Full Press Release Details
Nanox Announces Fourth Quarter 2020 Results
Provides Business Update
Successfully demonstrates the Nanox.ARC
in range of 2D and 3D imaging applications at the 2020 Radiology Society of North America (RSNA) Virtual Annual Meeting
Continues to build out commercial and
manufacturing infrastructure ahead of initial product shipments expected to commence in Q4 2021 and into Q1 2022
Ended Q4 with cash and cash equivalents
of $213 million and no debt
Management to host conference call and
webcast today, March 2, at 8:30 AM ET
NEVE ILAN, Israel-March 2, 2021 --
NANO-X IMAGING LTD (NASDAQ: NNOX) ("Nanox" or the "Company"), an innovative medical imaging
technology company, today announced results for the fourth quarter ended December 31, 2020, and provided a business update.
"The clear highlight of the fourth
quarter was the successful demonstration of the Nanox.ARC and our revolutionary digital X-ray source tube at the 2020 Radiology
Society of North America Virtual Annual Meeting in December," stated Ran Poliakine, Chairman and Chief Executive Officer
of Nanox. "With that demonstration, we brought X-ray technology, which had not seen material technological advancements since
its discovery more than 120 years ago, into the 21st century.
"As a result, with the Nanox.ARC
and Nanox.CLOUD, we believe we can provide expanded access to medical imaging globally, including both developed countries as well
as the roughly two-thirds of the world's population who have limited or no access to imaging today or experience long wait
times. For these patients and providers, this is a significant opportunity, as early disease detection leads to improved outcomes
for patients and cost savings for payers. RSNA was the ideal platform for this unveiling, as the premier medical imaging event
that was attended virtually by thousands of industry stakeholders from around the world."
"In 2021, we are focused on finalizing
development of the Nanox.ARC, obtaining regulatory approvals, and building out our commercial and manufacturing infrastructure
ahead of planned system shipments, which we expect to commence in the fourth quarter of this year. We continue to advance the Nanox.ARC
along regulatory pathways, especially in the U.S. where we hope to gain clearance of both the single- and multi-source versions
of the Nanox.ARC this year. We have a strong balance sheet and believe we are on track to achieve our long-standing goal of deploying
15,000 Nanox.ARC units globally by the end of 2024," Mr. Poliakine concluded."
Fourth quarter 2020 and recent highlights:
results for three and twelve months ended December 31, 2020
For the three months ended December 31,
2020, the Company had a net loss of $19.0 million, compared to a net loss of $19.0 million for the three-month period ended December
31, 2019. For the twelve months ended December 31, 2020, the Company had a net loss of $43.8 million, compared to a net loss of
$22.6 million for twelve months ended December 31, 2019 in line with the overall activity expansion necessary to execute the Company's
strategic objectives.
Research and Development expenses for the
fourth quarter 2020 were $3.0 million, as compared to $2.0 million for the corresponding prior year period in 2019. Research and
Development expenses for the full year 2020 were $9.2 million, as compared to $2.7 million for the full year 2019. The increase
was due to higher development costs related to the Nanox System, including increased R&D headcount, stock-based compensation
and costs related to the ongoing regulatory approval process.
Marketing expenses for the fourth quarter
2020 were $8.0 million, as compared to $0.9 million for the corresponding prior year period in 2019. Marketing expenses for the
full year 2020 were $12.4 million, as compared to $1.6 million for the full year 2019. Spending increased due to increased investments
in brand awareness and product marketing capabilities as well as stock-based compensation.
General and administrative expenses for
the fourth quarter 2020 were $8.1 million, as compared to $16.2 million for corresponding prior year period in 2019. General and
administrative expenses for the full year 2020 were $22.3 million, as compared to $18.3 million for the full year 2019. The decline
in general and administrative expenses in the fourth quarter of 2020 as compared to the year ago period was due to a decline in
stock-based compensation.
Net cash used in operating activities during
the fourth quarter and the full year were $13.3 million and $21.5 million, respectively.
The Company ended the fourth quarter with
cash and cash equivalents of $213.5 million.
Non-GAAP net loss attributable to ordinary
shares for the three months ended December 31, 2020 was $8.4 million, as compared to $2.8 million for the corresponding prior year
period in 2019. Non-GAAP research and development expenses for the fourth quarter 2020 were $2.1 million, as compared to $1.3 million
for the corresponding prior year period in 2019. Non-GAAP marketing expenses for fourth quarter 2020 were $1.6 million, as compared
to $0.2 million for the corresponding prior year period in 2019. Non-GAAP general and administrative expenses for the fourth quarter
2020 were $4.8 million, as compared to $1.2 million for the corresponding period year period in 2019.
A reconciliation between GAAP and non-GAAP
metrics for the three- and twelve-month periods ended December 31, 2020 and 2019 is provided in the financial results that are
part of this press release. The difference between the GAAP and non-GAAP results for each of the metrics above is mainly attributable
to share-based compensation.
As of December 31, 2020, the Company had
approximately 46.1 million shares outstanding.
Conference call and webcast details
Tuesday, March 2, 2021 @ 8:30am ET
Investor domestic dial-in: 877-407-0789
Investor international dial-in: 201-689-8562
Conference ID: 13715494
Webcast link: http://public.viavid.com/index.php?id=143172
Nanox, founded by the serial entrepreneur
Ran Poliakine, is an Israeli corporation that is developing a commercial-grade digital X-ray source designed to be used in real-world
medical imaging applications. Nanox believes that its novel technology could significantly reduce the costs of medical imaging
systems and plans to seek collaborations with world-leading healthcare organizations and companies to provide affordable, early
detection imaging service for all. For more information, please visit www.nanox.vision.
Forward-Looking Statements:
This 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 information about possible or assumed future results of our business, financial
condition, results of operations, prospects, liquidity, plans and objectives. 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 Nanox 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 results to differ materially from those currently anticipated include: risks related to business interruptions
resulting from the COVID-19 pandemic or similar public health crises could cause a disruption of the development, deployment or
regulatory clearance of the Nanox System and adversely impact our business; 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 expectations
regarding the planned deployment schedule to meet its target minimum installed base of 1,000 Nanox Systems and final deployment
of 15,000 Nanox Systems; 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; and Nanox's ability to conduct business
globally, among others. These forward-looking statements are subject to risks and uncertainties that could cause actual results