Full Press Release Details
Nanox Announces Fourth Quarter of 2024 Financial
Results and provides Business Updates
Recorded noted regulatory successes with FDA
general use clearance and granting of CE Mark in the EU
Advanced commercialization globally, signing
new customer and channel partner agreements for Nanox.ARC and Nanox AI
Management to host conference call and webcast
Monday, March 31, 2025 at 8:30 AM ET
PETACH TIKVA, Israel - March 31, 2025 -
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, 2024, and provided a business update.
"The fourth quarter capped off a dynamic year
for Nanox, during which we accelerated our US commercialization effort of both the Nanox.ARC and Nanox.AI products, generated additional
clinical evidence supporting the use of the Nanox.ARC system and technology, and successfully passed key regulatory hurdles among other
achievements." said Erez Meltzer, Nanox Chief Executive Officer and Acting Chairman.
Mr. Meltzer continued, "We enter 2025 a
portfolio of cutting-edge technologies and pursuing a vision to reimagine imaging. Our operational progress in 2024, coupled with a growing
and innovative portfolio, leaves us confident that we are well-positioned to build our momentum and drive our new technologies into a
medical imaging market that is ripe for new tools that improve accessibility, lower costs, and streamline the delivery of healthcare for
providers and patients."
Financial results for three months ended December
For the three months ended December 31, 2024 (the "reported period"),
the Company reported a net loss of $14.1 million, compared to a net loss of $10.2 million for the three months ended December 31, 2023
(which is referred as the "comparable period"), representing an increase of $3.9 million. The increase was largely due to a
one time income in the amount of $3.0 million that was recognized in the comparable period, related to compensation from its D&O insurance
carrier under the settlement agreement in connection with the class action lawsuits against the Company.
The Company reported revenue of $3.0 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 of its imaging products and services, and its AI solutions.
The Company's gross loss during the reported
period totaled $2.9 million (gross loss margin of 96%) on a GAAP basis, as compared to $1.7 million (gross loss margin of 72%) in the
comparable period. Non-GAAP gross loss for the reported period was $0.3 million (gross loss margin of approximately 9%), as compared to
Non-GAAP gross profit of $0.9 million (gross profit margin of approximately 36%) in the comparable period.
The Company's revenue from teleradiology
services for the reported period was $2.8 million, compared to revenue of $2.3 million in the comparable period. The Company's
GAAP gross profit from teleradiology services for the reported period was $0.6 million (gross profit margin of approximately 21%), 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 $1.1 million (gross profit margin of approximately 41%) compared to gross profit of
$0.9 million (gross profit margin of approximately 38%) 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 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 $136 thousand for the reported period, with a gross
loss of $1.5 million on a GAAP basis and $1.4 million on a non-GAAP basis compared to revenue of $17 thousand with a gross loss of $44
thousand on a GAAP and 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 $83 thousand with a gross loss of $2.0 million on a GAAP basis, compared to revenue
of $84 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 $6 thousand, compared to $21 thousand in the comparable period.
Research and development expenses, net, for the
reported period were $5.4 million, compared to $6.8 million in the comparable period, reflecting a decrease of $1.4 million. The decrease
was mainly due to a decrease of $0.2 million in salaries and wages, a decrease of $0.5 million in share-based compensation and $0.7 million
in expenses related to our research and development activities.
Sales and marketing expenses for the reported
period were $0.9 million compared to $1.0 million in the comparable period.
General and administrative expenses for the reported
period were $5.8 million, compared to $3.8 million in the comparable period. The increase of $2.0 million was mainly due to an increase
of $1.8 million in our legal expenses since the Company received $2 million from the Company's directors' and officers'
liability insurance carrier during the comparable period under the Company's policy and the settlement agreement which reduced the
Company's legal expenses in the same amount during the comparable period.
Non-GAAP net loss attributable to ordinary shares
for the reported period was $10.0 million, compared to $10.4 million in the comparable period. The decrease of $0.4 million was mainly
due to an increase of $0.5 million in financial income, net.
Non-GAAP gross loss for the reported period was
$0.3 million, compared to a non-GAAP gross profit of $0.9 million in the comparable period. Non-GAAP research and development expenses,
net for the reported period, were $5.0 million, compared to $5.9 million in the comparable period. Non-GAAP sales and marketing expenses
for the reported period were $0.6 million, compared to $0.8 million in the comparable period. Non-GAAP general and administrative expenses
for the reported period were $5.0 million, compared to $4.7 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,
impairment of Goodwill, expenses related to an offering and legal fees and settlement expenses in connection with the class-action litigation
and the SEC investigation. A reconciliation between GAAP and non-GAAP financial measures for the three- and twelve-month periods ended
December 31, 2024, and 2023 is provided in the financial results that are part of this press release.
Liquidity and Capital Resources
As of December 31, 2024, the Company had total
cash, cash equivalents, short-term and long-term deposits, restricted deposits and marketable securities of $83.5 million, compared to
$82.8 million as of December 31, 2023. During the reported period the Company experienced negative cash flow from operations of $36.6
million and a positive cash flow from financing of $39.5 million.
As of December 31, 2024 the Company had property
and equipment of $45.4 million, compared to $42.3 million as of December 31, 2023.
As of December 31, 2024, the Company had intangible
assets of $70.0 million 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 $10.6 million.
Shareholders' Equity
As of December 31, 2024, the Company had approximately
63.8 million shares outstanding. As of December 31, 2023, the Company had approximately 57.8 million shares outstanding. During
the fourth quarter of 2024, the Company sold approximately 5.0 million ordinary shares,
which generated net proceeds of approximately $37.8 million, pursuant to the Company's previously announced Controlled Equity OfferingSM Sales
Agreement, dated as of June 7, 2024 with Cantor Fitzgerald & Co. and Mizuho Securities USA LLC relating to the issuance and sale from
time to time of our ordinary shares, an aggregate offering price of up to $100 million from time to time through the Agents pursuant to
the sales agreement. During 2024, 0.9 million options to purchase ordinary shares were exercised to ordinary shares in consideration of
$1.7 million, including 0.7 million options to purchase ordinary shares that were exercised by the estate of the late Company's
Chairman of the Board in consideration of $1.6 million.
Conference Call and Webcast Details
Monday, March 31, 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