Q4 2023 Nano-X Imaging Ltd Earnings Call
[music].
Good day, and thank you for standing by.
Fourth quarter 2023 earnings call.
At this time all participants are in a listen only mode.
After the speaker's presentation, there will be a question and answer session.
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None: Please be advised that today's conference is being recorded.
None: I would now like to hand, the conference over to Mike Cavanaugh Investor Relations.
Mike Cavanaugh: Please go ahead.
Good morning, and thank you for joining us today earlier today net OXXO imaging limited released financial results for the quarter ended December 31 2023.
None: The release is currently available on the investors section of the company's website.
Mike Cavanaugh: Erez Melter, Chief Executive Officer, and Ron Daniels, Chief Financial Officer will host this morning's call.
None: Before we get started I would like to remind everyone that management will be making statements. During this call.
None: Forward looking statements regarding the company's financial results research and development manufacturing and commercialization activities regulatory process operations and other matters.
None: These statements are subject to risks uncertainties and assumptions that are based on management's current expectations as of today.
None: May not be updated in the future.
None: Therefore, these statements should not be relied upon as representing the companys views as of any subsequent date.
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.
None: We will also refer to certain non-GAAP financial measures to provide additional information to investors.
None: A reconciliation of the non-GAAP to GAAP measures is provided with our press release with the primary differences being non-GAAP net loss attributable to ordinary shares non-GAAP cost of revenue non-GAAP gross profit non.
None: non-GAAP gross profit margin.
None: non-GAAP research and development expenses, non-GAAP sales and marketing expenses non.
None: non-GAAP general and administrative expenses and non-GAAP gross loss per share.
None: With that I'd now like to turn the call over to Erez Melter.
Erez I. Meltzer: Thanks, Mike and as always thank you all for joining us today for our financial result, coal and corporate updates.
Erez I. Meltzer: Before we get started I would like to take a minute to acknowledge the passing of our founder Rankle here Kian back in January.
Erez I. Meltzer: We all owe him a regret it.
Erez I. Meltzer: And I am proud to lead our team as we seek to realize his vision of making medical imaging more accessible to improve early detection and treatment to help people achieve a better health outcome.
Erez I. Meltzer: My remarks will be a bit longer today than usual and I will provide a lot of details on the various business aspect of nellix.
Erez I. Meltzer: As we share our fourth quarter update.
Erez I. Meltzer: And review our financial results I am extremely proud of the progress our team made over the course of 2023.
Erez I. Meltzer: Highlighted by the exciting milestone of FDA clearance for the <unk> system.
Erez I. Meltzer: Clear validation of our technology.
Erez I. Meltzer: <unk> mission and our first gaps in the U S commercialization.
Erez I. Meltzer: On today's call, we will be focusing on our fourth quarter activities.
Erez I. Meltzer: As well as some of our achievements in early 2024, a year, which I expect will be transformational for Nymex.
Erez I. Meltzer: We are now in the process of <unk>.
Erez I. Meltzer: Spending our commercialization of the amount of our system.
Erez I. Meltzer: And are aiming for a steady increase in deployment as we raise the awareness of the amount of solution.
Erez I. Meltzer: <unk> is dedicated to accelerating the implementation of our commercial infrastructure and future strategic clients in the U S.
Erez I. Meltzer: Our mission is to provide health care practices with a game changing advantage through the analytics are and accessible cost effective solution that not only provides advanced diagnostic imaging capabilities.
Erez I. Meltzer: So elevates overall patient care.
Erez I. Meltzer: Okay.
Erez I. Meltzer: I'd like to start our call with an update on our U S deployment activities.
Erez I. Meltzer: As we have disclosed in the past we have already deployed the art and the first location in the U S. In New Jersey, and the New York Metropolitan area. Since then we have launched across five states, marking an advancement in our U S deployment.
Which is going as planned as.
Erez I. Meltzer: As of todays coal arc system has been installed at several medical imaging and diagnostic systems Center in New Jersey, New York, Florida and Kentucky.
Erez I. Meltzer: As well as the Georgia, 6% to six imaging Academy, which serves as a technical and training center.
Erez I. Meltzer: <unk> arc system.
Erez I. Meltzer: Begun to scan patients.
Erez I. Meltzer: Clinical operation of the Oryx system will begin in other sites spending certification from the corresponding states' regulatory bodies.
Erez I. Meltzer: As already indicated in our investors day.
Erez I. Meltzer: In December one of the purposes of these installations is to validate our assumptions.
Based on these initial deployments it seems that the model is indeed validated and.
Erez I. Meltzer: And we are scanning around seven skins per day as well as the indication for $30 per scan.
Erez I. Meltzer: As part of the establishment of our infrastructure the Georgia site at $6 six imaging Academy serves as a technical and training center for the commissions on.
Erez I. Meltzer: On the use of the system and they have successfully completed our engineers training program at the Atlanta, 6% to six <unk> Woodstock training Center.
Erez I. Meltzer: We are in advanced negotiation with another installation.
Erez I. Meltzer: <unk> and service provider in order to expand our service coverage.
Erez I. Meltzer: This is prior to scale.
Erez I. Meltzer: As we increased our footprint across the United States, we continue to expand our U S sales and technical teams.
Erez I. Meltzer: We are continuing to expand our professional team.
Erez I. Meltzer: We have recruited additional personnel in the U S. We aim to grow gradually as needed.
Erez I. Meltzer: And are being judicious about our hires to ensure that additional expenditure.
Erez I. Meltzer: Generate a good return on the investments at the same time, we are extending our sales network as planned.
Erez I. Meltzer: As we ramp up the deployment I can share that we have begun realizing revenue streams from art imaging scans at the U S deployed sites that are utilizing the <unk> model.
Erez I. Meltzer: I'd like to address one final aspect regarding our commercial operation in the U S.
As per our standard procedures Nymex has submitted certification request to expand the placement of nonrecourse tune it to.
Erez I. Meltzer: To various states across the country.
Erez I. Meltzer: I'm eager to keep you updated on the progress of these future installations.
Erez I. Meltzer: Turning now to our deployment efforts and the rest of the world outside of the key U S market as we disclosed on our last call. We are generating revenue from hardware deployments in Africa.
Erez I. Meltzer: And has three inflation.
Erez I. Meltzer: As of the end of March.
Erez I. Meltzer: As previously mentioned.
Erez I. Meltzer: We have had a unit installed at the University of Medical Center Limited you GMC.
Erez I. Meltzer: And which has received local regulatory clearance.
Erez I. Meltzer: I can now share that we have signed a multi sided agreement, which was done as part of our multi site trial in Ghana.
Erez I. Meltzer: We are conducting the trial aiming to generate continuous data and clinical evidence on dynamics arc.
I will describe this trial in a bit more detail later in my remarks, we've also made progress in expanding the Nymex footprint in Latin America.
Erez I. Meltzer: One recent agreement is where the Peru based medical equipment distributor, which.
Erez I. Meltzer: Which has partnered with us to distribute dynamics connect in that country.
Erez I. Meltzer: Partner has a strong presence in Peru with good reach into the key local health system in hospitals.
And our cloud based <unk> connect solution should be complementary product for the product offering.
Erez I. Meltzer: This partner is already actively marketing other healthcare solutions, which enable a remote patient exams by a clinician.
None: I can also update you.
None: Our distributor in Mexico, you seek an import license for the <unk> arc and preparing for the first installation.
None: The partner has also received an important license for dynamics connect.
None: And we have shipped the first two systems.
None: Similar to the or the distributor has applied to obtain the required registration to sell this solution and we also anticipate the connect will also continue generating revenues in 2024.
None: As a side comment I will state that is very gratifying to see that the Ark and connects to be marketed together as we have envision this complementary imaging solution from the very beginning.
None: I'd like to provide an update on our hardware revenues.
None: Which Ron will review in more details shortly.
None: While we have began generating revenues through our AI solutions in Q3, <unk> begun to generate revenue outside of the U S through the sales and deployment of imaging systems.
None: Now I'd like to provide an update on Nellix AI business, which has had an increase of 250% in our client base compared to last quarter.
None: We have an installed base of health system.
None: Use helped Ccs.
None: And AI powered solution to detect levels of coronary artery called Sim.
None: Our proven indicator of future cardiac events.
We have digested our experience in the field with this.
None: And gathered feedback from users, specifically cardiologists and radiologists.
None: To upgrade the solution.
None: Revisiting one of the AI product partners Colwell health, formerly spectrum, which began using our population health solution in mid 2022.
None: And he has a large integrated health system.
None: We have consistently received positive feedback from <unk> health.
None: We shouldnt fully integrated this into.
None: Into their standard of care.
None: This has been a productive partnership which has been extended for additional term.
None: Many of you are aware the dynamics solutions are available on nuanced precision imaging network and Microsoft Company.
None: More than 12000 healthcare facilities and 80% of the Europe for a geologist will use nuanced Paris drive for geology of reporting.
None: I can share that Intermountain health has signed on to deploy held Ccs and was part of nuance bundled.
None: The go live process started including training activities and integration of the solution into internal systems.
<unk> also achieved another regulatory milestone last month.
None: When we received the five 10-K clearance by the US food and drug administration SBA for health <unk>.
None: And artificial intelligence software that provides automated qualitative and quantitative analysis of flavor attenuation from routine <unk> scans.
None: <unk> <unk> is intended to support clinicians.
None: The detection effect deliver.
None: Correlated with hepatic steatosis.
An early sign of metabolic dysfunction associated <unk> liver disease.
<unk>, formerly referred to as non alcoholic federal liver disease.
None: <unk> is a new and valuable tool for doctors as it has traditionally been difficult to assess.
None: Never attenuation on contracts enhance ken's, which make up a large proportion of the <unk> scans.
None: <unk> <unk> was designed to help clinicians in the assessment and the analysis of fatty liver in general population from routine cp's dense.
None: We believe that.
None: Innovative solution and specifically, how <unk> may deliver substantial advantages.
None: To the biopharmaceutical industry.
None: To streamline their identification of candidates for clinical trials of much needed therapies for liver diseases, including mesh. This regulatory decision solidifies our leadership as a developer of automated AI software and medical devices.
None: We also announced last month early findings from the AI enabled adapt study.
None: We choose this dynamics AI solution.
None: <unk> Vcs the previous version of our current health OSP solution.
None: To review repeat Cp's Ken.
None: Identify up to six times more patients.
None: With vertebral compression fracture the national average.
None: At National Health services, NHS hospitals in the U K.
None: The study is being conducted at various National Health service.
None: Or interchange sites, including the Oxford universities hospitals.
None: Adopt data shows that tells Vcs has clearly demonstrated the ability to identify vertebral compression fracture.
None: Far more patients than previously possible with existing tools.
None: Enabling earlier intervention and potentially better patient outcomes.
None: To date dynamics AI algorithms as identified over 2400 patients with previously unknown vertebral compression fracture and those patients has been designated for follow up evaluation and treatment.
As you can see we have been very busy not only with the <unk> arc system deployment, but also advance.
None: The uptake of genomics AI.
None: Which is an important component of the complete <unk> solution.
None: Turning now to our OEM initiatives after executive partnership kickoff meetings at <unk> headquarters in Salt Lake City last year.
None: The company's technical teams are actively engaged in validating the tube design.
None: And advancing the roadmap towards production and exploring future development.
None: Expanding on our OEM related activity, we have issued our first production purchase order.
None: Industrial imaging equipment manufacturer and continue to work towards the multiyear cube supply agreement to ensure an adequate future supply of tubes.
None: Additionally.
None: Our collaboration with the U S government agency exploring unlocks our technology for using security application and progressing.
None: After their acquisition of chips and tubes for evaluation, we are advancing toward collaboration on a novel two based on our meter.
None: Finally, as a means of increasing awareness and allowing access to our core technologies we have.
None: Created nanos demonstration kit.
None: Containing a tube utilizing our meter.
None: And we have recently received the necessary safety and regulation certifications for the kit.
None: And we will be delivering our first few too interested party in the coming weeks regarding domestic production has recently announced due to the scale up and commercialization. We continue as planned with our collaboration with the system.
None: A cheap make her located in Switzerland.
None: I mentioned earlier in my comments about Ghana, Nymex is conducting multicenter clinical trial.
None: To enhance non arc with the goal of expanding its use with chest and other indications.
None: The trial is scheduled to begin patient recruitment shortly and <unk> system that are being used in these trials are already scanning patients.
None: The system installed and value from a hospital is ready.
The institutional review board.
<unk> is approved the trial and we are finalizing the remaining states for integrating into multi site.
None: In Ghana the.
None: <unk> has been submitted and currently under review.
None: Additionally, the <unk> arc has been used to scan patients with abnormal lung conditions of bailing some.
None: One of the world's top academic medical center.
None: And the institution that is pioneer advancement in radiology.
None: <unk> is also currently being used to scan patients.
None: Our pursuit of the CE Mark in Europe is advancing in partnership with our notified body Spa.
None: Specifically.
None: Recently, we completed a five day audit by their modified Buddy as part of the certification process for the CE certificate. The ISO 13485, plus medical device regulations MTR certificate.
None: During the inspection hundreds of records procedures proofs reports. An example were presented the MD artist was passed successfully.
None: The ISO therapy for eight five test was passed with a great success and without any adverse findings.
None: Sometimes after the audit of the formal review process will begin.
None: Which includes examining aspects of the manufacturing process.
None: And although we expect our application process to proceed in a timely manner I would note the regulatory bodies worldwide are still working through a backlog of applications.
None: Which accumulated during the multiyear COVID-19 pandemic and the adjustment for the new MBR regulation.
None: However.
None: As I said.
We are well along in the process and we'll continue to prioritize the work with our partners necessary to complete the Mira tasks required to bring the CE certification process with the finish line.
None: With that I'd like now to turn the call over to Ron Daniel for a review of our financial results Brian.
Ran Daniel: Thank you, Eric we reported a GAAP net loss for the fourth quarter of 2023 of $10 $2 million, which is the reported period compared with a net loss of $52 8 million in the fourth quarter of 2022, which is the comparable period. The decrease was largely due to a globally.
Ran Daniel: Government of $36 5 million.
Ran Daniel: And an accrual of $8 million in connection with the settlement of the class action, which were recorded in the comparable period and a decrease of $4 $4 million in the general and administrative expenses.
Ran Daniel: Revenue for the fourth quarter of 2023 was $2 4 million and gross loss was $1 seven on.
Ran Daniel: On a GAAP basis revenue.
Ran Daniel: Revenue for the comparable period were $2 $1 million in glaucoma, one $8 million on a GAAP basis non-GAAP gross profit for the reported period 0.9 million as compared to zero point $8 million in the comparable period.
Ran Daniel: <unk> represents a gross profit margin of approximately 36% on an non-GAAP basis. So that were reported period as compared to 39% on a non-GAAP basis in the comparable period.
Ran Daniel: Revenue from the Teleradiology services for the reported period was $2 $3 million with a gross profit of <unk> 3 billion the Oracle Mcduffy.
Ran Daniel: Compared to revenue of $2 1 million.
Ran Daniel: <unk> profit of <unk> $3 billion on a GAAP basis in the comparable period, which represents a gross profit margin.
Ran Daniel: Of approximately 14% on a GAAP basis for the reported period as compared to 13% on a GAAP basis in the comparable period.
Ran Daniel: non-GAAP gross profit for the company.
Ran Daniel: Services for the reported period was <unk> $9 million compared to $8 million in the comparable period, which represents a gross profit margin of approximately 38% on a non-GAAP basis for the reported period as compared to 40% on a non-GAAP basis in the comparable period.
Ran Daniel: The decrease in the gross profit margin on a GAAP and non-GAAP basis, mainly due to an increase in the cost of the company about urology due to the increase in the rebate and payments of incentive payments, which the company paid to the company by geology to engaging with you during the overnight and we can ship.
During the reported periods the company generated revenue for the third.
Ran Daniel: <unk> solutions in the amount of $84000 as compared to revenue of 53000 in the reported period during the first quarter of 2024 notwithstanding.
Ran Daniel: Ccs cardiac solution to a second IPL in the U S for an annual fee of $8 $5000. During the first year of the engagement and an annual fee of 75000 on the first anniversary of the engagement and after.
Ran Daniel: During the reporting period, the company generated revenue through the fence and deployment of the imaging system, which amounted to $17000 with a gross loss of $44000 on a GAAP and non-GAAP basis, those revenues from the sales and deployment of our <unk> system in Africa.
Ran Daniel: Research and development expenses for the reported period were $6 $8 million as compared to $7 $1 million in the comparable period. A decrease of 0.3 million was mainly due to a decrease in the company's development expenses.
Ran Daniel: Sales and marketing expenses for the reported period were $1 2 million.
Ran Daniel: <unk> to a $1 $5 billion in the comparable period. The decrease was mainly due to a decrease in expenses related to our sales and marketing activity.
Ran Daniel: General and administrative expenses for the reported period were $3 8 million as compared to $8 $2 million in the comparable period, the decrease of $4 $4 million, mainly due to a decrease in our legal expenses in the amount of four point.
Ran Daniel: Zero.
Ran Daniel: Largely as a result of the Finalization of the SEC investigation and the settlement of the class action a.
Ran Daniel: The decrease in share based compensation in the amount of 0.2 million.
Ran Daniel: The decrease in the cost of the directors and officers liability insurance premium in the amount of zero point $4 million.
Ran Daniel: Other income of $2 $7 million for the reported period as compared to an expense of $7 8 million for the comparable period other expenses in the comparable period included an accrual for the settlement in connection with the class action lawsuit against the company in the amount of $8 million, which was the reverse.
Ran Daniel: By the amount of $3 million in the reported period.
Ran Daniel: The company received this amount for me.
Ran Daniel: In our insurance carrier under the settlement agreement in connection with the top action lawsuit.
Ran Daniel: The company.
Ran Daniel: Turning to our balance sheet.
As of December 31, 2023, we had cash cash equivalents restricted deposits and marketable securities of approximately 82 point.
Ran Daniel: $8 million.
Ran Daniel: And we add $3 $5 billion loan from our bank.
Ran Daniel: We ended the quarter with a property and equipment net of $42 3 million.
Ran Daniel: As of December 31, 2023, we had approximately $57 eight share outstanding as compared to $55 1 million shares outstanding as of December 31st 2022. The increase was mainly due to the sale of approximately $2 1 billion shares and warrants to purchase up to two plants.
Ran Daniel: One thing I'll share in a registered direct offering and put the duration of gross proceeds of $30 million and the net proceeds of approximately $27 1 million.
Ran Daniel: And the issuance of approximately.
255000 ordinary shares to the former shareholders of U S rot under the amendment to the U S.
Ran Daniel: Stock purchase agreement.
Ran Daniel: With that I will hand, the call back over to Eric.
Eric: Thank you all once again for joining our call today and your continued support of <unk> mission to make medical imaging more efficient accessible and affordable worldwide.
Eric: It has been two years since I stepped into the CEO role.
Eric: And when I came to hear <unk> was in a very different place.
Eric: In just this year, we achieved an important milestone on <unk> clearance and are seeking to potentially extend the use case for arc with FDA.
Eric: We are also deep into the process of pursuing CE Mark designation in either opinion Union and have received local regulatory clearances in other countries like Ghana.
Eric: We've also begun commercialization Ernest and Rx systems are now deployed for the used by imaging Center and hospital systems in Israel three countries in Africa and as of today's call. We know we have numerous deployed systems in the U S.
Eric: Over these two years, we have integrated our AI strategy across the company.
Eric: Our leading non <unk> solutions provide the ability to use AI to highlight can help identify patients with asymptomatic undetected chronic disease initiated early diagnosis.
Eric: And prevent data management.
Eric: And this year, we also achieved two FDA clearances substantial clinical validation of our AI solutions.
Eric: We understand this has been a long growth, but our progress is tangible and we are very excited for even more progress in 2024.
None: Before I end the call.
None: One last piece of news to share and this is something many of you have been anticipating on Wednesday April 10th we will demonstrate the use of being installed arc system and dynamic medical imaging and Union New Jersey, beginning at 930, a M demonstration will be followed by Ron <unk>.
None: <unk> discussion.
None: Please contact our Investor Relations partners at ICR West weak if you are interested in attending.
None: Of note the space is limited.
None: With that I. Thank you once again and bring our fourth quarter and full year 2023 investor call at close.
None: We will now conduct a question and answer session.
None: If you'd like to ask a question at this time. Please press star one one on your telephone and wait.
And to be announced to withdraw your question. Please press star one one again.
None: Please standby, while we compile the Q&A roster.
None: Just before we dive into the Q&A session I would like to mention.
None: We have updated our website with interesting clinical pathologies from the U S commercial site and chest from our clinical sites.
None: In the U S sample, we notes enhanced visualization compared to traditional geography.
None: One example is the cervical spine scan. Additionally, you can find a chest study from the billing some critical clinical trial.
None: And in the chest body, while the X Ray only thankfully.
None: Frankly shows the Elysian. This lesion was clearly visualized on there.
None: Nonetheless, our images.
None: And in the <unk> scan of the patients scheduled for biopsy.
None: So take a look and feel free to see it as well.
None: Our Q&A.
None: Our first question will come from the line of Ross Osborne with Cantor Fitzgerald.
Ross Everett Osborn: Hey, guys congrats on the progress and thanks for taking our questions.
Ross Everett Osborn: Starting off with arc would you discuss how many systems in the U S. Our operational across the five states deployed during the fourth quarter and also provide us with how 2024 has progressed, thus far in terms of placements and visibility into your pipeline or backlog of orders. Thank you.
None: So Ross we are.
None: We have already indicated that along the year, we will add more details.
None: So far we have not informed exactly how many systems, we just say that.
We have systems installed right now in five states. The one thing I would say is that we have already a manufacturer a few dozens of systems.
None: And.
None: And we we have.
None: The system is installed in the clinical.
None: Facilities as indicated.
None: Next I would say that in the next day meetings I will probably mention and give you more numbers. The numbers that we gave so far are scans per day the dollars.
Per scan and the and.
None: The few dozens that Walgreens sold and.
None: Ship to them.
None: The various locations.
None: Okay.
None: Yes.
None: And Ross My view that the difference between the amount or the number of <unk> systems to the ones that are operated commercially sense does it.
None: The gap of time between due to their local or state registration requirement.
None: Understood and then maybe could you provide some color on what types of centers are adopting art.
None: And how utilization has trended, thus far and their level of comfort with $30 per scan.
Yes.
None: We actually have a weekend so.
We have small and medium size.
None: Medical imaging centers right now one of them is big.
None: And.
None: The other thing that we can indicate these decks.
None: The.
None: <unk>.
None: Where.
None: Else do we have.
None:
None: Yes, I think that most of them yes.
None: Screened all of them all of them are.
None: These type of clinical areas.
None: The other one that we have is the in the GA side of.
None: And six to six and.
None: And.
None: I would say, yes, one a few a few installment installations are in.
None: In orthopedic clinical centers.
None: And.
None:
None: Yes.
None: The numbers.
Got it and then lastly for US would you remind us of the economics on connect given your agreements in Peru, and Mexico in terms of whether that's going to be a capital sale or emphasize and if it isn't a SaaS how should we think about signing up more so than most of them are N plus model in the same manner that you know.
So that we apply to the arc.
None: Sometimes we do capital sales model with regards to the connect but as I said most of them are an <unk> model.
None: It depends.
None: So <unk> it depends also in the countries in certain countries.
None: Especially in.
None: And in Africa.
None: We will make a decision to sell the system and a few of them we sell.
None: Four.
None: Partial amount and then charge per scan we have various models.
None: Connect.
None: Okay got it thank you for taking my questions.
None: You're more than welcome.
None: Our next question will come from the line of Jeff Cohen with Ladenburg Thalmann.
Jeffrey Scott Cohen: Hi, Eric how are you.
Jeffrey Scott Cohen: Good good.
Jeffrey Scott Cohen: So.
Jeffrey Scott Cohen: I did want to follow up.
Jeffrey Scott Cohen: Ross has questions can you talk about connected.
Jeffrey Scott Cohen: And a little too per scale and give us a sense of connect versus arc and how you anticipate.
Jeffrey Scott Cohen: Both of those platforms to play out both.
Jeffrey Scott Cohen: In the U S and O U S.
Jeffrey Scott Cohen: Okay.
Jeffrey Scott Cohen: Now the connect is being sold outside of the U S. Once the connect is going to get the FDA in the U S. We're going to silicon in the U S as well.
Jeffrey Scott Cohen: We have right now connect in.
Jeffrey Scott Cohen: In.
Jeffrey Scott Cohen: More than 10 countries right now.
Jeffrey Scott Cohen: <unk>.
Jeffrey Scott Cohen: A lot of them are Africa part of them are Latin America and in Israel.
Jeffrey Scott Cohen: The.
Jeffrey Scott Cohen: We first of all the the purpose of the connect was two.
Jeffrey Scott Cohen: To extend or expand the.
The line of products that we have.
Jeffrey Scott Cohen: And.
Jeffrey Scott Cohen: The beauty of what we sell in the connect is that we sell it not only as a piece of equipment.
Jeffrey Scott Cohen: Bundled.
Jeffrey Scott Cohen: With AI.
Jeffrey Scott Cohen: System.
Jeffrey Scott Cohen: Included in what we sell so the system can analyze.
Jeffrey Scott Cohen: The imager itself.
In addition, we.
We have our systems that were.
Jeffrey Scott Cohen: Sold in Morocco for example linked towards used in the <unk>.
Jeffrey Scott Cohen: The earthquake.
Jeffrey Scott Cohen: By the by the customer that the body there.
Jeffrey Scott Cohen: Was used.
Jeffrey Scott Cohen: <unk>, an Israeli and various.
Jeffrey Scott Cohen: Extreme situation when you can do testing in the field or screening in the field.
And the idea behind.
Jeffrey Scott Cohen: Them is.
Jeffrey Scott Cohen: Two fold the first one is that we say that.
Jeffrey Scott Cohen: Sometimes we get the connect.
Jeffrey Scott Cohen: And later on we get the arc and second is.
Jeffrey Scott Cohen: The inclusion or the.
Jeffrey Scott Cohen: How do we build the AI system into these into the imaging.
Jeffrey Scott Cohen: Itself.
Jeffrey Scott Cohen: And.
Jeffrey Scott Cohen: In terms of the <unk>.
Jeffrey Scott Cohen: Process for the connect its the same process, sometimes they get.
Jeffrey Scott Cohen: The.
Jeffrey Scott Cohen: The registration just before the VR it sometimes after the arc.
Jeffrey Scott Cohen: If you take the connect.
<unk> in Africa in one or two countries.
Jeffrey Scott Cohen: We have achieved with the connect.
Jeffrey Scott Cohen: One of the countries few days that the number of scans per day were above 120.
Jeffrey Scott Cohen: And.
Jeffrey Scott Cohen: These are examples that can enable us actually to penetrate.
Jeffrey Scott Cohen: I'm clinics before.
None: I will I will actually you reemphasize the fact that.
None: That for US, it's really gratifying to see that the arc and connect the fact that theyre marketing together a marketed together.
None: As we envisioned from the very beginning.
None: Basically complementary and very beneficial for what we do the fact that we are very flexible in terms of the.
None: The business model and the the hybrid model the <unk> and the <unk>.
None: The capex based on it.
None: So this actually is a lot of value for us as well.
None: So I guess there is what you are saying is there.
None: <unk>.
None: Clearances that you would anticipate.
None: A lot of sites two or maybe the majority of sites to have both types of deployments arch and connect.
None: I would say I would not say majority because sometimes some country are or would like to use that connects more than the arc, but I would say that.
None: In Latin America.
And in the U S. It will be mainly mainly arc in the rest of the world. We will see a lot of countries that will sell the connect sometimes does preparation to get access to medical imaging because that's the mission that we took upon ourselves and we're trying to get at.
None: In various ways that as we as we do.
None: By the way.
None: Countries that.
None: That.
None: The beginning was with connect and then.
None: And then we were able to sign for the art.
None: Okay.
None: Got it and could you clarify a previous comment on manufacturing.
None: 2000 systems manufacturer.
None: No no no. We said, we said that we have.
None: That we have a few dozens.
None: <unk> systems that were already manufactured.
We are in the process of manufacturing a few doesn't assume a few more dozens.
None: And.
None: If you think about the long lead items and if you think about the availability of.
None: <unk>.
None: Parts. This enabled us actually to cover the paste of the installations that we're doing right now if you remember in the.
None: In the Investor Day, we said that we're going to vary.
In a very conservative approach, we don't we don't.
We cannot do we don't have a second chance to make a first impression, especially not in the U S. So we are installing the systems we.
None: Analyzing the data.
None: We are adding and improving.
None: The process of installation we are short we have been able to shorten the time that we installed our systems we are getting.
None: We are negotiating right now another.
None: A service company that we will have better coverage.
None: For the U S.
None: We have we have gained a lot of us.
None: Excess or the ability to control the systems. He also firm remote.
None: We are opening the call center that will enable us to serve.
None: Served best.
These units.
None: We are increasing.
None: Exponentially the number of people that are in the sales invest in their service team.
None: And and.
None: And we are continue to expand our professional teams and recruited.
None: Personnel.
None: Last but not least is that we have to of course to work on the referrals and to ensure that people will be aware of the changes that we're doing in the standard of care and we will do it professionally.
None: Got it and lastly for us.
None: Any commentary on 2024 as far as first quarter sequential.
None: Revenue changes et cetera et cetera. Thank you.
None: Yes, so first of all a part of the indications that I gave are where we are so far and.
None: So the number will be growing we are.
None: Focusing on generating low revenues more installations and Morris scans in the in the current installation in the in the system that were going to install and I believe that next quarter, we'll be able to share more detailed update and as well as numbers of where we are.
None: And what's the process that we are.
None: Heading.
None: Is it right now.
None: We are making progress according to the plan and exactly according to what was presented in Investor's day as you can imagine we are right now based on best experience. We are much more careful and conservative in what we say what we indicate and we're trying to ensure that whatever we promise.
None: We will be delivered.
None: Super Thanks for taking our questions.
None: As a reminder, that is star one one to ask a question.
None: Our next question will come from the line of Anthony Petrone with Mizuho.
Anthony Petrone: Alright. Thanks.
Anthony Petrone: Congratulations on the.
Anthony Petrone: The strong start to shrink into last year's strong start to this year.
Anthony Petrone: Maybe Eric just on the utilization per systems.
Anthony Petrone: <unk> Ark you mentioned.
Anthony Petrone: <unk> 30 per scan.
Anthony Petrone: And some of the early systems are doing.
Anthony Petrone: Seven.
Anthony Petrone: <unk> per day.
Anthony Petrone: On how you expect that to scale.
Which areas are you seeing utilization is it more an orthopedic side are you seeing it in chest X Ray.
Anthony Petrone: Just a little bit on where you're seeing the early use cases for NAND, Alex art and.
Anthony Petrone: And how you see that scaling over the 2024 and then a couple of follow ups. Thanks.
None: Okay, no disrespect to the others both great question.
First of all the.
I can say that the seven scans per day is based.
None: <unk> is actually the model that we.
None: We built and the.
And it seems that from the early.
None: From the early installations, that's what we see I would say however.
None: More than that that we had.
None: And in <unk>.
None: In medical imaging centers, which are I would taken which are professionals and there are people, who really understand what we're doing we had days with 15 scans per day. So.
None: So this is this is the beginning in terms of the dollars per scan. This is the $30.
None: If you remember compared to the 14 to $17 and the rest of the world. So U S is about $30.
None: And this is in line of the CPT code and the reimbursement that can be generated which actually leaves a lot of room for us for the.
None: For the for the center for the medical Imaging center, often send for the radiologist.
None: With respect to the.
None: So this is.
None: These are the numbers that we see right right now.
None: With respect to clinical indications.
None: I'd like to remind the following okay in the U S.
None: In the U S. We have right now.
None: Mmk.
None: <unk>.
None: Unlike the rest of the world that we do a lot in.
None: In Israel and Africa, and other places we do we do chest, we do abdominal we do.
None: Scope, we do.
None: In all other.
None: Indications our 2020 for FDA submission will include.
And.
Other indications as stated in the.
None: The comment that I made in the very beginning so.
None: Based on for example, billings on hospital in Israel, We do.
None: We do.
None: Pulmonology.
None: Cancer screening.
None: And this actually part of the chest.
None: Chest samples that we are taking.
None: We have.
None: We actually uploaded on our website.
None: These examples and also.
None: The cervical spine scan that that we do.
I have to be very careful because of the regulation because of the FDA and because of.
None: The.
None: The clinical and clinical work that we do with other places.
None: But right now for us it seems that we're going to have even more clinical indications as we move forward than originally anticipated even some of them are not.
Not as part of the original plan.
None: That's helpful.
None: A couple of follow ups on <unk>.
None: AI solutions.
None: Specifically health Cts.
None: For coronary artery calcification that era mountain.
None: Yes, it's deployed there and it looks like it's getting up and running.
None: How do you see that progressing.
None: In 2024, and when we think about it in a mountain.
Just in terms of the volume of patients they are seeing with coronary artery disease.
None: Yes, how many cases do you think we'll actually see being analyzed and.
None: In Ccs.
None: Over the next few months and how will that trend over the next few years as this collaboration with Intermountain health.
None: <unk>. Thank you.
None: Okay. So with.
None: With AI.
None: So just two.
None: Read the article that.
Our Chief Medical Officer wrote and.
None: Another one that I wrote in the Forbes.
None: The usage of AI.
None: It seems that right now not only us but other companies in the AI business has like.
None: Engines with really high power, but right now they are because of the implementation and the deployment in the adoption.
Bye bye.
None: By part of the especially the U S. So healthy economy.
None: It's not fast enough.
None: Which will be able to generate more revenues to each one of the institutions, but people are freights from this situation by the way I think that it is right for any almost any other business.
None: Elsewhere, but health is the adoption is slower than the ability to provide the services with respect to the Ccs.
None: <unk>, scoring.
None: Right now.
None: Most of the experience that we have.
None: Is mostly from from spectrum more firm core well, which we gave the.
None: Indications and also from the U K so.
None: If I talk about.
None: I talk about the cardiac care solution.
None: I would say that 60% of the patients in the study.
None: We're undetected previously.
None: With where the risk and finally the.
None: Sure.
With cardiovascular event from the chest as Cds that were not diagnosed.
And.
None: The other one the other experience that we had with a lot of people that were diagnosed one of them by the way it was in the PV.
None: And the media is balanced and Israel.
None: In the UK, which was mainly for the year for the bones for the osteoporosis, but what you can see is that the.
None: Sure.
None: Sure.
None: I think we published.
None: The results of the adapt and the other one in our website.
None: You can take a look at the website and see the indication that we gave when we gave there with them.
None: The number of pay.
None: Patients that were not detected we're not we're.
None: We're not.
Detectors is with them.
With cardiac.
None: Diseases.
None: And I think that this gives an indication of the ability to do.
None: The.
The one that was mentioned with the with respect to the bone solution is with the Oxford University and Asia.
None: This was published that.
None: They have identified up to six more patients.
None: With work about compression fracture than that was indicated in the other <unk> scans that were there.
None: So I think that the AI and what we do is they are getting a lot of attention.
None: And we will provide the more we go into the future we will provide as much as we can because this is under a lot of.
None: Privacy.
None: Our restrictions, but the more we can share with the public and the more of the institution, including by the way Intermountain, which is relatively new.
None: The more they gave us to have the ability to share we will definitely share with the public.
None: Thank you again.
None: Thank you.
None: This concludes today's conference call. Thank you for participating you may now disconnect.
None: Okay.
None: [music].