NANO-X IMAGING LTD (NASDAQ: NNOX) (“
Nanox” or the
“
Company”), an innovative medical imaging
technology company, today announced results for the first quarter
ended March 31, 2024 and provided a business update.
First Quarter 2024 Highlights and Recent
Developments:
- Generated $2.6 million in revenue in the first quarter of 2024,
compared to $2.4 million in the first quarter of 2023.
- In the first quarter of 2024, we have continued to make strides
in our U.S operational performance.
- Secured agreements for Nanox.AI with Dandelion Health and
Covera Health.
- Hosted a live demonstration of the Nanox.ARC, scanning a
patient at Dynamic Medical Imaging in New Jersey in early April,
which showcased the clinical utility of the Nanox.ARC in real
time.
- Entered into an agreement with US-based Swissray, a leading
provider of radiology services, to further strengthen Nanox’s
customer support infrastructure.
- Continued to generate clinical data supporting the use of
Nanox.ARC for chest and other musculoskeletal indications.
“The entire Nanox team performed at a high level
in the first quarter of 2024, marking positive strides
commercializing the full Nanox technology suite worldwide, while
also strengthening our customer support network and building the
clinical data to support the use of the Nanox.ARC for an expanded
array of musculoskeletal indications,” said Erez Meltzer, Nanox
Chief Executive Officer. “We have also strengthened the crucial
Nanox.AI product suite, receiving a new FDA clearance for Health
FLD in February, and securing agreements with leading healthcare AI
data platforms Dandelion Health and Covera. Alongside our
commercial efforts in the US, we are also advancing in other
geographies. The entire Nanox team is focused on acceleration into
the rest of 2024.”
Financial results for three months
ended March 31, 2024
For the three months ended March 31, 2024 (the
“reported period”), the Company reported a net loss of $12.2
million, compared to a net loss of $11.8 million for the three
months ended March 31, 2023 (which is referred as the “comparable
period”), representing an increase of $0.4 million. The increase
was largely due to onetime income that was recorded in the
comparable period due to a decrease in the Company’s earn-out
liabilities in the amount of $4.7 million and an increase in gross
loss in the amount of $0.5 million, which was offset by a decrease
of $1.1 million in the research and development expenses, a
decrease of $0.4 million in the sales and marketing expenses, a
decrease of $2.8 million in the general and administrative expenses
and increase of $0.4 in the Company’s financial income.
The Company reported revenue of $2.6 million in
the reported period, compared to $2.4 million in the comparable
period. During the reported period, the Company generated revenue
through teleradiology services, the sales and deployment of its
imaging systems and the sale of its AI solutions.
The Company’s gross loss during the reported
period totaled $2.1 million (gross loss margin of (81%)) on a GAAP
basis, as compared to $1.5 million (gross loss margin of (62%)) in
the comparable period. Non-GAAP gross profit for the reported
period was $0.6 million (gross profit margin of approximately 22%),
as compared to $1.0 million (gross profit margin of approximately
43%) in the comparable period.
The Company’s revenue from teleradiology
services for the reported period was $2.4 million in the reported
and comparable periods. The Company’s GAAP gross profit from
teleradiology services for the reported period was $0.3 million
(gross profit margin of approximately 14%), as compared to $0.5
million (gross profit margin of approximately 21%) in the
comparable period. Non-GAAP gross profit of the Company’s
teleradiology services for the reported period was $0.9 million
(gross profit margin of approximately 37%) as compared to $1.1
million (gross profit margin of approximately 45%) in the
comparable period. The decrease was attributable mainly to an
increase in the cost of the engaged radiologists due to increases
in reading rates.
During the reported period the Company generated
revenue through the sales and deployment of its imaging systems
which amounted to $48 thousand for the reported period, with a
gross loss of 0.4 million on a GAAP and non-GAAP basis. The revenue
stems from the sale and deployment of our 2D systems in Africa and
our ARC systems in the U.S.
The Company’s revenue from its AI solutions for
the reported period was $97 thousand with a gross loss of $2.0
million on a GAAP basis, as compared to revenue of $49 thousand
with a gross loss of $2.0 million in the comparable period.
Non-GAAP gross profit of the Company’s AI solutions for the
reported period was $29 thousand, as compared to a loss of $20
thousand in the comparable period. During the reported period,
Nanox AI continued to complete pilot programs with health
organizations and other prospects in anticipation of full
deployment of its products.
Research and development expenses net for the
reported period were $5.2 million, as compared to $6.3 million in
the comparable period, reflecting a decrease of $1.1 million. The
decrease was mainly due to a research grant of $0.9 million that
was received as part of the NHSX project, decrease of $0.2 million
in salaries and wages, decrease of $0.2 million in share-based
compensation which was offset by an increase of $0.3 million in the
expenses related to our research and development activities.
Sales and marketing expenses for the reported
period were $0.8 million, as compared to $1.2 million in the
comparable period, reflecting a decrease of $0.4 million in the
Company’s marketing expenses.
General and administrative expenses for the
reported period were $5.0 million, as compared to $7.8 million in
the comparable period. The decrease of $2.8 million was mainly due
to a decrease in our legal expenses in the amount of $2.2 million,
largely as result of the finalization of the SEC investigation and
the settlement of the class action and a decrease in the cost of
the directors’ and officers’ liability insurance premium in the
amount of $0.4 million.
Non-GAAP net loss attributable to ordinary
shares for the reported period was $8.1 million, as compared to
$10.5 million in the comparable period. The decrease of $2.4
million was mainly due to a decrease in non-GAAP operating expenses
of $2.4 million and an increase of $0.4 million in our non-GAAP
interest income which was mitigated by a decrease of $0.6 million
in our non-GAAP cost of goods sold.
Non-GAAP gross profit for the reported period
was $0.6 million, as compared to $1.0 million in the comparable
period. Non-GAAP research and development expenses, net for the
reported period, were $4.6 million, as compared to $5.5 million in
the comparable period. Non-GAAP sales and marketing expenses for
the reported period were $0.6 million, as compared to $1.0 million
in the comparable period. Non-GAAP general and administrative
expenses for the reported period were $4.3 million as compared to
$5.4 million in the comparable period.
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 and legal fees in connection with the
class-action litigation and the SEC investigation. A reconciliation
between GAAP and non-GAAP financial measures for the three months
periods ended March 31, 2024, and 2023 is provided in the financial
results that are part of this press release.
Liquidity and Capital Resources
As of March 31, 2024, the Company had total
cash, cash equivalents, restricted deposits and marketable
securities of $73.3 million, compared to $82.8 million as of
December 31, 2023. The decrease of $9.5 million during the reported
period was primarily due to negative cash flow from operations of
$9.4 million.
Other Assets
As of March 31, 2024 and December 31, 2023, the
Company had property and equipment of $42.3 million.
As of March 31, 2024, the Company had intangible
assets of $78.0 million as compared to $80.6 million as of December
31, 2023. The decrease was attributable to the periodic
amortization of intangible assets in the amount of $2.6
million.
Shareholders’ Equity
As of March 31, 2024, and December 31, 2023, the
Company had approximately 57.8 million shares outstanding.
Conference Call and Webcast
Details
Tuesday, May 28, 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) |
|
|
|
|
|
|
|
|
|
March 31,2024 |
|
|
December 31, 2023 |
|
|
|
U.S. Dollars in thousands |
|
Assets |
|
|
|
|
|
|
CURRENT
ASSETS: |
|
|
|
|
|
|
Cash and cash equivalents |
|
|
44,921 |
|
|
|
56,377 |
|
Restricted deposit |
|
|
46 |
|
|
|
46 |
|
Marketable securities |
|
|
28,043 |
|
|
|
26,006 |
|
Accounts receivables net of allowance for credit losses of $55 as
of March 31, 2024 and December 31, 2023, respectively. |
|
|
1,442 |
|
|
|
1,484 |
|
Inventories |
|
|
2,952 |
|
|
|
2,356 |
|
Prepaid expenses |
|
|
1,004 |
|
|
|
1,274 |
|
Other current assets |
|
|
625 |
|
|
|
1,092 |
|
TOTAL CURRENT
ASSETS |
|
|
79,033 |
|
|
|
88,635 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
ASSETS: |
|
|
|
|
|
|
|
|
Restricted deposit |
|
|
323 |
|
|
|
327 |
|
Property and equipment, net |
|
|
42,328 |
|
|
|
42,343 |
|
Operating lease right-of-use asset |
|
|
4,370 |
|
|
|
4,573 |
|
Intangible assets |
|
|
77,954 |
|
|
|
80,607 |
|
Other non-current assets |
|
|
1,869 |
|
|
|
2,163 |
|
TOTAL NON-CURRENT
ASSETS |
|
|
126,844 |
|
|
|
130,013 |
|
TOTAL
ASSETS |
|
|
205,877 |
|
|
|
218,648 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
|
Current maturities of long term loan |
|
|
3,341 |
|
|
|
3,490 |
|
Accounts payable |
|
|
1,860 |
|
|
|
3,303 |
|
Accrued expenses |
|
|
3,267 |
|
|
|
3,920 |
|
Deferred revenue |
|
|
496 |
|
|
|
543 |
|
Current maturities of operating lease liabilities |
|
|
883 |
|
|
|
861 |
|
Other current liabilities |
|
|
3,762 |
|
|
|
3,407 |
|
TOTAL CURRENT
LIABILITIES |
|
|
13,609 |
|
|
|
15,524 |
|
|
|
|
|
|
|
|
|
|
NON-CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
|
Non-current operating lease liabilities |
|
|
3,819 |
|
|
|
4,045 |
|
Deferred tax liability |
|
|
2,859 |
|
|
|
2,953 |
|
Other long-term liabilities |
|
|
629 |
|
|
|
612 |
|
TOTAL NON-CURRENT
LIABILITIES |
|
|
7,307 |
|
|
|
7,610 |
|
TOTAL
LIABILITIES |
|
|
20,916 |
|
|
|
23,134 |
|
|
|
|
|
|
|
|
|
|
COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS’
EQUITY: |
|
|
|
|
|
|
|
|
Ordinary Shares, par value NIS 0.01 per share 100,000,000
authorized at March 31, 2024 and December 31 2023, 57,779,033 and
57,778,628 issued and outstanding at March 31, 2024 and December
31, 2023, respectively |
|
|
165 |
|
|
|
165 |
|
Additional paid-in capital |
|
|
517,388 |
|
|
|
515,887 |
|
Accumulated other comprehensive loss |
|
|
(118 |
) |
|
|
(305 |
) |
Accumulated deficit |
|
|
(332,474 |
) |
|
|
(320,233 |
) |
TOTAL SHAREHOLDERS’
EQUITY |
|
|
184,961 |
|
|
|
195,514 |
|
TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
205,877 |
|
|
|
218,648 |
|
|
|
|
|
NANO-X IMAGING LTD.UNAUDITED CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
ANDCOMPREHENSIVE LOSS(U.S. dollars in
thousands except share and per share data) |
|
|
|
|
|
|
Three Months
EndedMarch 31, |
|
|
|
2024 |
|
|
2023 |
|
REVENUE |
|
|
2,553 |
|
|
|
2,447 |
|
|
|
|
|
|
|
|
|
|
COST OF REVENUE |
|
|
4,607 |
|
|
|
3,970 |
|
|
|
|
|
|
|
|
|
|
GROSS
LOSS |
|
|
(2,054 |
) |
|
|
(1,523 |
) |
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
Research and development,
net |
|
|
5,220 |
|
|
|
6,286 |
|
Sales and marketing |
|
|
800 |
|
|
|
1,153 |
|
General and
administrative |
|
|
5,042 |
|
|
|
7,808 |
|
Change in contingent earnout
liability |
|
|
- |
|
|
|
(4,660 |
) |
Other expense (income),
net |
|
|
9 |
|
|
|
(32 |
) |
TOTAL OPERATING
EXPENSES |
|
|
11,071 |
|
|
|
10,555 |
|
OPERATING
LOSS |
|
|
(13,125 |
) |
|
|
(12,078 |
) |
|
|
|
|
|
|
|
|
|
REALIZED LOSS FROM
SALE OF MARKETABLE SECURITIES |
|
|
- |
|
|
|
(178 |
) |
FINANCIAL INCOME,
net |
|
|
790 |
|
|
|
401 |
|
OPERATING LOSS BEFORE
INCOME TAXES |
|
|
(12,335 |
) |
|
|
(11,855 |
) |
|
|
|
|
|
|
|
|
|
INCOME TAX
BENEFIT |
|
|
94 |
|
|
|
94 |
|
NET LOSS |
|
|
(12,241 |
) |
|
|
(11,761 |
) |
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED LOSS
PER SHARE |
|
|
(0.21 |
) |
|
|
(0.21 |
) |
Weighted average
number of basic and diluted ordinary shares outstanding (in
thousands) |
|
|
57,901 |
|
|
|
55,157 |
|
Comprehensive
Loss: |
|
|
|
|
|
|
|
|
Net loss |
|
|
(12,241 |
) |
|
|
(11,761 |
) |
Other comprehensive gain
(loss): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reclassification of net losses
realized in income statement |
|
|
- |
|
|
|
178 |
|
Unrealized gain from available
for-sale securities |
|
|
187 |
|
|
|
414 |
|
Total comprehensive
loss |
|
|
(12,054 |
) |
|
|
(11,169 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 |
|
|
Accumulatedother |
|
|
|
|
|
|
|
|
|
Number ofshares |
|
|
Amount |
|
|
paid-incapital |
|
|
comprehensiveloss |
|
|
Accumulateddeficit |
|
|
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 |
|
|
405 |
|
|
|
* |
|
|
|
24 |
|
|
|
- |
|
|
|
- |
|
|
|
24 |
|
Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
1,477 |
|
|
|
- |
|
|
|
- |
|
|
|
1,477 |
|
Unrealized gain from marketable securities |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
187 |
|
|
|
|
|
|
|
187 |
|
Net loss for the period |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(12,241 |
) |
|
|
(12,241 |
) |
BALANCE AT MARCH 31, 2024 |
|
|
57,779,033 |
|
|
|
165 |
|
|
|
517,388 |
|
|
|
(118 |
) |
|
|
(332,474 |
) |
|
|
184,961 |
|
|
|
Ordinary shares |
|
|
Additional |
|
|
Accumulatedother |
|
|
|
|
|
|
|
|
|
Number ofshares |
|
|
Amount |
|
|
paid-incapital |
|
|
comprehensivedeficit |
|
|
Accumulateddeficit |
|
|
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 |
|
|
56,108 |
|
|
|
- |
|
|
|
176 |
|
|
|
- |
|
|
|
- |
|
|
|
176 |
|
Unrealized gain from marketable securities, net |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
592 |
|
|
|
|
|
|
|
592 |
|
Share-based compensation |
|
|
- |
|
|
|
- |
|
|
|
1,043 |
|
|
|
- |
|
|
|
- |
|
|
|
1,043 |
|
Net loss for the period |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
(11,761 |
) |
|
|
(11,761 |
) |
BALANCE AT MARCH 31, 2023 |
|
|
55,150,345 |
|
|
|
158 |
|
|
|
479,172 |
|
|
|
(1,382 |
) |
|
|
(271,218 |
) |
|
|
206,730 |
|
|
|
|
|
NANO-X IMAGING LTD. UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(U.S.
dollars in thousands) |
|
|
|
|
|
|
Three Months EndedMarch 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
Net loss for the period |
|
|
(12,241 |
) |
|
|
(11,761 |
) |
Adjustments required to reconcile net loss to net cash used
in operating activities: |
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
1,477 |
|
|
|
1,043 |
|
Amortization of intangible assets |
|
|
2,653 |
|
|
|
2,653 |
|
Exchange rate differentials |
|
|
(174 |
) |
|
|
(19 |
) |
Change in contingent earnout liability |
|
|
- |
|
|
|
(4,660 |
) |
Depreciation |
|
|
286 |
|
|
|
255 |
|
Deferred tax liability, net |
|
|
(94 |
) |
|
|
(94 |
) |
Realized loss from sale of marketable securities |
|
|
- |
|
|
|
178 |
|
Amortization of premium, discount and accrued interest on
marketable securities |
|
|
73 |
|
|
|
324 |
|
Impairment of property and equipment |
|
|
25 |
|
|
|
145 |
|
Changes in Operating Assets and Liabilities: |
|
|
|
|
|
|
|
|
Inventories |
|
|
(676 |
) |
|
|
- |
|
Accounts receivable |
|
|
42 |
|
|
|
(331 |
) |
Prepaid expenses and other current assets |
|
|
737 |
|
|
|
1,404 |
|
Other non-current assets |
|
|
219 |
|
|
|
142 |
|
Accounts payable |
|
|
(1,443 |
) |
|
|
706 |
|
Operating lease assets and liabilities |
|
|
(1 |
) |
|
|
(7 |
) |
Accrued expenses and other liabilities |
|
|
(298 |
) |
|
|
(559 |
) |
Deferred Revenue |
|
|
(47 |
) |
|
|
(107 |
) |
Other long-term liabilities |
|
|
17 |
|
|
|
14 |
|
Net cash used in operating activities |
|
|
(9,445 |
) |
|
|
(10,674 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(141 |
) |
|
|
(1,495 |
) |
Proceeds from maturity of marketable securities |
|
|
12,874 |
|
|
|
10,289 |
|
Purchase of marketable securities |
|
|
(14,797 |
) |
|
|
- |
|
Proceeds from sale of marketable securities |
|
|
- |
|
|
|
822 |
|
Net cash provided by (used in) investing activities |
|
|
(2,064 |
) |
|
|
9,616 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from Issuance of ordinary shares upon exercise of
options |
|
|
24 |
|
|
|
176 |
|
Net cash provided by financing activities |
|
|
24 |
|
|
|
176 |
|
EFFECT OF CHANGES IN EXCHANGE RATES ON CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS |
|
|
29 |
|
|
|
(11 |
) |
NET CHANGE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH
EQUIVALENTS |
|
|
(11,456 |
) |
|
|
(893 |
) |
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 |
|
|
44,921 |
|
|
|
37,636 |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY
INFORMATION ON ACTIVITIES INVOLVING CASH FLOWS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash paid for interest |
|
|
37 |
|
|
|
40 |
|
|
|
|
|
|
|
|
|
|
Cash paid for income
taxes |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
SUPPLEMENTARY
INFORMATION ON ACTIVITIES NOT INVOLVING CASH FLOWS - |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating lease liabilities
arising from obtaining operating right-of use assets |
|
|
- |
|
|
|
572 |
|
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 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 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)
|
|
Three Months Ended |
|
|
|
March 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
|
|
|
|
|
GAAP net loss attributable to ordinary shares |
|
|
12,241 |
|
|
|
11,761 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Less: Class-action litigation
and SEC investigation |
|
|
32 |
|
|
|
2,236 |
|
Less: Amortization of
intangible assets |
|
|
2,653 |
|
|
|
2,653 |
|
Less (Add): Change in
contingent earnout liability |
|
|
- |
|
|
|
(4,660 |
) |
Less: Share-based
compensation |
|
|
1,477 |
|
|
|
1,043 |
|
Non-GAAP net loss
attributable to ordinary shares |
|
|
8,079 |
|
|
|
10,489 |
|
Non-GAAP BASIC AND
DILUTED LOSS PER SHARE |
|
|
0.14 |
|
|
|
0.19 |
|
WEIGHTED AVERAGE
NUMBER OF ORDINARY SHARES (in thousands) |
|
|
57,901 |
|
|
|
55,157 |
|
Reconciliation of GAAP cost of revenue
to Non-GAAP cost of revenue (U.S. dollars in
thousands)
GAAP cost of revenue |
|
|
4,607 |
|
|
|
3,970 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible
assets |
|
|
2,556 |
|
|
|
2,556 |
|
Share-based compensation |
|
|
53 |
|
|
|
14 |
|
Non-GAAP cost of
revenue |
|
|
1,998 |
|
|
|
1,400 |
|
Reconciliation of GAAP gross loss to
Non-GAAP gross profit (U.S. dollars in thousands)
GAAP gross loss |
|
|
(2,054 |
) |
|
|
(1,523 |
) |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible
assets |
|
|
2,556 |
|
|
|
2,556 |
|
Share-based compensation |
|
|
53 |
|
|
|
14 |
|
Non-GAAP gross
profit |
|
|
555 |
|
|
|
1,047 |
|
Reconciliation of GAAP gross loss margin
to Non-GAAP gross profit margin (in percentage of
revenue)
GAAP gross loss margin |
|
|
(80 |
)% |
|
|
(62 |
)% |
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible
assets |
|
|
100 |
% |
|
|
104 |
% |
Share-based compensation |
|
|
2 |
% |
|
|
1 |
% |
Non-GAAP gross profit
margin |
|
|
22 |
% |
|
|
43 |
% |
Reconciliation of GAAP research and
development expenses to Non-GAAP research and development expenses
(U.S. dollars in thousands)
GAAP research and development expenses, net |
|
|
5,220 |
|
|
|
6,286 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
589 |
|
|
|
788 |
|
Non-GAAP research and
development expenses, net |
|
|
4,631 |
|
|
|
5,498 |
|
Reconciliation of GAAP sales and
marketing expenses to Non-GAAP sales and marketing expenses (U.S.
dollars in thousands)
GAAP sales and marketing expenses |
|
|
800 |
|
|
|
1,153 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Amortization of intangible
assets |
|
|
97 |
|
|
|
97 |
|
Share-based compensation |
|
|
146 |
|
|
|
78 |
|
Non-GAAP sales and
marketing expenses |
|
|
557 |
|
|
|
978 |
|
Reconciliation of GAAP general and
administrative expenses to Non-GAAP general and administrative
expenses (U.S. dollars in thousands)
GAAP general and administrative expenses |
|
|
5,042 |
|
|
|
7,808 |
|
Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
Class-action litigation and
SEC investigation |
|
|
32 |
|
|
|
2,236 |
|
Share-based compensation |
|
|
689 |
|
|
|
163 |
|
Non-GAAP general and
administrative expenses |
|
|
4,321 |
|
|
|
5,409 |
|
Contacts
Media Contact:Ben ShannonICR
WestwickeNanoxPR@icrinc.com
Investor Contact:Mike CavanaughICR
Westwickemike.cavanaugh@westwicke.com
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