Inogen Inc

Condensed Notes to the Consolidated Financial Statements

1. Business overview

Inogen, Inc., or the Company, is a medical technology company focused on the development, manufacture, and commercialization of respiratory products, including portable and stationary oxygen concentrators, airway clearance devices, and continuous positive airway pressure, or CPAP, masks for the treatment of chronic respiratory conditions. The Company's portfolio includes portable oxygen concentrator systems designed to optimize output, weight, sound levels, and battery life, as well as stationary oxygen concentrators, the Simeox airway clearance system, and Aurora CPAP masks. Following the sale of its United States oxygen rental business on November 2, 2026 (see Note 3), the Company no longer provides oxygen rental services. The Company maintains a broad network of patients, prescribers, providers, and distribution partners.

The Company generates the majority of its revenue from the sale of portable oxygen concentrator systems and related accessories to patients, home healthcare providers, resellers, and distributors. The Company's products are marketed in the United States through direct-to-consumer and prescriber, as well as through business-to-business partnerships, and internationally through distributors and medical equipment providers. The Company's product offerings include multiple configurations of its Inogen One, Rove, At Home, and Voxi systems, in addition to Simeox and Aurora products and related accessories.

2. Basis of presentation and summary of significant accounting policies

Basis of presentation

On September 29, 2026, the Company entered into an Asset Purchase Agreement, or the Purchase Agreement, with Rotech Healthcare Inc., or Rotech, pursuant to which the Company agreed to sell to Rotech certain assets used or held for use solely in the operation of the Company’s United States oxygen rental business, or the Rental Business, and to assist in transferring related patient records, or the Transaction. During the three months ended September 30, 2026, the Company determined that the Rental Business met the held-for-sale and discontinued operations accounting criteria. Accordingly, beginning in the third quarter of 2026, the Company reported the results and the related cash flows of the Rental Business as discontinued operations in the accompanying consolidated statements of comprehensive loss and consolidated statements of cash flows, respectively. The related held-for-sale assets and the remaining assets and liabilities of the Rental Business that are not included in the Transaction described above have been reported as assets and liabilities of discontinued operations in the accompanying consolidated balance sheets. These changes have been applied to all periods presented.

Unless otherwise noted, amounts and disclosures included in notes to the interim consolidated financial statements relate to the Company's continuing operations. See Note 3 for additional information on discontinued operations.

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 and nine months ended September 30, 2026 shown in this report are not necessarily indicative of results to be expected for the full year ending December 31, 2026. 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 27, 2026. 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 27, 2026.

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 and service period of performance obligations, rental asset valuations and write-downs, accounts receivable allowances for credit losses and returns, impairment of goodwill, impairment of long-lived assets, stock-based compensation expense, income taxes, fair value of acquired intangible assets, and financing receivable. Actual results could differ from these estimates.

Reclassifications

Certain reclassifications have been made to prior years’ financial statements to conform to current period financial statements’ presentation. As discussed above in Note 2, the Company determined that the Rental Business met the held-for-sale and discontinued operations accounting criteria and for comparative purposes, all prior periods presented have been reclassified to reflect the classifications on a consistent basis.

Recently issued accounting pronouncements not yet adopted

There have been no changes to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s consolidated financial statements and footnote disclosures, from those disclosed in the 2025 Annual Report on Form 10-K.