Q3 2023 Nano-X Imaging Ltd Earnings Call
[music].
Okay.
Speaker 1: Good day and thank you for standing by. Welcome to the NANO XQ3 2023 earnings conference call. At this time, all participants on a listen only mode. At the speakers presentation, there will be a question and answer session.
Okay.
Good day and thank you for standing by welcome to the Nino Ex Q3 2023 earnings Conference call. At this time, all participants are in a listen only mode.
The speaker's presentation, there will be a question and answer session.
Speaker 1: To ask a question during that session, you'll need to press star 1-1 on your phone. You will then hear an automated message advising your hands is raised. To withdraw your question, please press star 1-1 again. Please be advised that today's conference is being recorded, and I would now like to hand the conference over to you or speak today. Mr. Mike Kevinar, investor relations, sir, please go ahead.
To ask a question during that session you will need to press star one on your phone.
Then here an automated message advising you on hand is raised to withdraw your question. Please press star one one again please.
Please be advised that today's conference is being recorded I would now like to hand accomplished.
Our speaker today, Mr. Mike Cavanaugh Investor Relations Sir Please go ahead.
Good afternoon, and thank you for joining us today.
Speaker 2: Earlier today, NANox imaging limited relief financial results for the quarter ended September 30, 2020.
Earlier today Nasdaq's imaging limited released financial results for the quarter ended September 32023.
Speaker 2: or release is currently available on the investor section of the company's web.
Or at least is currently available on the investors section of the company's website.
Speaker 2: Ares Meltzer, Chief Executive Officer, and Ron Daniel, Chief Financial Officer, will host this morning's call.
Erez Melter, Chief Executive Officer, and Ron Daniel Chief Financial Officer will host this morning's call.
Speaker 2: Before we get started, I would like to remind everyone that management will be making statements during this call that include forward looking statements regarding the company's financial results, research and development, manufacturing and commercialization activities, regulatory process operations and other matters.
Before we get started I would like to remind everyone that management will be making statements. During this call that include forward looking statements regarding the company's financial results research and development manufacturing and commercialization activities.
Regulatory process operations and other matters.
Speaker 2: These statements are subject to risks, uncertainties, and assumptions that are based on management's current expectations as of today, and may not be updated in the
These statements are subject to risks uncertainties and assumptions that are based on management's current expectations as of today and may not be updated in the future.
Speaker 2: Therefore, these statements should not be relied upon as representing the company's views as of any subsequent date.
Therefore, these statements should not be relied upon as representing the company's views as of any subsequent date.
Speaker 2: Factors that may cause such a difference include but are not limited to those described in the company's filings with these securities and exchange commission.
Factors that may cause such a difference include but are not limited to those described in the company's filings with the Securities and Exchange Commission.
Speaker 2: Management will also refer to certain non-GAAP financial measures to provide additional information to invest.
Management will also refer to certain non-GAAP financial measures to provide additional information to investors.
Speaker 2: A reconciliation of each non-GAAP financial measure to the nearest GAAP financial measure is provided and the company's press release issued today.
A reconciliation of each non-GAAP financial measure to the nearest GAAP financial measure is provided in the company's press release issued today.
Speaker 2: Non- GAAP financial measures include non-GAP net loss attributable to ordinary shares, non-GAP cost of revenue.
The non-GAAP financial measures include non-GAAP net loss attributable to ordinary shares.
non-GAAP cost of revenue.
Speaker 2: Non-GAP gross profit, non-GAP gross profit margin, non-GAP research and development expenses, non-GAP sales and marketing expenses.
non-GAAP gross profit.
non-GAAP gross profit margin non-GAAP research and development expenses, non-GAAP sales and marketing expenses non.
Speaker 2: non-gap general and administrative expenses. Non-gap other expenses and non-gap gross loss per share. With that, I'd now like to turn.
non-GAAP general and administrative expenses non-GAAP other expenses and non-GAAP gross loss per share.
With that I'd now like to turn the call over to Erez Meltzer.
Speaker 3: Thanks Mike and as always thank you all for joining us today for our financial results call and corporate updates.
Thanks, Mike and as always thank you all for joining us today for our financial results call and corporate update.
Speaker 3: As previously noted, we have intensified our efforts and focused on the US market to jumpstart our commercialization effort in the region.
As previously noted we have intensified our efforts and focus on the U S market.
To jumpstart our commercialization effort in the region.
Speaker 3: To support these important efforts, our team and I have increased our presence in the United States over the last few months. And I'm currently in the US.
To support these important efforts our team and I have increased our presence in the United States over the last few months and I am currently in the U S.
Speaker 3: We have engaged in discussions with potential customers, clinical partners, particularly US health nurse vector professionals.
We are engaged in discussions with potential customers clinical partners, particularly U S health care sector professionals.
Speaker 3: focusing on reimbursement and medical work flow and other key stakeholders.
Focusing on the reimbursement and medical workflow and other key stakeholders.
Speaker 3: We end to expedite the implementation of our commercial infrastructure and advance our future strategic plans.
We ended to expedite the implementation of our commercial infrastructure and advance our future strategic plans.
Speaker 3: Moving to the recent developments in deployments, I am pleased to announce that we have established the first US-based commercial type and demonstration center for the NAMXR, which is part of our initial wave in the US.
Moving to the recent developments and deployments I am pleased to announce that we have established the first U S based commercial sites and demonstration center for dynamics arc, which is part of our initial waves in the U S.
Speaker 3: Ananox R-Systen has been installed in the Majority Base Imaging Center, which marks the beginning of Nanox commercial extension into the US market.
And that makes our system has been installed and the New Jersey based imaging center, which marks the beginning of Nellix commercial expansion into the U S market.
Speaker 3: The system passed all necessary tests conducted by a license and certified physicist and they realized the commence scanning of patients to acquire medical imaging using the Nanooks arc, a stationary X-ray system intended to produce 3D tomographic images of the MSK system.
The system passed all necessary tests conducted by a licensed and certified physicians.
And maybe like the commence scanning of patients to acquire medical imaging using the <unk> arc, a stationary X ray system intended to produce three be thermographic images of the MSA system.
Speaker 3: The clinic staff will manage the operational, professional and administrative services, allocating human resources and equipment for the efficient operation of none of the fifth them in the imaging center.
The clinic staff will manage the operational professional and administrative services allocating human resources and equipment for the efficient operation of none of system in the imaging Center.
Speaker 3: This center will also serve as demonstration center for our medical professionals, offering them an opportunity to familiarize themselves with the system and facilitate the implementation process.
This center will also serve as a demonstration center for our medical professionals.
Offering them, an opportunity to familiarize themselves with the system and facilitate the implementation process.
Speaker 3: More updates on the progress on the students in the US are expected on the investor on the sender for
More updates on the progress on installments in the U S are expected on the Investor on December 4th.
Speaker 3: We are enhancing our U.S. sales and service team, and I'm happy to announce we have signed an agreement with six to six and National Hill Scare Technology and Equipment Management Company.
We are enhancing our U S sales and service team.
And I'm happy to announce we have signed an agreement with six to six and national healthcare technology and equipment management company.
Speaker 3: They will provide services for the Nanux Arc, including warehousing, installation, training, maintenance and customer support.
They will provide services for dynamics arc, including warehousing installation training maintenance and customer support.
Speaker 3: HEP water in Bokara, Torn Florida, 6-6 offers to make necessary for imaging centers to achieve maximum uptie and maintain better patient care.
Headquartered in Boca Raton, Florida, six to six offers took necessary for imaging centers to achieve maximum uptime and maintain better patient care.
Speaker 3: Fixed-to-sticks has expertise in modalities and medical imaging equipment and provides customized services tailored to their client's needs.
$6 six has expertise in modality and medical imaging equipment and provides customized services tailored to their clients needs.
Speaker 3: where the ISO 134085 certification, national footprint, and over 160 field service engineers, they are an ideal company to partner with as we ramp up our commercialization efforts in the US.
Where there is those 13 48 85 certification Nash.
National footprint in over 160 field service engineers, they are an ideal company to partner with them as we ramp up our commercialization efforts in the U S.
Speaker 3: In addition to them supporting installations, maintenance and service in the field, we intend to install an arc to spin in their suburban Atlanta 6-6 imaging academy for trained and demonstration purposes.
In addition to them supporting installations maintenance and services in the field, we intend to install an arc system in their suburban Atlanta six to six imaging Academy for training and demonstration purposes.
Speaker 3: Turning now to our deployment efforts in the rest of the world.
Turning now to our deployment efforts and the rest of the world.
Speaker 3: outside of the key UOTS market, we have begun to generate revenues from hardware deployment in Africa.
Outside of the key U S market, we have begun to generate revenues from hardware deployment in Africa.
Speaker 3: While these revenues are currently small, they are growing. Additionally, as previously announced, an AMICS Archaeonic has been installed in the University of Ghana Medical Center Limited. UGMC, one of the largest and most advanced hospitals in Ghana.
While these revenues are currently small they are growing Additionally, as previously announced and Nymex arguably has been installed in the University of Ghana Medical Center limited.
<unk> one of the largest and most advanced hospitals in Ghana.
Speaker 3: We are pleased to announce that our local partner has obtained a approval from the Ghana Food and Drug Authority, the GFDA, and it will soon be operational for clinical scanning of patients.
We are pleased to announce that our local partner has obtained approval from the food and drug authority the G FDA.
And it will soon be operational for clinical scanning of patients.
Speaker 3: In the meanwhile, we have received an order for additional units in Ghana.
In the Meanwhile, we have received an order for additional units in Ghana.
Speaker 3: We're also actively working on establishing a presence in Latin America.
We're also actively working on establishing.
Our presence in Latin America.
Speaker 3: One of our distribution partners is in the process of securing an import license for numics arts as well as laying the groundwork for a demonstration center. The potential location for the demonstrator is in a large hopper offering this very space and expertise book in the numics arts.
One of our distribution partners is in the process.
Securing an import license for <unk> as well as laying the groundwork.
For a demonstration center the potential location for the demo site.
Yeah.
Archrock offerings is very space.
The expertise.
Alexander.
We will provide further detail on these developments as we make substantial progress.
Turning to our OEM initiatives.
To meet the anticipated demand for our system as previously announced.
Speaker 3: We entered into original equipment manufacturing agreement with VAR, a leading global manufacturer of imaging components based in Utah.
We entered into original equipment manufacturing agreement with <unk>, a leading global manufacturer of imaging components basically Utah.
We have since held formal partnership kickoff meetings at <unk> headquarters in Salt Lake City, where the company is executive and technical teams came together to continue.
Final two design efforts and map out all the roadmaps towards production <unk>.
Expanding on our O&M related activity. We're currently engaged with an industrial imaging equipment manufacturer on a tube development and manufacturing program. We expect the formalized by the year end to ensure an adequate future supply of tubes.
Speaker 3: Additionally, our collaboration with the US Government Agency exploring non-nark technology for use in security screening application is advancing with the acquisition of cubes and further testing and evaluation.
Additionally, our collaboration with the U S government agency exploring none of our technology for use in security screening application is advancing with the acquisition of tubes, and further testing and evaluation.
Finally, a leading global medical technology company has purchased inventory for internal testing and application development projects.
Regarding our regulatory path.
Speaker 3: Despite our efforts to gain regulatory approval in a number of markets across the world, sometimes our agglotore of foreign received slower than we would like in some instances, such as with the FDA in the US.
Despite our efforts to gain regulatory approval in a number of markets across the world.
Sometimes our growth progress is slower than we would like in some instances such as with the FDA in the U S.
Speaker 3: Each jurisdiction has its independent set of regulations contributing to the complexity of the process.
Each jurisdiction.
Independent set of regulations contributing to the complexity of the process.
Speaker 3: We are diligently navigating these challenges, prioritizing swift approvals while ensuring accuracy and regulatory compliance.
We are diligently navigating these challenges prioritizing swift approvals wildly ensuring accuracy and regulatory compliance.
Speaker 3: Now, the less we have not stopped pushing ahead with our regulatory efforts, which continue to be our farm and importance to none of them.
Nevertheless.
We have not stopped pushing ahead with our regulatory efforts, which continued to be a farm and importance to nellix.
Speaker 3: As previously communicated, we partnered with BSI Group and the credible notified by it based on the United Kingdom for eventual CE marking review and approval.
As previously communicated we.
We partnered with BSI groups and incredible notified body based on the United Kingdom for eventual CE, marking review and approval.
Speaker 3: I'm happy to announce that we have submitted our technical file for obtaining the CMAR.
I am happy to announce that we have submitted our technical file for obtaining the CE Mark.
Besides Formula review will begin in the first quarter of 2024. According to the planned timeline and I look forward to providing updates upon the conclusion of this process.
We have also made substantial progress in our home market Israel.
The medical device division of the Ministry of Health known as Amar.
M a R.
Is the regulatory body that oversees medical devices.
On November 22023, now looks arc received <unk> approval from the Israeli administer yourself and it is now registered as a medical device in the Israeli market.
Following this approval Israeli Ministry of Health granted <unk> arc.
Free cell certificate, which is a requirement for a regulatory submission in some markets.
Turning to our clinical efforts.
As previously disclosed the second phase of collecting clinical sample images of multiple human body of non attorneys.
With a non ops our system deployed at Shamir Hospital in Israeli is continuing.
Additionally.
<unk> reached an agreement with Valens in the hospital at.
A part of the <unk> health services, the largest health services organization in Israel, and one of the largest in the world.
According to this agreement are human trial designed to assess diagnostic capabilities of dynamics art in detecting chest in lung diseases will be launched at the balance of hospital.
All required Israeli Ministry of health approval.
And institutional Ethics Committee has been obtained and the trial is scheduled to commence by the end of 2023.
Now I would like to provide an update on our <unk> business segment, we generated.
$141000 in revenue during this quarter and one will review it in more detail shortly.
At the end of the quarter, we announced compelling study results, which demonstrated that <unk> product found that approximately 60% of patients unknowingly had moderate to severe level of coronary artery calcium also known as CIC.
<unk> indicator of future cardiac events.
The study was sponsored by analogous AI.
And conducted by balancing the hospital utilizing non Akshay I hope Ccs and FDA cleared and CE Mark tool designed specifically for our cardiac health assessment.
Health Ccs solution utilizes medical imaging data from routine chest <unk> scans.
As a medically quantify and analyze EAC potentially offering an early detection mechanism for a cardiovascular calcium and preventing cardiac care.
In other non oxide news.
A five 10-K submission for non Oxford deliver detection known as health F. L D.
It was submitted in September and is pending SBA five 10-K clearance.
<unk> is designed to detect early signs of fatty liver diseases from routine chest.
Tom <unk> not specifically.
Leever assessment.
These updates are highly promising and I look forward to providing additional updates on dynamics I not extend our business throughout 2024.
Before turning the call over to Ron I'd like to revisit one of the AI product agreement that we've announced previously.
In mid 2022.
We announced a strategic agreement with spectrum health.
Now known as core wheelhouse, one of the leading integrated delivery system. The idea is to use our AI population health solutions.
Cobalt management reports that their team has successfully integrated dynamics AI <unk> solution into their patient care flow, recognizing it's significant value and identify new patients with medium and high calcium level on chest cities cabs.
We have also received similar positive feedback from another health care system using <unk> solutions.
And with that I'd like to now turn the call over to Russ Daniel for review our financial results run.
Thank you Eric.
We reported a GAAP net loss for the third quarter of 2023 of $21 4 million.
Compared with a net loss of $19 1 million.
The third quarter of 2022, which is the comparable period.
The increase was largely due to a goodwill impairment of seven 4 million.
An increase of zero point $4 million.
Sales and marketing expenses, which was offset by a decrease in our general and administration expenses in the amount of five.
Hello.
Our non-GAAP net loss for the third quarter of 2029.
$9 4 million.
Paired with a net loss of $8 $1 million in the comparable period.
Increase was largely due to an increase of zero point forward.
And marketing expenses and <unk> $300 million in other expenses.
Revenues for the first quarter of 2023 of our two five premium and gross loss was $1 $7 billion on a GAAP basis revenue.
For the comparable period were $2 4 million and Guaco, whilst the one $5 million on a GAAP basis.
non-GAAP gross profit for the three months ended September $32023 9 million as compared to $1 $1 million in the comparable period, which represents a gross profit margins of approximately 37% on a non-GAAP basis for the three months ended September 30th.
2023, as compared to 46% on a non-GAAP basis.
Political period.
Revenue from Teleradiology services for the three months ended September 32020 to be about $2 2 million with a gross profit of <unk> 2 million on a GAAP basis as compared to revenue of $2 4 million barrels with a gross profit of $6 million on a GAAP basis in the comparable period.
Which represent a growth profit margins of approximately 11% on a GAAP basis for the three months ended September 32023, as compared to 26% on a GAAP basis in the comparable period.
non-GAAP gross profit of the company.
Relative to <unk> for the three months ended September 32023, 0.8 million compared.
Compared to $1 2 million in the <unk>.
Comparable period, which represent the gross profit margin of approximately 36% on a non-GAAP basis for the three months.
And at September 32023, as compared to 49% on the markup.
For both periods.
The decrease in the gross profit margins on a GAAP and non-GAAP basis, mainly due to inventory.
The cost of the company's radiology due to the decrease in the rate right and payments of incentive payments, which the company paid to the company's cardiologist and engaging the rating during the overnight and we can shift.
During the three months ended September 30 is 23, the company to generate revenue.
Okay.
And deployment imaging systems, which amounted to a $99000 with a gross profit of $36000 on a GAAP and non-GAAP basis.
Which represent the gross profit margins of approximately 37% on a GAAP and non-GAAP basis.
Those revenue stems from the deployment of our <unk> system.
In Africa.
Research and development expenses for the first quarter of 2020.
Hey, Dara.
As compared to $6 1 million for the comparable period in 2022.
The decrease of 0.1 million mainly.
Mainly due to a decrease in the cost of labor of zero point $6 million, which was offset by an increase in the company's development of the office expenses.
Band out of your $5 million.
Sales and marketing expenses for the first quarter of $2021 1 million compared to <unk> 7 million.
For the comparable period in two markets can be too. Thank you.
This was mainly due to our go to market efforts in the U S market.
Patients for the soft launch of our product.
Market.
General and administrative expenses for the third quarter of 2023 were $5 3 million.
As compared to $10 6 million for the comparable period in 2022.
Chris a $5 6 million was mainly due to a decrease in our legal expenses in the amount of $2 $9 billion largely as a result of the finalization of the efficacy.
<unk>.
A decrease in share based compensation in the amount of $2 7 billion dollar and a decrease in the cost of directors and officers liability insurance.
In the amount of $3 million.
Goodwill impairment for the third quarter of 2023 was $7 $4 million due to the goodwill impairment related to the Teleradiology and reporting unit in the amount of 7.0 dollar.
And then Alex AI reporting unit in the amount of zero point $4 million.
Largely due to the increase in the discount rate and management estimates that it would take longer than we originally expected to generate the original growth of revenues.
Create and positive operating cash flow in the AI and Teleradiology business.
Okay.
During the first nine months of 2023.
Occurred.
<unk> 7 million for the future government expenses in connection with the FCC investigation.
This call the company and Ron <unk>, our chairman of the board of director have reached a settlement agreement with the SEC.
In October 2023, the company paid $650000 in civil penalties under the agreement.
Turning to our balance sheet as of September 32020, we had cash cash equivalents restricted deposit and marketable securities of approximately $95.
All three.
$3 3 million dollar loan from our bank.
We ended the quarter with the property and equipment net of $45 1 million.
As of September 32020, we had approximately $57 7 million shares outstanding compared to 52 1 million shares outstanding as of December 30, <unk> 2022.
The increase was mainly due to the effect of approximately $2 1 million share of alcohol and the purchase up to $2 1 million shares in a registered direct offering in consideration of the gross proceeds of $13 million and a net profit of approximately $27 1 million and the issuance of approximately two hours.
55 solvent ordinary shares with the former shareholders of <unk>.
Yes, Rob after the amendment to the stock purchase agreement as previously discussed.
With that I will end the call back over to Eric.
Thank you all once again for joining our call today and for your ongoing support of Nellix.
We are making significant progress toward deployment of dynamics the oryx system at scale in both the U S and other markets and I am looking forward to our Investor Day next week.
Q4 update call in early 2024.
If you would like to register for our Investor day or meet with Nellix team. While we are in New York area. Please contact our Investor Relations partners at ICR Wesley.
Have a good day.
Operator, please open the session to Q&A.
Thank you.
As a reminder to ask a question. Please press star one one on your phone and wait for your name to be announced to withdraw. Your question. Please press star one one again standby as we compile the Q&A roster.
Okay.
And one moment. Please first question.
Yes.
Our first question will come from Jeff Cohen of Ladenburg Thalmann. Your line is open.
Good morning, Erez and Rune Helland Euro.
Great.
Good morning, Jonathan.
A few questions from our end.
You spoke about a government agency in some security screening.
And just maybe.
Stupid question, but is that for people or is it for goods such as luggage.
No we indicated.
Sure.
Less.
Okay.
By the way it's the same.
It's the same agency that.
<unk>.
We acquired the first one in the first trial was successful so.
They now go to the next step we don't know exactly whats the whats the purpose of the usage.
Only thing that we know that.
The indication that we got that it's kind.
Kind of.
Defense, but we don't know exactly what it is for.
<unk>.
So that's the.
That's what I can say.
Okay got it.
Can you go back to your.
EU submission and notified body.
Walk us through the timeline there.
All of the documentation has going in or will be going in shortly and what would you anticipate on the term loan being that there is some further precedent in the U S.
So either way we are kind of ahead of.
Ahead of what we anticipated to do it next year, we have already submitted all the information <unk>.
The way it goes.
The.
The notified body opens kind of window or over a site that you say.
You upload all the information.
Thousands of stages.
Then once all the information is on then you go to <unk>.
Questions.
Other than that.
Further as visits.
All kind of checks.
I don't want to give any.
We have been single the time that the regulation is in medical equipment is something that is always.
Challenging.
It was very complicated and handled.
A lot of facets, but.
But we assume that.
With the quality of the information and the quality of the.
The clinical trials that we have in the way the quality of the.
The ISO that too we passed all of this it will be.
Reasonably faster than.
Or is it.
<unk>.
And I have an estimation, but.
I think that it would be better to wait until we get a better clarity.
When in 2024, we will get it.
Okay.
Is it safe to say you're hopeful currently that Youll get it.
EU clearance in 2024.
Say from who was point of view from I would say that.
It would be reasonable to say.
Got it Okay, and then lastly for US could you go back to.
To barrick's facility in Utah and talk about their capabilities there as far as anticipated.
We anticipate a number of units that could be.
Assemble in produce.
Per monitor per quarter per year.
So as you know <unk> is the largest player.
Player in tubes.
For the imaging in the world.
From.
I was there a few weeks ago, we had a long day session of the kickoff.
Both for.
For the future Road map.
Future breakthrough technologies.
<unk> for products.
And the other thing is the continuous.
Supply.
And.
From the capacity point of view, they will be able to supply whatever we need going forward.
We're not going we're not going to be dependent.
Earlier.
We're going to.
Continue with our strategy to ensure that we have at least two or three suppliers for each one of the components that we have so this the tubes will be.
<unk> and they will be there will be a major supplier, but not the sole supplier.
Okay, perfect, but it does offer us thanks for taking the questions.
Thank you Jeff.
Thank you.
And one moment please for our next question.
Our next question will come from Ross Osborne of Cantor Fitzgerald. Your line is open.
Hey, guys. Good morning, Congrats on the progress thanks for taking our questions and hope.
Okay, a lot behind that employees are as safe as possible given the war.
With the New Jersey Imaging Center would you provide some more color on the types of patient centered care advantages and when we can expect this entity up and running at scale.
Okay up and running.
Right now.
Yeah.
The second is at scale right now is what we are focusing on and we do hope that.
That it will be.
I would say we'll be in scale.
Probably.
The.
By the end of the year or beginning of next year.
January we are planning to open the site for demos for people, who would be willing to do.
Visit and see.
I would say also that this will be another.
Our solution that we have managed to.
To create.
Since.
Right now in Israel, Although we do business business as usual.
Everything that we're planning we're doing.
Some people are some visits that were supposed to come to Israel have postponed their visit so they will be able to come to.
Two new Jersey, and come and see and we're going to be either.
It's going to be serve as the.
6% to six for example, the one that we mentioned already we're part of the installations that we have there so it's kind of.
Friendly environment for us to ensure that we're going to take all the benefits of the proof of concept.
Both for demonstration purposes than before.
For operational.
We mentioned also that as we speak we are making the next installations before the year before the end of the year.
So basically the the go to market strategy and the go to market action plans in the U S is up and running we are building the team.
We signed the agreement.
Sure.
We're aiming to scan the first U S patients in the coming days. So we have all the necessary.
Triples, but.
This is something that we're planning.
To do we have managed to get older oldest certification.
Physics.
Came to be there or enable us to commence the scanning <unk>.
<unk>.
Et cetera. So.
It's good or we are happy with it.
Sounds great.
And then turning to Morocco can you discuss the level of utilization in terms of scans per day or your metric of choice. There and then the amount of systems you've delivered to date.
It seems that this is something that we will share we will shed some light.
Misters day next week.
Okay fair enough looking forward to that.
The base volume basically.
Now in.
In line.
I would say that it feels like it's in line with what we anticipated.
Okay got it.
And then starting to think about next year given some of your recent manufacturing agreements.
When should we expect an inflection in assessing deployments and expansion into new geographies outside of Morocco got at Nigeria, just trying to get an understanding of system placement cadence for 2024, given you are now commercial and have contracts with these geographies for hundreds of systems.
So you asked about next I think that we indicated already.
Welcome to the <unk> to.
Work to fulfill the.
The orders that we had originally mentioned.
The agreements that we have in each one of them, we are making progress in terms of the eregulation approvals. So part of them will be other countries in Africa are part of them will be in Latin America.
And part of them will be.
In.
Asia and.
And European countries, which are not.
Dependent.
On.
So.
That's the plan, so far but it's but it's all dependent on the process and the progress that we made with our regulation approvals.
But this is also something that we will we will give some more color on that next week.
Sounds good thanks for taking my questions.
Yes.
Thank you.
Again, one moment please for our next question.
Our next question will come from Ben Hayner of the Alliance Capital Partners. Your line is open.
Good day, gentlemen, can you hear me okay.
Yes.
Good morning.
Great.
So I was just.
Looking to understand the next arc revenue, a little bit better for the quarter.
It sounds like some of that came from sales. So if you could give me a sense or give us a sense of how how much cabinet revenue was included in there and then would you expect.
The revenue that you're generating out of Africa.
From these systems to grow from the Q3 level going forward.
Yes so.
You referred to the 1990 $9000.
Recorded.
Correct, yes.
Okay. So those are actually stems from.
The sales revenue from our <unk> imaging systems.
The split is between sweet countries. The first one is Cameroon. The second one is in Morocco, and the other one is gonna.
We're talking of a few overview of a few.
<unk>.
Systems in each region.
And some of the revenue comes from the sales of those units and the other one from the usage of those units.
Okay. So I guess, what I'm getting at Thats helpful, but what I'm getting at is.
Would you expect the revenue.
From the system.
To pick up from the 99000 level.
Is that are currently in the in those geographies.
No not really.
Generally think gas because some of the.
Provided for demo and training purposes, and we expect that those units will become commercial yields.
Of course, we will add more Bob Moore.
Units on those ones and of course, we expect to start generating revenue from that from the revenue from the arc systems itself in those regions than in the U S itself in these units by the way I would say that the numbers of scans per day.
Where they are operational.
<unk> actually.
The numbers are exceeding our original.
Speculations.
Okay, well that's good to hear.
Helpful.
And then just on the on the various agreement was curious about the minimal annual amount on that.
One thing that's relatively easy to achieve or is it.
It kind of a small fraction of the anticipated utilization or what's the right way to think about that.
From whose site.
Okay.
Yes.
From our point of view.
Well maybe bulk.
First of all we have not disclosed the details of the agreement yet.
Thanks will.
We will add more details in our next 20-F, what can I tell you the some formula over there.
That is going to build in some minimums, but not in the comp guidance yes.
And some percentage but.
We don't want to get into this just because the way we structure the agreement is.
Very beneficial.
For us in terms of the way, we want to manage our business.
Okay fair enough.
I think I think that Paul we have.
Thanks Ben.
Do you have to remember that.
It's a long term agreement.
The buildup in the agreement in a way that both sides can.
Can execute.
Okay got it.
But I think that's that's all we have so we will see you guys at the analyst day next week.
Thank you. Thank you.
Thank you.
And there is all the time, we have for questions does ending the Q&A session I would now like to turn the conference back to Erez Meltzer for closing remarks.
So thank you all for.
Being with us today.
Looking forward to.
Part of you and.
The others will be.
Are you able to hear next week, when we have the Investor day, when we are going to.
Should then give some colors on technology on the go to market in the U S.
On the operational as well as the some clinical.
The management team will present there.
See you next week and thank you for being question that support of Nellix.
Good day.
This concludes today's conference call. Thank you all for participating you may now disconnect and have a pleasant day.
Okay.
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Dan.
Yes.
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