Full Press Release Details
Nanox Announces First Quarter 2025 Financial
Results and Provides Business Updates
Management to host conference call and webcast
on Thursday, May 22, 2025 at 8:30 AM ET
PETACH TIKVA, Israel - May 22, 2025 -
NANO-X IMAGING LTD (NASDAQ: NNOX) ("Nanox" or the "Company"), an innovative medical imaging technology
company, today announced results for the first quarter ended March 31, 2025, and provided a business update.
"Since the beginning of 2025, Nanox has made consistent progress
marketing our full end-to-end imaging solutions, and to date we have over 60 units that are in various stages of implementation for commercial,
demonstration and clinical use," said Erez Meltzer, Chief Executive Officer and Acting Chairman of the Board. "Our teleradiology
business is generating steady revenue which helps to fund our growth, and we continue to do important supporting work behind the scenes,
such as securing more regulatory clearances and generating additional clinical data underpinning the use of the Nanox.ARC. We recently
received 510(k) clearance from the FDA for the Nanox.ARC X, our updated multi-source digital tomosynthesis system, an important milestone
that advances our mission to improve access to essential medical imaging technology to more patients, regardless of their location. Our
top commercial priority is to accelerate the deployment of the Nanox technologies, and to that end we continue to sign collaboration agreements
with medical imaging and AI companies to market the Nanox.ARC and Nanox.AI solutions. This approach complements our direct sales efforts
very well and will help maximize our reach while conserving our resources for the long run."
Detailed financial results for three months
ended March 31, 2025
For the three months ended March 31, 2025 (the
"Reported Period"), the Company reported a net loss of $13.2 million, compared to a net loss of $12.2 million for the three
months ended March 31, 2024 (which is referred as the "Comparable Period"), representing an increase of $1.0 million. The
increase of $1.0 million was largely due to an increase of $1.0 million in gross loss.
The Company reported revenue of $2.8 million in
the Reported Period, compared to $2.6 million in the Comparable Period. During the Reported Period, the Company generated revenue through
teleradiology services, the sale and deployment of its imaging systems and its AI solutions.
The Company's gross loss during the Reported
Period totaled $3.0 million (gross loss margin of (108%)) on a GAAP basis, as compared to $2.1 million (gross loss margin of (80%)) in
the Comparable Period. Non-GAAP gross loss for the Reported Period was $0.4 million (gross loss margin of approximately 15%), as compared
to gross profit of $0.6 million (gross profit margin of approximately 22%) in the Comparable Period.
The Company's revenue from teleradiology
services for the Reported Period was $2.6 million, compared to revenue of $2.4 million in the Comparable Period. The Company's GAAP
gross profit from teleradiology services for the Reported Period was $0.4 million (gross profit margin of approximately 17%), as compared
to $0.3 million (gross profit margin of approximately 14%) in the Comparable Period. Non-GAAP gross profit of the Company's
teleradiology services for the Reported Period was $1.0 million (gross profit margin of approximately 39%) as compared to $0.9 million
(gross profit margin of approximately 37%) in the Comparable Period. The increase in the Company's revenue and gross profit margins
from teleradiology services was mainly attributable to customer retention, increased rates and increased volume of the Company's
teleradiology reading services during the weekdays shifts.
During the Reported Period, the Company generated
revenue through the sales and deployment of its imaging systems which amounted to $33 thousand for the Reported Period, with a gross loss
of $1.6 million on a GAAP basis and $1.5 million on a non-GAAP basis, compared to revenue of $48 thousand with a gross loss of 0.4 million
on a GAAP basis and $0.3 million on a Non-GAAP basis in the Comparable Period. The revenue stems from the sale and deployment of our 2D
systems and the sale of our OEM services in the U.S.
The Company's revenue
from its AI solutions for the Reported Period was $0.2 million with a gross loss of $1.9 million on a GAAP basis, compared to revenue
of $97 thousand with a gross loss of $2.0 million in the Comparable Period. Non-GAAP gross profit of the Company's AI solutions
for the Reported Period was $81 thousand, compared to Non-GAAP gross profit of $29 thousand in the Comparable Period.
Research and development expenses, net, for the
Reported Period were $5.0 million, compared to $5.2 million in the Comparable Period, reflecting a decrease of $0.2 million. The decrease
was mainly due to a decrease of $0.2 million in share-based compensation, $0.8 million in expenses related to the Company's research
and development activities, which was offset by a decrease of $0.8 million in grants received, due to the completion of the NHSX development
project and the commencement of its commercial phase.
Sales and marketing expenses for the Reported
Period were $0.9 million compared to $0.8 million in the Comparable Period.
General and administrative expenses for the Reported
Period were $5.1 million, compared to $5.0 million in the Comparable Period. The increase of $0.1 million was mainly due to an increase
in salaries and wages and professional services of $0.3 million, an increase of $0.2 million in the Company's IT expenses and $0.2
million in the Company's recruiting expenses due to our commercialization efforts in the US market. The increase was offset by a
decrease of $0.5 million in the Company's legal expenses and a decrease of $0.2 million in D&O insurance expenses.
Non-GAAP net loss attributable to ordinary shares
for the Reported Period was $9.4 million, compared to $8.1 million in the Comparable Period. The decrease of $1.3 million was mainly due
to an increase of $1.0 million in the Non-GAAP gross loss.
Non-GAAP gross loss for the Reported Period was $0.4 million, compared
to a non-GAAP gross profit of $0.6 million in the Comparable Period. Non-GAAP research and development expenses, net for the Reported
Period, were $4.6 million, compared to $4.6 million in the Comparable Period. Non-GAAP sales and marketing expenses for the Reported Period
were $0.8 million, compared to $0.6 million in the Comparable Period. Non-GAAP general and administrative expenses for the Reported Period
were $4.5 million, compared to $4.3 million in the Comparable Period.
The difference between the GAAP and non-GAAP financial
measures above is mainly attributable to amortization of intangible assets, share-based compensation, expenses related to an offering
and legal fees in connection with the class-action litigation. A reconciliation between GAAP and non-GAAP financial measures for the three
-month periods ended March 31, 2025, and 2024 is provided in the financial results that are part of this press release.
Based on current market conditions and assuming that macroeconomic trends,
including tariff policy, inflation, interest rate levels and supply chain costs do not materially impede activity in the medical technology
industry generally, or for the Company specifically, the Company anticipates that the number of clinical, demo, and commercial units in
various stages of deployment will grow to over 100 units by the end of 2025, on a worldwide basis.
Liquidity and Capital Resources
As of March 31, 2025, the Company had total cash,
cash equivalents, short-term and long-term deposits, restricted deposits and marketable securities of $72.9 million, compared to $83.5
million as of December 31, 2024. During the reported period the Company experienced negative cash flow from operations of $10.3 million.
As of March 31, 2025 the Company had property
and equipment of $45.3 million, compared to $45.4 million as of December 31, 2024.
As of March 31, 2025, the Company had intangible
assets of $67.3 million compared to $70.0 million as of December 31, 2024. The decrease was attributable to the periodic amortization
of intangible assets in the amount of $2.7 million.
Shareholders' Equity
As of March 31, 2025 and December 31, 2024, the
Company had approximately 63.8 million shares outstanding.
Conference Call and Webcast Details
Thursday, May 22, 2025 @ 8:30am ET
Individuals interested in listening to the conference
call may do so by joining the live webcast on the Investors section of the Nanox website under Events and Presentations. Alternatively,
individuals can register online to receive a dial-in number and personalized PIN to participate in the call. An archived webcast of the
event will be available for replay following the event.
Nanox (NASDAQ: NNOX) is focused on driving the
world's transition to preventive health care by bringing a full solution of affordable medical imaging technologies based on advanced
AI and proprietary digital X-ray source.
Nanox's vision encompasses expanding the
reach of Nanox technology both within and beyond hospital settings, providing a seamless end-to-end solution from scan to diagnosis, leveraging
AI to enhance the efficiency of routine medical imaging technology and processes, in order to improve early detection and treatment and
maintaining a clinically driven approach. The Nanox ecosystem includes Nanox.ARC - a multi-source digital tomosynthesis system that