IRADIMED CORP

Notes to Unaudited Condensed Financial Statements

1 —Basis of Presentation

The accompanying interim unaudited condensed financial statements of IRADIMED CORPORATION (“IRADIMED,” the “Company,” “we,” “our” and “us”) 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 and nine months ended September 30, 2025 are not necessarily indicative of the results that may be expected for the year ending December 31, 2025, and other interim periods, or future years or periods.

The accompanying interim condensed financial statements should be read in conjunction with the financial statements and related footnotes to financial statements included in our 2024 Annual Report. The accounting policies followed in the preparation of these interim condensed financial statements, except as described in Note 1 herein, are consistent in all material respects with those described in Note 1 to the Financial Statements in the 2024 Annual Report.

We operate inone reportable segment, which develops, manufactures, markets, sells, and distributes Magnetic Resonance Imaging (“MRI”) compatible medical devices and products, related accessories, disposables, and service for use primarily 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 regularly throughout the year. We have not incurred any losses related to these balances.

Our medical devices require clearance from the FDA and international regulatory agencies prior to commercialized sales. Our future products may not receive required clearances. If we were denied such clearances, or if such clearances were revoked or delayed or if we were unable to timely renew certain clearances 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.

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:

Revenue information by type is as follows:

Contract Liabilities

Our contract liabilities consist of:

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

Capitalized Contract Costs

Our capitalized contract costs totaled$214,374 and $179,597 as of September 30, 2025 and December 31, 2024, respectively, and are classified as other assets on the unaudited condensed balance sheets.

3**— Basic and Diluted Net Income per Share**

Basic net income per share is based upon the weighted-average number of shares of Company common stock, par value $0.0001 per share (“common stock”), outstanding during the period. Diluted net income per share of common stock 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 of common stock outstanding.

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

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

4 — Inventory, net

Inventory consists of:

5 — Property and Equipment, net

Property and equipment consist of:

Depreciation expense of property and equipment was $256,312 and $139,840 for the three months ended September 30, 2025 and 2024, respectively, and $526,340 and $450,194 for the nine months ended September 30, 2025 and 2024, respectively.

During the third quarter of 2025, the Company completed the construction of a new corporate office and manufacturing facility in Orlando, Florida (the “New Facility”). Upon receiving the certificate of occupancy, associated construction in-process balances are now allocated and recognized as in-service property and equipment based on the asset type.

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

Long-lived assets held outside of the United States consist principally of tooling, which is a component of machinery and equipment.

6 — Intangible Assets, net

The following table summarizes the components of intangible asset balances:

Amortization expense of intangible assets was $127,410 and $57,731 for the three months ended September 30, 2025 and 2024, respectively, and $258,980 and $172,596 for the nine months ended September 30, 2025 and 2024, respectively.

Expected annual amortization expense for the remaining portion of 2025, the next five years, and thereafter related to intangible assets, excluding trademarks considered to have indefinite lives and in process intangible assets, is as follows:

7 — Segment Reporting

The Company operates inone business segment that develops, manufactures, markets, sells, and distributes MRI compatible medical devices and products, related accessories, disposables and services relating to them. The determination to operate as a single business segment is consistent with the consolidated financial information regularly provided to the Company’s appointed chief operating decision maker (CODM), the President, Chief Executive Officer, and Chairman of the Board of Directors, Roger Susi. As the Company has onlyone operating segment and is managed on a consolidated basis, the measure of profit or loss is consolidated net income or loss. The accounting policies for our segment are the same as those described in “Note 1 - Organization and Significant Accounting Policies” in our 2024 Annual Report, and in Note 1 above. See the Condensed Statements of Operations.

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.

As of September 30, 2025, we didnot have any assets or liabilities subject to recurring fair value measurements.

9 — Stock-Based Compensation

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

As of September 30, 2025, we had (i) $3,077,208 of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.18 years and (ii) $969,229 of unrecognized compensation cost related to unvested performance-based restricted stock units, which is expected to be recognized over a weighted-average period of 1.81 years.

The following table presents a summary of our equity award activity for the nine months ended September 30, 2025 (shares):

10 — Income Taxes

For the three and nine months ended September 30, 2025, we recorded a provision for income tax expense of $1,721,074 and $4,532,357, respectively. For the three and nine months ended September 30, 2025, our effective tax rate was 23.6% and 22.0%, respectively, and differed from the U.S. federal statutory rate primarily due to U.S. state income tax expense, partially offset by benefits from research and development tax credits.

For the three and nine months ended September 30, 2024, we recorded a provision for income tax expense of $1,368,830 and $3,843,834, respectively. For the three and nine months ended September 30, 2024, our effective tax rate was 21.3% and 21.4%, respectively, and differed from the U.S. federal statutory rate primarily due to U.S. state income tax expense, partially offset by benefits from research and development tax credits.

On July 31, 2024, the Company received a notice of examination from the U.S. Internal Revenue Service (the “I.R.S.”) for the tax year ended December 31, 2021. On July 29,2025, the Company received notice that the I.R.S. has completed its review of our tax return for the tax year ended December 31, 2021, with no changes to our reported tax return, and closed out its examination. The Company remains subject to income tax examinations for our U.S. federal and certain U.S. state income taxes for 2022 and subsequent years.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act,

modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions including the acceleration of tax deductions for qualified property and research expenditures. The Company has completed an initial assessment of OBBBA’s impact on its financial statement and does not expect a material change in its annual effective rate.

11 — Leases

In January 2014, we entered into a non-cancelable operating lease, commencing on 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. On 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, which was set to expire on May 31, 2024.

On May 29, 2024, the Company entered into a lease amendment (the “Lease Amendment”) with Susi, LLC, under which the Company did not exercise the second five-year option because of the continued construction of the Company’s New Facility. Pursuant to the terms, the Lease Amendment has an expiration date of May 31, 2025, and includes an option to renew on a month-to-month basis for up to six months thereafter. We exercised the option to renew on a month-to-month basis until the move to the New Facility is completed. During the third quarter of 2025, the Company completed its move to the New Facility and terminated the month-to-month lease with Susi, LLC under the Lease Amendment.

Lease costs for short-term leases were immaterial for the three and nine months ended September 30, 2025 and 2024.

12 — Commitments and Contingencies

Purchase commitments. We had various purchase orders for goods or services totaling $9,851,492 and $7,523,859 as of September 30, 2025 and December 31, 2024, respectively. Amounts recognized in our balance sheet related to these purchase orders were immaterial.

Legal matters. From time to time, the Company is party to litigation and other legal matters incidental to the conduct of its business. Such matters are subject to many uncertainties and outcomes are not predictable with assurance. The Company accrues liabilities for such matters when it is probable that future expenditures will be made and such expenditures can be reasonably estimated. As of September 30, 2025, the Company was not involved in any such matters, individually or in the aggregate, which management believes would have a material adverse effect on the Company’s business, financial condition, results of operations, or cash flows.

13 — Subsequent Events

On October 30, 2025, the Company’s Board of Directors (the “Board”) declared aregular quarterly cash dividend of$0.17 per share of outstanding common stock. The dividend is payable to stockholders of record as of the close of business on November 14, 2025 and will be paid on November 25, 2025.

Besides the above, there were no subsequent events requiring disclosure or recognition in the Company’s unaudited condensed financial statements, other than those included elsewhere in this Quarterly Report.