Nanox Announces Fourth Quarter 2022 Financial Results and Provides Business Update
NANO-X IMAGING LTD (NASDAQ: NNOX) reported its fourth quarter 2022 results, concluding the year with $8.6 million in total revenue. The company generated $2.1 million in Q4, a slight decrease from $2.4 million in Q3. A significant net loss of $44.8 million was noted, largely due to a $36.5 million goodwill impairment. Cash and marketable securities stood at $102.9 million as of December 31, 2022. Key developments included the deployment of a Nanox.ARC system in Ghana and plans for a system in Nigeria, alongside a partnership with Nuance Precision Imaging Network to expand AI solutions. The conference call is scheduled for March 9, 2023.
- Total revenue for 2022 reached $8.6 million, indicating growth from previous quarters.
- Collaboration with Nuance Precision Imaging Network aims to enhance AI solution availability.
- Deployment progress of Nanox.ARC systems in Ghana and Nigeria.
- Net loss of $44.8 million in Q4 2022, up from $22.0 million in Q4 2021.
- Goodwill impairment of $36.5 million negatively impacting financials.
- Cash flow from operations was negative at $43.4 million.
Reports progress towards global supply chain development
Ended the fourth quarter of 2022 with cash, cash equivalents and marketable securities of
Management to host conference call and webcast Thursday, March 9, 2023 at 8:30 AM ET
NEVE ILAN, Israel, March 09, 2023 (GLOBE NEWSWIRE) -- 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, 2022 and provided a business update.
Fourth Quarter 2022 Highlights and Recent Developments:
| ● | Generated | |
| ● | Initially deployed a Nanox.ARC system at the University of Ghana Medical Centre for training and demonstration purposes. | |
| ● | A Nanox.ARC system has been shipped to Nigeria and is undergoing regulatory review by the Nigerian Nuclear Regulatory Authority. | |
| ● | Announced a collaboration with Nuance Precision Imaging Network, a Microsoft company, which makes Nanox AI solutions available through its marketplace to thousands of healthcare facilities and providers who use Nuance’s reporting and image sharing solutions. |
“I am happy to report our continued progress on multiple business fronts. This includes making significant progress toward the initial deployment of the Nanox.ARC system in Ghana and Nigeria, expanding the availability of the Nanox AI solution via a key commercial partnership, while also continuing the FDA review process for the Nanox.ARC,” said Erez Meltzer, Nanox Chief Executive Officer. “Looking back, 2022 was a successful year for Nanox as we spent much time and effort on our 510(k) submission to the FDA, rationalized costs to extend our cash runway, and strengthened our manufacturing infrastructure. We believe that 2023 will also be a highly impactful year, as we aim to announce the initial shipments of the Nanox.ARC system.”
Financial results for three months ended December 31, 2022
For the three months ended December 31, 2022, the Company reported a net loss of
For the three months ended December 31, 2022, the Company reported revenue of
Research and development expenses for the three months ended December 31, 2022 were
Sales and marketing expenses for the three months ended December 31, 2022 were
General and administrative expenses for the three months ended December 31, 2022, were
Change in contingent earnout liability was
Goodwill impairment for the three months ended December 31, 2022, was
Non-GAAP net loss applicable to ordinary shares for the three months ended December 31, 2022, was
A reconciliation between GAAP and non-GAAP financial measures for the three-month periods ended December 31, 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 goodwill impairment, amortization of intangible assets, share-based compensation, secondary offering expenses, change in contingent earnout liability and legal fees in connection with class-action litigation and the SEC investigation.
Liquidity and Capital Resources
The Company ended the fourth quarter of 2022 with total cash, cash equivalents and marketable securities of
As of December 31, 2021, the Company had
The decrease in the Company’s cash, cash equivalents and marketable securities of
Other Assets
As of December 31, 2022, the Company had property and equipment, net of
As of December 31, 2022, the Company had intangible assets and goodwill of
Shareholders’ Equity
As of December 31, 2022, the Company had approximately 55.1 million shares outstanding as compared to 51.8 million shares outstanding as of December 31, 2021. The increase was mainly due to the issuance of 89,286 shares to the former shareholders of Nanox.AI (formerly named Zebra) due to the achievement of a milestone pursuant to the terms of the Agreement and Plan of Merger, dated August 9, 2021, as amended (the “Agreement”), among the Company, Zebra and Perryllion Ltd., as representative of Zebra’s former shareholders and an additional aggregate 2,648,424 ordinary shares to the former shareholders of Zebra under a settlement with respect to any additional amount that could be granted under the Agreement. As a result of the settlement, both parties’ performance obligations under the Agreement have been satisfied in full. In addition, the increase was also due to the issuance of 192,927 ordinary shares upon the exercise of warrants and 372,159 ordinary shares upon the exercise of options, which generated, in the aggregate, approximately
Conference Call and Webcast Details
Thursday, March 9, 2023 @ 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.
About Nanox:
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 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 its recent 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 (i) Nanox’s ability to complete development of the Nanox System; (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 technology, the Nanox.ARC and Nanox.CLOUD from regulatory agencies worldwide and its ongoing compliance with applicable quality standards and regulatory requirements; (iv) Nanox’s ability to realize the anticipated benefits of its 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; (v) Nanox’s ability to enter into and maintain commercially reasonable arrangements with third-party manufacturers and suppliers to manufacture the Nanox.ARC; (vi) the market acceptance of the Nanox System and the proposed pay-per-scan business model; (vii) Nanox’s expectations regarding collaborations with third-parties and their potential benefits; (viii) Nanox’s ability to conduct business globally; (ix) changes in global, political, economic, business, competitive, market and regulatory forces; and (x) risks related to business interruptions resulting from the COVID-19 pandemic or similar public health crises, 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 December 31, 2021, and subsequent filings with the U.S. Securities and Exchange Commission. The reader should not place undue reliance on any forward-looking statements included in this press release.
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 the United States (“GAAP”), including non-GAAP net loss attributable to ordinary shares, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses and non-GAAP basic and diluted loss per share. These non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. These non-GAAP measures are adjusted for (as applicable) amortization of intangible assets, share-based compensation expenses, secondary offering expenses, goodwill impairment, change in contingent earnout liability and legal fees in connection with class-action litigation and the SEC investigation. 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, these non-GAAP measures 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, these non-GAAP measures 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.
NANO-X IMAGING LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands except share and per share data)
| December 31, 2022 | December 31, 2021 | |||||||
| U.S. Dollars in thousands | ||||||||
| Assets | ||||||||
| CURRENT ASSETS: | ||||||||
| Cash and cash equivalents | 38,463 | 66,645 | ||||||
| Marketable securities - short term | 39,161 | 22,066 | ||||||
| Accounts receivables net of allowance for credit losses of | 977 | 1,051 | ||||||
| Prepaid expenses | 2,414 | 3,129 | ||||||
| Other current assets | 1,446 | 1,966 | ||||||
| TOTAL CURRENT ASSETS | 82,461 | 94,857 | ||||||
| NON-CURRENT ASSETS: | ||||||||
| Restricted cash | 66 | 127 | ||||||
| Property and equipment, net | 43,545 | 37,435 | ||||||
| Operating lease right-of-use asset | 1,157 | 1,725 | ||||||
| Marketable securities - long term | 25,198 | 67,845 | ||||||
| Intangible assets | 91,219 | 101,826 | ||||||
| Goodwill | 7,420 | 58,298 | ||||||
| Other non-current assets | 2,867 | 1,057 | ||||||
| TOTAL NON-CURRENT ASSETS | 171,472 | 268,313 | ||||||
| TOTAL ASSETS | 253,933 | 363,170 | ||||||
| Liabilities and Shareholders’ Equity | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | 3,619 | 3,134 | ||||||
| Accrued expenses | 4,240 | 3,611 | ||||||
| Loan from a Government Agency | - | 145 | ||||||
| Deferred revenue | 182 | 247 | ||||||
| Contingent short term earnout liability | 4,250 | 42,471 | ||||||
| Current maturities of operating lease liabilities | 740 | 881 | ||||||
| Other current liabilities | 4,043 | 2,262 | ||||||
| TOTAL CURRENT LIABILITIES | 17,074 | 52,751 | ||||||
| NON-CURRENT LIABILITIES: | ||||||||
| Non-current operating lease liabilities | 398 | 950 | ||||||
| Long term loan | 3,481 | 3,796 | ||||||
| Non-current deferred revenue | 398 | 415 | ||||||
| Contingent long-term earnout liability | 4,089 | 5,814 | ||||||
| Deferred tax liability | 3,330 | 7,063 | ||||||
| Other long-term liabilities | 483 | 233 | ||||||
| TOTAL NON-CURRENT LIABILITIES | 12,179 | 18,271 | ||||||
| TOTAL LIABILITIES | 29,253 | 71,022 | ||||||
| COMMITMENTS AND CONTINGENCIES | ||||||||
| SHAREHOLDERS’ EQUITY: | ||||||||
| Ordinary Shares, par value NIS 0.01 per share 100,000,000 authorized at December 31, 2022 and December 31 2021, 55,094,237 and 51,791,441 issued and outstanding at December 31, 2022 and December 31, 2021, respectively | 158 | 149 | ||||||
| Additional paid-in capital | 477,953 | 438,820 | ||||||
| Accumulated other comprehensive loss | (1,974 | ) | (607 | ) | ||||
| Accumulated deficit | (251,457 | ) | (146,214 | ) | ||||
| TOTAL SHAREHOLDERS’ EQUITY | 224,680 | 292,148 | ||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 253,933 | 363,170 | ||||||
NANO-X IMAGING LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(U.S. dollars in thousands except share and per share data)
| Twelve Months Ended December 31, | Three Months Ended December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| REVENUE | 8,578 | 1,304 | 2,132 | 1,304 | ||||||||||||
| COST OF REVENUE | 15,458 | 2,816 | 3,879 | 2,816 | ||||||||||||
| GROSS LOSS | (6,880 | ) | (1,512 | ) | (1,747 | ) | (1,512 | ) | ||||||||
| OPERATING EXPENSES: | ||||||||||||||||
| Research and development | 26,507 | 17,122 | 7,095 | 6,362 | ||||||||||||
| Sales and marketing | 4,376 | 7,033 | 1,494 | 1,940 | ||||||||||||
| General and administrative | 41,254 | 34,709 | 8,185 | 10,919 | ||||||||||||
| Goodwill impairment | 50,878 | - | 36,540 | - | ||||||||||||
| Change in contingent earnout liability | (20,376 | ) | - | (9,074 | ) | - | ||||||||||
| Other expense (income) | 191 | 1,182 | (231 | ) | 1,182 | |||||||||||
| TOTAL OPERATING EXPENSES | 102,830 | 60,046 | 44,009 | 20,403 | ||||||||||||
| OPERATING LOSS | (109,710 | ) | (61,558 | ) | (45,756 | ) | (21,915 | ) | ||||||||
| FINANCIAL INCOME (EXPENSES), net | 789 | (288 | ) | (113 | ) | (168 | ) | |||||||||
| OPERATING LOSS BEFORE INCOME TAXES | (108,921 | ) | (61,846 | ) | (45,869 | ) | (22,083 | ) | ||||||||
| INCOME TAX BENEFIT | 3,678 | 48 | 1,032 | 48 | ||||||||||||
| NET LOSS | (105,243 | ) | (61,798 | ) | (44,837 | ) | (22,035 | ) | ||||||||
| BASIC AND DILUTED LOSS PER SHARE | (2.01 | ) | (1.28 | ) | (0.86 | ) | (0.44 | ) | ||||||||
| Weighted average number of basic and diluted ordinary shares outstanding (in thousands) | 52,235 | 48,216 | 52,414 | 50,384 | ||||||||||||
| Comprehensive Loss: | ||||||||||||||||
| Net loss | (105,243 | ) | (61,798 | ) | (44,837 | ) | (22,035 | ) | ||||||||
| Other comprehensive gain (loss): | ||||||||||||||||
| Unrealized gain (loss) from available- for-sale securities | (1,367 | ) | (607 | ) | 485 | (417 | ) | |||||||||
| Total comprehensive loss | (106,610 | ) | (62,405 | ) | (44,352 | ) | (22,452 | ) | ||||||||
NANO-X IMAGING LTD.
UNAUDITED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(U.S. dollars in thousands, except share and per share data)
| Ordinary shares | Additional | Accumulated other | ||||||||||||||||||||||
| Number of shares | Amount | paid-in capital | comprehensive loss | Accumulated deficit | Total | |||||||||||||||||||
| U.S. Dollars in thousands | ||||||||||||||||||||||||
| BALANCE AT JANUARY 1, 2021 | 46,100,173 | 131 | 315,031 | - | (84,416 | ) | 230,746 | |||||||||||||||||
| CHANGES DURING 2021: | ||||||||||||||||||||||||
| Issuance of ordinary shares upon exercise of warrants | 780,920 | 2 | 265 | - | - | 267 | ||||||||||||||||||
| Issuance of ordinary shares to employees and non-employees upon exercise of options | 1,099,946 | 3 | 3,330 | - | - | 3,333 | ||||||||||||||||||
| Issuance of ordinary shares due to business combination and assets acquisition | 3,810,402 | 13 | 101,497 | - | - | 101,510 | ||||||||||||||||||
| Share-based compensation | - | - | 18,697 | - | - | 18,697 | ||||||||||||||||||
| Unrealized loss from available-for-sale securities | - | - | - | (607 | ) | - | (607 | ) | ||||||||||||||||
| Net loss for the year | - | - | (61,798 | ) | (61,798 | ) | ||||||||||||||||||
| BALANCE AT DECEMBER 31, 2021 | 51,791,441 | 149 | 438,820 | (607 | ) | (146,214 | ) | 292,148 | ||||||||||||||||
| CHANGES DURING 2022: | ||||||||||||||||||||||||
| Issuance of ordinary shares upon exercise of warrants | 192,927 | 1 | 369 | - | - | 370 | ||||||||||||||||||
| Issuance of ordinary shares to employees and non-employees upon exercise of options | 372,159 | 1 | 578 | - | - | 579 | ||||||||||||||||||
| Issuance of ordinary shares in connection with earnout liability. | 89,286 | * | 953 | - | - | 953 | ||||||||||||||||||
| Issuance of ordinary shares under settlement agreement with former shareholders of Nanox AI Ltd. | 2,648,424 | 7 | 18,610 | - | - | 18,617 | ||||||||||||||||||
| Share-based compensation | - | - | 18,623 | - | - | 18,623 | ||||||||||||||||||
| Unrealized loss from available-for-sale securities | - | - | - | (1,367 | ) | - | (1,367 | ) | ||||||||||||||||
| Net loss for the year | - | - | - | - | (105,243 | ) | (105,243 | ) | ||||||||||||||||
| BALANCE AT DECEMBER 31, 2022 | 55,094,237 | 158 | 477,953 | (1,974 | ) | (251,457 | ) | 224,680 | ||||||||||||||||
NANO-X IMAGING LTD.
UNAUDITED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(U.S. dollars in thousands, except share and per share data)
| Ordinary shares | Additional | Accumulated other | ||||||||||||||||||||||
| Number of shares | Amount | paid-in capital | comprehensive loss | Accumulated deficit | Total | |||||||||||||||||||
| U.S. Dollars in thousands | ||||||||||||||||||||||||
| BALANCE AT OCTOBER 1, 2022 | 52,266,474 | 150 | 456,761 | (2,459 | ) | (206,620 | ) | 247,832 | ||||||||||||||||
| CHANGES DURING THE PERIOD: | ||||||||||||||||||||||||
| Issuance of ordinary shares to employees and non-employees upon exercise of options | 179,339 | 1 | 298 | - | - | 299 | ||||||||||||||||||
| Issuance of ordinary shares under settlement agreement with former shareholders of Nanox AI Ltd. | 2,648,424 | 7 | 18,610 | - | - | 18,617 | ||||||||||||||||||
| Share-based compensation | - | - | 2,284 | - | - | 2,284 | ||||||||||||||||||
| Unrealized gain from available-for-sale securities | - | - | - | 485 | - | 485 | ||||||||||||||||||
| Net loss for the period | - | - | - | - | (44,837 | ) | (44,837 | ) | ||||||||||||||||
| BALANCE AT DECEMBER 31, 2022 | 55,094,237 | 158 | 477,953 | (1,974 | ) | (251,457 | ) | 224,680 | ||||||||||||||||
NANO-X IMAGING LTD.
UNAUDITED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(U.S. dollars in thousands, except share and per share data)
| Ordinary shares | Additional | Accumulated other | ||||||||||||||||||||||
| Number of shares | Amount | paid-in capital | comprehensive loss | Accumulated deficit | Total | |||||||||||||||||||
| U.S. Dollars in thousands | ||||||||||||||||||||||||
| BALANCE AT OCTOBER 1, 2021 | 47,877,719 | 136 | 332,383 | (190 | ) | (124,179 | ) | 208,150 | ||||||||||||||||
| CHANGES DURING THE PERIOD: | ||||||||||||||||||||||||
| Issuance of ordinary shares upon exercise of warrants | 76,787 | * | 147 | - | - | 147 | ||||||||||||||||||
| Issuance of ordinary shares to employees and non-employees upon exercise of options | 26,533 | * | 59 | - | - | 59 | ||||||||||||||||||
| Issuance of ordinary shares due to business combination and assets acquisition | 3,810,402 | 13 | 101,497 | - | - | 101,510 | ||||||||||||||||||
| Share-based compensation | - | - | 4,734 | - | - | 4,734 | ||||||||||||||||||
| Unrealized loss from available-for-sale securities | - | - | - | (417 | ) | - | (417 | ) | ||||||||||||||||
| Net loss for the period | - | - | (22,035 | ) | (22,035 | ) | ||||||||||||||||||
| BALANCE AT DECEMBER 31, 2021 | 51,791,441 | 149 | 438,820 | (607 | ) | (146,214 | ) | 292,148 | ||||||||||||||||
| (*) | Less than 1 thousand US dollars. |
NANO-X IMAGING LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Year ended December 31, | ||||||||||||
| 2022 | 2021 | 2020 | ||||||||||
| U.S. Dollars in thousands | ||||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||
| Net loss for the year | (105,243 | ) | (61,798 | ) | (43,815 | ) | ||||||
| Adjustments required to reconcile net loss to net cash used in operating activities: | ||||||||||||
| Share-based compensation | 18,623 | 18,806 | 24,781 | |||||||||
| Amortization of intangible assets | 10,607 | 1,768 | - | |||||||||
| Impairment of goodwill | 50,878 | - | - | |||||||||
| Change in contingent earnout liability | (20,376 | ) | - | - | ||||||||
| Depreciation | 905 | 524 | 208 | |||||||||
| Deferred tax liability, net | (3,733 | ) | (116 | ) | - | |||||||
| Exchange rate differentials | (47 | ) | 10 | (122) | ||||||||
| Interest (expense) income net of amortization of premium on marketable securities | 1,398 | (216 | ) | - | ||||||||
| Impairment of property and equipment | 172 | 214 | - | |||||||||
| Changes in operating assets and liabilities, net of effects of businesses acquired: | ||||||||||||
| Accounts receivable | 74 | (40 | ) | - | ||||||||
| Prepaid expenses and other current assets | 1,235 | 1,724 | (4,478 | ) | ||||||||
| Other non-current assets | (800 | ) | (374 | ) | (522 | ) | ||||||
| Accounts payable | 469 | 1,721 | (103 | ) | ||||||||
| Accrued expenses and other liabilities | 2,410 | (719 | ) | 2,359 | ||||||||
| Operating lease assets and liabilities | (125 | ) | 23 | 83 | ||||||||
| Deferred revenue | (82 | ) | 179 | - | ||||||||
| Other long-term liabilities | 250 | 233 | - | |||||||||
| Net cash used in operating activities | (43,385 | ) | (38,061 | ) | (21,609 | ) | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||
| Cash paid for business combinations, net of cash and restricted cash acquired | - | (2,859 | ) | - | ||||||||
| Proceeds from maturity of marketable securities | 31,241 | 10,986 | - | |||||||||
| Purchase of marketable securities | (8,454 | ) | (104,043 | ) | - | |||||||
| Proceeds from sale of marketable securities | - | 2,754 | ||||||||||
| Purchase of property and equipment | (7,171 | ) | (23,158 | ) | (13,937 | ) | ||||||
| Investment in equity securities | (1,010 | ) | - | - | ||||||||
| Net cash provided by (used in) investing activities | 14,606 | (116,320 | ) | (13,937 | ) | |||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||
| Proceeds from long term loan | - | 3,796 | - | |||||||||
| Proceeds from issuance of ordinary shares and warrants, net of issuance costs | - | - | 71,013 | |||||||||
| Proceeds from initial public offering of ordinary shares, net of issuance costs | - | - | 169,348 | |||||||||
| Repayment of financial liability | (145 | ) | - | - | ||||||||
| Proceeds from issuance of ordinary shares upon exercise of warrants | 370 | 267 | 630 | |||||||||
| Issuance of ordinary shares to employees and non-employees upon exercise of options | 579 | 3,316 | - | |||||||||
| Net cash provided by financing activities | 804 | 7,379 | 240,991 | |||||||||
| EFFECT OF CHANGES IN EXCHANGE RATES ON CASH BALANCES IN FOREIGN CURRENCIES | (268 | ) | (10 | ) | 122 | |||||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH | (28,243 | ) | (147,012 | ) | 205,567 | |||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF THE YEAR | 66,772 | 213,784 | 8,217 | |||||||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE YEAR | 38,529 | 66,772 | 213,784 | |||||||||
| Cash paid for income taxes | 147 | 7 | 8 | |||||||||
| Cash paid for interest | 90 | 13 | - | |||||||||
| SUPPLEMENTARY INFORMATION ON ACTIVITIES NOT INVOLVING CASH FLOWS: | ||||||||||||
| Issuance of ordinary shares to investor upon exercise of warrants | - | - | 200 | |||||||||
| Fair value of ordinary shares issued as consideration for purchase of assets | - | 1,500 | - | |||||||||
| Fair value of ordinary shares issued as consideration for business combinations and achievement of milestones | - | 100,010 | - | |||||||||
| Issuance of ordinary shares in connection with earnout liability. | 953 | - | - | |||||||||
| Issuance of ordinary shares under settlement agreement with former shareholders of Nanox AI Ltd. | 18,617 | - | - | |||||||||
| Fair value of contingent consideration assumed in business combinations | - | 47,194 | - | |||||||||
| Fair value of contingent consideration assumed in purchase of assets | - | 1,091 | - | |||||||||
| Operating lease liabilities arising from obtaining operating right-of use assets | 320 | 194 | 1,085 | |||||||||
| Conversion of related party liability to shareholders’ equity | - | 17,748 | ||||||||||
| (*) Less than 1 thousand US dollars. | ||
UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(U.S. dollars in thousands (except per share data))
Use of Non-GAAP Financial Measures
The unaudited condensed consolidated financial information is prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”). The Company uses information about certain financial measures that are not prepared in accordance with GAAP, including non-GAAP net loss attributable to ordinary shares, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses and non-GAAP basic and diluted loss per share. These non-GAAP measures are adjusted for (as applicable) amortization of intangible assets, share-based compensation expenses, secondary offering expenses, goodwill impairment, change in contingent earnout liability and legal fees in connection with class-action litigation and the SEC investigation. The Company believes that separate analysis and exclusion of the one-off or non-cash impact of the above reconciling items (as applicable) adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting, and measuring results against the forecast. The Company believes that the non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance. However, these non-GAAP measures are not measures of financial performance under GAAP and, accordingly, should not be considered as alternatives to GAAP measures as indicators of operating performance.
| Twelve Months Ended | Three Months Ended | |||||||||||||||
| December 31, | December 31, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| GAAP net loss attributable to ordinary shares | 105,243 | 61,798 | 44,837 | 22,035 | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||
| Less: Class-action litigation and SEC investigation | 7,730 | 1,120 | 2,505 | 455 | ||||||||||||
| Less: Amortization of intangible assets | 10,607 | 1,768 | 2,649 | 1,768 | ||||||||||||
| Less: Impairment of goodwill | 50,878 | - | 36,540 | - | ||||||||||||
| Add: Change in contingent earnout liability | (20,376 | ) | - | (9,073 | ) | - | ||||||||||
| Less: Secondary offering expenses | - | 981 | - | - | ||||||||||||
| Less: Share-based compensation | 18,623 | 18,806 | 2,284 | 4,843 | ||||||||||||
| Non-GAAP net loss attributable to ordinary shares | 37,781 | 39,123 | 9,932 | 14,969 | ||||||||||||
| Non-GAAP BASIC AND DILUTED LOSS PER SHARE | 0.72 | 0.81 | 0.19 | 0.30 | ||||||||||||
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES (in thousands) | 52,235 | 48,216 | 52,414 | 50,384 | ||||||||||||
Reconciliation of GAAP cost of revenue to Non-GAAP cost of revenue (U.S. dollars in thousands)
| GAAP cost of revenue | 15,458 | 2,816 | 3,879 | 2,816 | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||
| Amortization of intangible assets | 10,223 | 1,703 | 2,555 | 1,703 | ||||||||||||
| Share-based compensation | 99 | 51 | 18 | 51 | ||||||||||||
| Non-GAAP cost of revenue | 5,136 | 1,062 | 1,306 | 1,062 |
Reconciliation of GAAP gross loss to Non-GAAP gross profit (U.S. dollars in thousands)
| GAAP gross loss | 6,880 | 1,512 | 1,747 | 1,512 | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||
| Amortization of intangible assets | 10,223 | 1,703 | 2,555 | 1,703 | ||||||||||||
| Share-based compensation | 99 | 51 | 18 | 51 | ||||||||||||
| Non-GAAP gross profit | 3,442 | 242 | 826 | 242 |
Reconciliation of GAAP gross loss margin to Non-GAAP gross profit margin (in percentage of revenue)
| GAAP gross loss margin | (80 | ) | % | (115 | ) | % | (82 | ) | % | (115 | )% | ||||||||
| Non-GAAP adjustments: | |||||||||||||||||||
| Amortization of intangible assets | 119 | % | 131 | % | 120 | % | 131 | % | |||||||||||
| Share-based compensation | 1 | % | 4 | % | 1 | % | 4 | % | |||||||||||
| Non-GAAP gross profit margin | 40 | % | 20 | % | 39 | % | 19 | % | |||||||||||
Reconciliation of GAAP research and development expenses to Non-GAAP research and development expenses (U.S. dollars in thousands)
| GAAP research and development expenses | 26,507 | 17,122 | 7,095 | 6,362 | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||
| Share-based compensation | 4,806 | 3,248 | 927 | 991 | ||||||||||||
| Non-GAAP research and development expenses | 21,701 | 13,874 | 6,168 | 5,371 |
Reconciliation of GAAP sales and marketing expenses to Non-GAAP sales and marketing expenses (U.S. dollars in thousands)
| GAAP sales and marketing expenses | 4,376 | 7,033 | 1,494 | 1,940 | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||
| Amortization of intangible assets | 384 | 64 | 94 | 64 | ||||||||||||
| Share-based compensation | 997 | 2,442 | 334 | 509 | ||||||||||||
| Non-GAAP sales and marketing expenses | 2,995 | 4,527 | 1,066 | 1,367 |
Reconciliation of GAAP general and administrative expenses to Non-GAAP general and administrative expenses (U.S. dollars in thousands)
| GAAP general and administrative expenses | 41,254 | 34,709 | 8,185 | 10,919 | ||||||||||||
| Non-GAAP adjustments: | ||||||||||||||||
| Class-action litigation and SEC investigation | 7,730 | 1,120 | 2,505 | 455 | ||||||||||||
| Secondary offering expenses | - | 981 | - | - | ||||||||||||
| Share-based compensation | 12,721 | 13,065 | 1,005 | 3,292 | ||||||||||||
| Non-GAAP general and administrative expenses | 20,803 | 19,543 | 4,675 | 7,172 |
Contacts
Nanox Media Contact:
Rachael Roselli
ICR Westwicke
NanoxPR@icrinc.com
Investor Contact:
Mike Cavanaugh
ICR Westwicke
mike.cavanaugh@westwicke.com
FAQ
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