Nanox Announces Fourth Quarter 2021 Financial Results and Provides Business Update
NANO-X IMAGING LTD (NASDAQ: NNOX) announced its fourth quarter results for 2021, reporting a revenue of $1.3 million compared to $0 for the same period in 2020. The non-GAAP gross profit stood at $0.2 million. The company strengthened its leadership and completed its technology transfer to Nanox Korea. However, a net loss of $22 million was reported, an increase from $19 million in Q4 2020, driven by merger-related expenses. Cash and equivalents decreased to $88.7 million, down from $213.5 million year-over-year.
- Revenue increased to $1.3 million in Q4 2021 from $0 in Q4 2020.
- Non-GAAP gross profit of $0.2 million.
- Leadership strengthened with new CEO and General Manager appointments.
- Successful completion of technology transfer to Nanox Korea.
- Net loss widened to $22 million in Q4 2021 from $19 million in Q4 2020.
- Decrease in cash and equivalents from $213.5 million to $88.7 million year-over-year.
- Increased research and development expenses of $6.4 million, up from $3 million in Q4 2020.
Management to host conference call and webcast today,
Fourth Quarter Highlights and Recent Developments:
-
Revenue for the fourth quarter of 2021 was
and non-GAAP gross profit was$1.3M $0.2 million
-
Strengthened leadership positions with the appointments of
Erez Meltzer as Chief Executive Officer of the Company andPini Ben Elazar as General Manager of Nanox.AI
-
Our subsidiary, USARAD, was recertified with the Joint Commission’s Gold Seal of Approval
-
Operationally, our technology transfer to Nanox Korea to enable production of our source MEMs chip has been completed. With the launch of production at the facility now underway, we anticipate being in full production of our MEMs chip by mid-year 2022.
-
Establishing an operational assembly line to enable the expected ramp up in production and preparation for shipments of the Nanox.ARC system later this year.
-
Continuing the ongoing integration of the Nanox AI, USARAD and MDW implementing cost reduction measurements in order to streamline operations and benefit from synergies.
-
The
American Medical Association (AMA) issued a new Category III Current Procedural Terminology (CPT) code for quantitative CT tissue characterization, to be effectiveJuly 2022 .
-
Entered into an agreement with a large integrated health care organization based in the
U.S. , where Nanox.AI-enabled software will be deployed for early detection of cardiovascular disease and osteoporosis.
-
Submitted a Q-submission to the FDA in
January 2022 and we are preparing for our second multi-source 510(k) submission.
“The fourth quarter and fiscal year 2021 was pivotal for Nanox,” said
Financial results for three months ended
For the three months ended
For the three months ended
Research and development expenses for the three months ended
Sales and marketing expenses for the three months ended
General and administrative expenses for the three months ended
Non-GAAP net loss applicable to ordinary shares for the three months ended
A reconciliation between GAAP and non-GAAP financial measures for the three-month periods and the years ended
Liquidity and Capital Resources
As of
As of
During the fourth quarter of 2021, we issued 3,249,142 shares of common stock due to the merger with Nanox.AI, 496,545 shares of common stock due to acquisition of USARAD and 64,715 shares of common stock due to acquisition of the assets of MDWEB. We also issued 76,787 shares of common stock due to exercise of warrants and 26,534 shares of common stock due to exercise of options. We generated approximately
Other Assets
The Company ended the year with property and equipment, net of
As of
For the years ended
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Year ended |
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2021 |
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2020 |
|
2019 |
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|
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||||||||||
|
|
|
|
|
|
|
|
|
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Net loss for the year |
|
|
(61,798 |
) |
|
|
(43,815 |
) |
|
|
(22,563 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in operating activities |
|
|
(38,071 |
) |
|
|
(21,487 |
) |
|
|
(5,524 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used in investing activities * |
|
|
(116,320 |
) |
|
|
(13,937 |
) |
|
|
(125 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by financing activities |
|
|
7,379 |
|
|
|
240,991 |
|
|
|
13,861 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents and restricted cash |
|
|
(147,012 |
) |
|
|
205,567 |
|
|
|
8,212 |
|
* |
Including capital expenditures related to the construction of our FAB in |
Net cash used in operating activities during the three months ended
As of
Other matters
On
On the same date, our Board of Directors nominated Mr.
Conference call and webcast details
Investor US/
Conference ID: 5583017
Webcast link: https://protect-us.mimecast.com/s/GAv4ClYv2qILp2EoU9iovi?domain=edge.media-server.com
About Nanox:
Nanox, founded by the serial entrepreneur
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, but are not limited to, any statements 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 the 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 results to differ materially from those currently anticipated include: risks related to (1) the inability to successfully integrate the acquired companies’ business, (2) the inability to realize the anticipated benefits of the acquisitions, which may be affected by, among other things, competition, brand recognition, the ability of the acquired companies to grow and manage growth profitably and retain their key employees, (3) costs related to the acquisitions and/or unknown or inestimable liabilities, (4) changes in applicable laws or regulations that impact the operations of the acquired companies, (5) the failure to meet projected technology development targets, (6) the failure of the acquired companies to effectively scale end-to-end medical imaging solutions worldwide, (7) changes in global, political, economic, business, competitive, market and regulatory forces, and (8) (i) Nanox’s ability to complete development of the Nanox.Arc; (ii) Nanox’s ability to successfully demonstrate the feasibility of its technology for commercial applications; (iii) 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; (iv) Nanox’s ability to enter into and maintain commercially reasonable arrangements with third-party manufacturers and suppliers to manufacture the Nanox.Arc; (v) the market acceptance of the Nanox.Arc and the proposed pay-per-scan business model; (vi) Nanox’s expectations regarding collaborations with third-parties and their potential benefits; and (vii) Nanox’s ability to conduct business globally, among other things.
For a discussion of other risks and uncertainties, and other important factors, any of which could cause Nanox’s actual results to differ from those contained in the Forward-Looking Statements, see the section titled “Risk Factors” in Nanox’s Annual Report on Form 20-F for the year ended
Except as required by law, Nanox undertakes no obligation to update publicly any forward-looking statements after the date of this report to conform these statements to actual results or to changes in the Company’s expectations.
Non-GAAP Financial Measures
This press release includes information about certain financial measures that are not prepared in accordance with generally accepted accounting principles in
Non-GAAP net loss attributable to ordinary shares, non-GAAP cost of revenue, non-GAAP research and development expenses, non-GAAP marketing expenses and non-GAAP general and administrative expenses each adjusts for amortization of intangible assets, stock-based compensation expenses, secondary offering expenses and legal fees in connection with class-action litigation and the
The Company’s management and board of directors utilize these non-GAAP financial measures to evaluate the Company’s performance. The Company provides these non-GAAP measures of the Company’s performance to investors because management believes that these non-GAAP financial measures, when viewed with the Company’s results under GAAP and the accompanying reconciliations, are useful in identifying underlying trends in ongoing operations. However, non-GAAP net loss attributable to ordinary shares, non-GAAP cost of revenue, non-GAAP research and development expenses, non-GAAP marketing expenses and non-GAAP general and administrative expenses are not measures of financial performance under GAAP and, accordingly, should not be considered as alternatives to GAAP measures as indicators of operating performance. Further, non-GAAP net loss attributable to ordinary shares, non-GAAP cost of revenue, non-GAAP research and development expenses, non-GAAP marketing expenses and non-GAAP general and administrative expenses should not be considered measures of the Company’s liquidity.
A reconciliation of certain GAAP to non-GAAP financial measures has been provided in the tables included in this press release.
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Assets |
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CURRENT ASSETS: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
|
66,645 |
|
|
|
213,468 |
|
|
|
|
22,066 |
|
|
|
- |
|
Accounts receivables |
|
|
1,051 |
|
|
|
- |
|
Prepaid expenses and other current assets |
|
|
5,095 |
|
|
|
6,325 |
|
TOTAL CURRENT ASSETS |
|
|
94,857 |
|
|
|
219,793 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT ASSETS: |
|
|
|
|
|
|
|
|
Restricted cash |
|
|
127 |
|
|
|
316 |
|
Property and equipment, net |
|
|
37,435 |
|
|
|
14,020 |
|
Operating lease right-of-use asset |
|
|
1,725 |
|
|
|
1,359 |
|
|
|
|
67,845 |
|
|
|
- |
|
Intangible assets |
|
|
160,124 |
|
|
|
- |
|
Other non-current assets |
|
|
1,057 |
|
|
|
661 |
|
TOTAL NON-CURRENT ASSETS |
|
|
268,313 |
|
|
|
16,356 |
|
TOTAL ASSETS |
|
|
363,170 |
|
|
|
236,149 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
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CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Accounts payable |
|
|
3,134 |
|
|
|
435 |
|
Accrued expenses and other liabilities |
|
|
5,873 |
|
|
|
3,526 |
|
Short term loan |
|
|
145 |
|
|
|
- |
|
Deferred revenue |
|
|
247 |
|
|
|
- |
|
Contingent short term earnout liability |
|
|
42,471 |
|
|
|
- |
|
Current maturities of operating leases |
|
|
881 |
|
|
|
519 |
|
TOTAL CURRENT LIABILITIES |
|
|
52,751 |
|
|
|
4,480 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT LIABILITIES: |
|
|
|
|
|
|
|
|
Non-current operating leases |
|
|
950 |
|
|
|
923 |
|
Long term loan from bank |
|
|
3,796 |
|
|
|
- |
|
Non-current deferred revenue |
|
|
415 |
|
|
|
- |
|
Contingent long-term earnout liability |
|
|
5,814 |
|
|
|
- |
|
Deferred tax liability |
|
|
7,063 |
|
|
|
- |
|
Other long-term liabilities |
|
|
233 |
|
|
|
- |
|
TOTAL NON-CURRENT LIABILITIES |
|
|
18,271 |
|
|
|
923 |
|
TOTAL LIABILITIES |
|
|
71,022 |
|
|
|
5,403 |
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
SHAREHOLDERS’ EQUITY: |
|
|
|
|
|
|
|
|
Ordinary Shares, par value |
|
|
149 |
|
|
|
131 |
|
Additional paid-in capital |
|
|
438,820 |
|
|
|
315,031 |
|
Accumulated other comprehensive deficit |
|
|
(607 |
) |
|
|
- |
|
Accumulated deficit |
|
|
(146,214 |
) |
|
|
(84,416 |
) |
TOTAL SHAREHOLDERS’ EQUITY |
|
|
292,148 |
|
|
|
230,746 |
|
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
363,170 |
|
|
|
236,149 |
|
|
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Year ended |
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2021 |
|
2020 |
|
2019 |
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REVENUE |
|
|
1,304 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF REVENUE |
|
|
2,816 |
|
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GROSS LOSS |
|
|
(1,512 |
) |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
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|
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|
OPERATING EXPENSES: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
17,122 |
|
|
|
9,210 |
|
|
|
2,717 |
|
Sales and Marketing |
|
|
7,033 |
|
|
|
12,445 |
|
|
|
1,556 |
|
General and administrative |
|
|
34,709 |
|
|
|
22,268 |
|
|
|
18,298 |
|
Other expenses |
|
|
1,182 |
|
|
|
- |
|
|
|
- |
|
TOTAL OPERATING EXPENSES |
|
|
60,046 |
|
|
|
43,923 |
|
|
|
22,571 |
|
OPERATING LOSS |
|
|
(61,558 |
) |
|
|
(43,923 |
) |
|
|
(22,571 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
FINANCIAL INCOME (EXPENSES), net |
|
|
(288 |
) |
|
|
108 |
|
|
|
8 |
|
OPERATING LOSS BEFORE INCOME TAXES |
|
|
(61,846 |
) |
|
|
(43,815 |
) |
|
|
(22,563 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax income |
|
|
48 |
|
|
|
- |
|
|
|
- |
|
NET LOSS |
|
|
(61,798 |
) |
|
|
(43,815 |
) |
|
|
(22,563 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED LOSS PER SHARE |
|
|
(1.26 |
) |
|
|
(1.23 |
) |
|
|
(0.90 |
) |
THE WEIGHTED AVERAGE OF THE NUMBER OF ORDINARY SHARES (in thousands) |
|
|
48,216 |
|
|
|
35,654 |
|
|
|
25,181 |
|
COMPERHENSIVE LOSS: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET LOSS |
|
|
(61,798 |
) |
|
|
(43,815 |
) |
|
|
(22,563 |
) |
Other comprehensive loss: |
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized loss from available- for-sale securities |
|
|
(607 |
) |
|
|
- |
|
|
|
- |
|
TOTAL COMPERHENSIVE LOSS |
|
|
(62,405 |
) |
|
|
(43,815 |
) |
|
|
(22,563 |
) |
RECONCILIATION OF GAAP TO NON-GAAP METRICS
|
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Twelve Months Ended
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Three Months Ended
|
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2021 |
|
2020 |
|
2021 |
|
2020 |
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( |
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Reconciliation of GAAP net loss attributable to ordinary shares to Non-GAAP net loss attributable to ordinary shares |
|
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|
||||
GAAP net loss attributable to ordinary shares |
|
|
61,798 |
|
|
|
43,815 |
|
|
|
22,035 |
|
|
|
18,973 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
1,768 |
|
|
|
- |
|
|
|
1,768 |
|
|
|
- |
|
Class-actions litigation and |
|
|
1,120 |
|
|
|
132 |
|
|
|
455 |
|
|
|
90 |
|
Secondary offering expenses |
|
|
981 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Share-based compensation |
|
|
18,806 |
|
|
|
24,781 |
|
|
|
4,843 |
|
|
|
10,485 |
|
Non-GAAP net loss attributable to ordinary shares |
|
|
39,124 |
|
|
|
18,902 |
|
|
|
14,970 |
|
|
|
8,398 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED LOSS PER SHARE |
|
|
0.81 |
|
|
|
0.53 |
|
|
|
0.30 |
|
|
|
0.18 |
|
|
|
|
|
|
|
|
|
|
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|
WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES (in thousands) |
|
|
48,216 |
|
|
|
35,654 |
|
|
|
50,384 |
|
|
|
45,913 |
|
Reconciliation of GAAP cost of revenue to Non-GAAP cost of revenue ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP cost of revenue |
|
|
2,816 |
|
|
|
- |
|
|
|
2,816 |
|
|
|
- |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
1,703 |
|
|
|
- |
|
|
|
1,703 |
|
|
|
- |
|
Share-based compensation |
|
|
51 |
|
|
|
- |
|
|
|
51 |
|
|
|
- |
|
Non-GAAP cost of revenue |
|
|
1,062 |
|
|
|
- |
|
|
|
1,062 |
|
|
|
- |
|
Reconciliation of GAAP research and development expenses to Non-GAAP research and development expenses ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP research and development expenses |
|
|
17,122 |
|
|
|
9,210 |
|
|
|
6,362 |
|
|
|
2,952 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
3,248 |
|
|
|
3,384 |
|
|
|
991 |
|
|
|
872 |
|
Non-GAAP research and development expenses |
|
|
13,874 |
|
|
|
5,826 |
|
|
|
5,371 |
|
|
|
2,080 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP sales and marketing expenses to Non-GAAP marketing expenses ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP sales and marketing expenses |
|
|
7,033 |
|
|
|
12,445 |
|
|
|
1,940 |
|
|
|
8,036 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangible assets |
|
|
64 |
|
|
|
- |
|
|
|
64 |
|
|
|
- |
|
Share-based compensation |
|
|
2,442 |
|
|
|
9,252 |
|
|
|
509 |
|
|
|
6,407 |
|
|
|
|
|
|
|
|
|
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|
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|
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|
|
Non-GAAP marketing expenses |
|
|
4,527 |
|
|
|
3,193 |
|
|
|
1,367 |
|
|
|
1,629 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP general and administrative expenses to Non-GAAP general and administrative expenses ( |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GAAP general and administrative expenses |
|
|
34,709 |
|
|
|
22,268 |
|
|
|
10,919 |
|
|
|
8,073 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Class-actions litigation and |
|
|
1,120 |
|
|
|
132 |
|
|
|
455 |
|
|
|
90 |
|
Secondary offering expenses |
|
|
981 |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Share-based compensation |
|
|
13,065 |
|
|
|
12,145 |
|
|
|
3,292 |
|
|
|
3,206 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP general and administrative expenses |
|
|
19,543 |
|
|
|
9,991 |
|
|
|
7,172 |
|
|
|
4,777 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20220331005157/en/
Company:
IR@nanox.vision
Investor:
ICR Westwicke
mike.cavanaugh@westwicke.com
Source:
FAQ
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