Full Press Release Details
Nanox Announces Third Quarter of 2024 Financial
Results and Provides Business Update
Made progress deploying all components of the
Nanox solution including Nanox.ARC and Nanox.AI
Expanded US sales and
support staff a key component of global strategic growth plan
Management to host conference call and webcast Thursday,
November 21, 2024 at 8:30 AM ET
PETACH TIKVA, Israel - November 21, 2024 - 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, 2024 and provided a business update.
"I am more confident than ever in the future
of Nanox as we accelerate the deployment of our Nanox.ARC and Nanox.AI technologies across the U.S. and international markets."
said Erez Meltzer, Nanox Chief Executive Officer and Acting Chairman. "The positive feedback from healthcare providers and patients
underscores the transformative potential of our solutions across the healthcare continuum. On the regulatory front, we are working closely
with the FDA on our application for full body scanning, and the European Union regulatory bodies to complete the CE Mark designation process.
We believe securing these approvals will further solidify our position in the market, while significantly expanding our total addressable
market. Coupled with our growing sales and support infrastructure we have established this past year, we are well-positioned to maintain
our strong commercial momentum into 2025 and beyond."
Financial results for three months ended September
For the three months ended September 30, 2024
(the "reported period"), the Company reported a net loss of $13.6 million, compared to a net loss of $21.4 million for the
three months ended September 30, 2023 (which is referred as the "comparable period"), representing a decrease of $7.8 million.
The decrease was largely due to a decrease of $7.4 million in expenses related to the impairment of Goodwill which were recorded in the
The Company reported revenue of $3.0 million in
the reported period, compared to $2.5 million in the comparable period. During the reported period, the Company generated revenue through
teleradiology services, the sales of its Imaging devices and services and the sale of its AI solutions.
The Company's gross loss during the reported period totaled
$2.8 million (gross loss margin of 93%) on a GAAP basis, as compared to $1.7 million (gross loss margin of 67%) in the comparable period.
Non-GAAP gross loss for the reported period was $0.2 million (gross loss margin of approximately 6%), as compared to Non-GAAP gross profit
of $0.9 million (gross profit margin of approximately 37%) in the comparable period.
The Company's revenue from teleradiology services for the
reported period was $2.6 million, compared to revenue of $2.2 million in the comparable period. The increase in the Company's revenue
from teleradiology services was mainly attributable to customer retention and increased volume of the Company's reading services
during the weekdays shifts.
The Company's GAAP gross profit from teleradiology services
for the reported period was $0.3 million (gross profit margin of approximately 13%), compared to $0.2 million (gross profit margin of
approximately 11%) 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 35%) compared to gross profit of $0.8 million (gross profit margin of approximately
36%) in the comparable period.
During the reported period the Company generated revenue through
the sales and deployment of its imaging systems which amounted to $29 thousand for the reported period, with a gross loss of $1.5 million
on a GAAP and non-GAAP basis compared to revenue of $99 thousand with a gross profit of $36 thousand (gross profit margin of approximately
37%) on a GAAP and Non-GAAP basis in the comparable period. The revenue stems from the sale and deployment of our 2D systems in Africa
and our Nanox.ARC systems in the U.S.
The Company's revenue from its AI solutions for the reported
period was $0.4 million with a gross loss of $1.6 million on a GAAP basis, compared to revenue of $141 thousand with a gross loss of $1.9
million in the comparable period. Non-GAAP gross profit of the Company's AI solutions for the reported period was $0.4 million,
compared to $0.1 million in the comparable period.
Research and development expenses, net, for the
reported period were $4.7 million, compared to $6.0 million in the comparable period, reflecting a decrease of $1.3 million. The decrease
was mainly due to a decrease of $0.3 million in salaries and wages and a decrease of $0.4 million in share-based compensation and $0.6
million in expenses related to our research and development activities.
Sales and marketing expenses for the reported
period were $0.9 million compared to $1.1 in the comparable period.
General and administrative expenses for the reported period were
$5.7 million, compared to $5.0 million in the comparable period. The increase of $0.7 million was mainly due to an increase of $0.5 million
in share-based compensation, increase in our legal expenses in the amount of $0.5 million which was offset by a decrease in the cost of
the directors' and officers' liability insurance premium in the amount of $0.3 million.
Non-GAAP net loss attributable to ordinary shares
for the reported period was $8.7 million, compared to $9.4 million in the comparable period. The decrease of $0.7 million was mainly due
to a decrease in non-GAAP operating expenses of $1.8 which was offset by a decrease of $1.1 million in our non-GAAP gross profit.
Non-GAAP gross loss for the reported period was
$0.2 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 $4.0 million, compared to $4.9 million in the comparable period. Non-GAAP sales and marketing expenses
for the reported period were $0.6 million, compared to $0.9 million in the comparable period. Non-GAAP general and administrative expenses
for the reported and comparable periods were $4.5 million.
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 in connection with the class-action litigation and the SEC investigation.
A reconciliation between GAAP and non-GAAP financial measures for the three- and nine-months periods ended September 30, 2024, and 2023
is provided in the financial results that are part of this press release.
Liquidity and Capital Resources
As of September, 30, 2024, the Company had total
cash, cash equivalents, restricted deposits and marketable securities of $57.1 million, compared to $82.8 million as of December 31, 2023.
The decrease of $25.7 million during the reported period was primarily due to negative cash flow from operations of $26.1 million.
As of September 30, 2024 the Company had property
and equipment of $44.7 million, compared to $42.3 million as of December 31, 2023.
As of September, 30, 2024, the Company had intangible assets of
$72.6 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 $8.0 million.
Shareholders' Equity
As of September 30, 2024, the Company had approximately
58.5 million shares outstanding. As of December 31, 2023, the Company had approximately 57.8 million shares outstanding.
Conference Call and Webcast Details
Tuesday, November 21, 2024 @ 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 novel digital 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 for smarter diagnostics and maintaining a clinically-driven
approach. The Nanox ecosystem includes Nanox.ARC - a multi-source Digital Tomosynthesis system that is cost-effective and user-friendly;
Nanox.AI - an AI-based suite of algorithms that augment the readings of routine CT imaging to highlight early signs often related
to chronic diseases; Nanox.CLOUD - a cloud-based software platform that manages and stores data collected by Nanox devices, and
provides users with tools for in-depth imaging analysis; Nanox.MARKETPLACE - 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. By improving early detection and treatment, Nanox aims to enhance its better health outcomes worldwide.