IRADIMED CORP - Quarter Report: 2022 March (Form 10-Q)

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒

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

For the Quarterly Period Ended March 31, 2022

☐

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

For the transition period from to

Commission File No.: 001-36534

IRADIMED CORPORATION

(Exact name of Registrant as specified in its charter)


Delaware		73-1408526
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification Number

1025 Willa Springs Drive Winter Springs, Florida		32708
(Address of principal executive offices)		(Zip Code)

(407) 677-8022

(Registrant’s telephone number, including area code)

N/A

(Former Name, former address and former fiscal year, if changed since last report)

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


Title of each class:	Trading Symbol	Name of each exchange on which registered:
Common stock, par value $0.0001	IRMD	NASDAQ Capital 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 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 or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” as defined in Rule 12b-2 of the Exchange Act.


Large accelerated filer ☐		Accelerated filer ☐
Non-accelerated filer ☒		Smaller reporting company ☒
		Emerging growth company ☐

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. Yes ☐ No ☐

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

The registrant had 12,560,767 shares of common stock, par value $0.0001 per share, outstanding as of April 30, 2022.

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IRADIMED CORPORATION

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			Page
Cautionary Note Regarding Forward-Looking Statements			3

Part I	Financial Information		5

	Item 1	Condensed Financial Statements	5

		(a) Condensed Balance Sheets as of March 31, 2022 (Unaudited) and December 31, 2021	5

		(b) Condensed Statements of Operations for the Three Months Ended March 31, 2022 and 2021 (Unaudited)	6

		(c) Condensed Statements of Comprehensive Income for the Three Months Ended March 31, 2022 and 2021 (Unaudited)	7

		(d) Condensed Statements of Stockholders’ Equity for the Three Months Ended March 31, 2022 and 2021 (Unaudited)	8

		(e) Condensed Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021 (Unaudited)	9

		(f) Notes to Unaudited Condensed Financial Statements	10

	Item 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	18

	Item 3	Quantitative and Qualitative Disclosures About Market Risk	23

	Item 4	Controls and Procedures	24

Part II	Other Information		25

	Item 1	Legal Proceedings	25

	Item 1A	Risk Factors	25

	Item 2	Unregistered Sale of Equity Securities and Use of Proceeds	25

	Item 3	Default Upon Senior Securities	25

	Item 4	Mine Safety Disclosures	25

	Item 5	Other Information	25

	Item 6	Exhibits	26

Signatures			27

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CAUTIONARY STATEMENTS REGARDING FORWARD-LOOKING STATEMENTS

This Quarterly Report on Form 10-Q contains “forward-looking statements” that involve substantial risks and uncertainties. The forward-looking statements are contained principally in the sections entitled “Business,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations.” In some cases, you can identify forward-looking statements by the following words: “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing” or the negative of these terms or other comparable terminology, although not all forward-looking statements contain these words. These statements relate to future events or our future financial performance or condition and involve known and unknown risks, uncertainties and other factors that could cause our actual results, levels of activity, performance or achievement to differ materially from those expressed or implied by these forward-looking statements. These forward-looking statements include, but are not limited to, statements about:

●

our ability to receive 510(k) clearance for our products and product candidates, complete inspections conducted by the U.S. Food & Drug Administration (“FDA”) or other regulatory bodies resulting in favorable outcomes, additional actions by or requests from the FDA, including a request to cease domestic distribution of products, or other regulatory bodies and unanticipated costs or delays associated with the resolution of these matters;

●

the timing and likelihood of regulatory approvals or clearances from the FDA or other regulatory bodies and regulatory actions on our product candidates and product marketing activities;

●

unexpected costs, expenses and diversion of management attention resulting from actions or requests posed to us by the FDA or other regulatory bodies;

●

our primary reliance on a limited number of products;

●

our ability to retain the continued service of our key professionals and to identify, hire and retain additional qualified professionals;

●

market and economic uncertainty caused by the COVID-19 outbreak;

●

our expectations regarding the sales and marketing of our products, product candidates and services;

●

our expectations regarding the integrity of our supply chain for our products;

●

the potential for adverse application of environmental, climate change, health and safety and other laws and regulations of any jurisdiction on our operations;

●

our expectations for market acceptance of our new products;

●

the potential for our marketed products to be withdrawn due to recalls, patient adverse events or deaths;

●

our ability to establish and maintain intellectual property on our products and our ability to successfully defend these in cases of infringement;

●

the implementation of our business strategies;

●

the potential for exposure to product liability claims;

●

our financial performance expectations and interpretations thereof by securities analysts and investors;

●

our ability to compete in the development and marketing of our products and product candidates with other companies in our industry;

●

difficulties or delays in the development, production, manufacturing and marketing of new or existing products and services, including difficulties or delays associated with obtaining requisite regulatory approvals or clearances associated with those activities;

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●

changes in laws and regulations or in the interpretation or application of laws or regulations, as well as possible failures to comply with applicable laws or regulations as a result of possible misinterpretations or misapplications;

●

cost-containment efforts of our customers, purchasing groups, third-party payers and governmental organizations;

●

costs associated with protecting our trade secrets and enforcing our patent, copyright and trademark rights, and successful challenges to the validity of our patents, copyrights or trademarks;

●

actions of regulatory bodies and other government authorities, including the FDA and foreign counterparts, that could delay, limit or suspend product development, manufacturing or sales or result in recalls, seizures, consent decrees, injunctions and monetary sanctions;

●

costs or claims resulting from potential errors or defects in our manufacturing that may injure persons or damage property or operations, including costs from remediation efforts or recalls;

●

the results, consequences, effects or timing of any commercial disputes, patent infringement claims or other legal proceedings or any government investigations;

●

interruption in our ability to manufacture our products or an inability to obtain key components or raw materials or increased costs in such key components or raw materials;

●

uncertainties in our industry due to the effects of government-driven or mandated healthcare reform;

●

competitive pressures in the markets in which we operate;

●

the loss of, or default by, one or more key customers or suppliers; and

●

unfavorable changes to the terms of key customer or supplier relationships.

Forward-looking statements are not guarantees of future performance and are subject to substantial risks and uncertainties that could cause the actual results to differ materially from those that we predicted in the forward-looking statements. Investors should carefully review the information contained under the caption "Risk Factors" contained in Item 1A for a description of risks and uncertainties that could cause actual results to differ from those that we predicted. All forward-looking statements are based on information available to us on the date hereof, and we assume no obligation to update forward-looking statements, except as required by Federal Securities laws.

Unless expressly indicated or the context requires otherwise, references in this Quarterly Report to “IRADIMED,” the “Company,” “we,” “our,” and “us” refer to IRADIMED CORPORATION.

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PART I. FINANCIAL INFORMATION

Item 1. Condensed Financial Statements

IRADIMED CORPORATION

CONDENSED BALANCE SHEETS


	March 31,		December 31,
	2022		2021
	(unaudited)
ASSETS
Current assets:
Cash and cash equivalents	$	50,446,484	$	61,999,550
Investments		500,090		501,855
Accounts receivable, net of allowance for doubtful accounts of $64,579 as of March 31, 2022 and $60,361 as of December 31, 2021		6,513,061		5,136,599
Inventory, net		4,345,042		4,299,799
Prepaid expenses and other current assets		1,020,398		1,000,716
Prepaid income taxes		2,689,237		3,306,438
Total current assets		65,514,312		76,244,957
Property and equipment, net		2,149,754		2,069,376
Intangible assets, net		1,334,670		1,118,584
Operating lease right-of-use asset, net		2,414,472		2,482,084
Deferred income taxes, net		808,019		765,096
Other assets		172,272		201,325
Total assets	$	72,393,499	$	82,881,422
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	1,136,651	$	782,903
Accrued payroll and benefits		1,877,475		2,814,560
Other accrued taxes		122,461		140,315
Warranty reserve		106,733		108,880
Deferred revenue		2,586,776		2,553,096
Current portion of operating lease liability		280,698		276,568
Other current liabilities		138,441		146,435
Total current liabilities		6,249,235		6,822,757
Deferred revenue		1,462,055		1,679,343
Operating lease liability, less current portion		2,133,774		2,205,516
Total liabilities		9,845,064		10,707,616
Stockholders’ equity:
Common stock; $0.0001 par value; 31,500,000 shares authorized; 12,560,469 shares issued and outstanding as of March 31, 2022 and 12,544,024 shares issued and outstanding as of December 31, 2021		1,256		1,254
Additional paid-in capital		25,618,544		25,160,618
Retained earnings		36,922,508		46,994,922
Accumulated other comprehensive income		6,127		17,012
Total stockholders’ equity		62,548,435		72,173,806
Total liabilities and stockholders’ equity	$	72,393,499	$	82,881,422

See accompanying notes to unaudited condensed financial statements.

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IRADIMED CORPORATION

CONDENSED STATEMENTS OF OPERATIONS

(Unaudited)


	For the Three Months Ended
	March 31,
	2022		2021
Revenue	$	12,310,710	$	9,223,996
Cost of revenue		2,931,186		2,161,680
Gross profit		9,379,524		7,062,316
Operating expenses:
General and administrative		2,715,950		2,430,369
Sales and marketing		3,069,556		2,379,124
Research and development		519,095		475,817
Total operating expenses		6,304,601		5,285,310
Income from operations		3,074,923		1,777,006
Other expense, net		14,915		5,663
Income before provision for income taxes		3,060,008		1,771,343
Provision for income tax expense		573,295		384,494
Net income	$	2,486,713	$	1,386,849
Net income per share:
Basic	$	0.20	$	0.11
Diluted	$	0.20	$	0.11
Weighted average shares outstanding:
Basic		12,552,817		12,310,577
Diluted		12,655,518		12,521,279

See accompanying notes to unaudited condensed financial statements.

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IRADIMED CORPORATION

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)


	For the Three Months Ended
	March 31,
	2022		2021
Net income	$	2,486,713	$	1,386,849
Other comprehensive loss:
Change in fair value of available-for-sale securities, net of tax benefit of $3,532 and $1,559, respectively		(10,885)		(4,869)
Other comprehensive loss		(10,885)		(4,869)
Comprehensive income	$	2,475,828	$	1,381,980

See accompanying notes to unaudited condensed financial statements.

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IRADIMED CORPORATION

CONDENSED STATEMENTS OF STOCKHOLDERS’ EQUITY

(Unaudited)


								Accumulated
				Additional				Other
	Common Stock			Paid-in		Retained		Comprehensive		Stockholders’
	Shares	Amount		Capital		Earnings		Income		Equity
Balances, December 31, 2021	12,544,024	$	1,254	$	25,160,618	$	46,994,922	$	17,012	$	72,173,806
Net income	—		—		—		2,486,713		—		2,486,713
Dividends paid ($1.00 per share)	—		—		—		(12,559,127)		—		(12,559,127)
Other comprehensive loss	—		—		—		—		(10,885)		(10,885)
Stock-based compensation expense	—		—		453,360		—		—		453,360
Net share settlement of restricted stock units	3,879		1		(67,381)		—		—		(67,380)
Exercise of stock options	12,566		1		71,947		—		—		71,948
Balances, March 31, 2022	12,560,469	$	1,256	$	25,618,544	$	36,922,508	$	6,127	$	62,548,435


								Accumulated
				Additional				Other
	Common Stock			Paid-in		Retained		Comprehensive		Stockholders’
	Shares	Amount		Capital		Earnings		Income		Equity
Balances, December 31, 2020	12,308,432	$	1,231	$	23,676,843	$	37,669,451	$	37,087	$	61,384,612
Net income	—		—		—		1,386,849		—		1,386,849
Other comprehensive loss	—		—		—		—		(4,869)		(4,869)
Stock-based compensation expense	—		—		347,741		—		—		347,741
Net share settlement of restricted stock units	3,502		—		(38,707)		—		—		(38,707)
Exercise of stock options	250		—		2,460		—		—		2,460
Balances, March 31, 2021	12,312,184	$	1,231	$	23,988,337	$	39,056,300	$	32,218	$	63,078,086

See accompanying notes to unaudited condensed financial statements.

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IRADIMED CORPORATION

CONDENSED STATEMENTS OF CASH FLOWS

(Unaudited)


	Three Months Ended
	March 31,
	2022		2021
Operating activities:
Net income	$	2,486,713	$	1,386,849
Adjustments to reconcile net income to net cash provided by operating activities:
Change in allowance for doubtful accounts		4,219		1,728
Change in provision for excess and obsolete inventory		12,254		(1,992)
Depreciation and amortization		433,925		331,794
Gain on disposal of property and equipment		(4,894)		—
Stock-based compensation		453,360		347,741
Deferred income taxes, net		(52,043)		288,895
Changes in operating assets and liabilities:
Accounts receivable		(1,380,681)		9,032
Inventory		82,909		(668,361)
Prepaid expenses and other current assets		(369,791)		(560,508)
Other assets		39,481		32,059
Accounts payable		186,340		(75,805)
Accrued payroll and benefits		(937,085)		(482,099)
Other accrued taxes		(17,854)		(26,388)
Warranty reserve		(2,147)		6,394
Deferred revenue		(117,726)		250,359
Other current liabilities		(7,994)		—
Prepaid income taxes		617,201		103,383
Net cash provided by operating activities		1,426,187		943,081
Investing activities:
Purchases of property and equipment		(183,352)		(132,318)
Capitalized intangible assets		(241,342)		(41,615)
Net cash used in investing activities		(424,694)		(173,933)
Financing activities:
Dividends paid		(12,559,127)		—
Proceeds from exercises of stock options		71,948		2,460
Taxes paid related to the net share settlement of equity awards		(67,380)		(38,707)
Net cash used in financing activities		(12,554,559)		(36,247)
Net (decrease) increase in cash and cash equivalents		(11,553,066)		732,901
Cash and cash equivalents, beginning of period		61,999,550		50,068,728
Cash and cash equivalents, end of period	$	50,446,484	$	50,801,629
Supplemental disclosure of cash flow information:
Cash paid for income taxes	$	8,137	$	5,195
Operating and short-term lease payments recorded within cash flow provided by operating activities	$	128,083	$	118,067

See accompanying notes to unaudited condensed financial statements.

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IRADIMED CORPORATION

Notes to Unaudited Condensed Financial Statements

1 — Basis of Presentation

The accompanying interim condensed financial statements of IRADIMED CORPORATION (“IRADIMED”, the “Company”, “we”, “our”) have been prepared pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally presented in annual financial statements prepared in accordance with U.S. generally accepted accounting principles ("GAAP") have been condensed or omitted pursuant to such rules and regulations. The interim financial information is unaudited, but reflects all normal adjustments that are, in the opinion of management, necessary for the fair presentation of our financial position, results of operations and cash flows for the interim periods presented. Operating results for the three months ended March 31, 2022 are not necessarily indicative of the results that may be expected for the year ending December 31, 2022.

The accompanying interim condensed financial statements should be read with the financial statements and related footnotes to financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2021. The accounting policies followed in the preparation of these interim condensed financial statements, except as described in Note 1, are consistent in all material respects with those described in Note 1 of our Form 10-K.

We operate in one reportable segment which is the development, manufacture and sale of MRI compatible medical devices, related accessories, disposables and service for use by hospitals and acute care facilities during MRI procedures.

Certain Significant Risks and Uncertainties

We market our products to end users in the United States and to third-party distributors internationally. Sales to end users in the United States are generally made on open credit terms. Management maintains an allowance for potential credit losses.

We have deposited our cash and cash equivalents with various financial institutions. Our cash and cash equivalents balances exceed federally insured limits periodically throughout the year. We have not incurred any losses related to these balances.

Our medical devices require clearance from the Food and Drug Administration and international regulatory agencies prior to commercialized sales. Our future products may not receive required approvals. If we were denied such approvals, or if such approvals were revoked or delayed or if we were unable to timely renew certain approvals for existing products, it would have a materially adverse impact on our business, results of operations and financial condition.

Certain key components of our products essential to their functionality are sole-sourced. Any disruption in the availability of these components would have a materially adverse impact on our business, results of operations and financial condition.

COVID-19 Considerations

The COVID-19 pandemic has negatively impacted, and may continue to negatively impact, the macroeconomic environment in the United States and globally. From the beginning of this global health crisis, our priority has been the safety and well-being of our employees and continuing to supply our customers with access to our therapeutic and diagnostic device solutions. Due to the evolving and uncertain nature of COVID-19, it is reasonably possible that it could materially impact our estimates, particularly those that require consideration of forecasted financial information, in the near to medium term. These estimates relate to certain accounts including, but not limited to, intangible assets, and other long-lived assets. The magnitude of the impact will depend on numerous evolving factors that we may not be able to accurately predict, including the duration and extent of the pandemic, the impact of federal, state, local and foreign governmental actions, consumer, supplier and hospital behavior in response to the pandemic and such governmental actions, and the economic and operating conditions that we may face in the aftermath of COVID-19.

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Recent Accounting Pronouncements

Recently Issued Accounting Pronouncements to be Implemented

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. In November 2018, April 2019 and May 2019, the FASB issued ASU 2018-19, Codification Improvements to Topic 326, Financial Instruments - Credit Losses, ASU 2019-04, Codification Improvements to Topic 326, Financial Instruments - Credit Losses and ASU 2019-05, Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief, which provided additional implementation guidance on ASU 2016-03. The previously mentioned ASUs are effective for fiscal years beginning after December 15, 2022, with early adoption permitted. We do not expect the adoption of these ASUs to have a material impact on our financial condition, results of operations or cash flows.

Accounting Pronouncements Implemented in 2021

In December 2019, the Financial Accounting Standards Board ("FASB") issued Accounting Standard Update ("ASU") No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. ASU 2019-12 will be effective for fiscal years, and interim periods within those years, beginning after December 15, 2020. We adopted ASU 2009-12 as of January 1, 2021 and it did not have an impact on our financial condition, results of operations or cash flows.

2 — Revenue Recognition

Disaggregation of Revenue

We disaggregate revenue from contracts with customers by geographic region and revenue type as we believe it best depicts the nature, amount, timing and uncertainty of our revenue and cash flow.

Revenue information by geographic region is as follows:


	Three Months Ended
	March 31,
	2022		2021

	(unaudited)
United States	$	9,979,340	$	7,272,830
International		2,331,370		1,951,166
Total revenue	$	12,310,710	$	9,223,996

Revenue information by type is as follows:


	Three Months Ended
	March 31,
	2022		2021

	(unaudited)
Devices:
MRI compatible IV infusion pump system	$	3,281,939	$	3,503,347
MRI compatible patient vital signs monitoring systems		5,194,751		2,603,830
Total Devices revenue		8,476,690		6,107,177
Disposables, services and other		3,318,902		2,635,466
Amortization of extended warranty agreements		515,118		481,353
Total revenue	$	12,310,710	$	9,223,996

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Contract Liabilities

Our contract liabilities consist of:


	March 31,		December 31,
	2022		2021
	(unaudited)
Advance payments from customers	$	665,721	$	551,267
Shipments in-transit		65,882		70,295
Extended warranty agreements		3,317,228		3,610,877
Total	$	4,048,831	$	4,232,439

Changes in the contract liabilities during the periods presented are as follows:


	Deferred
	Revenue
Contract liabilities, December 31, 2021	$	4,232,439
Increases due to cash received from customers		1,065,095
Decreases due to recognition of revenue		(1,248,703)
Contract liabilities, March 31, 2022	$	4,048,831


	Deferred
	Revenue
Contract liabilities, December 31, 2020	$	4,254,672
Increases due to cash received from customers		681,433
Decreases due to recognition of revenue		(649,174)
Contract liabilities, March 31, 2021	$	4,286,931

Capitalized Contract Costs

Our capitalized contract costs totaled $318,329 and $357,810 as of March 31, 2022 and December 31, 2021, respectively.

3 — Basic and Diluted Net Income per Share

Basic net income per share is based upon the weighted-average number of common shares outstanding during the period. Diluted net income per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock. Stock options, restricted stock units and performance-based restricted stock units granted by us represent the only dilutive effect reflected in diluted weighted-average shares outstanding.

The following table presents the computation of basic and diluted net income per share:


	Three Months Ended March 31,
	2022		2021

	(unaudited)
Net income	$	2,486,713	$	1,386,849
Weighted-average shares outstanding — Basic		12,552,817		12,310,577
Effect of dilutive securities:
Stock options		26,293		189,933
Restricted stock units		53,864		20,769
Performance-based restricted stock units		22,544		—
Weighted-average shares outstanding — Diluted		12,655,518		12,521,279
Basic net income per share	$	0.20	$	0.11
Diluted net income per share	$	0.20	$	0.11

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Stock options and restricted stock units excluded from the calculation of diluted net income per share because the effect would have been anti-dilutive are as follows:


	Three Months Ended
	March 31,
	2022	2021

	(unaudited)
Anti-dilutive stock options and restricted stock units	593	4,902

4 — Inventory, net

Inventory consists of:


	March 31,		December 31,
	2022		2021
	(unaudited)
Raw materials	$	3,715,070	$	3,777,846
Work in process		383,947		191,722
Finished goods		441,829		513,782
Inventory before allowance for excess and obsolete		4,540,846		4,483,350
Allowance for excess and obsolete		(195,804)		(183,551)
Total	$	4,345,042	$	4,299,799

5 — Property and Equipment, net

Property and equipment consist of:


	March 31,		December 31,
	2022		2021
	(unaudited)
Computer software and hardware	$	903,144	$	837,826
Furniture and fixtures		1,329,308		1,252,434
Leasehold improvements		240,016		237,086
Machinery and equipment		2,071,503		2,066,003
Tooling in-process		601,669		537,043
		5,145,640		4,930,392
Accumulated depreciation		(2,995,886)		(2,861,016)
Total	$	2,149,754	$	2,069,376

Depreciation expense of property and equipment was $134,870 and $127,139 for the three months ended March 31, 2022 and 2021, respectively.

Property and equipment, net, information by geographic region is as follows:


	March 31,		December 31,
	2022		2021
	(unaudited)
United States	$	1,957,027	$	1,855,012
International		192,727		214,364
Total property and equipment, net	$	2,149,754	$	2,069,376

Long-lived assets held outside of the United States consist principally of tooling and machinery and equipment, which are components of property and equipment, net.

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6 — Intangible Assets, net

The following table summarizes the components of intangible asset balances:


	March 31,		December 31,
	2022		2021
	(unaudited)
Patents — in use	$	372,502	$	372,502
Patents — in process		115,139		111,593
Internally developed software — in use		872,218		872,218
Internally developed software — in process		706,237		468,441
Trademarks		27,697		27,697
		2,093,793		1,852,451
Accumulated amortization		(759,123)		(733,867)
Total	$	1,334,670	$	1,118,584

Amortization expense of intangible assets was $25,256 and $26,118 for the three months ended March 31, 2022 and 2021, respectively.

Expected annual amortization expense for the remaining portion of 2022 and the next five years related to intangible assets is as follows (excludes in process intangible assets):


Nine months ending December 31, 2022	$	75,052
2023	$	99,797
2024	$	99,395
2025	$	96,225
2026	$	84,508
2027	$	10,796

7 — Investments

Our investments consist of bonds that we have classified as available-for-sale and are summarized in the following tables:


	March 31, 2022
			Gross		Gross
			Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. corporate bonds	$	491,975	$	8,115	$	—	$	500,090


	December 31, 2021
			Gross		Gross
			Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. corporate bonds	$	491,975	$	9,880	$	—	$	501,855

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8 — Fair Value Measurements

The fair values of cash equivalents, accounts receivables, net and accounts payable approximate their carrying amounts due to their short duration.

The fair value of our assets and liabilities subject to recurring fair value measurements are as follows:

Fair Value at March 31, 2022

Quoted Prices

Significant

in Active

Other

Significant

Market for

Observable

Unobservable

Fair

Identical Assets

Inputs

Value

(Level 1)

(Level 2)

(Level 3)

U.S. corporate bonds

500,090

—

500,090

—

Fair Value at December 31, 2021

Quoted Prices

Significant

in Active

Other

Significant

Market for

Observable

Unobservable

Fair

Identical Assets

Inputs

Value

(Level 1)

(Level 2)

(Level 3)

U.S. corporate bonds

501,855

—

501,855

—

Our corporate bonds are valued by a third-party custodian at closing prices from secondary exchanges or pricing vendors on the valuation date.

9 — Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income, net of tax, for the three months ended March 31, 2022 and 2021 are as follows:


	Unrealized (Losses)
	Gains on
	Available-For-Sale
	Securities
Balance at December 31, 2021	$	17,012
Losses on available-for-sale securities, net		(10,885)
Balance at March 31, 2022	$	6,127

Balance at December 31, 2020	$	37,087
Losses on available-for-sale securities, net		(4,869)
Balance at March 31, 2021	$	32,218

10 — Stock-Based Compensation

Stock-based compensation was recognized as follows in the Condensed Statements of Operations:


	Three Months Ended
	March 31,
	2022		2021

	(unaudited)
Cost of revenue	$	79,425	$	54,211
General and administrative		196,769		180,204
Sales and marketing		137,422		81,935
Research and development		39,744		31,391
Total	$	453,360	$	347,741

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As of March 31, 2022, we had $3,270,056 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.6 years. As of March 31, 2022, we had $617,609 of unrecognized compensation cost related to unvested performance-based restricted stock units, which is expected to be recognized over a weighted-average period of 2.4 years.

The following table presents a summary of our stock-based compensation activity for the three months ended March 31, 2022 (shares):


			Performance
			Based
	Stock	Restricted	Restricted
	Options	Stock Units	Stock Units
Outstanding beginning of period	39,576	131,182	18,301
Awards granted	—	1,099	—
Awards exercised/vested	(12,566)	(5,480)	—
Awards canceled	—	(517)	—
Outstanding end of period	27,010	126,284	18,301

11 — Income Taxes

For the three months ended March 31, 2022, we recorded a provision for income tax expense of $573,295. Our effective tax rate was 18.7 percent and differed from the U.S. Federal statutory rate primarily due to benefits from foreign derived intangible income, stock compensation and research and development tax credits, partially offset by U.S. state income tax expense.

For the three months ended March 31, 2021, we recorded a provision for income tax expense of $384,494. Our effective tax rate was 21.7 percent and differed from the U.S. Federal statutory rate primarily due to U.S. state income tax expense, partially offset by benefits from foreign derived intangible income and research and development tax credits.

As of March 31, 2022, and December 31, 2021, we had not identified or accrued for any uncertain tax positions. We are currently unaware of any uncertain tax positions that could result in significant payments, accruals or other material deviations in this estimate over the next 12 months. We believe that our tax positions comply in all material respects with applicable tax law. However, tax law is subject to interpretation, and interpretations by taxing authorities could be different from ours, which could result in the imposition of additional taxes and penalties.

We file tax returns in the United States Federal jurisdiction and many U.S. state jurisdictions. Our returns are not currently under examination by the Internal Revenue Service. The Company remains subject to income tax examinations for our United States Federal and certain U.S. state income taxes for 2017 and subsequent years and various other U.S. state income taxes for 2016 and subsequent years.

12 — Leases

We have entered into operating lease contracts for our office and various office equipment.

We have one material lease contract outstanding. In January 2014, we entered into a non-cancelable operating lease, commencing July 1, 2014, for our manufacturing and headquarters facility in Winter Springs, Florida owned by Susi, LLC, an entity controlled by our President, Chief Executive Officer, and Chairman of the Board, Roger Susi. Pursuant to the terms of our lease for this property, the monthly base rent is $34,133, adjusted annually for changes in the consumer price index. For the year ended December 31, 2021, the Company paid Susi, LLC $461,874 related to this lease. Under the terms of the lease, we are responsible for property taxes, insurance and maintenance expenses. Prior to May 31, 2019, the expiration date of the initial lease term, and pursuant to the terms of the lease contract, we renewed the lease for an additional five years, resulting in a new lease expiration date of May 31, 2024. Unless advance written notice of termination is timely provided, the lease will automatically renew for one additional successive term of five years beginning in 2024, and thereafter, will be renewed for successive terms of one year each. At the time we adopted ASU 2016-02, Leases (Topic 842), we concluded that we would exercise the remaining five-year option, resulting in a remaining lease term of 7.2 years as of March 31, 2022. This lease agreement does not contain any residual value guarantee or material restrictive covenants.

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Operating lease cost recognized in the Condensed Statements of Operations is as follows:


	Three Months Ended
	March 31,
	2022		2021

Cost of revenue	$	53,854	$	51,095
General and administrative		54,710		50,556
Sales and marketing		3,014		2,859
Research and development		8,350		7,922
Total	$	119,928	$	112,432

Lease costs for short-term leases were immaterial for the three months ended March 31, 2022 and 2021.

Maturity of our operating lease liability as of March 31, 2022 is as follows:


Nine months ending December 31, 2022	$	311,470
2023		415,294
2024		415,294
2025		415,294
2026		411,008
Thereafter		989,856
Total lease payments		2,958,216
Imputed interest		(543,744)
Present value of lease liability	$	2,414,472

13 — Commitments and Contingencies

Purchase commitments. We had various purchase orders for goods or services totaling $5,532,627 and $5,604,456 as of March 31, 2022 and December 31, 2021, respectively. No amounts related to these purchase orders have been recognized in our balance sheet.

Legal matters. We may from time to time become a party to various legal proceedings or claims that arise in the ordinary course of business. As of March 31, 2022 and December 31, 2021, we accrued approximately $138,000 and $146,000, respectively, related to various matters.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

The following discussion and analysis should be read in conjunction with our condensed financial statements and the related notes to those statements included in this Quarterly Report, the discussion of certain risks and uncertainties contained in Part II, Item 1A of this Quarterly Report, the discussion under “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Business” included in our Annual Report filed on Form 10-K for the fiscal year ended December 31, 2021 and the cautionary information regarding forward-looking statements at the beginning of this Quarterly Report.

Our Business

We develop, manufacture, market and distribute Magnetic Resonance Imaging (“MRI”) compatible medical devices and accessories, disposables and services relating to them.

We are a leader in the development of innovative MRI compatible medical devices. We are the only known provider of a non-magnetic intravenous (“IV”) infusion pump system that is specifically designed to be safe for use during MRI procedures. We were the first to develop an infusion delivery system that largely eliminates many of the dangers and problems present during MRI procedures. Standard infusion pumps contain magnetic and electronic components which can create radio frequency interference and are dangerous to operate in the presence of the powerful magnet that drives an MRI system. Our patented MRidium® MRI compatible IV infusion pump system has been designed with a non-magnetic ultrasonic motor, uniquely designed non-ferrous parts and other special features to safely and predictably deliver anesthesia and other IV fluids during various MRI procedures. Our pump solution provides a seamless approach that enables accurate, safe and dependable fluid delivery before, during and after an MRI scan, which is important to critically ill patients who cannot be removed from their vital medications, and children and infants who must generally be sedated to remain immobile during an MRI scan.

Each IV infusion pump system consists of an MRidium® MRI compatible IV infusion pump, non-magnetic mobile stand, proprietary disposable IV tubing sets and many of these systems contain additional optional upgrade accessories.

Our 3880 MRI compatible patient vital signs monitoring system has been designed with non-magnetic components and other special features to safely and accurately monitor a patient’s vital signs during various MRI procedures. The IRADIMED 3880 system operates dependably in magnetic fields up to 30,000 gauss, which means it can operate virtually anywhere in the MRI scanner room. The IRADIMED 3880 has a compact, lightweight design allowing it to travel with the patient from their critical care unit, to the MRI and back, resulting in increased patient safety through uninterrupted vital signs monitoring and decreasing the amount of time critically ill patients are away from critical care units. The features of the IRADIMED 3880 include: wireless ECG with dynamic gradient filtering; wireless SpO2 using Masimo® algorithms; non-magnetic respiratory CO2; invasive and non-invasive blood pressure; patient temperature, and; optional advanced multi-gas anesthetic agent unit featuring continuous Minimum Alveolar Concentration measurements. The IRADIMED 3880 MRI compatible patient vital signs monitoring system has an easy-to-use design and allows for the effective communication of patient vital signs information to clinicians.

We generate revenue from the sale of MRI compatible medical devices and accessories, extended warranty agreements, services related to maintaining our products and the sale of disposable products used with our devices. The principal customers for our MRI compatible products include hospitals and acute care facilities, both in the United States and internationally. As of December 31, 2021, our direct U.S. sales force consisted of 21 field sales representatives, 3 regional sales directors and supplemented by 4 clinical application specialists. Internationally, we have distribution agreements with independent distributors selling our products.

Selling cycles for our devices have varied widely and have historically ranged between three and six months in duration with more recent trends lengthening beyond this historical range due to the COVID-19 pandemic. We also enter into agreements with integrated delivery health systems and healthcare supply contracting companies in the U.S. Our agreements with healthcare supply contracting companies enable us to sell and distribute our products and services to their member hospitals. Under these agreements, we are required to pay these group purchasing organizations (“GPOs”) a fee of three percent of the sales of our products to their member hospitals.

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Financial Highlights

For the first quarter ended March 31, 2022, our revenue increased $3.1 million, or 33.5 percent, to $12.3 million, compared to $9.2 million for the first quarter last year. Income before the provision for income taxes was $3.1 million for the first quarter 2022, compared to $1.8 million for the first quarter last year. Net income was $2.5 million, or $0.20 per diluted share in the first quarter ended March 31, 2022, compared to $1.4 million, or $0.11 per share in the first quarter last year.

For the remainder of 2022, we expect higher revenue when compared to the same period in 2021 due to higher sales of our medical devices, related accessories, disposables, and services. We also expect higher operating expenses compared to the same period in 2021 primarily due to higher sales and marketing, and general and administrative expenses.

Application of Critical Accounting Policies

We prepare our financial statements in conformity with GAAP. The preparation of these financial statements requires us to make estimates and use assumptions that affect the reported amounts of assets, liabilities and related disclosures at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

We believe that the following critical accounting policies require the use of significant estimates, assumptions, and judgments:

●

Revenue recognition;

●

Accounts receivable and allowance for doubtful accounts;

●

Inventory carried at the lower of cost or net realizable value;

●

Product warranties;

●

Stock-based compensation; and

●

Income taxes.

These critical accounting policies are described in more detail in our Annual Report filed on Form 10-K, under Management’s Discussion and Analysis and Results of Operations. Except as disclosed in Note 1 to the unaudited condensed financial statements contained herein related to the adoption of recent accounting pronouncements, there have been no changes to these policies during the three months ended March 31, 2022.

The use of different estimates, assumptions, and judgments could have a material effect on the reported amounts of assets, liabilities and related disclosures as of the date of the financial statements and revenue and expenses during the reporting period.

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Results of Operations

The following table sets forth selected statements of operations data as a percentage of total revenue for the periods indicated. Our historical operating results are not necessarily indicative of the results for any future period.


	Percent of Revenue
	Three Months
	Ended March 31,
	2022		2021
Revenue	100.0	%	100.0	%
Cost of revenue	23.8		23.4
Gross profit	76.2		76.6
Operating expenses:
General and administrative	22.1		26.3
Sales and marketing	24.9		25.8
Research and development	4.2		5.2
Total operating expenses	51.2		57.3
Income from operations	25.0		19.3
Other expense, net	(0.1)		(0.1)
Income before provision for income taxes	24.9		19.2
Provision for income tax expense	4.7		4.2
Net income	20.2	%	15.0	%

Three Months Ended March 31, 2022 and 2021

Revenue by Geographic Region


	Three Months Ended
	March 31,
	2022		2021		Change
United States	$	9,979,340	$	7,272,830	37.2	%
International		2,331,370		1,951,166	19.5	%
Total revenue	$	12,310,710	$	9,223,996	33.5	%

Revenue by Type


	Three Months Ended
	March 31,
	2022		2021		Change


Devices:
MRI compatible IV infusion pump system	$	3,281,939	$	3,503,347	(6.3)	%
MRI compatible patient vital signs monitoring systems		5,194,751		2,603,830	99.5	%
Total Devices revenue		8,476,690		6,107,177	38.8	%
Disposables, services and other		3,318,902		2,635,466	25.9	%
Amortization of extended maintenance contracts		515,118		481,353	7.0	%
Total revenue	$	12,310,710	$	9,223,996	33.5	%

For the three months ended March 31, 2022, revenue increased $3.1 million, or 33.5 percent, to $12.3 million from $9.2 million for the same period in 2021.

Revenue from sales in the U.S. increased $2.7 million, or 37.2 percent, to $10.0 million for the first quarter 2022, from $7.3 million for the first quarter 2021. Revenue from sales internationally increased $0.3 million, or 19.5 percent, to $2.3 million for the first quarter 2022, from $2.0 million for the first quarter 2021. Domestic sales accounted for 81.1 percent of revenue for the first quarter 2022, compared to 78.8 percent for the first quarter 2021.

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Revenue from sales of devices increased $2.4 million, or 38.8 percent, to $8.5 million for the three months ended March 31, 2022, from $6.1 million for the same period in 2021.

The average selling price of our MRI compatible IV infusion pump system during the three months ended March 31, 2022 was approximately $33,800, compared to approximately $32,700 for the same period in 2021. The increase in ASP is the result of higher domestic unit sales, partially offset by an unfavorable product sales mix when compared to the same period in 2021.

The average selling price of our MRI compatible patient vital signs monitoring system during the three months ended March 31, 2022 was approximately $46,800, compared to approximately $38,300 for the same period in 2021. The increase in ASP relates to higher domestic unit sales when compared to the same period in 2021, and price increases we began implementing during the second half of 2021.

Revenue from sales of our disposables, service and other increased $0.7 million, or 25.9 percent, to $3.3 million for the three months ended March 31, 2022, from $2.6 million for the same period in 2021. Revenue from the amortization of extended warranty agreements was consistent at $0.5 million for the three months ended March 31, 2022 and 2021.

Cost of Revenue and Gross Profit


	Three Months Ended
	March 31,
	2022			2021
Revenue	$	12,310,710		$	9,223,996
Cost of revenue		2,931,186			2,161,680
Gross profit	$	9,379,524		$	7,062,316
Gross profit percentage		76.2	%		76.6	%

For the three months ended March 31, 2022, cost of revenue increased $0.8 million, or 35.6 percent, to $2.9 million from $2.2 million for the same period last year. Gross profit increased $2.3 million, or 32.8 percent, to $9.4 million for the first quarter 2022 from $7.1 million for the same period in 2021. Gross profit margin was 76.2 percent for first quarter 2022, compared to 76.6 percent for the first quarter 2021. The decrease in gross profit margin is primarily due to unfavorable labor and overhead expenses, partially offset by a favorable geographic sales mix.

Operating Expenses


	Three Months Ended
	March 31,
	2022			2021
General and administrative	$	2,715,950		$	2,430,369
Percentage of revenue		22.1	%		26.3	%
Sales and marketing	$	3,069,556		$	2,379,124
Percentage of revenue		24.9	%		25.8	%
Research and development	$	519,095		$	475,817
Percentage of revenue		4.2	%		5.2	%

General and Administrative

For the three months ended March 31, 2022, general and administrative expense increased $0.3 million, or 11.8 percent, to $2.7 million from $2.4 million for the same period last year. This increase is primarily due to higher payroll and benefits expenses, and legal and professional expenses.

Sales and Marketing

For the three months ended March 31, 2022, sales and marketing expense increased $0.7 million, 29.0 percent, to $3.1 million from $2.4 million for the same period last year. This increase is primarily due to higher sales commissions, sales activities expenses, and payroll and benefits expenses.

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Research and Development

For the three months ended March 31, 2022, research and development expense was consistent at $0.5 million. This is primarily due to higher prototype expenses, offset by lower employee recruiting expenses.

Other Expense, Net

Other expense, net consists of interest income, foreign currency gains and losses, and other miscellaneous income. For the three months ended March 31, 2022, we reported other expense of approximately $15,000, compared to expense of approximately $6,000 for the three months ended March 31, 2021. There were no significant changes in these accounts during the three months ended March 31, 2022, compared to the same quarter last year.

Income Taxes

Liquidity and Capital Resources

Our principal sources of liquidity have historically been our cash and cash equivalents balances, our investments, cash flow from operations and access to the financial markets. Our principal uses of cash are operating expenses, working capital requirements and capital expenditures.

As of March 31, 2022, we had cash and investments of $50.4 million, stockholders’ equity of $62.5 million, and working capital of $59.3 million. During the quarter ended March 31, 2022, we paid a special dividend of $12.6 million to our shareholders. As of December 31, 2021, we had cash and investments of $62.5 million, stockholders’ equity of $72.2 million, and working capital of $69.4 million.

We believe that our current cash, investments and any cash generated from operations will be sufficient to meet our ongoing operating requirements for at least the next 12 months. We do not anticipate requiring additional capital; however, if required or desirable, we may seek to obtain a credit facility, raise debt or issue additional equity in private or public markets.


	Three Months Ended
	March 31,
	2022		2021
Net cash provided by operating activities	$	1,426,187	$	943,081
Net cash used in investing activities		(424,694)		(173,933)
Net cash used in financing activities		(12,554,559)		(36,247)

Cash provided by operating activities increased $0.5 million, to $1.4 million for the three months ended March 31, 2022, compared to $0.9 million for the same period in 2021. During the three months ended March 31, 2022, cash provided by operations was positively impacted by net income and negatively impacted by cash outflows from accrued payroll and benefits, and prepaid expenses.

Cash used in investing activities was $(0.4) million for the three months ended March 31, 2022, compared to $(0.2) million for the same period in 2021. During the three months ended March 31, 2022, cash used in investing activities was impacted by capital expenditures and capitalized intangible assets.

Cash used in financing activities was $(12.6) million for the three months ended March 31, 2022, compared to approximately $(0.0) million for the same period in 2021. This is primarily due to dividends paid and the net share settlement of restricted stock units, partially offset by proceeds from the exercise of stock options.

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We market our products to end users in the U.S. and to distributors internationally. Sales to end users in the U.S. are generally made on open credit terms. Management maintains an allowance for potential credit losses.

Our manufacturing operations and headquarters facility is approximately 23,100 square feet located in Winter Springs, Florida. This facility has been leased from Susi, LLC, an entity controlled by our President, Chief Executive Officer, and Chairman, Roger Susi. Pursuant to the terms of our lease, the monthly base rent is $34,133, adjusted annually for changes in the consumer price index.

Off-Balance Sheet Arrangements

As of March 31, 2022 and December 31, 2021, we did not have any off-balance sheet arrangements, as such term is defined under Item 303 of Regulation S-K, that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that is material to investors.

Contractual Obligations

There have been no material changes outside the ordinary course of business to our contractual obligations and commercial commitments since December 31, 2021.

Recent Accounting Pronouncements

See Note 1 to the unaudited condensed financial statements contained herein for a full description of recent accounting pronouncements including the respective expected dates of adoption and status of evaluation of expected effects on results of our operations and financial condition.

Item 3. Quantitative and Qualitative Disclosures about Market Risk

Foreign Currency Exchange Risk

We have foreign currency risks related to our cost of revenue denominated in currencies other than the U.S. Dollar, principally the Japanese yen (“Yen”). The volatility of the Yen depends on many factors that we cannot forecast with reliable accuracy. We have experienced and will continue to experience fluctuations in our net income as a result of transaction gains and losses related to revaluing Yen denominated accounts payable balances. In the event our Yen denominated accounts payable or expenses increase, our operating results may be affected by fluctuations in the Yen exchange rate. If the U.S. Dollar uniformly increased or decreased in strength by 10 percent relative to the Yen, our net income would have correspondingly increased or decreased by an immaterial amount for the three months ended March 31, 2022 and 2021.

Interest Rate Risk

When able, we invest excess cash in bank money-market funds, corporate debt securities or discrete short-term investments. The fair value of our cash equivalents and short-term investments is sensitive to changes in the general level of interest rates in the U.S., and the fair value of these investments will decline if market interest rates increase.

As of March 31, 2022, we had $0.5 million in corporate bonds, all of which are maturing in less than 1 year. These corporate bonds have fixed interest rates and semi-annual interest payment dates. If market interest rates were to change by 100 basis points from levels at March 31, 2022, we expect the corresponding change in fair value of our investments would be immaterial. This is based on sensitivity analyses performed on our financial position as of March 31, 2022. Actual results may differ as our analysis of the effects of changes in interest rates does not account for, among other things, sales of securities prior to maturity and repurchase of replacement securities, the change in mix or quality of the investments in the portfolio, and changes in the relationship between short-term and long-term interest rates.

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Item 4. Controls and Procedures

Evaluation of Disclosure Controls and Procedures

Disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e)) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), are designed to ensure that: (1) information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms; and (2) such information is accumulated and communicated to management, including the principal executive officer and principal financial officer, as appropriate to allow timely decisions regarding required disclosures. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures, including the possibility of human error and the circumvention or overriding of controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

Our management, including our Chief Executive Officer and Chief Financial and Operating Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures as of March 31, 2022. Our Chief Executive Officer and Controller and Interim Chief Financial Officer have concluded that our disclosure controls and procedures as of March 31, 2022 were effective.

Changes in Internal Control Over Financial Reporting

There was no change in our internal control over financial reporting identified in connection with the evaluation required by Rule 13a-15(d) and 15d-15(d) of the Exchange Act that occurred during the period covered by this Quarterly Report on Form 10-Q that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

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PART II. OTHER INFORMATION

Item 1. Legal Proceedings

We may from time to time become party to various legal proceedings or claims that arise in the ordinary course of business. Our management reviews these matters if and when they arise, and believes that the resolution of any such matters currently known will not have a material effect on our results of operations or financial position.

Item 1A. Risk Factors

We operate in a rapidly changing environment that involves a number of risks that could materially affect our business, financial condition or future results, some of which are beyond our control. The occurrence of any of these risks could harm our business, financial condition, results of operations and/or growth prospects or cause our actual results to differ materially from those contained in forward-looking statements we have made in this report and those we may make from time to time. In evaluating the Company and its business, you should carefully consider the information included in this Quarterly Report on Form 10-Q and the factors discussed under Part I, Item 1A “Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021, as well as in other documents we file with the SEC. Except as described below, there have been no material changes to the risk factors previously disclosed in our Annual Report on Form 10-K for the fiscal year ended December 31, 2021.

Item 2. Unregistered Sale of Equity Securities and Use of Proceeds

None.

Item 3. Default Upon Senior Securities

Not Applicable.

Item 4. Mine Safety Disclosures.

Not Applicable.

Item 5. Other Information

None.

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Item 6. Exhibits


Exhibit Number		Description of Document
31.1		Certification of Chief Executive Officer pursuant to Exchange Act Rule, 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2		Certification of Chief Financial Officer pursuant to Exchange Act Rule, 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*		Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 I.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101.INS**		XBRL Instance Document
101.SCH**		XBRL Taxonomy Extension Schema Document
101.CAL**		XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF**		XBRL Taxonomy Extension Definition Linkbase Document
101.LAB**		XBRL Taxonomy Extension Label Linkbase Document
101.PRE**		XBRL Taxonomy Extension Presentation Linkbase Document
104**		Inline XBRL for the cover page of this Quarterly Report on Form 10-Q, included as part of this Exhibit 101 inline XBRL Document set

This exhibit shall not be deemed “filed” for purposes of Section 18 of the Exchange Act or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any filings.

**	In accordance with Rule 402 of Regulation S-T, this interactive data file is deemed not filed or part of this Quarterly Report on Form 10-Q for purposes of Sections 11 or 12 of the Securities Act or Section 18 of the Exchange Act and otherwise is not subject to liability under these sections.

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IRADIMED CORPORATION

SIGNATURES

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.


	IRADIMED CORPORATION

Dated: May 6, 2022	/s/ Roger Susi
	By:	Roger Susi
	Its:	Chief Executive Officer and President (Principal Executive Officer and Authorized Officer)

	/s/ Matt Garner
	By:	Matt Garner
	Its:	Controller and Interim Chief Financial Officer (Principal Financial and Accounting Officer)