			Unrealized			Accumulated
	currency			losses			other
	translation			on cash			comprehensive
	adjustments			flow hedges			loss
Balance as of December 31, 2024	$	(1,501	)	$	—		$	(1,501	)
Other comprehensive income (loss)		1,855			(865	)		990
Balance as of March 31, 2025	$	354		$	(865	)	$	(511	)

Comprehensive income (loss) is the total net earnings and all other non-owner changes in equity. Except for net loss and unrealized gains and losses on cash flow hedges, the Company does not have any transactions or other economic events that qualify as comprehensive income (loss).

Earnout liability

The Company had obligations to pay up to $13,000 in an earnout payment related to the Physio-Assist acquisition in cash if certain future regulatory results were met. Such future regulatory results were met with the clearance of the Simeox product on December 23, 2024, and the payment of accrued earnouts was made during the first quarter of 2025.

The reconciliation of the earnout liability measured and carried at fair value on a recurring basis is as follows:


Balance as of December 31, 2024	$	13,000
Payments of accrued earnouts		(13,000	)
Balance as of March 31, 2025	$	—

4. Balance sheet components

Accounts receivable and allowance for bad debts, returns, and adjustments

Net accounts receivable (gross accounts receivable, net of allowances) balance concentrations by major category as of March 31, 2025 and December 31, 2024 were as follows:


	March 31,		December 31,
Net accounts receivable	2025		2024
Rental (1)	$	6,269	$	4,863
Business-to-business and other receivables		30,354		24,700
Total net accounts receivable	$	36,623	$	29,563

(1) Rental includes Medicare, Medicaid/other government, private insurance, and patient pay.

The following table sets forth the accounts receivable allowances as of March 31, 2025 and December 31, 2024:


	March 31,		December 31,
Allowances - accounts receivable	2025		2024
Doubtful accounts	$	91	$	458
Sales returns		484		413
Total allowances - accounts receivable	$	575	$	871

Concentration of customers and vendors

The Company primarily sells its products to traditional home medical equipment providers, distributors, and resellers in the United States and in foreign countries on a credit basis. The Company also sells its products direct-to-consumers primarily on a prepayment basis. One single customer represented more than 10% of the Company's total revenue for the three months ended March 31, 2025. One customer represented more than 10% of the Company’s net accounts receivable balance with a net accounts receivable balance of $4,302 as of March 31, 2025 and $3,288 as of December 31, 2024.

The Company also rents products directly to consumers for insurance reimbursement, which resulted in a customer concentration relating to Medicare’s service reimbursement programs. Medicare’s service reimbursement programs accounted for 55.0% and 58.4% of rental revenue in the three months ended March 31, 2025 and 2024, respectively, and accounted for 9.2% and 11.2% of total revenue for the three months ended March 31, 2025 and 2024, respectively. Accounts receivable balances relating to Medicare’s service reimbursement programs (including held and unbilled, net of allowances) amounted to $1,352, or 3.7%, of total net accounts receivable as of March 31, 2025 compared to $1,107, or 4.8%, of total net accounts receivable as of December 31, 2024.

The Company currently purchases raw materials from a limited number of vendors, which resulted in a concentration of three major vendors. The three major vendors supply the Company with raw materials used to manufacture the Company’s products. For the three months ended March 31, 2025, the Company’s three major vendors accounted for 17.9%, 10.8%, and 10.6%, respectively, of total raw material purchases. For the three months ended March 31, 2024, the Company’s three major vendors accounted for 24.6%, 17.2%, and 10.0%, respectively, of total raw material purchases.

A portion of revenue is earned from sales outside the United States. Approximately 78.9% and 79.9% of the non-U.S. revenue for the three months ended March 31, 2025 and 2024, respectively, were invoiced in Euros. A breakdown of the Company’s revenue from U.S. and non-U.S. sources for the three months ended March 31, 2025 and 2024, respectively, is as follows:


	Three months ended March 31,
	2025		2024
U.S. revenue	$	50,295	$	51,990
Non-U.S. revenue		31,985		26,035
Total revenue	$	82,280	$	78,025

Inventories

Inventories are stated at the lower of cost and net realizable value, using the first-in, first-out, or FIFO, method. The Company records adjustments to inventory for potentially excess, obsolete, slow-moving or impaired items, and losses on firm purchase commitments as a component of cost of sales in the consolidated statements of comprehensive loss. The Company recorded noncurrent inventory related to inventories that are expected to be realized or consumed after one year of $679 and $1,291 as of March 31, 2025 and December 31, 2024, respectively. Noncurrent inventories are primarily related to raw materials purchased in bulk to support long-term expected repairs to reduce costs and are classified in other assets. During the three months ended March 31, 2025 and 2024, $149 and $331, respectively, of inventory was transferred to rental equipment and was considered a noncash transaction in the production and purchase of rental equipment on the consolidated statements of cash flows. Inventories that are considered current consist of the following:


	March 31,			December 31,
	2025			2024
Raw materials and work-in-progress	$	19,401		$	19,224
Finished goods		8,882			7,633
Less: reserves		(2,010	)		(2,045	)
Inventories, net	$	26,273		$	24,812

Property and equipment

Expenditures for additions, improvements and replacements are capitalized and depreciated to a salvage value of $0. Repair and maintenance costs on rental equipment are included in cost of rental revenue on the consolidated statements of comprehensive loss. Repair and maintenance expense, which includes labor, parts, and freight, for rental equipment was $1,838 and $1,759 for the three months ended March 31, 2025 and 2024, respectively.

Depreciation and amortization expense related to rental equipment and other property and equipment are summarized below for the three months ended March 31, 2025 and 2024, respectively.


	Three months ended March 31,
	2025		2024
Rental equipment	$	3,034	$	3,179
Other property and equipment		1,016		1,154
Total depreciation and amortization	$	4,050	$	4,333

Property and equipment and rental equipment with associated accumulated depreciation is summarized below as of March 31, 2025 and December 31, 2024, respectively.


	March 31,		December 31,
Property and equipment	2025		2024
Rental equipment, net of allowances of $3,805 and $3,744, respectively	$	62,019	$	64,012
Other property and equipment		24,837		25,123
Property and equipment		86,856		89,135

Accumulated depreciation
Rental equipment		32,400		32,294
Other property and equipment		13,357		12,441
Accumulated depreciation		45,757		44,735

Property and equipment, net
Rental equipment, net of allowances of $3,805 and $3,744, respectively		29,619		31,718
Other property and equipment		11,480		12,682
Property and equipment, net	$	41,099	$	44,400

Long-lived assets

The Company accounts for the impairment and disposition of long-lived assets in accordance with Accounting Standards Codification, or ASC, 360 — Property, Plant, and Equipment. Long-lived assets are reviewed for indicators of impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. No impairments were recorded for the three months ended March 31, 2025 and 2024.

Goodwill and other identifiable intangible assets

Goodwill

The changes in the carrying amount of goodwill for the three months ended March 31, 2025 were as follows:


Balance as of December 31, 2024 (1)	$	9,465
Translation adjustment		395
Balance as of March 31, 2025 (1)	$	9,860

(1) Includes $32,894 of accumulated impairment losses as of March 31, 2025 and December 31, 2024.

Intangible assets

Intangible assets as of March 31, 2025 and December 31, 2024 consisted of the following:


	Average
	estimated	Gross
	useful lives	carrying		Accumulated
March 31, 2025	(in years)	amount		amortization		Net amount
Developed technology	10	$	32,651	$	5,034	$	27,617
Licenses	10		159		159		—
Patents and websites	5		3,776		3,765		11
Customer relationships	4-10		2,915		1,547		1,368
Trade name	4		202		78		124
Commercials	3		494		323		171
Internally developed software	3		3,175		859		2,316
Total		$	43,372	$	11,765	$	31,607


	Average
	estimated	Gross
	useful lives	carrying		Accumulated
December 31, 2024	(in years)	amount		amortization		Net amount
Developed technology	10	$	31,342	$	4,048	$	27,294
Licenses	10		159		159		—
Patents and websites	5		3,776		3,752		24
Customer relationships	4-10		2,799		1,447		1,352
Trade name	4		194		63		131
Commercials	3		494		282		212
Internally developed software	3		2,090		610		1,480
Total		$	40,854	$	10,361	$	30,493

Annual estimated amortization expense for each of the succeeding fiscal years is as follows:


	March 31,
	2025
Remaining 9 months of 2025	$	3,532
2026		4,588
2027		3,911
2028		3,442
2029		3,427
2030		3,427
Thereafter		9,280
Total	$	31,607

Current liabilities

Accounts payable and accrued expenses as of March 31, 2025 and December 31, 2024 consisted of the following:


	March 31,		December 31,
	2025		2024
Accounts payable	$	23,257	$	16,616
Accrued inventory (in-transit and unvouchered receipts) and trade payables		7,531		6,917
Accrued loss on purchase commitments		701		672
Forward contract payable		1,888		—
Other accrued expenses		2,548		2,948
Total accounts payable and accrued expenses	$	35,925	$	27,153

Accrued payroll as of March 31, 2025 and December 31, 2024 consisted of the following:


	March 31,		December 31,
	2025		2024
Accrued bonuses	$	1,968	$	6,370
Accrued wages and other payroll related items		3,469		5,570
Accrued vacation		3,981		3,456
Accrued severance		926		1,429
Accrued employee stock purchase plan deductions		169		364
Total accrued payroll	$	10,513	$	17,189

5. Leases

The Company has entered into operating leases primarily for commercial buildings. These leases have terms that range from three years to 11 years, some of which include options to extend the leases for up to five years. Rent expense, including short-term lease cost, was $962 and $1,073 for the three months ended March 31, 2025 and 2024, respectively.

In July 2023, the Company entered into an Assignment and Assumption of Lease Agreement in which a third party, referred to as the Assignee, assumed the rights, title, and interest in the lease, including assumption of lease payments. Commencing February 1, 2024 and ending May 31, 2031, the Assignee assumed responsibility for the monthly lease payments. Notwithstanding the Assignee's assumption of lease payments, the Company remains the primary obligor under the lease to the landlord.

Lease payments assumed by the Assignee are:


Payments due in the 12-month period ending March 31,
2026	$	1,136
2027		1,136
2028		1,136
2029		1,136
2030		1,136
Thereafter		1,325
Total	$	7,005

Information related to the Company's right-of-use assets and related operating lease liabilities were as follows:


	Three months ended
	March 31,
	2025			2024
Cash paid for operating lease liabilities	$	946		$	1,115
Operating lease cost		935			1,056
Non-cash right-of-use assets obtained in exchange for new operating lease obligations		551			1,224
Weighted-average remaining lease term	3.1 years			3.0 years
Weighted-average discount rate		5.8	%		4.8	%


Maturities of lease liabilities due in the 12-month period ending March 31,
2026	$	3,481
2027		3,767
2028		3,630
2029		3,238
2030		3,199
Thereafter		3,615
		20,930
Less imputed interest		(1,718	)
Total lease liabilities	$	19,212

Operating lease liability - current	$	2,945
Operating lease liability - noncurrent		16,267
Total lease liabilities	$	19,212

6. Loss per share

Loss per share, or EPS, is computed in accordance with ASC 260—Earnings per Share and is calculated using the weighted-average number of shares of common stock outstanding during each period. Diluted EPS assumes the conversion, exercise or issuance of all potential common stock equivalents (which can include dilution of outstanding stock options and restricted stock units) unless the effect is to reduce a loss or increase the income per share. For purposes of this calculation, common stock subject to repurchase by the Company, options, and other dilutive awards are considered to be common stock equivalents and are only included in the calculation of diluted loss per share when their effect is dilutive.

Basic loss per share is calculated using the Company's weighted-average outstanding shares of common stock. Diluted loss per share is calculated using the Company's weighted-average outstanding shares of common stock including the dilutive effect of stock awards as determined under the treasury stock method.

The computation of EPS is as follows:


	Three months ended March 31,
	2025			2024
Numerator—basic and diluted:
Net loss	$	(6,174	)	$	(14,578	)

Denominator:
Weighted average shares of common stock - basic common stock (1)		25,164,444			23,401,598
Weighted average shares of common stock - diluted common stock		25,164,444			23,401,598

Net loss per share - basic common stock	$	(0.25	)	$	(0.62	)
Net loss per share - diluted common stock (2)	$	(0.25	)	$	(0.62	)

Denominator calculation from basic to diluted:
Weighted average shares of common stock - basic common stock (1)		25,164,444			23,401,598
Stock options and other dilutive awards		684,657			267,100
Weighted average shares of common stock - diluted common stock		25,849,101			23,668,698

Shares excluded from diluted weighted average shares:
Stock options		—			20,000
Restricted stock units		495,777			493,237
Shares excluded from diluted weighted average shares		495,777			513,237

(1) Unvested restricted stock units are not included as shares outstanding in the calculation of basic earnings per share. Vested restricted stock units are included in basic earnings per share if all vesting and performance criteria have been met. Performance-based restricted stock units are included in the number of shares used to calculate diluted earnings per share as long as all applicable performance criteria are met, and their effect is dilutive.

(2) Due to net losses for the three months ended March 31, 2025 and March 31, 2024, diluted loss per share is the same as basic loss per share.

7. Income taxes

The Company accounts for income taxes in accordance with ASC 740 — Income Taxes. Under ASC 740, income taxes are recognized for the amount of taxes payable or refundable for the current period and deferred tax liabilities and assets are recognized for the future tax consequences of transactions that have been recognized in the Company’s consolidated financial statements or tax returns. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance is provided when it is more likely than not that some portion, or all, of the deferred tax asset will not be realized. As of December 31, 2024, the Company recorded a full valuation allowance of $66,533. As of March 31, 2025, the Company continued to record a valuation allowance against its domestic deferred tax assets.

The Company accounts for uncertainties in income tax in accordance with ASC 740-10 — Accounting for Uncertainty in Income Taxes. ASC 740-10 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. This accounting standard also provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure, and transition.

The Company recognizes interest and penalties on taxes, within its income tax provision on its consolidated statements of comprehensive loss.

8. Stockholders’ equity

The Company has a 2014 Equity Incentive Plan, or the 2014 Plan, under which the Company granted restricted stock units, restricted stock awards, performance units, performance shares, and options to purchase shares of its common stock. As of March 31, 2025, awards with respect to 150,608 shares of the Company’s common stock were outstanding under the 2014 Plan.

The Company has an Amended and Restated 2023 Equity Incentive Plan, or the 2023 Plan, that provides for the grant of incentive stock options, within the meaning of Section 422 of the Internal Revenue Code, to the Company’s employees and any parent and subsidiary corporation’s employees, and for the grant of nonstatutory stock options, restricted stock, restricted stock units, restricted stock awards, stock appreciation rights, performance units and performance shares to its employees, directors and consultants and its parent and subsidiary corporations’ employees and consultants.

As of March 31, 2025, awards with respect to 2,569,074 shares of the Company's common stock were outstanding, and 968,219 shares of common stock remained available for issuance under the 2023 Plan. The shares available for issuance under the 2023 Plan will be increased by any shares returned to the 2014 Plan as a result of expiration or termination of awards.

The Company previously granted restricted stock units to induce an employee to accept employment with the Company in accordance with Nasdaq Listing Rule 5635(c)(4). As of March 31, 2025, awards with respect to 125,000 shares of the Company's common stock were outstanding pursuant to such inducement grant.

Securities purchase agreement

On January 25, 2025, the Company entered into a Securities Purchase Agreement, or the Purchase Agreement, with Yuwell (Hong Kong) Holdings Limited, or the Investor, a wholly-owned subsidiary of Yuwell, pursuant to which the Investor purchased 2,626,425 shares of the Company’s common stock at a price per share of $10.36, for an aggregate purchase price of approximately $27,210, or the Private Placement. The closing of the Private Placement took place on February 21, 2025.

Stock incentive awards

The Company grants restricted stock units, or RSUs, under the 2014 and 2023 Plans and made one inducement grant of RSUs in 2024. RSUs vest either based solely on the satisfaction of time-based service conditions or on the satisfaction of time-based service conditions combined with performance criteria. RSUs are subject to forfeiture if the holder’s services to the Company terminate before vesting.

RSUs granted with only time-based service vesting conditions generally vest over three-year service periods, as defined in the terms of each award. RSUs that vest based on the satisfaction of time-based service conditions combined with performance criteria generally vest over a three-year service and performance period, based on performance and/or market conditions established at the time of the award. The portion of the RSU award that is earned may equal or be more or less than the targeted number of shares subject to the RSU award depending on whether the performance criteria are met.

RSU activity for the three months ended March 31, 2025 is summarized below:


										Weighted-
										average
										grant
				Performance						date fair
				and						value
Restricted stock units	Time-based			time-based			Total			per share
Unvested restricted stock units as of December 31, 2024		1,203,383			601,194			1,804,577		$	8.61
Granted		700,630			822,308			1,522,938			9.84
Vested		(241,355	)		(118,100	)		(359,455	)		10.43
Forfeited/canceled		(41,175	)		(82,213	)		(123,388	)		10.41
Unvested restricted stock units as of March 31, 2025 (1)		1,621,483			1,223,189			2,844,672		$	8.86
Unvested and expected to vest restricted stock units outstanding as of March 31, 2025								1,937,480		$	8.83

(1) Outstanding RSUs are based on the maximum payout of the targeted number of shares.

As of March 31, 2025, the unrecognized compensation cost related to unvested employee restricted stock units was $14,359, excluding estimated forfeitures. This amount is expected to be recognized over a weighted average period of 2.4 years.

Employee stock purchase plan

The Company’s 2014 Employee Stock Purchase Plan, or ESPP, provides all eligible employees the option to purchase shares of the Company’s common stock at a discount through payroll deductions. As of March 31, 2025, a total of 695,428 shares of common stock were available for future purchase under the ESPP. In the first quarter of 2025, an additional 179,069 shares of common stock were reserved for issuance pursuant to future ESPP purchases as a result of the annual evergreen increase under the ESPP.

Stock-based compensation

Stock-based compensation expense recognized for the three months ended March 31, 2025 and 2024, was as follows:


	Three months ended
	March 31,
	2025		2024
Stock-based compensation expense by type of award:
Restricted stock units	$	2,008	$	2,309
Employee stock purchase plan		139		107
Total stock-based compensation expense	$	2,147	$	2,416

Stock-based compensation expense was calculated based on awards of restricted stock units expected to vest based on the Company’s historical award cancellations. ASC 718 – Compensation-Stock Compensation requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates.

For the three months ended March 31, 2025 and 2024, respectively, stock-based compensation expense recognized under ASC 718, included in cost of revenue, research and development expense, sales and marketing expense, and general and administrative expense was as follows:


	Three months ended
	March 31,
	2025		2024
Cost of revenue	$	167	$	180
Research and development		95		460
Sales and marketing		214		430
General and administrative		1,671		1,346
Total stock-based compensation expense	$	2,147	$	2,416

9. Commitments and contingencies

Purchase obligations

The Company had approximately $56,850 of outstanding purchase orders due within one year with its outside vendors and suppliers as of March 31, 2025. The Company has $701 and $672 accrued within accounts payable and other accrued expenses in the consolidated balance sheet as of March 31, 2025 and December 31, 2024, respectively, related to estimated losses for firm commitment contractual obligations under these agreements. Losses on these firm commitment contractual obligations are recognized based upon the terms of the respective agreement and similar factors considered for the write-down of inventory, including expected sales requirements as determined by internal sales forecasts.

Warranty obligation

The following table identifies the changes in the Company’s aggregate product warranty liabilities for the three-month and 12-month periods ended March 31, 2025 and December 31, 2024, respectively:


	March 31,			December 31,
	2025			2024
Product warranty liability at beginning of period	$	26,086		$	23,478
Accruals for warranties issued		3,170			12,076
Adjustments related to preexisting warranties (including changes in estimates)		(1,045	)		280
Settlements made (in cash or in kind)		(2,327	)		(9,748	)
Product warranty liability at end of period	$	25,884		$	26,086

Contract liabilities

Contract liabilities primarily consist of deferred revenue related to lifetime warranties on direct-to-consumer sales revenue when cash payments are received in advance of services performed under the contract. The contract with the customer states the final terms of the sale, including the description, quantity, and price of each product or service purchase. The decrease in deferred revenue related to lifetime warranties for the three months ended March 31, 2025 was primarily driven by $1,126 of revenue recognized that were included in the deferred revenue balances as of December 31, 2024, partially offset by $312 of payments received in advance of satisfying performance obligations. Deferred revenue related to lifetime warranties was $9,108 and $9,922 as of March 31, 2025 and December 31, 2024, respectively, and is classified within deferred revenue - current and noncurrent deferred revenue - noncurrent in the consolidated balance sheets.

Legislation and HIPAA

The healthcare industry is subject to numerous laws and regulations of federal, state, and local governments. These laws and regulations include, but are not necessarily limited to, matters such as licensure, accreditation, government healthcare program participation requirements, reimbursement for patient services, and Medicare and Medicaid fraud and abuse. Compliance with government laws and regulations can be subject to future government review and interpretation as well as regulatory actions unknown or unasserted at this time. The Health Insurance Portability and Accountability Act of 1996, or HIPAA, was enacted to ensure health insurance portability, reduce healthcare fraud and abuse, guarantee security and privacy of health information, and enforce standards for health information. The Health Information Technology for Economic and Clinical Health Act, or the HITECH Act, in part, imposes notification requirements of certain security breaches relating to protected health information. The Company is not aware of any pending claims against it under the HIPAA and HITECH regulations that are applicable to the Company’s business.

Legal proceedings

The Company is party to various legal proceedings and investigations arising in the normal course of business. The Company carries insurance, subject to specified deductibles under the policies, to protect against losses from certain types of legal claims. At this time, the Company does not anticipate that any of these other proceedings arising in the normal course of business will have a material adverse effect on the Company’s business. Regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors.

10. Foreign currency exchange contracts and hedging

As of March 31, 2025 and March 31, 2024, the Company’s total non-designated and designated derivative contracts had notional amounts totaling approximately $46,178 and $20,014, respectively, and $37,425 and $0, respectively. These contracts were comprised of offsetting contracts with the same counterparty, each expires within one to ten months. During the three months ended March 31, 2025 and 2024, these contracts had, net of tax, an unrealized loss of $865 and an unrealized gain or (loss) of $0, respectively.

The nonperformance risk of the Company and the counterparty did not have a material impact on the fair value of the derivatives. During the three months ended March 31, 2025, there were no ineffective portions relating to these hedges and the hedges remained effective through their respective settlement dates. During the three months ended March 31, 2024, there were no ineffective portions related to these hedges. As of March 31, 2025, the Company had nine designated hedges and four non-designated hedges. As of March 31, 2024, the Company had no designated hedges and four non-designated hedges.

11. Segments

Operating segments are defined as components of an enterprise engaging in business activities for which separate financial information is available that is regularly evaluated by the Group’s chief operating decision makers, or CODM. Based on the criteria established by ASC 280 Segment Reporting, the Company’s CODM has been identified as the executive leadership team, or ELT, which includes the Chief Executive Officer and the Chief Financial Officer. The ELT reviews a monthly executive reporting package based on consolidated results of the Company when making decisions about allocating resources and assessing performance. The Company derives revenues from customers through the development, manufacturing, marketing, sales, and rental of respiratory products. The Company considered the following when assessing its segment determination: the similar nature of the Company’s products and services that are included together in the oxygen therapy and respiratory care markets; the consistent production processes used to manufacture the Company’s products; the same channels used to distribute and sell the Company’s products; and the products align and qualify as respiratory durable medical equipment per the regulatory definition. Therefore, the Company determined that it operates and reports in only one operating and reportable segment. The CODM assesses performance for the one operating and reportable segment and decides how to allocate resources based on the segment profit or loss measure and adjusted EBITDA. The measure of segment assets is reported on the balance sheet as “total assets.” The CODM determined that the Company’s segment profit or loss measure that is most consistent with GAAP measurement principles is net loss to evaluate income and loss generated from segment assets (return on assets). Net Loss for the Company’s one operating and reportable segment is reported on the consolidated statements of comprehensive loss. The Company evaluated the monthly executive reporting package and did not identify any significant or other expenses for disclosure that are not already presented on the consolidated statements of comprehensive loss.

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller reporting company

Emerging growth company

Inogen Inc 10-Q