Nanox Announces Second Quarter of 2024 Financial Results and Provides Business Update
Nanox (NASDAQ: NNOX) announced Q2 2024 financial results and provided a business update. Key highlights include:
- Revenue of $2.7 million, up from $2.6 million in Q2 2023
- Net loss of $13.6 million, decreased from $17.4 million in Q2 2023
- Submitted new 510k application to FDA for expanded Nanox.ARC indications
- Advanced US deployment of Nanox.ARC, with systems in seven states
- Nanox.AI received FDA 510K clearance for HealthCCSng V2.0
The company reported a gross loss of $2.9 million (106% margin) on a GAAP basis. Non-GAAP gross loss was $0.2 million (9% margin). Nanox ended the quarter with $64.2 million in cash, cash equivalents, restricted deposits, and marketable securities.
Nanox (NASDAQ: NNOX) ha annunciato i risultati finanziari del secondo trimestre del 2024 e fornito un aggiornamento sulle attività. I principali punti salienti includono:
- Ricavi di 2,7 milioni di dollari, in aumento rispetto ai 2,6 milioni di dollari del Q2 2023
- Perdita netta di 13,6 milioni di dollari, diminuita rispetto ai 17,4 milioni di dollari del Q2 2023
- Presentata una nuova domanda 510k alla FDA per indicazioni espanse di Nanox.ARC
- Avanzata la distribuzione negli Stati Uniti di Nanox.ARC, con sistemi in sette stati
- Nanox.AI ha ricevuto l'approvazione 510K dalla FDA per HealthCCSng V2.0
L'azienda ha riportato una perdita lorda di 2,9 milioni di dollari (margine del 106%) su base GAAP. La perdita lorda non GAAP è stata di 0,2 milioni di dollari (margine del 9%). Nanox ha concluso il trimestre con 64,2 milioni di dollari in contante, equivalenti in contante, depositi vincolati e titoli negoziabili.
Nanox (NASDAQ: NNOX) anunció los resultados financieros del segundo trimestre de 2024 y proporcionó una actualización del negocio. Los puntos destacados incluyen:
- Ingresos de 2,7 millones de dólares, en aumento desde 2,6 millones de dólares en el Q2 2023
- Pérdida neta de 13,6 millones de dólares, disminuida desde 17,4 millones de dólares en el Q2 2023
- Se presentó una nueva solicitud 510k a la FDA para indicaciones ampliadas de Nanox.ARC
- Avanzada la implementación de Nanox.ARC en EE. UU., con sistemas en siete estados
- Nanox.AI recibió la aprobación 510K de la FDA para HealthCCSng V2.0
La compañía reportó una pérdida bruta de 2,9 millones de dólares (margen del 106%) en base GAAP. La pérdida bruta no GAAP fue de 0,2 millones de dólares (margen del 9%). Nanox terminó el trimestre con 64,2 millones de dólares en efectivo, equivalentes de efectivo, depósitos restringidos y valores negociables.
Nanox (NASDAQ: NNOX)는 2024년 2분기 재무 결과를 발표하고 사업 업데이트를 제공했습니다. 주요 하이라이트는 다음과 같습니다:
- 270만 달러의 수익, 2023년 2분기 260만 달러에서 증가
- 1360만 달러의 순손실, 2023년 2분기 1740만 달러에서 감소
- 확장된 Nanox.ARC 적응증에 대한 새로운 510k 신청서를 FDA에 제출
- 미국의 Nanox.ARC 배포 진전, 7개 주에서 시스템 운영
- Nanox.AI는 HealthCCSng V2.0에 대해 FDA 510K 승인을 받음
회사는 GAAP 기준으로 290만 달러의 총 손실(106% 마진)을 보고했습니다. 비 GAAP 기준 총 손실은 20만 달러(9% 마진)였습니다. Nanox는 현금, 현금 등가물, 제한된 예치금, 유가 증권에서 총 6420만 달러를 보유하고 있었습니다.
Nanox (NASDAQ: NNOX) a annoncé les résultats financiers du deuxième trimestre 2024 et a fourni une mise à jour sur ses activités. Les points clés incluent :
- Revenus de 2,7 millions de dollars, en hausse par rapport à 2,6 millions de dollars au deuxième trimestre 2023
- Perte nette de 13,6 millions de dollars, en baisse par rapport à 17,4 millions de dollars au deuxième trimestre 2023
- Demande 510k soumise à la FDA pour des indications élargies de Nanox.ARC
- Déploiement avancé de Nanox.ARC aux États-Unis, avec des systèmes dans sept États
- Nanox.AI a obtenu une approbation 510K de la FDA pour HealthCCSng V2.0
La société a reporté une perte brute de 2,9 millions de dollars (marge de 106 %) sur une base GAAP. La perte brute non GAAP s'élevait à 0,2 million de dollars (marge de 9 %). Nanox a terminé le trimestre avec 64,2 millions de dollars en liquidités, équivalents de liquidités, dépôts restreints et titres négociables.
Nanox (NASDAQ: NNOX) hat die Finanzzahlen für das 2. Quartal 2024 veröffentlicht und ein Geschäftsupdate bereitgestellt. Die wichtigsten Punkte sind:
- Umsatz von 2,7 Millionen US-Dollar, ein Anstieg von 2,6 Millionen US-Dollar im Q2 2023
- Nettoverlust von 13,6 Millionen US-Dollar, gesunken von 17,4 Millionen US-Dollar im Q2 2023
- Neuer 510k-Antrag bei der FDA für erweiterte Nanox.ARC-Anzeigen eingereicht
- Fortschritt bei der Verbreitung von Nanox.ARC in den USA, mit Systemen in sieben Bundesstaaten
- Nanox.AI erhielt die FDA 510K-Zulassung für HealthCCSng V2.0
Das Unternehmen berichtete über einen Bruttoverlust von 2,9 Millionen US-Dollar (106% Marge) auf GAAP-Basis. Der Bruttoverlust ohne GAAP betrug 0,2 Millionen US-Dollar (9% Marge). Nanox schloss das Quartal mit 64,2 Millionen US-Dollar in bar, Zahlungsmitteln, eingeschränkten Einlagen und handelbaren Wertpapieren ab.
- Revenue increased to $2.7 million in Q2 2024, up from $2.6 million in Q2 2023
- Net loss decreased by $3.8 million to $13.6 million compared to Q2 2023
- Submitted new 510k application to FDA for expanded Nanox.ARC indications
- Advanced US deployment of Nanox.ARC technology, with systems installed in seven states
- Nanox.AI received FDA 510K clearance for HealthCCSng V2.0, an upgraded cardiac solution
- Reported a gross loss of $2.9 million (106% margin) on a GAAP basis
- Non-GAAP gross loss of $0.2 million (9% margin), compared to a gross profit in Q2 2023
- Cash position decreased from $82.8 million at end of 2023 to $64.2 million at end of Q2 2024
- Negative cash flow from operations of $17.9 million during the reported period
Insights
Nanox's Q2 2024 results show mixed signals. Revenue increased slightly to
On a positive note, the company's cash burn seems to be slowing, with cash and equivalents at
Nanox's progress in deploying its Nanox.ARC systems is noteworthy, with installations in seven US states and partnerships with three chain medical imaging providers. The submission of a new 510(k) application to expand Nanox.ARC's intended use to include general and chest imaging could significantly broaden its market potential. However, it's important to note that FDA approval is not guaranteed and timelines can be unpredictable.
The FDA 510(k) clearance for HealthCCSng V2.0, Nanox.AI's upgraded cardiac solution, is a positive development. The addition of 'zero calcium' categorization and exact calcium scoring could enhance the product's clinical utility. However, the
Accelerated the deployment of Nanox ARC in the US market,
Submitted a new 510k application to the FDA to expand Nanox.ARC indications to include general use, including chest
Nanox.AI Receives FDA 510K Clearance for HealthCCSng V 2.0, upgraded version of its AI Cardiac Solution
Management to host conference call and webcast Tuesday, August 20, 2024 at 8:30 AM ET
PETAH TIKVA, Israel, Aug. 20, 2024 (GLOBE NEWSWIRE) -- NANO-X IMAGING LTD (NASDAQ: NNOX) (“Nanox” or the “Company”), an innovative medical imaging technology company, today announced results for the second quarter ended June 30, 2024 and provided a business update.
Recent Highlights:
- Generated
$2.7 million in revenue in the second quarter of 2024, compared to$2.6 million in the second quarter of 2023. - Submitted a new 510k submission to the FDA to expand the intended use cases for the Nanox.ARC for general use, including chest.
- Advanced the US deployment program for the Nanox.ARC technology, with systems installed in seven states, and a robust sales pipeline.
- Installed initial Nanox.ARC systems as part of three chain medical imaging service providers in the US.
- Announces the development of system to be called Nanox.ARC X, that will be introduced in our next investor relations’ event
- Nanox.AI Receives FDA 510K Clearance for HealthCCSng V2.0, upgraded version of the cardiac solution, introduces additional ‘zero calcium’ categorization of coronary calcium (CAC) and generates an exact calcium score with corresponding CAC detection category output.
- Nanox.AI Cardiac Solution, HealthCCSng, was highlighted in multiple scientific presentations at the 2024 SSCCT annual meeting.
“The second quarter of 2024 was one of commercial advances as the Nanox team pursues its vision of making medical imaging more accessible worldwide,” said Erez Meltzer, Nanox Chief Executive Officer and Acting Chairman. “Our vision is to extend Nanox technology within and beyond hospitals, targeting underserved segments like urgent care and orthopedic clinics. We deliver a seamless scan-to-diagnosis solution, leveraging AI for smarter, more efficient healthcare, with a focus on aligning innovation with clinical needs to enhance patient outcomes globally. Nanox is dedicated to accelerating the execution of our commercial infrastructure and future strategic collaborations in the U.S. Our mission is to provide healthcare practices with a transformative imaging advantage with the Nanox.ARC – an accessible, cost-effective solution that not only provides advanced diagnostic imaging capabilities but also elevates overall patient care”.
Financial results for three months ended June 30, 2024
For the three months ended June 30, 2024 (the “reported period”), the Company reported a net loss of
The Company reported revenue of
The Company’s gross loss during the reported period totaled
The Company’s revenue from teleradiology services for the reported and comparable periods was
During the reported period the Company generated revenue through the sales and deployment of its imaging systems which amounted to
The Company’s revenue from its AI solutions for the reported period was
Research and development expenses, net for the reported period were
Sales and marketing expenses for the reported and the comparable periods were
General and administrative expenses for the reported period were
Non-GAAP net loss attributable to ordinary shares for the reported period was
Non-GAAP gross loss for the reported period was
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, expenses related to an offering and legal fee in connection with the class-action litigation and the SEC investigation. A reconciliation between GAAP and non-GAAP financial measures for the three and six months periods ended June 30, 2024, and 2023 is provided in the financial results that are part of this press release.
Liquidity and Capital Resources
As of Jume 30, 2024, the Company had total cash, cash equivalents, restricted deposits and marketable securities of
Other Assets
As of June 30, 2024 the Company had property and equipment of
As of June 30, 2024, the Company had intangible assets of
Shareholders’ Equity
As of June 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, August 20, 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.
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. Nanox’s vision is to increase access, reduce costs and enhance the efficiency of routine medical imaging technology and processes, in order to improve early detection and treatment, which Nanox believes is key to helping people achieve better health outcomes, and, ultimately, to save lives. The Nanox ecosystem includes Nanox.ARC— a multi-source Digital Tomosynthesis system that is cost-effective and user-friendly; an AI-based suite of algorithms that augment the readings of routine CT imaging to highlight early signs often related to chronic disease (Nanox.AI); a cloud-based infrastructure (Nanox.CLOUD); and 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 (Nanox.MARKETPLACE). Together, Nanox’s products and services create a worldwide, innovative, and comprehensive solution that connects medical imaging solutions, from scan to diagnosis. 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, those 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 continue to develop of the Nanox imaging 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 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 imaging system and the proposed pay-per-scan business model; (vii) Nanox’s expectations regarding collaborations with third-parties and their potential benefits; and (viii) Nanox’s ability to conduct business globally; (ix) changes in global, political, economic, business, competitive, market and regulatory forces, including the continuation and escalation of the military conflicts in Israel and current war between Israel and Hamas; (x) the costs incurred with respect to and the outcome of litigation Nanox is currently subject to and any similar or other claims and potential litigation it may be subject to in the future; and (xi) 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, 2023, 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 press release 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, 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) | |||||||
| June 30, 2024 | December 31, 2023 | ||||||
| U.S. Dollars in thousands | |||||||
| Assets | |||||||
| CURRENT ASSETS: | |||||||
| Cash and cash equivalents | 38,982 | 56,377 | |||||
| Restricted deposit | 45 | 46 | |||||
| Marketable securities | 24,884 | 26,006 | |||||
| Accounts receivables net of allowance for credit losses of | 1,508 | 1,484 | |||||
| Inventories | 957 | 2,356 | |||||
| Prepaid expenses | 552 | 1,274 | |||||
| Other current assets | 2,698 | 1,092 | |||||
| TOTAL CURRENT ASSETS | 69,626 | 88,635 | |||||
| NON-CURRENT ASSETS: | |||||||
| Restricted deposit | 323 | 327 | |||||
| Property and equipment, net | 44,397 | 42,343 | |||||
| Operating lease right-of-use asset | 4,169 | 4,573 | |||||
| Intangible assets | 75,301 | 80,607 | |||||
| Other non-current assets | 1,905 | 2,163 | |||||
| TOTAL NON-CURRENT ASSETS | 126,095 | 130,013 | |||||
| TOTAL ASSETS | 195,721 | 218,648 | |||||
| Liabilities and Shareholders’ Equity | |||||||
| CURRENT LIABILITIES: | |||||||
| Current maturities of long-term loan | 3,233 | 3,490 | |||||
| Accounts payable | 1,570 | 3,303 | |||||
| Accrued expenses | 3,638 | 3,920 | |||||
| Deferred revenue | 539 | 543 | |||||
| Current maturities of operating lease liabilities | 804 | 861 | |||||
| Other current liabilities | 3,714 | 3,407 | |||||
| TOTAL CURRENT LIABILITIES | 13,498 | 15,524 | |||||
| NON-CURRENT LIABILITIES: | |||||||
| Non-current operating lease liabilities | 3,681 | 4,045 | |||||
| Deferred tax liability | 2,765 | 2,953 | |||||
| Other long-term liabilities | 642 | 612 | |||||
| TOTAL NON-CURRENT LIABILITIES | 7,088 | 7,610 | |||||
| TOTAL LIABILITIES | 20,586 | 23,134 | |||||
| COMMITMENTS AND CONTINGENCIES (Note 3) | |||||||
| SHAREHOLDERS’ EQUITY: | |||||||
| Ordinary Shares, par value NIS 0.01 per share 100,000,000 authorized at June 30, 2024 and December 31 2023,58,497,123 and 57,778,628 issued and outstanding at June 30, 2024 and December 31, 2023, respectively | 167 | 165 | |||||
| Additional paid-in capital | 521,069 | 515,887 | |||||
| Accumulated other comprehensive loss | (52 | ) | (305 | ) | |||
| Accumulated deficit | (346,049 | ) | (320,233 | ) | |||
| TOTAL SHAREHOLDERS’ EQUITY | 175,135 | 195,514 | |||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | 195,721 | 218,648 | |||||
| NANO-X IMAGING LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (U.S. dollars in thousands except share and per share data) | |||||||||||||||
| Six Months Ended June 30, | Three Months Ended June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| REVENUE | 5,252 | 5,029 | 2,699 | 2,582 | |||||||||||
| COST OF REVENUE | 10,159 | 8,243 | 5,552 | 4,273 | |||||||||||
| GROSS LOSS | (4,907 | ) | (3,214 | ) | (2,853 | ) | (1,691 | ) | |||||||
| OPERATING EXPENSES: | |||||||||||||||
| Research and development, net | 10,032 | 13,199 | 4,812 | 6,913 | |||||||||||
| Sales and marketing | 1,634 | 1,988 | 834 | 835 | |||||||||||
| General and administrative | 10,958 | 15,434 | 5,916 | 7,626 | |||||||||||
| Change in contingent earnout liability | - | (4,523 | ) | - | 137 | ||||||||||
| Other expenses, net | 101 | 597 | 92 | 629 | |||||||||||
| TOTAL OPERATING EXPENSES | 22,725 | 26,695 | 11,654 | 16,140 | |||||||||||
| OPERATING LOSS | (27,632 | ) | (29,909 | ) | (14,507 | ) | (17,831 | ) | |||||||
| REALIZED LOSS FROM SALE OF MARKETABLE SECURITIES | - | (178 | ) | - | - | ||||||||||
| FINANCIAL INCOME, net | 1,646 | 781 | 856 | 380 | |||||||||||
| OPERATING LOSS BEFORE INCOME TAXES | (25,986 | ) | (29,306 | ) | (13,651 | ) | (17,451 | ) | |||||||
| INCOME TAX BENEFIT | 170 | 181 | 76 | 87 | |||||||||||
| NET LOSS | (25,816 | ) | (29,125 | ) | (13,575 | ) | (17,364 | ) | |||||||
| BASIC AND DILUTED LOSS PER SHARE | (0.45 | ) | (0.53 | ) | (0.23 | ) | (0.31 | ) | |||||||
| Weighted average number of basic and diluted ordinary shares outstanding (in thousands) | 57,953 | 55,267 | 58,005 | 55,375 | |||||||||||
| Comprehensive Loss: | |||||||||||||||
| Net Loss | (25,816 | ) | (29,125 | ) | (13,575 | ) | (17,364 | ) | |||||||
| Other comprehensive loss: | |||||||||||||||
| Reclassification of net losses realized in income statement | - | 178 | - | - | |||||||||||
| Unrealized gain from available for-sale securities | 253 | 783 | 66 | 369 | |||||||||||
| Total comprehensive loss | (25,563 | ) | (28,164 | ) | (13,509 | ) | (16,995 | ) | |||||||
| NANO-X IMAGING LTD. UNAUDITED CONDENSED 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 | ||||||||||||||||||
| BALANCE AT JANUARY 1, 2024 | 57,778,628 | 165 | 515,887 | (305 | ) | (320,233 | ) | 195,514 | |||||||||||||||
| Changes during the period: | |||||||||||||||||||||||
| Issuance of ordinary shares upon exercise of options | 718,495 | 2 | 1,604 | - | - | 1,606 | |||||||||||||||||
| Share-based compensation | - | - | 3,578 | - | - | 3,578 | |||||||||||||||||
| Unrealized gain from marketable securities | - | - | - | 253 | - | 253 | |||||||||||||||||
| Net loss for the period | - | - | - | - | (25,816 | ) | (25,816 | ) | |||||||||||||||
| BALANCE AT JUNE 30, 2024 | 58,497,123 | 167 | 521,069 | (52 | ) | (346,049 | ) | 175,135 | |||||||||||||||
| Accumulated | |||||||||||||||||||||||
| Ordinary shares | Additional | other | |||||||||||||||||||||
| Number of | paid-in | comprehensive | Accumulated | ||||||||||||||||||||
| shares | Amount | capital | deficit | deficit | Total | ||||||||||||||||||
| U.S. Dollars in thousands | |||||||||||||||||||||||
| BALANCE AT JANUARY 1, 2023 | 55,094,237 | 158 | 477,953 | (1,974 | ) | (259,457 | ) | 216,680 | |||||||||||||||
| Changes during the period: | |||||||||||||||||||||||
| Issuance of ordinary shares upon exercise of options | 210,138 | * | 595 | - | - | 595 | |||||||||||||||||
| Issuance of ordinary shares under settlement agreement with former shareholders of USARAD Holding Inc. | 255,392 | 1 | 1,560 | - | - | 1,561 | |||||||||||||||||
| Other comprehensive gain | - | - | - | 961 | - | 961 | |||||||||||||||||
| Share-based compensation | - | - | 2,863 | - | - | 2,863 | |||||||||||||||||
| Net loss for the period | - | - | - | - | (29,125 | ) | (29,125 | ) | |||||||||||||||
| BALANCE AT JUNE 30, 2023 | 55,559,767 | 159 | 482,971 | (1,013 | ) | (288,582 | ) | 193,535 | |||||||||||||||
| * Less than | |||||||||||||||||||||||
| Accumulated | |||||||||||||||||||||||
| Ordinary shares | Additional | other | |||||||||||||||||||||
| Number of | paid-in | comprehensive | Accumulated | ||||||||||||||||||||
| shares | Amount | capital | deficit | deficit | Total | ||||||||||||||||||
| U.S. Dollars in thousands | |||||||||||||||||||||||
| BALANCE AT APRIL 1, 2024 | 57,779,033 | 165 | 517,388 | (118 | ) | (332,474 | ) | 184,961 | |||||||||||||||
| Changes during the period: | |||||||||||||||||||||||
| Issuance of ordinary shares upon exercise of options | 718,090 | 2 | 1,580 | - | - | 1,582 | |||||||||||||||||
| Other comprehensive gain | - | - | 66 | - | 66 | ||||||||||||||||||
| Share-based compensation | - | - | 2,101 | - | - | 2,101 | |||||||||||||||||
| Net loss for the period | - | - | - | (13,575 | ) | (13,575 | ) | ||||||||||||||||
| BALANCE AT JUNE 30, 2024 | 58,497,123 | 167 | 521,069 | (52 | ) | (346,049 | ) | 175,135 | |||||||||||||||
| Accumulated | |||||||||||||||||||||||
| Ordinary shares | Additional | other | |||||||||||||||||||||
| Number of | paid-in | comprehensive | Accumulated | ||||||||||||||||||||
| shares | Amount | capital | deficit | deficit | Total | ||||||||||||||||||
| U.S. Dollars in thousands | |||||||||||||||||||||||
| BALANCE AT APRIL 1, 2023 | 55,150,345 | 158 | 479,172 | (1,382 | ) | (271,218 | ) | 206,730 | |||||||||||||||
| Changes during the period: | |||||||||||||||||||||||
| Issuance of ordinary shares upon exercise of options | 154,030 | * | 419 | - | - | 419 | |||||||||||||||||
| Issuance of ordinary shares under settlement agreement with former shareholders of USARAD Holding Inc. | 255,392 | 1 | 1,560 | - | - | 1,561 | |||||||||||||||||
| Other comprehensive gain | - | - | - | 369 | - | 369 | |||||||||||||||||
| Share-based compensation | - | - | 1,820 | - | - | 1,820 | |||||||||||||||||
| Net loss for the period | - | - | - | - | (17,364 | ) | (17,364 | ) | |||||||||||||||
| BALANCE AT JUNE 30, 2023 | 55,559,767 | 159 | 482,971 | (1,013 | ) | (288,582 | ) | 193,535 | |||||||||||||||
| * Less than | |||||||||||||||||||||||
| NANO-X IMAGING LTD. UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (U.S. dollars in thousands) | |||||||
| Six Months Ended June 30, | |||||||
| 2024 | 2023 | ||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
| Net loss for the period | (25,816 | ) | (29,125 | ) | |||
| Adjustments required to reconcile net loss to net cash used in operating activities: | |||||||
| Share-based compensation | 3,578 | 2,863 | |||||
| Amortization of intangible assets | 5,306 | 5,306 | |||||
| Exchange rate differentials | (295 | ) | (78 | ) | |||
| Change in contingent earnout liability | - | (4,523 | ) | ||||
| Depreciation | 561 | 509 | |||||
| Deferred tax liability, net | (188 | ) | (188 | ) | |||
| Realized loss from sale of marketable securities | - | 178 | |||||
| Amortization of premium, discount and accrued interest on marketable securities | (76 | ) | 527 | ||||
| Impairment of property and equipment | 171 | 145 | |||||
| Changes in Operating Assets and Liabilities: | |||||||
| Accounts receivable | (24 | ) | (454 | ) | |||
| Inventories | (316 | ) | - | ||||
| Prepaid expenses and other current assets | 677 | 2,236 | |||||
| Other non-current assets | 183 | 98 | |||||
| Accounts payable | (1,733 | ) | 957 | ||||
| Operating lease assets and liabilities | (17 | ) | (10 | ) | |||
| Accrued expenses and other liabilities | 25 | 692 | |||||
| Deferred Revenue | (4 | ) | 4 | ||||
| Other long-term liabilities | 30 | 75 | |||||
| Net cash used in operating activities | (17,938 | ) | (20,788 | ) | |||
| CASH FLOWS PROVIDED BY INVESTING ACTIVITIES: | |||||||
| Purchase of property and equipment | (996 | ) | (1,839 | ) | |||
| Purchase of marketable securities | (19,794 | ) | - | ||||
| Proceeds from maturity of marketable securities | 21,245 | 25,507 | |||||
| Proceeds from sale of marketable securities | - | 822 | |||||
| Net cash provided by investing activities | 455 | 24,490 | |||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
| Payment due to settlement of contingent earnout liabilities | - | (790 | ) | ||||
| Proceeds from issuance of ordinary shares upon exercise of options | 45 | 595 | |||||
| Net cash provided by/(used in) financing activities | 45 | (195 | ) | ||||
| EFFECT OF CHANGES IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS | 43 | 25 | |||||
| NET CHANGE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS | (17,395 | ) | 3,532 | ||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS AT BEGINNING OF THE PERIOD | 56,377 | 38,529 | |||||
| CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS AT END OF THE PERIOD | 38,982 | 42,061 | |||||
| SUPPLEMENTARY INFORMATION ON ACTIVITIES INVOLVING CASH FLOWS | |||||||
| Cash paid for interest | 71 | 74 | |||||
| Cash paid for income taxes | 51 | 7 | |||||
| SUPPLEMENTARY INFORMATION ON ACTIVITIES NOT INVOLVING CASH FLOWS - | |||||||
| Issuance of ordinary shares upon exercise of options | 1,561 | - | |||||
| Ordinary shares issued in connection with earnout liability | - | 1,561 | |||||
| Operating lease liabilities arising from obtaining operating right-of use assets | - | 601 | |||||
| RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS: | |||||||
| Cash and cash equivalents | 38,982 | 41,998 | |||||
| Restricted cash equivalents | - | 63 | |||||
| Total cash, cash equivalents and restricted cash equivalents | 38,982 | 42,061 | |||||
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 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, Non-GAAP other expenses (income) 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, change in contingent earnout liability, expenses related to an offering and legal fees in connection with the 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.
Reconciliation of GAAP net loss attributable to ordinary shares to Non-GAAP net loss attributable to ordinary shares and Non-GAAP basic and diluted loss per share (U.S. dollars in thousands)
| Six Months Ended | Three Months Ended | ||||||||||||||
| June 30, | June 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||
| GAAP net loss attributable to ordinary shares | 25,816 | 29,125 | 13,575 | 17,364 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||
| Less: Class-action litigation and SEC investigation | 76 | 4,417 | 44 | 2,181 | |||||||||||
| Less: Amortization of intangible assets | 5,306 | 5,306 | 2,653 | 2,653 | |||||||||||
| Less: Offering expenses | 420 | - | 420 | - | |||||||||||
| Less (Add): Change in the fair value of earn out liabilities’ obligation | - | (4,523 | ) | - | 137 | ||||||||||
| Less: accrual in connection with the estimated settlement of the SEC investigation | - | 650 | - | 650 | |||||||||||
| Less: Share-based compensation | 3,578 | 2,863 | 2,101 | 1,820 | |||||||||||
| Non-GAAP net loss attributable to ordinary shares | 16,436 | 20,412 | 8,357 | 9,923 | |||||||||||
| BASIC AND DILUTED LOSS PER SHARE | 0.28 | 0.37 | 0.14 | 0.18 | |||||||||||
| WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES (in thousands) | 57,953 | 55,267 | 58,005 | 55,375 | |||||||||||
Reconciliation of GAAP cost of revenue to Non-GAAP cost of revenue (U.S. dollars in thousands)
| GAAP cost of revenue | 10,159 | 8,243 | 5,552 | 4,273 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||
| Amortization of intangible assets | 5,112 | 5,112 | 2,556 | 2,556 | |||||||||||
| Share-based compensation | 112 | 28 | 59 | 14 | |||||||||||
| Non-GAAP cost of revenue | 4,935 | 3,103 | 2,937 | 1,703 | |||||||||||
Reconciliation of GAAP gross loss to Non-GAAP gross profit (U.S. dollars in thousands)
| GAAP gross loss | (4,907 | ) | (3,214 | ) | (2,853 | ) | (1,691 | ) | |||||||
| Non-GAAP adjustments: | |||||||||||||||
| Amortization of intangible assets | 5,112 | 5,112 | 2,556 | 2,556 | |||||||||||
| Share-based compensation | 112 | 28 | 59 | 14 | |||||||||||
| Non-GAAP gross profit (loss) | 317 | 1,926 | (238 | ) | 879 | ||||||||||
Reconciliation of GAAP gross loss margin to Non-GAAP gross profit margin (in percentage of revenue)
| GAAP gross loss margin | (93.43 | )% | (63.91 | )% | (105.71 | )% | (65.49 | )% | |||||||
| Non-GAAP adjustments: | |||||||||||||||
| Amortization of intangible assets | 97.33 | % | 101.65 | % | 94.7 | % | 98.99 | % | |||||||
| Share-based compensation | 2.13 | % | 0.56 | % | 2.19 | % | 0.54 | % | |||||||
| Non-GAAP gross profit (loss) margin | 6.03 | % | 38.3 | % | (8.82 | )% | 34.04 | % | |||||||
Reconciliation of GAAP research and development, expenses to Non-GAAP research and development expenses, net (U.S. dollars in thousands)
| GAAP research and development expenses, net | 10,032 | 13,199 | 4,812 | 6,913 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||
| Share-based compensation | 1,316 | 1,735 | 727 | 947 | |||||||||||
| Non-GAAP research and development expenses, net | 8,716 | 11,464 | 4,085 | 5,966 | |||||||||||
Reconciliation of GAAP sales and marketing expenses to Non-GAAP sales and marketing expenses (U.S. dollars in thousands)
| GAAP sales and marketing expenses | 1,634 | 1,988 | 834 | 835 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||
| Amortization of intangible assets | 194 | 194 | 97 | 97 | |||||||||||
| Share-based compensation | 350 | 185 | 204 | 107 | |||||||||||
| Non-GAAP sales and marketing expenses | 1,090 | 1,609 | 533 | 631 | |||||||||||
Reconciliation of GAAP general and administrative expenses to Non-GAAP general and administrative expenses (U.S. dollars in thousands)
| GAAP general and administrative expenses | 10,958 | 15,434 | 5,916 | 7,626 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||
| Class-action litigation and SEC investigation | 76 | 4,417 | 44 | 2,181 | |||||||||||
| Offering expenses | 420 | - | 420 | - | |||||||||||
| Share-based compensation | 1,800 | 915 | 1,111 | 752 | |||||||||||
| Non-GAAP general and administrative expenses | 8,662 | 10,102 | 4,341 | 4,693 | |||||||||||
Reconciliation of GAAP other expenses to Non-GAAP other expenses (income) (U.S. dollars in thousands)
| GAAP other expenses | 101 | 597 | 92 | 629 | |||||||||||
| Non-GAAP adjustments: | |||||||||||||||
| Accrual in connection with the estimated settlement of the SEC investigation | - | 650 | - | 650 | |||||||||||
| Non-GAAP other expenses (income) | 101 | (53 | ) | 92 | (21 | ) |
Contacts
Media Contact:
Ben Shannon
ICR Westwicke
NanoxPR@icrinc.com
Investor Contact:
Mike Cavanaugh
ICR Westwicke
mike.cavanaugh@westwicke.com
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