iRhythm Technologies, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>iRhythm Technologies, Inc. has filed its 2023 annual report (10-K) detailing its business operations and financial standing.</b>

AI Summary

iRhythm Technologies, Inc. (IRTC) filed a Annual Report (10-K) with the SEC on February 22, 2024. iRhythm Technologies, Inc. filed its 2023 Form 10-K on February 22, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business address is 699 8th Street, Suite 600, San Francisco, CA 94103. The company was incorporated in Delaware. The SIC code for iRhythm Technologies, Inc. is 3841 (Surgical & Medical Instruments & Apparatus).

Why It Matters

For investors and stakeholders tracking iRhythm Technologies, Inc., this filing contains several important signals. This 10-K filing provides a comprehensive overview of iRhythm's business, financial performance, and risk factors for the fiscal year 2023, which is crucial for investors to assess the company's current health and future prospects. The detailed financial information and risk disclosures within the report are essential for stakeholders to understand potential challenges and opportunities facing the company in the medical device sector.

Risk Assessment

Risk Level: medium — iRhythm Technologies, Inc. shows moderate risk based on this filing. The company faces product concentration risk, specifically with Centers for Medicare & Medicaid Services, indicating a significant reliance on a key payer which could impact revenue if policies change.

Analyst Insight

Investors should closely examine the 'Product Concentration Risk' section and any disclosures related to CMS reimbursement policies to understand potential revenue volatility.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-02-22 — Filing Date (Date of submission)
• 3841 — SIC Code (Industry classification)

Key Players & Entities

• iRhythm Technologies, Inc. (company) — Filer name
• 2023-12-31 (date) — Fiscal year end
• 2024-02-22 (date) — Filing date
• 699 8th Street, Suite 600, San Francisco, CA 94103 (address) — Business address
• DE (state) — State of incorporation
• 3841 (sic_code) — Standard Industrial Classification
• Centers for Medicare & Medicaid Services (company) — Mentioned in product concentration risk

FAQ

Risk Factors

• Product Concentration Risk [high — financial]: The company faces significant concentration risk related to its product offerings, particularly concerning the Centers for Medicare & Medicaid Services.

Industry Context

iRhythm Technologies operates in the medical device industry, focusing on cardiac monitoring solutions.

Regulatory Implications

The company's operations are subject to regulatory oversight, particularly concerning medical devices and healthcare reimbursement policies from entities like the Centers for Medicare & Medicaid Services.

What Investors Should Do

1. Review the full 10-K filing for detailed financial statements and management discussion.
2. Analyze the 'Risk Factors' section, paying close attention to product concentration and regulatory risks.
3. Investigate any recent news or analyst reports concerning iRhythm's relationship with CMS and potential changes in reimbursement.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-22: 10-K Filing Date — Date the annual report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial filing data extracted; comparison to previous filings requires access to historical data.

Key Financial Figures

• $34.5 billion — ke costs the United States an estimated $34.5 billion each year in healthcare costs and lost

Filing Documents

• irtc-20231231.htm (10-K) — 1837KB
• a31restatedcertificateofin.htm (EX-3.1) — 53KB
• a108third_amendmentxtoxthi.htm (EX-10.8) — 40KB
• a1010isffirstamendmenttoof.htm (EX-10.10) — 36KB
• a1017irhythmchangeincontro.htm (EX-10.17) — 117KB
• a211listofsubsidiaries.htm (EX-21.1) — 6KB
• irtc-20231231xex231.htm (EX-23.1) — 3KB
• irtc-20231231xex311.htm (EX-31.1) — 11KB
• irtc-20231231xex312.htm (EX-31.2) — 11KB
• irtc-20231231xex321.htm (EX-32.1) — 6KB
• a97110d-1clawbackpolicy.htm (EX-97.1) — 62KB
• image_2a.jpg (GRAPHIC) — 15KB
• image_3.jpg (GRAPHIC) — 16KB
• image_31.jpg (GRAPHIC) — 60KB
• image_5.jpg (GRAPHIC) — 12KB
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• irtc-20231231_g1.jpg (GRAPHIC) — 90KB
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• irtc-20231231_g5.jpg (GRAPHIC) — 43KB
• irtc-20231231_g6.jpg (GRAPHIC) — 81KB
• irtc-20231231_g7.jpg (GRAPHIC) — 279KB
• 0001388658-24-000014.txt (&nbsp;) — 11652KB
• irtc-20231231.xsd (EX-101.SCH) — 69KB
• irtc-20231231_cal.xml (EX-101.CAL) — 95KB
• irtc-20231231_def.xml (EX-101.DEF) — 267KB
• irtc-20231231_lab.xml (EX-101.LAB) — 815KB
• irtc-20231231_pre.xml (EX-101.PRE) — 532KB
• irtc-20231231_htm.xml (XML) — 1273KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 24 Item 1B. Unresolved Staff Comments 56 I tem 1C. Cybersecurity 57 Item 2.

Properties

Properties 59 Item 3.

Legal Proceedings

Legal Proceedings 59 Item 4. Mine Safety Disclosures 60 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 61 Item 6. [Reserved] 62 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 62 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 72 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 74 Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 108 Item 9A.

Controls and Procedures

Controls and Procedures 109 Item 9B. Other Information 109 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 109 PART III Item 10. Directors, Executive Officers and Corporate Governance 110 Item 11.

Executive Compensation

Executive Compensation 110 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 110 Item 13. Certain Relationships and Related Transactions, and Director Independence 110 Item 14. Principal Accounting Fees and Services 110 PART IV Item 15. Exhibits, Financial Statement Schedules 111 Item 16. Form 10-K Summary 113

Signatures

Signatures 114 ii Table of Contents SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). All statements contained in this Annual Report on Form 10-K other than statements of historical fact, including statements concerning our plans, objectives, and expectations for our business, operations, and financial performance and condition, are forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as "anticipate," "assume," "believe," "contemplate," "continue," "could," "due," "estimate," "expect," "goal," "intend," "may," "objective," "plan," "predict," "potential," "positioned," "seek," "should," "target," "will," "would," and other similar expressions that are predictions of or indicate future events and future trends, or the negative of these terms or other comparable terminology. These forward-looking statements include, but are not limited to, statements about: the expected impact of global business, political, and macroeconomic conditions, including inflation, interest rate volatility, cybersecurity events, uncertainty with respect to the federal budget and debt ceiling and potential government shutdowns related thereto, potential instability in the global banking system, and volatile market conditions, and global events, including public health crises, and ongoing geopolitical conflicts, such as the war in Ukraine and conflict in the Middle East, on our business, operations, and financial results; the impact of supply chain disruptions on our operations and financial results; the impact of inflationary costs on our operations and financial results; plans to conduct further clinical studies, including any clinical trials initiated by third parties; our p

: BUSINESS

ITEM 1: BUSINESS Company Background iRhythm Technologies Inc. 1 is a leading digital healthcare company that creates trusted solutions that detect, predict, and prevent disease. Our principal business is the design, development, and commercialization of device-based technology to provide ambulatory cardiac monitoring services that we believe allow clinicians to diagnose certain arrhythmias quicker and with greater efficiency than other services that rely on traditional technology. Since first receiving clearance from the U.S. Food and Drug Administration ("FDA") for our technology in 2009, we have supported physician and patient use of our technology and provided ambulatory cardiac monitoring services from our Medicare-enrolled independent diagnostic testing facilities ("IDTFs") and with our qualified technicians. We have provided our Zio ambulatory cardiac monitoring services, including long-term continuous monitoring, short-term continuous monitoring, and mobile cardiac telemetry ("MCT") monitoring services (collectively, the "Zio Services"), using our Zio Systems (as defined below). Each Zio System combines an FDA-cleared and CE-marked, wire-free, patch-based, 14-day wearable biosensor that continuously records electrocardiogram ("ECG") data with a proprietary, FDA-cleared, CE-marked cloud-based data analytic software to help physicians monitor patients and diagnose arrhythmias. Since receiving FDA clearance, we have provided the Zio Services to over six million patients and have collected over 1.8 billion hours of curated heartbeat data. The Company was incorporated in the state of Delaware in September 2006. Our principal executive offices are located at 699 8th Street, Suite 600, San Francisco, California 94103, and our telephone number is (415) 632-5700. Our common stock is listed on The Nasdaq Global Select Market under the symbol "IRTC", and we employ approximately 2,000 regular full-time employees as of December 31, 2023. Our website address is http:

View Full Filing

View this 10-K filing on SEC EDGAR