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, 2023 and provided a business update.
First Quarter 2023 Highlights and Recent
Developments:
- On April 28, 2023, the Company received clearance from the U.S.
Food and Drug Administration (the “FDA”) to market the Nanox.ARC
(including the Nanox.CLOUD) as a stationary X-ray system
intended to produce tomographic images of the human
musculoskeletal system adjunctive to conventional radiography, on
adult patients. This device is intended to be used in professional
healthcare facilities or radiological environments, such as
hospitals, clinics, imaging centers and other medical practices
by trained radiographers, radiologists and physicians.
- Generated $2.4 million in revenue in the first quarter of 2023
compared to $1.8 million in the first quarter of 2022.
- Received ISO 13485 certification for Medical Devices Quality
Management Systems for the Company’s Korean fabrication facility,
which covers Design, Development, Manufacturing, and Sales of X-Ray
Tube for Medical Use, and is valid for a period of three
years.
- Working to establish a demo center in Fort Lauderdale, Florida
for the Nanox.ARC system. We expect to receive an import license
during the second quarter of 2023.
- On May 19, 2023, we entered into a three-year distribution
pre-sale agreement with Vital Tech SARL to deploy 270 Nanox.ARC
units in the Kingdom of Morocco. We obtained an import license.“The
first quarter of 2023 was another successful quarter for Nanox, as
we continued to advance our commercialization efforts on multiple
fronts, culminating with the FDA clearance of the Nanox.ARC system
in April. The entire Nanox organization was focused on securing FDA
clearance for our cloud-connected imaging technology, and I am
proud of our work” said Erez Meltzer, Chief Executive Officer of
Nanox. “In addition, we have enhanced our presence in Africa by
entering into a distribution agreement with Vital Tech SARL to
deploy 270 Nanox.ARC units in the Kingdom of Morocco over three
years and advancing our deployment activities in Ghana and Nigeria
which we expect to be the first markets with large scale
deployments of the Nanox.ARC. With FDA clearance now secured, we
are working to expand our U.S. presence by establishing a demo
center in Florida, and we expect to receive an import license to
ship a Nanox.ARC unit to that facility this quarter. We have also
strengthened our supply chain and manufacturing capabilities and
established new distribution and component partnerships. We have
made much progress thus far in 2023 and look forward to
capitalizing on our momentum throughout the coming months”.
Financial results for three months
ended March 31, 2023
For the three months ended March 31, 2023, the
Company reported a net loss of $11.8 million, compared to a net
loss of $21.7 million for the three months ended March 31, 2022
(which is referred to as the “comparable period”), which decrease
was largely due to a decrease in the Company’s earn-out liabilities
in the amount of $5.1 million and a decrease in its general and
administrative expenses in the amount of $3.5 million.
For the three months ended March 31, 2023, the
Company reported revenue of $2.4 million, compared to $1.8 million
in the comparable period. During the three months ended March 31,
2023, the Company generated revenues through the sales of
teleradiology services and AI solutions. The Company’s gross loss
during the three months ended March 31, 2023 totaled $1.5 million
on a GAAP basis, as compared to a gross loss of $1.9 million in the
comparable period, which represents a gross loss margin of
approximately (62%) on a GAAP basis, as compared to (106%) on a
GAAP basis in the comparable period. Non-GAAP gross profit for the
three months ended March 31, 2023 was $1.0 million for the three
months ended March 31, 2023, as compared to $0.7 million in the
comparable period, which represents a gross profit margin of
approximately 43% on a non-GAAP basis, as compared to 37% on a
non-GAAP basis in the comparable period.
The Company’s revenue from teleradiology
services for the three months ended March 31, 2023 was $2.4 million
with a gross profit of $0.5 million on a GAAP basis, as compared to
revenue of $1.7 million with a gross profit of $0.1 million on a
GAAP basis in the comparable period which represents a gross profit
margin of approximately 21% on a GAAP basis for the three months
ended March 31, 2023 as compared to 6% on a GAAP basis in the
comparable period. Non-GAAP gross profit of the Company’s
teleradiology services for the three months ended March 31, 2023
was $1.1 million, as compared to $0.7 million in the comparable
period on a non-GAAP basis, which represents a gross profit margin
of approximately 44% on a non-GAAP basis for the three months ended
March 31, 2023 as compared to 39% on a non-GAAP basis in the
comparable period. The increase in gross profit margin on a
non-GAAP basis is attributable mainly to the increase in the amount
of the radiologic interpretations or reads and the Company’s rates
for teleradiology services during the three months ended March 31,
2023, as compared to the comparable period.
The Company’s revenue from its AI solutions for
the three months ended March 31, 2023 was less than $0.1 million
with a gross loss of $2.0 million on a GAAP basis, as compared to
revenue of $0.1 million with a gross loss of $2.0 million on a GAAP
basis in the comparable period. Non-GAAP gross profit (loss) of the
Company’s AI solutions for the three months ended March 31, 2023
was $0.0, unchanged from the comparable period on a non-GAAP
basis.
Research and development expenses for the three
months ended March 31, 2023, were $6.3 million, as compared to $6.8
million in the comparable period. The decrease of $0.5 million was
mainly due to a decrease in the Company’s cost of labor in the
amount of $0.5 million, and a decrease in share-based compensation
in the amount of $0.8 million which was mitigated by an increase of
$0.2 million in development expenses.
Sales and marketing expenses for the three
months ended March 31, 2023 were $1.2 million, as compared to $1.1
million in the comparable period.
General and administrative expenses for the
three months ended March 31, 2023 were $7.8 million, as compared to
$11.3 million in the comparable period. The decrease of $3.5
million was mainly due to a decrease in the Company’s cost of labor
in the amount of $0.8 million, a decrease in share-based
compensation in the amount of $4.5 million and a decrease in the
cost of the directors’ and officers’ liability insurance premium in
the amount of $0.3 million which was offset by an increase in
professional services in the amount of $0.7 million and an increase
in the Company’s legal fees in the amount of $1.4 million due to an
increase in the Company’s legal fees in connection with the U.S.
Securities and Exchange Commission (“SEC”) investigation and
class-action litigation as described in this Company’s Form 6-K
filed on May 22, 2023. During the fourth quarter of 2022, the
Company recorded $8 million under other expenses for future
settlement expenses in connection with the two pending class action
lawsuits against the Company.
Change in contingent earnout liability was
$(4.7) million in the three months ended March 31, 2023, as
compared to $0.4 million in the comparable period, due to the
decrease in the Company’s contingent earnout liability as result of
the settlement with the former stockholders of USARAD, which was
entered on April 28, 2023. The Company agreed to pay an aggregate
amount of $0.3 million in cash and 45,392 ordinary shares to the
former stockholders of USARAD, in consideration for the achievement
of certain milestones in connection with the first earn out period,
as defined in the USARAD Stock Purchase Agreement. In addition, the
Company and the former shareholders of USARAD entered into a
settlement agreement with respect to any additional amount that
could be granted to the shareholders of USARAD as consideration for
the remainder of the milestones and applicable earn-outs under the
USARAD Stock Purchase Agreement, according to which the Company
agreed to pay an aggregate of $0.5 million in cash and 210,000
ordinary shares to the former stockholders of USARAD. As a result
of the settlement, both parties’ performance obligations under the
USARAD Stock Purchase Agreement have been satisfied in full.
GAAP net loss attributable to ordinary shares
for the three months ended March 31, 2023 was $11.8 million, as
compared to $21.7 million in the comparable period. Non-GAAP net
loss attributable to ordinary shares for the three months ended
March 31, 2023 was $10.5 million, as compared to $11.6 million in
the comparable period. Non-GAAP gross profit for the three months
ended March 31, 2023 was $1.0 million, as compared to $0.7 million
in the comparable period. Non-GAAP research and development
expenses for the three months ended March 31, 2023 were $5.5
million, as compared to $5.3 million in the comparable period.
Non-GAAP sales and marketing expenses for the three months ended
March 31, 2023 were $1.0 million, as compared to $0.8 million in
the comparable period. Non-GAAP general and administrative expenses
for the three months ended March 31, 2023 were $5.4 million, as
compared to $6.1 million in the comparable period.
A reconciliation between GAAP and non-GAAP
financial measures for the three-month periods ended March 31, 2023
and 2022 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 amortization of
intangible assets, share-based compensation, change in contingent
earnout liability and legal fees in connection with class-action
litigation and the SEC investigation.
Liquidity and Capital Resources
As of March 31, 2023, the Company had total
cash, cash equivalents, restricted cash and marketable securities
of $91.0 million. As of March 31, 2023, the Company had $78.1
million of cash, cash equivalents and short-term marketable
securities and $12.9 million of long-term marketable securities and
restricted cash. As of March 31, 2023, the Company had total
current assets of $81.9 million and total current liabilities of
$24.2 million, creating a working capital of $57.7
million.
As of December 31, 2022, the Company had total
cash, cash equivalents, restricted cash and marketable securities
of $102.9 million. As of December 31, 2022, the Company had $77.6
million of cash, cash equivalents and short-term marketable
securities and $25.3 million of long-term marketable securities and
restricted cash. As of December 31, 2022, the Company had total
current assets of $82.5 million and total current liabilities of
$25.1 million, creating a working capital of $57.4 million.
The decrease in the Company’s cash, cash
equivalents, restricted cash and marketable securities of $11.9
million during the three-month period ended March 31, 2023 was
primarily due to negative cash flow from operations of $10.7
million and purchase of property and equipment of $1.5 million.
Other Assets
As of March 31, 2023, the Company had property
and equipment, net of $45.1 million as compared to $43.5 million as
of December 31, 2022. The increase is mainly attributed to the
purchase of equipment and parts for the assembly of the Nanox.ARC
(including the Nanox.CLOUD).
As of March 31, 2023, the Company had intangible
assets and goodwill of $96.0 million as compared to $98.6 million
as of December 31, 2022. The decrease is attributable to the
periodic amortization of intangible assets in the amount of $2.6
million.
Shareholders’ Equity
As of March 31, 2023, the Company had
approximately 55.2 million shares outstanding as compared to 55.1
million shares outstanding as of December 31, 2022. The increase
was mainly due to the issuance of 56,108 shares upon the exercise
of options, which generated, in the aggregate, approximately $0.2
million in gross proceeds to the Company.
FDA Clearance
On April 28, 2023, the Company received
clearance from the FDA to market the Nanox.ARC (including the
Nanox.CLOUD) as a stationary X-ray system intended to produce
tomographic images of the human musculoskeletal system adjunctive
to conventional radiography, on adult patients. This device is
intended to be used in professional healthcare facilities or
radiological environments, such as hospitals, clinics, imaging
centers and other medical practices by trained radiographers,
radiologists and physicians. The current FDA-cleared version of
the Nanox.ARC is not intended for mammographic, angiographic,
cardiac, pulmonary, intra-abdominal, intra-cranial, interventional,
or fluoroscopic applications, or for imaging pediatric or neonatal
patients.
Conference Call and Webcast
Details
Monday, May 22, 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 our
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, 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 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; 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, 2022, 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 31,2023 |
|
|
December 31,2022 |
|
|
|
|
U.S. Dollars in thousands |
|
|
Assets |
|
|
|
|
|
|
| CURRENT
ASSETS: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
37,571 |
|
|
|
38,463 |
|
|
Marketable securities - short term |
|
|
40,520 |
|
|
|
39,161 |
|
|
Accounts receivables net of allowance for credit losses
of $42 and $34 as of March 31, 2023 and December
31, 2022, respectively. |
|
|
1,308 |
|
|
|
977 |
|
|
Prepaid expenses |
|
|
1,501 |
|
|
|
2,414 |
|
|
Other current assets |
|
|
955 |
|
|
|
1,446 |
|
| TOTAL CURRENT
ASSETS |
|
|
81,855 |
|
|
|
82,461 |
|
| |
|
|
|
|
|
|
|
|
| NON-CURRENT
ASSETS: |
|
|
|
|
|
|
|
|
|
Restricted cash |
|
|
65 |
|
|
|
66 |
|
|
Property and equipment, net |
|
|
45,103 |
|
|
|
43,545 |
|
|
Operating lease right-of-use asset |
|
|
1,485 |
|
|
|
1,157 |
|
|
Marketable securities - long term |
|
|
12,818 |
|
|
|
25,198 |
|
|
Intangible assets |
|
|
88,566 |
|
|
|
91,219 |
|
|
Goodwill |
|
|
7,420 |
|
|
|
7,420 |
|
|
Other non-current assets |
|
|
1,653 |
|
|
|
2,867 |
|
| TOTAL NON-CURRENT
ASSETS |
|
|
157,110 |
|
|
|
171,472 |
|
| TOTAL
ASSETS |
|
|
238,965 |
|
|
|
253,933 |
|
| |
|
|
|
|
|
|
|
|
|
Liabilities and Shareholders’ Equity |
|
|
|
|
|
|
|
|
| CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
|
|
Accounts payable |
|
|
3,716 |
|
|
|
3,619 |
|
|
Accrued expenses |
|
|
12,311 |
|
|
|
12,240 |
|
|
Deferred revenue |
|
|
456 |
|
|
|
182 |
|
|
Contingent short term earnout liability |
|
|
3,679 |
|
|
|
4,250 |
|
|
Current maturities of operating lease liabilities |
|
|
592 |
|
|
|
740 |
|
|
Other current liabilities |
|
|
3,413 |
|
|
|
4,043 |
|
| TOTAL CURRENT
LIABILITIES |
|
|
24,167 |
|
|
|
25,074 |
|
| |
|
|
|
|
|
|
|
|
| NON-CURRENT
LIABILITIES: |
|
|
|
|
|
|
|
|
|
Non-current operating lease liabilities |
|
|
867 |
|
|
|
398 |
|
|
Long term loan |
|
|
3,451 |
|
|
|
3,481 |
|
|
Non-current deferred revenue |
|
|
17 |
|
|
|
398 |
|
|
Contingent long-term earnout liability |
|
|
- |
|
|
|
4,089 |
|
|
Deferred tax liability |
|
|
3,236 |
|
|
|
3,330 |
|
|
Other long-term liabilities |
|
|
497 |
|
|
|
483 |
|
| TOTAL NON-CURRENT
LIABILITIES |
|
|
8,068 |
|
|
|
12,179 |
|
| TOTAL
LIABILITIES |
|
|
32,235 |
|
|
|
37,253 |
|
| |
|
|
|
|
|
|
|
|
| COMMITMENTS AND
CONTINGENCIES |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| SHAREHOLDERS’
EQUITY: |
|
|
|
|
|
|
|
|
|
Ordinary Shares, par value NIS 0.01 per share 100,000,000
authorized at March 31, 2023 and December 31 2022, 55,150,345 and
55,094,237 issued and outstanding at March 31, 2023 and December 31
2022, respectively |
|
|
158 |
|
|
|
158 |
|
|
Additional paid-in capital |
|
|
479,172 |
|
|
|
477,953 |
|
|
Accumulated other comprehensive loss |
|
|
(1,382 |
) |
|
|
(1,974 |
) |
|
Accumulated deficit |
|
|
(271,218 |
) |
|
|
(259,457 |
) |
| TOTAL SHAREHOLDERS’
EQUITY |
|
|
206,730 |
|
|
|
216,680 |
|
| TOTAL LIABILITIES AND
SHAREHOLDERS’ EQUITY |
|
|
238,965 |
|
|
|
253,933 |
|
|
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, |
|
|
|
|
2023 |
|
|
2022 |
|
|
REVENUE |
|
|
2,447 |
|
|
|
1,808 |
|
| |
|
|
|
|
|
|
|
|
| COST OF REVENUE |
|
|
3,970 |
|
|
|
3,727 |
|
| |
|
|
|
|
|
|
|
|
| GROSS
LOSS |
|
|
(1,523 |
) |
|
|
(1,919 |
) |
| |
|
|
|
|
|
|
|
|
| OPERATING
EXPENSES: |
|
|
|
|
|
|
|
|
| Research and development |
|
|
6,286 |
|
|
|
6,830 |
|
| Sales and marketing |
|
|
1,153 |
|
|
|
1,106 |
|
| General and
administrative |
|
|
7,808 |
|
|
|
11,289 |
|
| Change in contingent earnout
liability |
|
|
(4,660 |
) |
|
|
374 |
|
| Other expense (income) |
|
|
(32 |
) |
|
|
424 |
|
| TOTAL OPERATING
EXPENSES |
|
|
10,555 |
|
|
|
20,023 |
|
| OPERATING
LOSS |
|
|
(12,078 |
) |
|
|
(21,942 |
) |
| |
|
|
|
|
|
|
|
|
| REALIZED LOSS FROM
SALE OF MARKETABLE SECURITIES |
|
|
(178 |
) |
|
|
- |
|
| FINANCIAL INCOME,
net |
|
|
401 |
|
|
|
126 |
|
| OPERATING LOSS BEFORE
INCOME TAXES |
|
|
(11,855 |
) |
|
|
(21,816 |
) |
| |
|
|
|
|
|
|
|
|
| INCOME TAX
BENEFIT |
|
|
94 |
|
|
|
150 |
|
| NET LOSS |
|
|
(11,761 |
) |
|
|
(21,666 |
) |
| |
|
|
|
|
|
|
|
|
| BASIC AND DILUTED LOSS
PER SHARE |
|
|
(0.21 |
) |
|
|
(0.41 |
) |
| Weighted average
number of basic and diluted ordinary shares outstanding (in
thousands) |
|
|
55,157 |
|
|
|
52,124 |
|
| Comprehensive
Loss: |
|
|
|
|
|
|
|
|
| Net loss |
|
|
(11,761 |
) |
|
|
(21,666 |
) |
| Other comprehensive gain
(loss): |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Unrealized gain (loss) from
available for-sale securities |
|
|
592 |
|
|
|
(1,361 |
) |
| Total comprehensive
loss |
|
|
(11,169 |
) |
|
|
(23,027 |
) |
|
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 |
|
|
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 |
|
|
Other comprehensive gain |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
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 |
|
* Less than $1.
|
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 |
|
Accumulatedother |
|
|
|
|
|
|
|
|
|
|
Number ofshares |
|
Amount |
|
|
paid-incapital |
|
comprehensivedeficit |
|
|
Accumulateddeficit |
|
|
Total |
|
| |
U.S. Dollars in thousands |
|
|
BALANCE AT JANUARY 1, 2022 |
|
|
51,791,441 |
|
149 |
|
|
438,820 |
|
(607 |
) |
|
(146,214 |
) |
|
292,148 |
|
| Changes during the
period: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of ordinary shares upon exercise of options |
|
|
6,746 |
|
* |
|
|
17 |
|
- |
|
|
- |
|
|
17 |
|
|
Other comprehensive loss |
|
|
- |
|
- |
|
|
- |
|
(1,361 |
) |
|
- |
|
|
(1,361 |
) |
|
Issuance of ordinary shares in connection with earn-out
liability |
|
|
89,286 |
|
* |
|
|
953 |
|
- |
|
|
- |
|
|
953 |
|
|
Issuance of ordinary shares upon exercise of warrants |
|
|
192,927 |
|
1 |
|
|
369 |
|
- |
|
|
- |
|
|
370 |
|
|
Share-based compensation |
|
|
- |
|
- |
|
|
6,537 |
|
- |
|
|
- |
|
|
6,537 |
|
|
Net loss for the period |
|
|
- |
|
- |
|
|
- |
|
- |
|
|
(21,666 |
) |
|
(21,666 |
) |
| BALANCE AT MARCH 31,
2022 |
|
|
52,080,400 |
|
150 |
|
|
446,696 |
|
(1,968 |
) |
|
(167,880 |
) |
|
276,998 |
|
* Less than $1.
|
NANO-X IMAGING LTD. UNAUDITED
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(U.S.
dollars in thousands) |
|
| |
|
Three Months EndedMarch 31, |
|
| |
|
2023 |
|
|
2022 |
|
| |
|
|
|
|
|
|
| CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
Net loss for the period |
|
|
(11,761 |
) |
|
|
(21,666 |
) |
|
Adjustments required to reconcile net loss to net cash used
in operating activities: |
|
|
|
|
|
|
|
|
|
Share-based compensation |
|
|
1,043 |
|
|
|
6,537 |
|
|
Amortization of intangible assets |
|
|
2,653 |
|
|
|
2,653 |
|
|
Exchange rate differentials |
|
|
(19 |
) |
|
|
(44 |
) |
|
Change in contingent earnout liability |
|
|
(4,660 |
) |
|
|
374 |
|
|
Depreciation |
|
|
255 |
|
|
|
206 |
|
|
Deferred tax liability, net |
|
|
(94 |
) |
|
|
(178 |
) |
|
Realized loss from sale of marketable securities |
|
|
178 |
|
|
|
- |
|
|
Amortization of premium, discount and accrued interest on
marketable securities |
|
|
324 |
|
|
|
425 |
|
|
Impairment of property and equipment |
|
|
145 |
|
|
|
28 |
|
|
Changes in Operating Assets and Liabilities: |
|
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(331 |
) |
|
|
(39 |
) |
|
Prepaid expenses and other current assets |
|
|
1,404 |
|
|
|
1,752 |
|
|
Other non-current assets |
|
|
142 |
|
|
|
(768 |
) |
|
Accounts payable |
|
|
706 |
|
|
|
411 |
|
|
Operating lease assets and liabilities |
|
|
(7 |
) |
|
|
(15 |
) |
|
Accrued expenses and other liabilities |
|
|
(559 |
) |
|
|
(596 |
) |
|
Deferred Revenue |
|
|
(107 |
) |
|
|
(24 |
) |
|
Other long-term liabilities |
|
|
14 |
|
|
|
(11 |
) |
|
Net cash used in operating activities |
|
|
(10,674 |
) |
|
|
(10,955 |
) |
| |
|
|
|
|
|
|
|
|
| CASH FLOWS PROVIDED BY
(USED IN) INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(1,495 |
) |
|
|
(3,815 |
) |
|
Proceeds from maturity of marketable securities |
|
|
10,289 |
|
|
|
3,705 |
|
|
Proceeds from sale of marketable securities |
|
|
822 |
|
|
|
- |
|
|
Investment in equity securities |
|
|
- |
|
|
|
(1,010 |
) |
|
Net cash provided by (used in) investing activities |
|
|
9,616 |
|
|
|
(1,120 |
) |
| |
|
|
|
|
|
|
|
|
| CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
|
Proceeds from issuance of ordinary shares upon exercise of
warrants |
|
|
- |
|
|
|
370 |
|
|
Proceeds from Issuance of ordinary shares upon exercise of
options |
|
|
176 |
|
|
|
17 |
|
|
Net cash provided by financing activities |
|
|
176 |
|
|
|
387 |
|
|
EFFECT OF CHANGES IN EXCHANGES RATE ON CASH BALANCES IN
FOREIGN CURRENCIES |
|
|
(11 |
) |
|
|
(36 |
) |
|
NET CHANGE IN CASH AND CASH EQUIVALENTS AND RESTRICTED
CASH |
|
|
(893 |
) |
|
|
(11,724 |
) |
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING
OF THE PERIOD |
|
|
38,529 |
|
|
|
66,772 |
|
|
CASH AND CASH EQUIVALENTS AND RESTRICTED CASH AT END OF THE
PERIOD |
|
|
37,636 |
|
|
|
55,048 |
|
| |
|
|
|
|
|
|
|
|
| SUPPLEMENTARY
INFORMATION ON ACTIVITIES INVOLVING CASH FLOWS |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| Cash paid for interest |
|
|
40 |
|
|
|
17 |
|
| |
|
|
|
|
|
|
|
|
| Cash paid for income
taxes |
|
|
- |
|
|
|
116 |
|
| |
|
|
|
|
|
|
|
|
| SUPPLEMENTARY
INFORMATION ON ACTIVITIES NOT INVOLVING CASH FLOWS - |
|
|
|
|
|
|
|
|
| Purchase of property and
equipment, not yet paid |
|
|
- |
|
|
|
169 |
|
| Ordinary shares issued in
connection with earnout liability |
|
|
- |
|
|
|
953 |
|
| 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 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, 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.
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, |
|
| |
|
2023 |
|
|
2022 |
|
| |
|
|
|
|
|
|
|
GAAP net loss attributable to ordinary shares |
|
|
11,761 |
|
|
21,666 |
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
| Less: Class-action litigation
and SEC investigation |
|
|
2,236 |
|
|
517 |
|
| Less: Amortization of
intangible assets |
|
|
2,653 |
|
|
2,653 |
|
| Less (Add): Change in
contingent earnout liability |
|
|
(4,660 |
) |
|
374 |
|
| Less: Share-based
compensation |
|
|
1,043 |
|
|
6,537 |
|
| Non-GAAP net loss
attributable to ordinary shares |
|
|
10,489 |
|
|
11,585 |
|
| Non-GAAP BASIC AND
DILUTED LOSS PER SHARE |
|
|
0.19 |
|
|
0.22 |
|
| WEIGHTED AVERAGE
NUMBER OF ORDINARY SHARES (in thousands) |
|
|
55,157 |
|
|
52,124 |
|
Reconciliation of GAAP cost of revenue
to Non-GAAP cost of revenue (U.S. dollars in
thousands)
|
GAAP cost of revenue |
|
|
3,970 |
|
|
3,727 |
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
| Amortization of intangible
assets |
|
|
2,556 |
|
|
2,556 |
|
| Share-based compensation |
|
|
14 |
|
|
35 |
|
| Non-GAAP cost of
revenue |
|
|
1,400 |
|
|
1,136 |
|
Reconciliation of GAAP gross loss to
Non-GAAP gross profit (U.S. dollars in thousands)
|
GAAP gross loss |
|
|
(1,523 |
) |
|
(1,919 |
) |
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
| Amortization of intangible
assets |
|
|
2,556 |
|
|
2,556 |
|
| Share-based compensation |
|
|
14 |
|
|
35 |
|
| Non-GAAP gross
profit |
|
|
1,047 |
|
|
672 |
|
Reconciliation of GAAP gross loss margin
to Non-GAAP gross profit margin (in percentage of
revenue)
|
GAAP gross loss margin |
|
|
(62 |
)% |
|
|
(106 |
)% |
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
|
| Amortization of intangible
assets |
|
|
104 |
% |
|
|
141 |
% |
| Share-based compensation |
|
|
1 |
% |
|
|
2 |
% |
| Non-GAAP gross profit
margin |
|
|
43 |
% |
|
|
37 |
% |
Reconciliation of GAAP research and
development expenses to Non-GAAP research and development expenses
(U.S. dollars in thousands)
|
GAAP research and development expenses |
|
|
6,286 |
|
|
6,830 |
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
| Share-based compensation |
|
|
788 |
|
|
1,549 |
|
| Non-GAAP research and
development expenses |
|
|
5,498 |
|
|
5,281 |
|
Reconciliation of GAAP sales and
marketing expenses to Non-GAAP sales and marketing expenses (U.S.
dollars in thousands)
|
GAAP sales and marketing expenses |
|
|
1,153 |
|
|
1,106 |
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
| Amortization of intangible
assets |
|
|
97 |
|
|
97 |
|
| Share-based compensation |
|
|
78 |
|
|
254 |
|
| Non-GAAP sales and
marketing expenses |
|
|
978 |
|
|
755 |
|
Reconciliation of GAAP general and
administrative expenses to Non-GAAP general and administrative
expenses (U.S. dollars in thousands)
|
GAAP general and administrative expenses |
|
|
7,808 |
|
|
11,289 |
|
| Non-GAAP adjustments: |
|
|
|
|
|
|
|
| Class-action litigation and
SEC investigation |
|
|
2,236 |
|
|
517 |
|
| Share-based compensation |
|
|
163 |
|
|
4,699 |
|
| Non-GAAP general and
administrative expenses |
|
|
5,409 |
|
|
6,073 |
|
Nano X Imaging (NASDAQ:NNOX)
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From Apr 2024 to May 2024
Nano X Imaging (NASDAQ:NNOX)
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From May 2023 to May 2024
