Full Press Release Details
Announces First Quarter of 2024 Financial Results and
Deployment of Nanox.ARC in United States
signed two commercial agreements for Nanox.AI
to host conference call and webcast Tuesday, May 28, 2024 at 8:30 AM ET
TIKVA, Israel- May 28, 2024 - 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, 2024 and provided a business
Quarter 2024 Highlights and Recent Developments:
"The entire Nanox team performed at a
high level in the first quarter of 2024, marking positive strides commercializing the full Nanox technology suite worldwide, while
also strengthening our customer support network and building the clinical data to support the use of the Nanox.ARC for an expanded
array of musculoskeletal indications." said Erez Meltzer, Nanox Chief Executive Officer. "We have also strengthened the
crucial Nanox.AI product suite, receiving a new FDA clearance for Health FLD in February, and securing agreements with leading
healthcare AI data platforms Dandelion Health and Covera. Alongside our commercial efforts in the US, we are also advancing in other
geographies. The entire Nanox team is focused on acceleration into the rest of
results for three months ended March 31, 2024
For the three months ended March 31, 2024 (the
"reported period"), the Company reported a net loss of $12.2 million, compared to a net loss of $11.8 million for the three
months ended March 31, 2023 (which is referred as the "comparable period"), representing an increase of $0.4 million. The
increase was largely due to onetime income that was recorded in the comparable period due to a decrease in the Company's earn-out
liabilities in the amount of $4.7 million and an increase in gross loss in the amount of $0.5 million, which was offset by a decrease
of $1.1 million in the research and development expenses, a decrease of $0.4 million in the sales and marketing expenses, a decrease of
$2.8 million in the general and administrative expenses and increase of $0.4 in the Company's financial income.
The Company reported revenue of $2.6 million in
the reported period, compared to $2.4 million in the comparable period. During the reported period, the Company generated revenue through
teleradiology services, the sales and deployment of its imaging systems and the sale of its AI solutions.
The Company's gross loss during the reported
period totaled $2.1 million (gross loss margin of (81%)) on a GAAP basis, as compared to $1.5 million (gross loss margin of (62%)) in
the comparable period. Non-GAAP gross profit for the reported period was $0.6 million (gross profit margin of approximately 22%), as
compared to $1.0 million (gross profit margin of approximately 43%) in the comparable period.
Company's revenue from teleradiology services for the reported period was $2.4 million in the reported and comparable periods.
The Company's GAAP gross profit from teleradiology services for the reported period was $0.3 million (gross profit margin of approximately
14%), as compared to $0.5 million (gross profit margin of approximately 21%) in the comparable period. Non-GAAP gross profit of
the Company's teleradiology services for the reported period was $0.9 million (gross profit margin of approximately 37%) as compared
to $1.1 million (gross profit margin of approximately 45%) in the comparable period. The decrease was attributable mainly to an increase
in the cost of the engaged radiologists due to increases in reading rates.
the reported period the Company generated revenue through the sales and deployment of its imaging systems which amounted to $48 thousand
for the reported period, with a gross loss of 0.4 million on a GAAP and non-GAAP basis. The revenue stems from the sale and deployment
of our 2D systems in Africa and our ARC systems in the U.S.
Company's revenue from its AI solutions for the reported period was $97 thousand with a gross loss of $2.0 million on a GAAP basis,
as compared to revenue of $49 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 $29 thousand, as compared to a loss of $20 thousand in the comparable period. During the reported
period, Nanox AI continued to complete pilot programs with health organizations and other prospects in anticipation of full deployment
Research and development expenses net for the
reported period were $5.2 million, as compared to $6.3 million in the comparable period, reflecting a decrease of $1.1 million. The decrease
was mainly due to a research grant of $0.9 million that was received as part of the NHSX project, decrease of $0.2 million in salaries
and wages, decrease of $0.2 million in share-based compensation which was offset by an increase of $0.3 million in the expenses related
to our research and development activities.
and marketing expenses for the reported period were $0.8 million, as compared to $1.2 million in the comparable period, reflecting a
decrease of $0.4 million in the Company's marketing expenses.
and administrative expenses for the reported period were $5.0 million, as compared to $7.8 million in the comparable period. The decrease
of $2.8 million was mainly due to a decrease in our legal expenses in the amount of $2.2 million, largely as result of the finalization
of the SEC investigation and the settlement of the class action and a decrease in the cost of the directors' and officers'
liability insurance premium in the amount of $0.4 million.
net loss attributable to ordinary shares for the reported period was $8.1 million, as compared to $10.5 million in the comparable period.
The decrease of $2.4 million was mainly due to a decrease in non-GAAP operating expenses of $2.4 million and an increase of $0.4 million
in our non-GAAP interest income which was mitigated by a decrease of $0.6 million in our non-GAAP cost of goods sold.
gross profit for the reported period was $0.6 million, as compared to $1.0 million in the comparable period. Non-GAAP research and development
expenses, net for the reported period, were $4.6 million, as compared to $5.5 million in the comparable period. Non-GAAP sales and marketing
expenses for the reported period were $0.6 million, as compared to $1.0 million in the comparable period. Non-GAAP general and administrative
expenses for the reported period were $4.3 million as compared to $5.4 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, change in contingent earnout liability
and legal fees in connection with the class-action litigation and the SEC investigation. A reconciliation between GAAP and non-GAAP financial
measures for the three months periods ended March 31, 2024, and 2023 is provided in the financial results that are part of this press
Liquidity and Capital Resources
As of March 31, 2024, the Company had total cash,
cash equivalents, restricted deposits and marketable securities of $73.3 million, compared to $82.8 million as of December 31, 2023. The
decrease of $9.5 million during the reported period was primarily due to negative cash flow from operations of $9.4 million.
As of March 31, 2024 and December 31, 2023, the
Company had property and equipment of $42.3 million.
As of March 31, 2024, the Company had intangible
assets of $78.0 million as compared to $80.6 million as of December 31, 2023. The decrease was attributable to the periodic amortization
of intangible assets in the amount of $2.6 million.
of March 31, 2024, and December 31, 2023, the Company had approximately 57.8 million shares outstanding.
Call and Webcast Details
May 28, 2024 @ 8:30am ET
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.
(NASDAQ: NNOX) is focused on applying its proprietary medical imaging technology and solutions to make diagnostic medicine more accessible
and affordable across the globe. Nanox's vision is to increase access, reduce costs and enhance the efficiency of routine medical
imaging technology and processes, in order to improve early detection and treatment, which Nanox believes is key to helping people achieve
better health outcomes, and, ultimately, to save lives. The Nanox ecosystem includes Nanox.ARC- a multi-source Digital Tomosynthesis
system that is cost-effective and user-friendly; an AI-based suite of algorithms that augment the readings of routine CT imaging to highlight
early signs often related to chronic disease (Nanox.AI); a cloud-based infrastructure (Nanox.CLOUD); and a proprietary decentralized
marketplace, through Nanox's subsidiary, USARAD Holdings Inc., that provides remote access to radiology and cardiology experts;
and a comprehensive teleradiology services platform (Nanox.MARKETPLACE). Together, Nanox's products and services create a worldwide,
innovative, and comprehensive solution that connects medical imaging solutions, from scan to diagnosis. For more information, please
visit www.nanox.vision.
press release may contain forward-looking statements that are subject to risks and uncertainties. All statements that are not historical
facts contained in this press release are forward-looking statements. Such statements include, but are not limited to, those relating
to the initiation, timing, progress and results of the Company's research and development, manufacturing, and commercialization
activities with respect to its X-ray source technology and the Nanox.ARC, the ability to realize the expected benefits of its recent
acquisitions and the projected business prospects of the Company and the acquired companies. In some cases, you can identify forward-looking
statements by terminology such as "can," "might," "believe," "may," "estimate,"
"continue," "anticipate," "intend," "should," "plan," "should,"
"could," "expect," "predict," "potential," or the negative of these terms or other similar
expressions. Forward-looking statements are based on information the Company has when those statements are made or management's
good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance
or results to differ materially from those expressed in or suggested by the forward-looking statements. Factors that could cause actual