Full Press Release Details
Dawn of early detection healthcare Investor PresentationSeptember 2020 1
Disclaimers Nothing contained in this presentation is, or should be construed as, a recommendation, promise
or representation by the presenter or the Company or any director, employee, agent, or adviser of the Company. This presentation does not purport to be all inclusive or to contain all of the information about the Company. This presentation shall
not constitute an offer to sell or the solicitation of an offer to buy the Company's securities, nor shall there be any sale of the Company's securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful
prior to registration or qualification under the securities laws of any such state or jurisdiction.Forward-Looking Information StatementStatements contained in this presentation concerning expectations, beliefs, plans, objectives, goals,
strategies, future events or performance and underlying assumptions and other statements that are other than statements of historical fact are "forward-looking statements." These statements often include words such as "believe," "expect,"
"anticipate," "intend," "plan," "estimate," "target," "project," "forecast," "seek," "will," "may," "should," "could," "would" or similar expressions. Although Nanox believes that the expectations and assumptions reflected in these statements are
reasonable, these expectations or forecasts of future performance may not prove to be correct. Forward-looking statements are subject to many risks and uncertainties, and actual results may differ materially from the results discussed in
forward-looking statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: risks related to Nanox's ability to successfully demonstrate the feasibility of
its technology for commercial applications; Nanox's expectations regarding the necessity of, timing of filing for, and receipt and maintenance of, regulatory clearances or approvals regarding its X-Ray source technology and the Nanox.ARC from
regulatory agencies worldwide and its ongoing compliance with applicable quality standards and regulatory requirements; Nanox's ability to enter into and maintain commercially reasonable arrangements with third-party manufacturers and suppliers
to manufacture the Nanox.ARC; the market acceptance of the Nanox.ARC and the proposed pay-per-scan business model; Nanox's expectations regarding collaborations with third-parties and their potential benefits; Nanox's ability to conduct business
globally; the impact of general economic conditions, general conditions in the medical technology and imaging industries; the impact of the COVID-19 pandemic on the Company's business operations; changes in the global and regional regulatory
environments in the jurisdictions in which Nanox does or plans to do business; and market volatility, fluctuations in costs and changes to the competitive environment, among others. Consequently, actual future results may differ materially from
the anticipated results expressed in the forward-looking statements. Other risks and uncertainties of which Nanox is not currently aware may also affect these forward-looking statements. The reader should not place undue reliance on any
forward-looking statements included in this presentation. These statements speak only as of the date made and Nanox is under no obligation and disavows any obligation to update or revise such statements as a result of any event, circumstances or
otherwise, unless required by applicable legislation or regulation.These risks and uncertainties are described more fully under the caption "Risk Factors" in the Company's filings with the Securities and Exchange Commission. Other risks and
uncertainties of which the Company is not currently aware may also affect Company's forward-looking statements. The reader should not place undue reliance on any forward-looking statements included in this presentation. These statements speak
only as of the date made and the Company is under no obligation and disavows any obligation to update or revise such statements as a result of any event, circumstances or otherwise, unless required by applicable legislation or regulation.Market
and Industry Data and Customer InformationThis presentation has been prepared by Nanox and includes market data and other information from sources believed by us to be reliable. For example, industry and market data, including our own research,
and surveys or industry publications and surveys as well as public information about our customers and discussion with them. Some data are also based on our good-faith estimates, which are derived from Nanox's review of internal sources as well
as the other sources described above. Although Nanox believes these sources are reliable, Nanox has not independently verified the information is accurate and complete. As a result, you should be aware that market share, ranking and other similar
data set forth in this presentation, and estimates and beliefs based on such data may not be reliable.
Nanox in a glance Unmet need Game changing tech Disruptive business model 2/3 of the world
population has no access to medical imaging. Weeks and months of wait times for radiology diagnostics results. A new breed of medical imaging infrastructure that can be deployed in mass due to significantly lower costs and small footprint
coupled with a radiology services cloud platform Planning global mass deployment of 15,000 systems with a Pay-per-Scan subscription model Massive deficit of medical imaging systems due to high system costs A novel digital X-Ray source
replacing an analog X-Ray that has been used for over 100 years enables significant cost reduction Executed contracts for 4,520 units pending regulatory approvalsMedical Screening as a Service (MSaaS) opens a recurring revenue model that has
the potential to provide substantial revenues Upcoming Milestones Exceptionally seasoned execution team We are targeting several near term value catalysts such as FDA approval and commercialization Q1 2021 2021-2024 Deals signedFDA
approvedFirst units shipped Manufacturing ramp-upGlobal deployments 15,000 units deployed and operational Healthcare and technology veterans from companies like GE, Philips, and highly successful, game-changing technology entrepreneurs The
What Nanox aims to build a global infrastructure for medical imaging Utilizing innovative, patent protected and disruptive technology, Nanox can offer medical technology that expands access, resulting in better outcomes and lower costs. Until
today, technology was the barrier to medical imaging availability. Nanox believes it has broken that barrier. With global execution starting this year Nanox invites partners to join the potentially next revolution in preventive healthcare.
Strategic Shareholders POTENTIAL ANNUSL RECURRING REVENUE ASSUMING THE 4,520 CONTRACTED UNITS ARE DEPLOYED AND OPERATIONAL 7 20 60 SCANS PER DAY $139,000,000 $397,000,000 $1,192,000,000 See slide 25 for
full detail and assumptions Illustrative model
Preventive screening OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR
PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 4 Early detection is key to preventive healthcare. Treatable conditions, such as cancer, cardiovascular failures and others are often diagnosed too late.
Early detection remains theoretical 2/3 of the world's population have no access to medical
imagingThe majority of the remaining 1/3 suffer from weeks and months of wait time for access to medical scanners and diagnostic results. OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL
DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 5
Why? Medical imaging systems are too expensive and complex for mass deployment. OVERVIEW EARLY
DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 6
The key inhibitor Wilhelm Conrad R ntgen X-Ray source technology has not changed since its discovery
over 120 years ago OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 7
Electrons X-Ray The hot cathode Modern day X-Ray tubeAnalog X-Ray source Heats up
a metal filament to 2,000 Celsius to produce the electron streams necessary for X-Ray emission 37 OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 8
Main contributor to high-cost of imaging systems The legacy analog X-Ray source Requires extremely
high-voltage, complex mechanics and special cooling to produce the electrons needed for X-Ray emission, resulting in an average $150,000 cost for the source alone OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR
PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 9
The Nanox paradigm A fundamental technological change in the X-Ray source Which we expect will enable
significantly higher availability of imaging services Driving higher rates of medical prevention through early-detection. Will result in lower cost and smaller imaging systems OVERVIEW EARLY DETECTION THE BARRIER
BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 10
Introducing the novel Nanox X-Ray source Novel silicon-based, low voltage, nano-scale cold cathode X-Ray
Reimagined Generating the electrons streams needed for X-Ray via cold field-emission technology OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY
Nanox MEMs X-Ray source Technology originally developed by Sony and its partners to achieve a higher
quality image for screens and monitors Sony invested substantial resources in the development of this technology for over a decadeAfter acquiring the technology, our Japanese-Israeli team invested over 8 years developing a source for the medical
imaging industry based on this technologyNanox-owned manufacturing facilities in JapanSigned agreement with SK Telecom for collaboration on a new Korean factory to increase Nanox MEMs production capacity Mature and optimized proprietary
technology and production process with an exceptionally high-yieldStrong IP portfolio with patents granted in USA, Israel, Japan and pending globally NANOX WAFER NANOX CLEAN ROOM (JAPAN) OVERVIEW EARLY DETECTION THE BARRIER BREAKING
THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 12
Tech transformation To From One metal filament heated to 2,000 Celsius requiring special
cooling and rotation mechanics 100 Million nano-cones field on a silicon chip emitting digitally controlled electron streams under low voltage OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL
DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 13
The Nanox tube Commercially available Digital X-Ray source The Nanox SiliconMEMs cold cathode
OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 14
The Nanox tube Substantially more cost effective LEGACY TUBE NANOX $150,000 average cost ~$100
estimated cost in mass-production Significantly smaller OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 15
Enabling a system-level quantum leap From To AnalogLarge and complexCosts millions of dollars
Digital Small footprintCosts tens of thousands of dollars OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 16
Footprint practicalities OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX
ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 17
Clinical quality imaging Nanox I kVp: 50 I mAs: 0.4 I Philips I kVp: 55 I mAs: 4.0 kVp
- Kilovolt Peak. kVp is the component that controls the X-Ray penetration strength and subsequently QUALITY of the X-Ray beam produced. It is also what controls the CONTRAST or GRAY SCALE in the produced X-Ray film. The Higher the kVP the LOWER
the CONTRAST. mAs - MilliAmps per Second. This parameter controls the QUANTITY or the AMOUNT of X-Ray photons produced. This is also what dictates the radiation dose. The higher the mAs the higher the radiation exposure. OVERVIEW EARLY
DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 18
Clinical quality imaging SHOULDER NANOX X-Ray TUBE40Kv, 2.5mA 3D Image
Reconstruction OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 19
A new breed of medical imaging systems at a fraction of the cost potentially revolutionizing global
availability 37 The Nanox.ARC 3D computerized tomosynthesis OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 20
Daniel Schultz, MD, F.A.C.S.Former Director of the Center for Devices and Radiological Health (CDRH) at
FDA Regulatory clearance ADVISORS FDAWe expect to take a multi-step approach to the regulatory clearance process:Submitted a 510(K) application in January 2020 relating to a single digital X-ray source version of the Nanox.ARCReceived an
additional information request in March 2020, which we responded to in September 2020Plan to submit an additional 510(k) application with respect to the multiple-source Nanox.ARC which, if cleared, will be our commercial imaging systemWe do not
believe the Nanox X-ray source (the core component of the Nanox.ARC) will require a separate regulatory approval or clearance because the source is a Class 1 device, which is exempt from the 510(k) application processIf cleared, we plan to deploy
the first Nanox.ARC in the first half of 2021 CE and ROW CE submission and clearance expected in H1 2021 Majority of ROW countries accept FDA and CE as a reference for local clearance Other countries will require separate submissions OVERVIEW
EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 21
Our plan Disrupt the imaging market with a global service infrastructure for medical imaging
Increase significantly medical imaging availabilityDeploy 15,000 units globally by YE2024subject to Company financing & regulatory clearanceInvest CAPEX and own the systems Operate a Pay-per-Scan, MSaaS business model Generate substantial
recurring revenue stream once fully deployed OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 22
Timeline and key milestones 2012 - 2019 2020 2021-2024 8 years Development of the Nanox X-Ray
SourceDevelopment of the Nanox.ARC Strategic collaboration with FUJI Strategic collaboration with SK Telecom JanuarySecures $20M investment from strategic investors, including FoxconnSubmits 510(k) application of the Nanox.ARC 1 June
2019 H1Signs pre-sale agreements for deployment of thousands of units with guaranteed substantial minimum annual service fees for at least 3 years from full deploymentIndustrial Alliance, SK Telecom and private investors invest $59M.
H1Anticipated FDA approval of 510(k) submissionFirst units expected to be manufactured and shipped from H1 2021Ramp-up of manufacturing and systems deployments H2Anticipate signing of additional pre-sale deals globally with minimum
annual service fees 2024Approx. 15,000 units expected to be deployed and operational globally Manufacturing agreement with Foxconn ensures manufacturing quality and consistency Expected recurring revenue stream
OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 23
Addressable market We sell medical imaging availability We expect to provide systems to market
segments existing X-Ray vendors don't target We target Urgent Care units (over 9,600 in the US alone), outpatient clinics, rural areas, countries with limited medical imaging availability (India, China, Africa )We believe the CAPEX market of
HMOs, hospitals and medical centers will migrate to an OPEX service-based model over time Nanox is pioneering this model today For certain medical imaging market participants, we plan to tailor our X-Ray source technology to their specific
imaging systems and we expect to charge a one-time licensing fee upfront and receive recurring royalty payments for each system sold We do not compete over market share, we expand the total market HMOs, hospitals, medical imaging
centers Expansion of the $21 Billion global medical imaging market through shift from CAPEX to MSaaS model The X-Ray-based imaging market 2021-2024 Nanox addresses the market segments legacy vendors do not traditionally sell to Urgent
Care units, outpatient clinics, nursing homes etc. OVERVIEW EARLY DETECTION THE BARRIER BREAKING THROUGH THE TECH NANOX ARCOUR PLAN BUSINESS MODEL DEPLOYMENTSNANOX CLOUD TEAM SUMMARY 24
Flexible business model to drive adoption Scans per day - LEGEND 7 - Minimum scans per day per system
20 - Nanox operational objective60 - Estimated current global average MSaaS At 20 scans per day, and $14 per scan revenue to NANOX and 23 days per month, the MSaaS model potentially generates over $397 Million in recurring revenues annually
Pricing model & minimum annual service fee Pay-per-scan service business model Nanox covers CAPEX investment of systems and deployment $40 total cost per scan as a global average based on current contracts Nanox revenue $14 (out of the