Full Press Release Details
Nanox Announces Third Quarter 2022 Financial
Provides Business Update
Reports progress towards global supply chain
Ended the third quarter of 2022 with cash,
cash equivalents and marketable securities of $117.1 million
Management to host conference call and webcast
Thursday, November 10, 2022 at 8:30 AM ET
NEVE ILAN, Israel- November 10, 2022 --
NANO-X IMAGING LTD (NASDAQ: NNOX) ("Nanox" or the "Company"), an innovative medical imaging technology
company, today announced results for the third quarter ended September 30, 2022 and provided a business update.
Third Quarter 2022 Highlights and Recent Developments:
| Generated $2.4 million in revenue in the third quarter of 2022 compared to $2.2 million in the second quarter of 2022 and $1.8 million in the first quarter of 2022. | ||
| Submitted a 510(k) premarket notification to the U.S. Food and Drug Administration as part of the Company's 510(k) application process for the multi-source Nanox.ARC system | ||
| Received a Helsinki permit to conduct clinical trials at Shamir Hospital, Israel using the multisource Nanox.ARC system, with a goal of generating sample images in the fourth quarter of 2022. | ||
| Engaged a Notified Body to work with during the CE marking process. |
results for three months ended September 30, 2022
For the three months ended September 30, 2022,
the Company reported a net loss of $19.1 million, compared to a net loss of $13.5 million in the comparable period, which increase was
largely due to the consolidation of Nanox.AI and USARAD with the Company since the fourth quarter of 2021, an increase in the Company's
research and development expenses, an increase in the Company's general and administrative expenses, which was mitigated by a decrease
in the Company's sales and marketing expenses and a $1.0 million expense due to change in the Company's obligation in connection
For the three months ended September 30, 2022,
the Company reported revenue of $2.4 million, compared to none for the three months ended September 30, 2021 (which is referred to as
the "comparable period"). During the three months ended September 30, 2022, the Company generated revenues through the sales
of teleradiology services and AI solutions. The Company's gross loss during the three months ended September 30, 2022 totaled $1.5
million on a GAAP basis. The Company's revenue from teleradiology services for the three months ended September 30, 2022 was $2.4
million with a gross profit of $0.6 million on a GAAP basis. The increase in the Company's revenue represents a growth of more than
11.2% in its sales of teleradiology services from the previous quarter which is attributable to revenues from a data monetization project
in the amount of $0.3 million. The Company's revenue from its AI solutions for the three months ended September 30, 2022 was $0.1
million with a gross loss of $2.1 million on a GAAP basis. Non-GAAP cost of revenue of the Company's teleradiology services for
the three months ended September 30, 2022 was $1.2 million, as compared to none in the comparable period, resulting in a non-GAAP gross
profit of $1.2 million for the three months ended September 30, 2022, which represents a gross profit margin of approximately 49.4 % on
a non-GAAP basis. The Company's non-GAAP gross loss from its AI solutions for the three months ended September 30, 2022 was $0 million.
In total, non-GAAP cost of revenue for the three months ended September 30, 2022 was $1.3 million, as compared to none in the comparable
period, resulting in a non-GAAP gross profit of $1.1 million for the three months ended September 30, 2022, which represents a gross profit
margin of approximately 46.0% on a non-GAAP basis.
Research and development expenses for the three months
ended September 30, 2022 were $6.1 million, as compared to $3.7 million in the comparable period. The increase of $2.4 million was mainly
due to the consolidation of Nanox.AI with the Company since the fourth quarter of 2021 and the balance due to the development of the multi-source
Nanox.ARC and the Nanox.CLOUD and share-based compensation.
Sales and marketing expenses for the three months ended September 30,
2022 were $0.7 million, as compared to $1.5 million in the comparable period. The decrease of $0.8 million was mainly due to a decrease
in the cost of employees and in share-based compensation.
General and administrative expenses for the three
months ended September 30, 2022 were $10.6 million, as compared to $8.2 million in the comparable period. The increase of $2.4 million
was mainly due to the consolidation of Nanox.AI and USARAD with the Company since the fourth quarter of 2021, an increase in the Company's
head count and the overall organization infrastructure and an increase in the Company's legal fees due to the U.S. Securities and
Exchange Commission ("SEC") inquiry and class-action litigation, as described in the Company's Form 20-F for the year
ended December 31, 2021 filed on May 2, 2022.
Change in obligation in connection of acquisitions
was $1.0 million, as compared to none in the comparable period, due to the decrease in the Company's contingent earnout liability.
Non-GAAP net loss applicable to ordinary shares for the three months
ended September 30, 2022 was $8.1 million, as compared to $8.4 million in the comparable period. Non-GAAP gross profit for the three months
ended September 30, 2022 was $1.1 million, as compared to none the comparable period. Non-GAAP research and development expenses for the
three months ended September 30, 2022 were $5.0 million, as compared to $3.0 million in the comparable period. Non-GAAP sales and marketing
expenses for the three months ended September 30, 2022 were $0.4 million, as compared to $1.0 million in the comparable period. Non-GAAP
general and administrative expenses for the three months ended September 30, 2022 were $4.5 million, as compared to $4.4 million in the
A reconciliation between GAAP and non-GAAP financial
measures for the three-month periods ended September 30, 2022 and 2021 is provided in the financial results that are part of this press
release. The difference between the GAAP and non-GAAP financial measures above is mainly attributable to amortization of intangible assets,
share-based compensation, secondary offering expenses, goodwill impairment, change in obligation in connection of acquisitions and legal
fees in connection with class-action litigation and the SEC inquiry.
Liquidity and Capital Resources
The Company ended the third quarter of 2022 with total cash, cash equivalents
and marketable securities of $117.1 million. As of September 30, 2022, the Company had $88.1 million of cash, cash equivalents and short-term
marketable securities and $29.0 million of long-term marketable securities. As of September 30, 2022, the Company had total current assets
of $90.6 million and total current liabilities of $43.6 million, creating a working capital of $47.0 million.
As of December 31, 2021, the Company had $88.7 million
of cash, cash equivalents and short-term marketable securities and $67.9 million of long-term marketable securities and in total, $156.6
of cash and marketable securities. As of December 31, 2021, the Company had total current assets of $94.9 million and total current liabilities
of $52.8 million, creating a working capital of $42.1 million.
The decrease in the Company's cash, cash equivalents and marketable
securities of $39.5 million during the nine-month period ended September 30, 2022 was primarily due to negative cash flow from operations
of $30.5 million and purchase of property and equipment of $7.4 million for the Company's fabrication facility in South Korea and
long lead items for the Company's multi-source systems.
As of September 30, 2022, the Company had property
and equipment, net of $44.1 million as compared to $37.4 million as of December 31, 2021. The increase is mainly attributed to the completion
of the construction of the Company's fabrication facility in South Korea and purchase of machinery and equipment.
As of September 30, 2022, the Company had intangible assets and goodwill
of $137.8 million as compared to $160.1 million as of December 31, 2021. The decrease is attributable to the periodic amortization of
intangible assets and impairment of goodwill.
Shareholders' Equity
As of September 30, 2022, the Company had approximately
52.3 million shares outstanding as compared to 51.8 million shares outstanding as of December 31, 2021. The increase was mainly due to
the exercise of 192,927 warrants and the exercise of 192,820 options. The Company generated approximately $0.7 million in gross proceeds
from the exercise of such options and warrants. In addition, during the nine-month period ended September 30, 2022, the Company issued
89,286 shares to the former equity holders of Nanox.AI due to the achievement of a milestone pursuant to the terms of the Agreement and
Plan of Merger, dated August 9, 2021, as amended, among the Company, Nanox.AI and Perryllion Ltd., as representative of Nanox.AI's
Conference Call and Webcast Details
Thursday, November 10, 2022 @ 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 applying its
proprietary medical imaging technology and solutions to make diagnostic medicine more accessible and affordable across the globe. The
vision of Nanox is to increase the early detection of medical conditions that are discoverable by medical image technologies based on
X-rays, which Nanox believes is key to increasing early prevention and treatment, improving health outcomes, and, ultimately, saving lives.
Nanox is developing a holistic imaging solution, which includes the Nanox System, comprised of the Nanox.ARC using its novel MEMs X-ray
source technology, and the Nanox.CLOUD, a companion cloud software, integrated with AI solutions and teleradiology services. For more
information, please visit www.nanox.vision.
Forward-Looking Statements:
This press release may contain forward-looking