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 six months ended June 30, 2026 are not necessarily indicative of the results that may be expected for the year ending December 31, 2026, and other interim periods, or future years or periods.

The accompanying interim unaudited condensed financial statements should be read in conjunction with the financial statements and related footnotes to financial statements included in our 2025 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 2025 Annual Report.

We operate inone reportable segment, which develops, manufactures, markets, sells, and distributes innovative Magnetic Resonance Imaging (“MRI”) compatible medical devices, related accessories, disposables, and service for use primarily by hospitals and acute care facilities during MRI procedures. We are a provider of (i) non-magnetic intravenous (“IV”) infusion pump systems and (ii) non-magnetic patient vital signs monitoring systems that are each designed for use during MRI procedures.

Certain Significant Risks and Uncertainties

We market our products to end users in the U.S. and to third-party 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.

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 clearance. 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 essential to the functionality of our products are obtained from sole-source suppliers. 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 $244 thousand and $239 thousand as of June 30, 2026 and December 31, 2025, 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 approximately $303 thousand and $136 thousand for the three months ended June 30, 2026 and 2025, respectively, and $595 thousand and $270 thousand for the six months ended June 30, 2026 and 2025, respectively.

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

Long-lived assets held outside of the U.S. 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 approximately $106 thousand and $72 thousand for the three months ended June 30, 2026 and 2025, respectively, and $270 thousand and $132 thousand for the six months ended June 30, 2026 and 2025, respectively.

Expected annual amortization expense for the remaining portion of 2026, the next five years, and thereafter related to intangible assets, excluding trademarks considered to have indefinite lives, is as follows:

7 —Segment Reporting

The Company operates inone business segment that develops, manufactures, markets, sells, and distributes MRI compatible medical devices, 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 Company’s Board of Directors (the “Board”), 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 2025 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 June 30, 2026, 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 June 30, 2026, we had (i) $4,383 thousand of unrecognized compensation cost related to unvested restricted stock units, which is expected to be recognized over a weighted-average period of 2.38 years and (ii) $529 thousand of unrecognized compensation cost related to unvested performance-based restricted stock units, which is expected to be recognized over a weighted-average period of 1.25 years.

The following table presents a summary of our equity award activity for the six months ended June 30, 2026:

10 —Income Taxes

For the three and six months ended June 30, 2026, we recorded a provision for income tax expense of $1,670 thousand and $3,621 thousand, respectively. For the three and six months ended June 30, 2026, our effective tax rate was 24.2% and 24.7%, respectively, and differed from the U.S. federal statutory rate primarily due to U.S. state income tax expense, and non-deductible compensation expenses, partially offset by benefits from research and development tax credits.

For the three and six months ended June 30, 2025, we recorded a provision for income tax expense of $1,553 thousand and $2,811 thousand, respectively. For the three and six months ended June 30, 2025, our effective tax rate was consistent at 21.2%, 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.

We file tax returns in the U.S. 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 U.S. federal and certain U.S. state income taxes for 2023 and subsequent years.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S. The OBBBA includes several significant provisions, including 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, such as accelerated deductions for qualified property and domestic research expenditures. The Company has evaluated the impact of the OBBBA on its financial statements and does not expect the legislation to result in a material change to its annual effective tax rate. During the first quarter of 2026, the Company implemented the OBBBA‑related changes to the foreign‑derived deduction regime, including the transition from the foreign‑derived intangible income (“FDII”) deduction to the foreign‑derived deduction‑eligible income (“FDDEI”) deduction, which became effective for tax years beginning after December 31, 2025.

11 —Commitments and Contingencies

Purchase commitments. We had various purchase orders for goods or services totaling $11,020 thousand and $9,827 thousand as of June 30, 2026 and December 31, 2025, respectively. Amounts recognized on our balance sheets 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 cannot be predicted 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 June 30, 2026, 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.

12 —Subsequent Events

On July 30, 2026, the Board declared a regular quarterly cash dividend of $0.20 per share of outstanding common stock. The dividend is payable to stockholders of record as of the close of business on August 14, 2026 and will be paid on August 28, 2026.

Except as described above and elsewhere in this Quarterly Report, there were no subsequent events requiring disclosure or recognition in the Company’s unaudited condensed financial statements.