Nanox Announces Third Quarter 2021 Financial Results and Provides Business Update


NEVE ILAN, Israel–()–NANO-X IMAGING LTD (NASDAQ: NNOX) (“Nanox” or the “Firm”), an progressive medical imaging expertise firm, right now introduced outcomes for the third quarter ended September 30, 2021 and supplied a enterprise replace.

As beforehand reported, Nanox accomplished the merger with NANO-X AI LTD (previously Zebra Medical Imaginative and prescient LTD, “Nanox AI”), a deep-learning medical imaging analytics firm, in an all-stock deal valued at roughly $110 million at closing, with as much as $84 million in contingent consideration to be paid in further inventory if Nanox AI enters into any of two designated industrial agreements and obtain sure milestones. Moreover, the Firm accomplished the acquisition of USARAD Holdings, Inc., a number one supplier of teleradiology providers, and the belongings of MDWEB, LLC., a decentralized market connecting imaging amenities with radiologists, collectively, for about $7.3 million in money and $12.9 million in inventory, with as much as $2.0 million in money and as much as $8.0 million in inventory in deferred consideration upon the completion of assorted milestones.

“The third quarter was pivotal for Nanox.ARC, as we made significant progress towards the commercialization of the Nanox System throughout a number of fronts. Amongst our latest accomplishments, we continued to safe our provide chain, enlarged our backlog of orders by signing further MSaaS agreements, and, importantly, finalized three beforehand introduced strategic M&A transactions,” stated Ran Poliakine, Chairman of the Board and Chief Govt Officer of Nanox. “We sit up for persevering with our progress towards our aim of bringing the groundbreaking expertise to market in 2022.”

Third Quarter Highlights and Current Developments:

  • Accomplished merger with Nanox AI and acquisitions of USARAD Holdings, Inc. and MDWEB, LLC. merger with Zebra and acquisitions of USARAD and MDWEB paragraph from above.
  • Entered into MSaaS settlement with Worldwide Clinics Group, a medical gear distributor which serves public & personal hospitals, well being programs, navy hospitals, and medical facilities in Chile, Bolivia and Peru, for the deployment of 350 Nanox.ARC items. As of date, the Firm entered into MSaaS agreements for deployment of 6,500 Nanox.ARC items.
  • Nanox AI secured its eighth FDA 510(okay) clearance for its Coronary Artery Calcium (“CAC”) resolution as a part of its inhabitants well being providing. CAC is a crucial biomarker in figuring out the danger of coronary illness. The CAC resolution is anticipated to empower clinicians to report findings and suggest preventative therapies earlier than a coronary occasion happens, which has the potential to avoid wasting lives whereas decreasing prices for the healthcare programs. Nanox AI’s mission helps to diagnose populations at scale with its AI-based options, enabling IDNs and industrial payers to detect and deal with sufferers in danger for power circumstances whereas precisely adjusting their coated inhabitants threat.
  • We now have made a progress to begin industrial manufacturing of the silicon MEMs chip by the Firm’s Korean subsidiary, that’s integral to the Nanox digital X-ray supply. We anticipate manufacturing on the new facility to start pilot manufacturing in early 2022
  • Scientific and Regulatory replace: The Firm made progress towards the completion of the event of the Nanox.ARC System. The Firm anticipate to proceed to optimize and develop additional options of the Nanox.ARC System and is contemplating submitting a further 510(okay) utility for the subsequent model of its multi-source Nanox.ARC System within the close to time period, which can profit from the FDA suggestions obtained on the primary model of the multi-source Nanox.ARC System.

Monetary outcomes for 3 months ended September 30, 2021

For the three months ended September 30, 2021, the Firm reported a internet lack of $13.5 million, in comparison with a internet lack of $11.1 million for the three-month interval ended September 30, 2020, largely as a consequence of a rise in our analysis and growth bills and basic and administrative bills, which have been mitigated by a lower in our advertising bills.

Analysis and growth bills for the third quarter 2021 have been $3.7 million, as in comparison with $2.1 million for a similar interval in 2020. The rise was as a consequence of Analysis and Improvement prices associated to the multi-source Nanox.ARC and cloud, together with elevated R&D headcount, prices associated to the continuing regulatory approval course of and share-based compensation.

Advertising bills for the third quarter 2021 have been $1.5 million, as in comparison with $2.7 million for a similar interval in 2020. The lower was primarily as a consequence of lower of $1.7 million in share-based compensation which was partially offset by a rise of $0.5 million in advertising and branding bills.

Basic and administrative bills for the third quarter 2021 have been $8.2 million, as in comparison with $6.3 million for a similar interval in 2020. The rise of $1.9 million was primarily as a consequence of a rise in our labor price of roughly $0.5 million primarily because of a rise in our head depend in reference to the growth of the Firm’s administration crew and the general group infrastructure, improve in our D&O insurance coverage bills of roughly $0.5, improve on in our authorized charges within the quantity of roughly $0.6 million as a result of SEC inquiry and class-action litigation as described in our Type 6-Okay filed on November 17, 2021 and transaction bills with connection to the acquisitions of Nanox AI, USARAD Holdings, Inc. and the belongings of MDWEB, LLC within the quantity of roughly $0.5 million.

Web money utilized in working actions in the course of the three months ended September 30, 2021 was $7.0 million. The Firm ended the third quarter 2021 with money, money equivalents and marketable securities of $180.3 million.

Non-GAAP internet loss for the three months ended September 30, 2021 was $8.5 million, as in comparison with $5.1 million for a similar interval in 2020 largely as a consequence of a rise in our analysis and growth bills, basic and administrative bills and our advertising bills. Non-GAAP Analysis and growth bills for the three months ended September 30, 2021 have been $3.0 million, as in comparison with $1.5 million for a similar interval in 2020. Non-GAAP Advertising bills for the three months ended September 30, 2021 have been $1.0 million, as in comparison with $0.5 million for a similar interval in 2020. Non-GAAP Basic and administrative bills for the three months ended September 30, 2021 have been $4.5 million, as in comparison with $3.1 million for a similar interval in 2020.

A reconciliation between GAAP and non-GAAP monetary measures for the three-month and nine-month intervals ended September 30, 2021 and 2020 is supplied within the monetary outcomes which can be a part of this press launch. The distinction between the GAAP and non-GAAP monetary measures above is especially attributable to share-based compensation, secondary providing bills and authorized charges in reference to class-action litigation and the SEC inquiry.

As of September 30, 2021, the Firm had roughly 47.9 million shares excellent.

Convention name and webcast particulars

Wednesday, November 17, 2021 @ 8:30am ET

Investor US/Canada toll-free dial-in: (877) 550-3765

Investor US/Canada Worldwide dial-in: (409) 937-8962

Convention ID: 7872065

Webcast hyperlink: Nanox Q3 2021 Earnings Call

About Nanox:

Nanox, based by the serial entrepreneur Ran Poliakine, is an Israeli company creating a commercial-grade digital X-ray supply designed for use in real-world medical imaging purposes. Nanox believes that its novel expertise may considerably cut back the prices of medical imaging programs and plans to hunt collaborations with world-leading healthcare organizations and firms to offer inexpensive, early detection imaging service for all. For extra data, please go to www.nanox.vision.

Ahead-Trying Statements:

This press launch might include forward-looking statements which can be topic to dangers and uncertainties. All statements that aren’t historic info contained on this press launch are forward-looking statements. Such statements embody, however should not restricted to, any statements referring to the initiation, timing, progress and outcomes of the Firm’s analysis and growth, manufacturing and commercialization actions with respect to its X-ray supply expertise and the Nanox.Arc, the power to comprehend the anticipated advantages of the acquisitions and the projected enterprise prospects of the Firm and the acquired corporations. In some instances, you’ll be able to establish forward-looking statements by terminology corresponding to “can,” “would possibly,” “consider,” “might,” “estimate,” “proceed,” “anticipate,” “intend,” “ought to,” “plan,” “ought to,” “may,” “anticipate,” “predict,” “potential,” or the unfavorable of those phrases or different comparable expressions. Ahead-looking statements are primarily based on data the Firm has when these statements are made or administration’s good religion perception as of that point with respect to future occasions, and are topic to dangers and uncertainties that might trigger precise efficiency or outcomes to vary materially from these expressed in or instructed by the forward-looking statements. Elements that might trigger precise outcomes to vary materially from these presently anticipated embody: dangers associated to (1) the lack to efficiently combine the acquired corporations, (2) the lack to comprehend the anticipated advantages of the acquisitions, which can be affected by, amongst different issues, competitors, model recognition, the power of the acquired corporations to develop and handle development profitably and retain their key staff, (3) prices associated to the acquisitions and/or unknown or inestimable liabilities, (4) adjustments in relevant legal guidelines or laws that affect the operations of the acquired corporations, (5) the failure to fulfill projected expertise growth targets, (6) the failure of the acquired corporations to successfully scale end-to-end medical imaging options worldwide, (7) adjustments in world, political, financial, enterprise, aggressive, market and regulatory forces, and (8) (i) Nanox’s potential to finish growth of the Nanox.Arc; (ii) Nanox’s potential to efficiently display the feasibility of its expertise for industrial purposes; (iii) Nanox’s expectations relating to the need of, timing of submitting for, and receipt and upkeep of, regulatory clearances or approvals relating to its X-ray supply expertise and the Nanox.Arc from regulatory companies worldwide and its ongoing compliance with relevant high quality requirements and regulatory necessities; (iv) Nanox’s potential to enter into and preserve commercially affordable preparations with third-party producers and suppliers to fabricate the Nanox.Arc; (v) the market acceptance of the Nanox.Arc and the proposed pay-per-scan enterprise mannequin; (vi) Nanox’s expectations relating to collaborations with third-parties and their potential advantages; and (vii) Nanox’s potential to conduct enterprise globally, amongst different issues.

For a dialogue of different dangers and uncertainties, and different necessary elements, any of which may trigger Nanox’s precise outcomes to vary from these contained within the Ahead-Trying Statements, see the part titled “Threat Elements” in Nanox’s Annual Report on Type 20-F for the yr ended December 31, 2020, and subsequent filings with the U.S. Securities and Alternate Fee. The reader mustn’t place undue reliance on any forward-looking statements included on this press launch

Besides as required by legislation, Nanox undertakes no obligation to replace publicly any forward-looking statements after the date of this report to evolve these statements to precise outcomes or to adjustments within the Firm’s expectations.

Non-GAAP Monetary Measures

This press launch consists of details about sure monetary measures that aren’t ready in accordance with typically accepted accounting rules in the USA (“GAAP”), together with non-GAAP internet loss attributable to abnormal shares, non-GAAP analysis and growth bills, non-GAAP advertising bills and non-GAAP basic and administrative bills. These non-GAAP measures should not primarily based on any standardized methodology prescribed by GAAP and should not essentially corresponding to comparable measures introduced by different corporations.

Non-GAAP internet loss attributable to abnormal shares, non-GAAP analysis and growth bills, non-GAAP advertising bills and non-GAAP basic and administrative bills every adjusts for stock-based compensation bills.

The Firm’s administration and board of administrators make the most of these non-GAAP monetary measures to judge the Firm’s efficiency. The Firm supplies these non-GAAP measures of the Firm’s efficiency to buyers as a result of administration believes that these non-GAAP monetary measures, when seen with the Firm’s outcomes underneath GAAP and the accompanying reconciliations, are helpful in figuring out underlying developments in ongoing operations. Nevertheless, non-GAAP internet loss attributable to abnormal shares, non-GAAP analysis and growth bills, non-GAAP advertising bills and non-GAAP basic and administrative bills should not measures of monetary efficiency underneath GAAP and, accordingly, shouldn’t be thought-about as alternate options to GAAP measures as indicators of working efficiency. Additional, non-GAAP internet loss attributable to abnormal shares, non-GAAP analysis and growth bills, non-GAAP advertising bills and non-GAAP basic and administrative bills shouldn’t be thought-about measures of the Firm’s liquidity.

A reconciliation of sure GAAP to non-GAAP monetary measures has been supplied within the tables included on this press launch.

NANO-X IMAGING LTD.

UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

September 30,

2021

 

December 31,

2020

 

 

U.S. {Dollars} in hundreds

Belongings

 

 

 

 

CURRENT ASSETS:

 

 

 

 

Money and money equivalents

 

77,557

 

 

213,468

 

Marketable Securities – brief time period

 

32,972

 

 

 

Pay as you go bills and different present belongings

 

1,154

 

 

6,325

 

TOTAL CURRENT ASSETS

 

111,683

 

 

219,793

 

 

 

 

 

 

NON-CURRENT ASSETS:

 

 

 

 

Restricted money

 

 

 

316

 

Property and gear, internet

 

30,762

 

 

14,020

 

Working lease right-of-use asset

 

1,155

 

 

1,359

 

Marketable Securities – long run

 

69,768

 

 

 

Different non-current belongings

 

4,709

 

 

661

 

TOTAL NON-CURRENT ASSETS

 

106,394

 

 

16,356

 

TOTAL ASSETS

 

218,077

 

 

236,149

 

 

 

 

 

 

Liabilities and Shareholders’ Fairness

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

Accounts payable

 

1,302

 

 

435

 

Accrued bills and different liabilities

 

4,294

 

 

3,526

 

Present maturities of working leases

 

623

 

 

519

 

TOTAL CURRENT LIABILITIES

 

6,219

 

 

4,480

 

 

 

 

 

 

NON-CURRENT LIABILITIES:

 

 

 

 

Non-current working leases

 

599

 

 

923

 

Long run mortgage from Financial institution

 

2,954

 

 

 

Different long run liabilities

 

155

 

 

 

TOTAL NON-CURRENT LIABILITIES

 

3,708

 

 

923

 

TOTAL LIABILITIES

 

9,927

 

 

5,403

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

Strange Shares, par worth NIS 0.01 per share, 100,000,000 licensed at September 30, 2021 and December 31 2020, 47,877,719 and 46,100,173 issued and excellent at September 30, 2021 and December 31, 2020, respectively

 

136

 

 

131

 

Further paid-in capital

 

332,383

 

 

315,031

 

Gathered different complete deficit

 

(190

)

 

 

Gathered deficit

 

(124,179

)

 

(84,416

)

TOTAL SHAREHOLDERS’ EQUITY

 

208,150

 

 

230,746

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

218,077

 

 

236,149

 

NANO-X IMAGING LTD.

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

 

 

9 Months Ended

September 30,

 

Three Months Ended

September 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(U.S. {dollars} in hundreds, apart from per share knowledge)

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

Analysis and growth

 

10,760

 

 

6,258

 

 

3,708

 

 

2,106

 

Advertising

 

5,093

 

 

4,409

 

 

1,529

 

 

2,664

 

Basic and administrative

 

23,790

 

 

14,195

 

 

8,238

 

 

6,292

 

OPERATING LOSS

 

(39,643

)

 

(24,862

)

 

(13,475

)

 

(11,062

)

FINANCIAL EXPENSES (INCOME), NET

 

120

 

 

(20

)

 

(6

)

 

(6

)

NET LOSS

 

(39,763

)

 

(24,842

)

 

(13,469

)

 

(11,056

)

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED LOSS PER SHARE

 

(0.84

)

 

(0.77

)

 

(0.28

)

 

(0.29

)

WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES (in hundreds)

 

47,486

 

 

32,209

 

 

47,851

 

 

38,020

 

Complete Loss:

 

 

 

 

 

 

 

 

Web Loss

 

(39,763

)

 

(24,842

)

 

(13,469

)

 

(11,056

)

Different complete earnings:

 

 

 

 

 

 

 

 

Unrealized loss from available- for-sale securities

 

(190

)

 

 

 

(74

)

 

 

Whole complete loss

 

(39,953

)

 

(24,842

)

 

(13,543

)

 

(11,056

)

RECONCILIATION OF GAAP TO NON-GAAP METRICS

(U.S. {dollars} in hundreds (besides per share knowledge))

(Unaudited)

 

 

 

 

9 Months Ended

September 30,

 

Three Months Ended

September 30,

 

 

2021

 

2020

 

2021

 

2020

 

 

(U.S. {dollars} in hundreds, apart from per share knowledge)

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP internet loss attributable to abnormal shares to Non-GAAP internet loss attributable to abnormal shares

 

 

 

 

 

 

 

 

 

GAAP internet loss attributable to abnormal shares

 

39,763

 

24,842

 

13,469

 

11,056

Non-GAAP changes:

 

 

 

 

 

 

 

 

Class-actions litigation and SEC matter

 

665

 

 

604

 

Secondary providing bills

 

981

 

 

 

Share-based compensation

 

13,963

 

14,296

 

4,383

 

5,949

Non-GAAP internet loss attributable to abnormal shares

 

24,154

 

10,546

 

8,482

 

5,107

BASIC AND DILUTED LOSS PER SHARE

 

0.51

 

0.33

 

0.18

 

0.13

WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES (in hundreds)

 

47,486

 

32,209

 

47,851

 

38,020

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP analysis and growth bills to Non-GAAP analysis and growth bills (U.S. {dollars} in hundreds)

 

 

 

 

 

 

 

 

 

GAAP analysis and growth bills

 

10,760

 

6,258

 

3,708

 

2,106

Non-GAAP changes:

 

 

 

 

 

 

 

 

Share-based compensation

 

2,257

 

2,512

 

702

 

595

Non-GAAP analysis and growth bills

 

8,503

 

3,746

 

3,006

 

1,511

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP advertising bills to Non-GAAP advertising bills (U.S. {dollars} in hundreds)

 

 

 

 

 

 

 

 

 

GAAP advertising bills

 

5,093

 

4,409

 

1,529

 

2,664

Non-GAAP changes:

 

 

 

 

 

 

 

 

Share-based compensation

 

1,933

 

2,844

 

525

 

2,200

 

 

 

 

 

 

 

 

 

Non-GAAP advertising bills

 

3,160

 

1,565

 

1,004

 

464

 

 

 

 

 

 

 

 

 

Reconciliation of GAAP basic and administrative bills to Non-GAAP basic and administrative bills (U.S. {dollars} in hundreds)

 

 

 

 

 

 

 

 

 

GAAP basic and administrative bills

 

23,790

 

14,195

 

8,238

 

6,292

Non-GAAP changes:

 

 

 

 

 

 

 

 

Class-actions litigation and SEC matter

 

665

 

 

604

 

Secondary providing bills

 

981

 

 

 

Share-based compensation

 

9,773

 

8,940

 

3,156

 

3,154

 

 

 

 

 

 

 

 

 

Non-GAAP basic and administrative bills

 

12,371

 

5,255

 

4,478

 

3,138

 



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