Q1 2024 Nano-X Imaging Ltd Earnings Call
[music].
Yeah.
Operator: Good day, and thank you for standing by. Welcome to Nano-X's first quarter 2024 earnings conference call. At this time, all participants are in listen-only mode. After this speaker's presentation, there will be a question and answer session. To ask a question during this session, you will need to press star 1 1 on your telephone. You will then hear an automatic message advising that your hand is raised. As a reminder, this conference is being recorded. I would now like to turn the call over to Mike Cavanaugh of Investor Relations. Please go ahead.
Speaker Change: Good day and thank you for standing by welcome to Nasdaq's first quarter 'twenty 'twenty four earnings conference call. At this time, all participants on listen only mode. After the speaker's presentation, there will be a question and answer session.
Speaker Change: Ask a question during the session you will need to pass star one one on your telephone.
Speaker Change: Emil down here, an automated message advising you had this week actually.
Speaker Change: A reminder, this conference is being recorded.
Speaker Change: And I'd like to turn the call over to Mike Kevin of Investor Relations. Please go ahead.
Mike Cavanaugh: Good morning, and thank you for joining us today. Earlier today, Nano-X Imaging Ltd. released financial results for the quarter ended March 31, 2024. The release is currently available on the investor's section of the company's website. Erez Meltzer, Chief Executive Officer, and Ron Daniel, Chief Financial Officer, will host this morning's call. Before we get started, I would like to share some information with participants. First, if you are an institutional investor and would like to schedule a meeting with management or join an upcoming demonstration of the Nano-X Arc system, please contact me at mike.cavanaugh at westwick.com, and we will work to schedule the requested meeting.
Speaker Change: Good morning, and thank you for joining us today.
Speaker Change: Earlier today Nasdaq's imaging limited released financial results for the quarter ended March 31 2024.
Speaker Change: The release is currently available on the investors section of the company's website.
Speaker Change: Erez Meltzer, Chief Executive Officer, and Ron Daniel Chief Financial Officer will host this morning's call.
Mike Cavanaugh: Second, 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. 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. Therefore, the statement should not be relied upon as representing the company's 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 files with the Securities and Exchange Commission.
Speaker Change: Before we get started I would like to share some information with pockets of beds.
Mike Cavanaugh: We will also refer to certain non-GAAP financial measures to provide additional information to investors. 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-Gap Cost of Revenue. Non-Gap Gross Profit. Non-Gap Gross Profit Margin. Non-Gap Research and Development Expenses. Non-GAAP Sales and Marketing Expenses, non-GAAP general and administrative expenses, and non-GAAP gross loss per share.
Speaker Change: First if you are an institutional investor and I would like to schedule, a meeting with management or joining upcoming demonstration of the nasdaq's arc system. Please contact me at Mike Scott Kavanaugh at West Wick Dot com.
Speaker Change: We will work to schedule the requested meeting.
Speaker Change: Second 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.
Speaker Change: Searching development manufacturing and commercialization activities.
Speaker Change: Tori process operations and other matters.
Speaker Change: 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 Change: Therefore, these statements should not be relied upon as representing the companys views as of any subsequent date.
Speaker Change: Factors that may cause such a difference.
Speaker Change: Include but are not limited to those described in the company's files with the Securities and Exchange Commission.
Speaker Change: We will also refer to certain non-GAAP financial measures to provide additional information to investors.
Conciliation 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.
Speaker Change: non-GAAP cost of revenue.
Speaker Change: non-GAAP gross profit.
Speaker Change: non-GAAP gross profit margin.
Speaker Change: non-GAAP research and development expenses.
Speaker Change: non-GAAP sales and marketing expenses.
Speaker Change: non-GAAP general and administrative expenses and non-GAAP gross loss per share.
Mike Cavanaugh: With that said, I'd now like to turn the call over to Erez Meltzer. Thank you.
Speaker Change: With that I'd now like to turn the call over to Erez Meltzer.
Erez I. Meltzer: Thank you for joining us today, and as always, we appreciate your continuing support of Nano-X and our mission as we strive for global health equity via innovation, particularly in medical technology and AI, which we believe is key and can directly impact patient outcomes. We aim to offer a comprehensive solution that connects medical imaging solutions from scan to diagnosis. During this call, we will provide updates on our strategic partnerships, product launches, and market expansion.
Erez I. Meltzer: Thank you for joining us today and as always we appreciate your continuing support of <unk> and our mission.
Erez I. Meltzer: As we strive for a global health equity via innovation, particularly in medical technology, and AI, which we believe is key and can directly impact patient outcomes.
Erez I. Meltzer: We aim to offer a comprehensive solution that connect medical imaging solutions from scan to diagnosis.
Erez I. Meltzer: During this call we will provide updates on our strategic partnerships product launches.
Erez I. Meltzer: We will also discuss our operational achievements. Our CFO, Ran Daniel, will present the financial highlights, and we will conclude with a Q&A session. We look forward to sharing our progress with you and answering questions you may have. Okay.
Erez I. Meltzer: Expansions.
Erez I. Meltzer: We will also discuss our operational achievement.
Erez I. Meltzer: Our CFO Daniel will present, the financial highlights and we will conclude with a Q&A session.
Erez I. Meltzer: We look forward to sharing our progress with you and answer any question you may have let's get started.
Erez I. Meltzer: We have kicked off 2024 with positive momentum, achieving milestones in our U.S. commercialization work, strategic partnership, product launches, and market expansion outside the U.S. In the first quarter of 2024, we continued to make strides in our operational performance. Our key operational metrics reflect our commitment to excellence and our relentless pursuit of our mission to make medical imaging more accessible globally through innovative medical imaging technology. In the U.S., we are continuing with our installation plan.
Erez I. Meltzer: We have kicked off 2024 with a positive momentum achieving milestones in our U S commercialization work strategic partnership product launches and market expansion outside the U S.
Erez I. Meltzer: In the first quarter of 2024.
Erez I. Meltzer: We need to make strides in our operational performance.
Erez I. Meltzer: Our key operational metrics.
Erez I. Meltzer: Select our commitment to excellence.
Erez I. Meltzer: In our rental and that's the pursuit of our mission to make medical imaging more accessible globally.
Erez I. Meltzer: Innovative medical imaging technology.
Erez I. Meltzer: In the U S. We are continuing with our installation plan.
Erez I. Meltzer: As of today, we have about 20 systems in the U.S., of which some have been installed, and several more are in different stages of shipment and deployment. We have manufactured dozens of systems today, and we are confident that we can meet the accelerating demand for Nano-X Arc systems that we are seeing in the U.S. market. Last month, we hosted an in-person live demonstration of the Nano-X Arc system on a patient as part of our investor event at Dynamic Medical Imaging in New Jersey.
Erez I. Meltzer: To date, we have about 20 system in the U S of which some has been installed and several more are in different stages of shipment and deployment.
Erez I. Meltzer: We have many factor doesn't have systems today.
Erez I. Meltzer: And we are confident that we can meet the accelerating demand for non arc systems.
Erez I. Meltzer: We are seeing in the U S market.
Erez I. Meltzer: Last month, we hosted and in personal lives demonstration of dynamics our system on a patient.
Erez I. Meltzer: As part of our Investor event in dynamic medical imaging and New Jersey.
Erez I. Meltzer: Investors witnessed the entire patient scanning workflow with Nano-X Arc and observed the speed and precision of the generated images as well as its clinical utility. Additionally, we presented samples from the ongoing chest clinical trial in Belliston Hospital in Israel and outlined the path to expanded indications in the U.S. outside MSK.
Erez I. Meltzer: Investors witness the.
Erez I. Meltzer: The entire patient scanning workflow with Nellix arc.
Erez I. Meltzer: And observed this.
Erez I. Meltzer: <unk> and precision.
Erez I. Meltzer: The generated images as well as great clinical utility.
Additionally, we presented sample from the undergoing check clinical trial embellished on hospital in Israel and outlined the path to expanded indication in the U S outside amoskeag.
Erez I. Meltzer: As the health care landscape continues to evolve, we are staying ahead of the curve by leveraging our cutting-edge technology and strategic partnerships. Based on current installations, I can share that we recently received initial indication for reimbursement for Nano-X ART at SCAN from a managed care insurance company. On a previous investor call, we discussed the building out of the support and service infrastructure Nano-X ARC users will need as deployment accelerates, specifically the Georgia site at 626 Imaging Academy, which serves as a technical and training center for technicians seeking to be trained on the use of the system.
Erez I. Meltzer: As the healthcare landscape continues to evolve we are staying ahead of the curve by leveraging our cutting edge technology and strategic partnerships.
Erez I. Meltzer: Her current installation I can share that we recently received initial indication for reimbursement for <unk>.
Erez I. Meltzer: Ken.
Erez I. Meltzer: From a managed care insurance company.
Erez I. Meltzer: On our previous Investor call, we discussed the building out of the support and service infrastructure.
Erez I. Meltzer: Our users will need as deployments accelerate.
Erez I. Meltzer: Typically the GA side, 6% to six imaging Academy, which serves as a technical and training center, our technicians speaking to be trained on.
Erez I. Meltzer: The use of the system.
Erez I. Meltzer: Anticipating the need for another vendor beyond 626 to provide installation services, as well as routine servicing of deployed Nano-X Arc systems, we have entered into a third-party agreement with SwissRate. Located in Bridgewater, New Jersey, SwissRay is one of the forefront experts in the area of digital radiography sales for installation, setup, training, and service.
Erez I. Meltzer: Anticipating the need for another vendor beyond six two states to provide installation services as well as the routine servicing of deployed networks. Our system. We have entered into a third party agreement with Swiss re.
Erez I. Meltzer: Located in Bridgewater, New Jersey Swiss rate is one of the forefront expert in the area of interest all of our geography.
Erez I. Meltzer: Sales for installation setup training and service.
Erez I. Meltzer: The agreement covers system installations, user support, troubleshooting, and regular system maintenance. As we continue to expand our footprint on the ground in the U.S., we will constantly evaluate the need for commercial personnel to drive our growth while also closely monitoring the need for service infrastructure to effectively support our advanced Moreover, we have expanded the capabilities of our Nano-X Arc system with the addition of specialized MSK protocols, including protocols for cervical, thoracic, and lumbar spine.
Erez I. Meltzer: The agreement covers systemic installations gives us support troubleshooting and regulatory system maintenance.
Erez I. Meltzer: As we continue to expand our footprint on the ground in the U S. We.
Erez I. Meltzer: We will constantly evaluate the need for a commercial personnel.
Erez I. Meltzer: To drive our growth while also closely monitoring the need for our service infrastructure to effectively support our advancements.
Erez I. Meltzer: Moreover, we have expanded the capabilities of our <unk> arc system or the <unk>.
Erez I. Meltzer: Additional of specialized amoskeag protocols.
Erez I. Meltzer: Including protocols for surgical <unk>.
Erez I. Meltzer: Terrific.
Erez I. Meltzer: In addition to spine imaging, we have also fine-tuned our MSK protocols to include more detailed patient positioning options and Further Enhancement, which will aid healthcare providers in obtaining clearer and more accurate diagnostic images, facilitating better patient outcomes. These new protocols are designed to offer more precise and detailed imaging options, catering specifically to the needs of our customers based on feedback we have received from them. Thanks to our advanced cloud-based architecture, these upgrades have been implemented remotely across all systems without the need for physical modification or on-site visits. This approach significantly reduces service work hours and eliminates the need for travel, bringing efficiency and convenience to healthcare systems.
Erez I. Meltzer: In addition to spine imaging. We are also fine tune our MSP protocols to include more detailed patient positioning options and further enhancements, which will aid health care provider in obtaining clearer and more accurate diagnostic images.
Facilitating better patient outcomes.
Erez I. Meltzer: These new protocols are designed to offer more precise and detailed imaging options catering specifically to the needs of our customers based on feedback.
Erez I. Meltzer: We have received from them.
Erez I. Meltzer: Thanks to our advanced cloud based architecture these upgrades.
Erez I. Meltzer: <unk> implemented remotely across all system without the need of physical.
Erez I. Meltzer: Modification or on site visits.
Erez I. Meltzer: This approach significantly reduces surface work hours and eliminates the need for travel, bringing efficiency and convenience the wildcard still thing.
Erez I. Meltzer: All upgrades have been meticulously performed in alignment with applicable regulatory requirements, ensuring our systems continue to operate within their intended use and safety standards. We are confident that these upgrades will empower healthcare professionals further, elevate diagnosis capabilities, and enhance patient care in all facilities equipped with a NanoRx system. Turning to our deployment efforts outside of the U.S. market, as previously mentioned, we continue to advance our commercial footprint in Africa, Latin America, and Asia.
Erez I. Meltzer: All upgrades has been particular sleeper for an alignment with applicable regulatory requirements, ensuring our system continued to operate within their intended use and safety standards.
Erez I. Meltzer: We are confident.
Erez I. Meltzer: These upgrades will empower healthcare professionals further.
Erez I. Meltzer: Elevate diagnosis capabilities and enhance patient care in old facilities equipped with our system.
Erez I. Meltzer: Turning to our deployment efforts outside of the U S market.
Erez I. Meltzer: As previously mentioned, we continue to advance our commercial footprint in Africa, Latin America and Asia.
Erez I. Meltzer: We have had a unity stall at the University of Ghana Medical Center, UGMC, which has received local regulatory clearance. We have had a footprint in Africa for some time, and we'll continue to push our commercialization there.
Erez I. Meltzer: We have had a unit installed at the University of Medical Center GMC.
Erez I. Meltzer: And which has received local regulatory clearance.
Erez I. Meltzer: We have had a footprint in Africa for some time.
Erez I. Meltzer: And we will continue to price our commercialization there.
Erez I. Meltzer: Furthermore, we are in the process of initiating a clinical trial at UGMC as part of our multi-site clinical trial. In Latin America, we continue to advance our commercial activities with respect to the Nano-X R and Nano-X Connect in Mexico, Peru, and Chile. At a high level, we will extend our geographic footprint as we achieve local regulatory authorization. We also have NanoxConnect operating systems deployed in various countries, including Ghana, Morocco, Cameroon, and Israel. Some of these systems have been paid for upfront, which is referred to as the CAPEX model.
Erez I. Meltzer: Furthermore, we are in the process of initiating a clinical trial of <unk> <unk>.
Erez I. Meltzer: GMC as part of our multi site clinical trial.
Erez I. Meltzer: Latin America, we continue to invest our commercial activities with respect to the <unk> R and <unk> connect in Mexico, Peru and Chile.
Erez I. Meltzer: At a high level, we will extend our geographic footprint as we achieved local regulatory authorizations.
Erez I. Meltzer: We also have announced connect operating system deployed in various countries, including Ghana, Morocco, Cameroon and Israel.
Erez I. Meltzer: Some of these systems have been paid for upfront.
Erez I. Meltzer: Which we refer to as Capex model.
Erez I. Meltzer: Others are operating under the MSTAS model, where we charge per scan, and some are currently being used for demonstration purposes. In our quest to promote healthcare globally, we recently announced our entry into the South Korean market through our collaboration with A-Health-Z, a healthcare distribution company, and SDL Science. A-Health-Z Associated Company, and subsidiary of Global Healthcare Group, SCL, the All Clinic Laboratory. AHELV plans to assist Nano-X in efforts to secure local authorization and licenses, to enable the importation, marketing, and sales of the Nano-X Arc in South Korea, and will also include SEL Science Integrating Nano-X AI solutions.
Erez I. Meltzer: Others.
Erez I. Meltzer: Our operating under the <unk> model, where we charge per scan.
And some are currently being used for demonstration purposes.
Erez I. Meltzer: Additionally, Nano-X Marketplace, a teleradiology services platform that provides remote access to radiology and cardiology experts, will potentially be integrated with SEL Sciences' teleradiology centers in South Korea and other overseas markets. This expansion is a testament to our ongoing efforts and our partners' commitment to bringing comprehensive medical imaging solutions to South Korea. We hope the South Korean collaboration will be a stepping stone into the broader Southeast Asian market for the entire Nano-X product.
Erez I. Meltzer: In our quest to promote health care globally, we have recently announced our entry.
Erez I. Meltzer: The South Korea market.
Erez I. Meltzer: Through our collaboration with <unk>.
Erez I. Meltzer: Healthcare distribution company in SDL science.
Erez I. Meltzer: They have.
Erez I. Meltzer: Escalated company and subsidiary of Global Health Care Group.
Erez I. Meltzer: Spo the clinical laboratory.
Erez I. Meltzer: <unk> plans to assist <unk> and efforts to secure low Carlos organization and licenses.
Erez I. Meltzer: <unk> enables the importation marketing and sales of the <unk>.
Erez I. Meltzer: Arctic in South Korea, and will also include SDL science integrating AI solution.
Erez I. Meltzer: Additionally, Knox marketplace to Terra geology services platform that provides remote access to radiology and cardiology experts will potentially be integrated with SPL Sciences, Teleradiology centers in South Korea, and other overseas market.
Erez I. Meltzer: This expansion is a testament to our ongoing efforts and our partners' commitment to bringing comprehensive medical imaging solutions to South Korea.
Erez I. Meltzer: We hope to South Korea collaboration to be a stepping stone into the broader southeast Asia market for the entire <unk> product suite.
Erez I. Meltzer: Turning to our important AI business segment, Nano-X AI recently signed two agreements. Kovera Health, a leading healthcare technology company, has signed a multi-year contract with Nano-X AI to provide its three advanced AI solutions: Cardiac, Bone, and Liver.
Erez I. Meltzer: Turning to our important AI business segment non.
Erez I. Meltzer: Recently signed two agreements.
Erez I. Meltzer: <unk> health, a leading healthcare technology company has signed a multiyear contract with not.
Erez I. Meltzer: To provide three advanced AI solutions cardiac bone and liver.
Erez I. Meltzer: Povera Health delivers clinically-validated solutions to population health that improve patient outcomes, reduce health care costs, and enhance value-based care by supporting radiologists with technology capabilities that emphasize the improvement of quality and performance. Under these new agreements, Nano-X will deploy the full suite of population health AI algorithms, support the needs of Covera's customers, and we will deploy the population health nanopsy algorithms and, for the first time, commercially installed health FLDs. Health and FDA Clinicians in Detecting Fatty Liver Associated with Metabolic Dysfunction Associated with Theatric Liver Diseases Following FDA Clearance last February
Erez I. Meltzer: So Vera health delivered clinically validated solutions population health.
To improve patient outcomes reduce health care costs and enhance value based care by supporting radiologists with technology capabilities.
Erez I. Meltzer: It emphasizes improvement of quality and performance.
Under this new agreement Nellix will deploy the full suite of population health.
To support the needs of <unk> customers.
Speaker Change: And we will deploy the population health not upside algorithms and for the first time commercially installed held <unk>.
Erez I. Meltzer: Okay.
Erez I. Meltzer: Clinicians in detecting fatty liver associated metabolic.
Erez I. Meltzer: This function associated statutory deliver diseases following FDA clearance.
Erez I. Meltzer: February.
Erez I. Meltzer: The second agreement is a collaboration with New York-based Dandelion Health, a healthcare data platform that focuses on AI analytics, offering healthcare providers accessibility to data with AI insights and aims to bring products to market faster, providing a wealth of multimodal clinical data for healthcare pioneers. Clinical AI precision medicine offers the potential for earlier diagnosis, personalized screening, and prevention strategies, and more effective syrups. Dandelion Health Partners with leading health systems to provide safe, ethical access to build and identify clinical data of unparalleled depth, quality, and diversity, moving to developments in existing partnerships.
Erez I. Meltzer: The second agreement is a collaboration with New York based vendor line Health a health care data platform that focuses on AI analytics offering health care providers extra stability to data with AI insight and aims to bring products to market faster providing.
Erez I. Meltzer: A wealth of multi.
Erez I. Meltzer: Model clinical data for health care pioneered.
Erez I. Meltzer: Clinical AI prestige.
Erez I. Meltzer: And offer the potential for earlier diagnosis personalized screening and prevention strategies.
Erez I. Meltzer: And more effective therapy.
Erez I. Meltzer: The underlying health partners with leading health systems to provide safe ethical access to identify clinical data of unparalleled depth quality and diversity.
Erez I. Meltzer: Okay.
Erez I. Meltzer: Moving to developments in existing partnerships.
Erez I. Meltzer: As part of our cooperation with Colwell, it was reported by Dr. Lankholtz, cardiology specialists who participated in a Society of Cardiac City webinar that by using Nano-X AI Cardiac Solution, core well health significantly increased their ability to detect coronary calcification, and identified nearly 4,000 new patients in 2023 compared to just 268 patients having CAC reported in the previous two years. This data demonstrates the effectiveness of the technology, but the greatest impact is the seamless integration into hospital electronic medical record systems, streamlining the process of incorporating these findings into patient records for improved care and management. On the regulatory front, Nano-X AI recently submitted to the FDA a new version of its cardiac AI solution, LCCNG, which introduces algorithm improvement. Aim at Enhancing Accuracy and View.
Speaker Change: As part of our cooperation with <unk>. It was reported by Dr. Lang holds.
Speaker Change: Cardiologist specialist who participated in our society of cardiac <unk> webinar.
Speaker Change: By using <unk>.
Speaker Change: Now lets AI cardiac solution core wheelhouse significantly increased their ability to detect coronary calcifications identified nearly 4000, new patients in 2023.
Speaker Change: Third to just 268 patients.
Speaker Change: Having CIC are reported in the previous two years.
Speaker Change: This data demonstrates the effectiveness of the technology, but the great impact.
Speaker Change: The seamless integration into hospital electronic medical record systems.
Speaker Change: Streamlining the process of incorporating these findings into patient record for improved care and management.
Speaker Change: On the regulatory front Undocks AI recently submitted to the FDA a new version of the cardiac AI solution helps the CMG.
Speaker Change: Which introduced this algorithm improvement.
Speaker Change: Amy.
Speaker Change: Hansen at Trc.
Erez I. Meltzer: It will also include new features that will improve coronary artery category detection accuracy. We have also been busy integrating our acquisitions of the previous three years, deploying these assets to leverage our core platforms and technology. One example is Second Opinion, which we acquired through our USA Rudd subsidiary. Second Opinion is an online medical platform providing second opinions in a wide variety of medical fields.
Speaker Change: Yes.
Speaker Change: It will also include new features that will improve coronary artery category detection accuracy.
Speaker Change: We have also been busy integrating our acquisitions of the previous three years deploying these assets to leverage our core platforms and technologies.
Speaker Change: One example is second opinion.
Speaker Change: Which we acquired through our USA Rod subsidiary <unk>.
Speaker Change: Second opinion is an online medical dropped for them, providing second opinions and a wide variety of medical fields.
Erez I. Meltzer: This service is provided through the US-Iraq platform and has been available to patients since 2012. Nano-X AI functionality is being embedded in Second Opinion to allow private patients to use artificial intelligence in their second opinion CPA reports, aiming to enhance the early detection of chronic conditions on chest and abdominal CT scans with a short process of registration on the second opinion website, and Second Opinion Service will provide access to the Nano-X population health.
Speaker Change: This service is provided through the USA plus for US and has been available to patients since 2012.
Speaker Change: Non oxeiai functionalities being embedded in second opinions to a low private patients to use artificial intelligence to the second opinion CPA reports aiming to enhance the early detection of chronic conditions on chess and abdominal Citi spend with a short process so far.
Exploration to the second opinion website.
Speaker Change: Second opinions service will provide excess to the amount of.
Erez I. Meltzer: AI solutions that have already received FDA 510K clearance. We expect the Enhanced Second Opinions platform to be launched in a matter of weeks. Earlier this month, we announced that [inaudible] has once again earned the Joint Commission's gold seal of approval for ambulatory health care accreditation. The Joint Commission is a leading accrediting organization in the United States that certifies more than 22,000 healthcare organizations and programs based on the highest standards of patient safety and quality of care.
Speaker Change: Population health.
AI solutions that has already received FDA five 10-K clearance.
Speaker Change: We expect the.
Speaker Change: <unk> second opinions platform to be launched in a matter of weeks.
Speaker Change: Earlier this month.
Speaker Change: We announced.
Speaker Change: The USA rod.
Speaker Change: Once again earned the joint Commission's gold seal of approval.
Speaker Change: Our ambulatory healthcare accreditation.
Speaker Change: The Joint Commission is a leading accreditation organization in the United States that certifies more than 22000 health care organization and programs based on the highest dardar of patient safety and quality of care.
Erez I. Meltzer: Moving on to the production and OEM initiatives, as you know, we have entered into multiple supply agreements with prominent original equipment manufacturers around the world to ensure an adequate supply of high-quality components as we scale our manufacturing of the Nano-X art, and I will share an update on some of these. Our agreement with USA-based Flourish to produce tubes is proceeding according to plan. Tubes design and development continue, with the first prototype and art system integration testing scheduled for this summer.
Speaker Change: Okay.
Speaker Change: Moving onto the production and OEM initiatives as you know we have entered into multiple supply agreements with prominent original equipment manufacturers around the world to ensure an adequate supply of high quality components as we scale our manufacturing of dynamics are.
Speaker Change: And I will share an update on some of these.
Speaker Change: Our agreement with USA base, alright to produce tubes and proceeding according to plan.
Speaker Change: Tubes design and development continues where the first prototype and our system integration testing scheduled for this summer and.
Erez I. Meltzer: In addition to tube development and manufacturing, we continue to explore additional opportunities together. Additionally, we continue to progress with other tube suppliers. We have produced and performed positive functional testing on our first wafers and chips developed in conjunction with Switzerland-based CISCO. We will build hues with system chips in them for testing and validation in the coming weeks.
Speaker Change: In addition to cube development and manufacturing, we continue to explore additional opportunities together.
Speaker Change: Additionally, we continue to progress with other tube suppliers.
Speaker Change: We have produced and perform positive functional testing on our first wafers and chips developed in conjunction with Switzerland based system.
Speaker Change: We will build to use with system chips.
Speaker Change: And then for testing and validation in the coming weeks.
Erez I. Meltzer: We are transitioning our efforts toward process refinement, end-of-the-line testing, and planning for initial production wafer fabrication in the second half of this year, followed up on our collaboration with the U.S. government agency. After their acquisition of our chips and tubes for evaluation, we have received a purchase order to collaborate on a novel tube development program, potentially for non-invasive screening applications. The initial phase of the design and simulation is underway, with component testing set to commence later this year.
Speaker Change: We are transitioning our efforts store process of refinement.
Speaker Change: End of the line testing and planning for initial production wafer fabrication second half of this year.
Speaker Change: Okay.
Speaker Change: Following up on our collaboration with the U S Government agency.
Speaker Change: After their acquisition of our chips and tubes for evaluation. We have received the purchase order to collaborate on a novel Cube development programs potentially for noninvasive screening applications.
Speaker Change: The initial phase of the design and stimulation is underway, which component testing.
Speaker Change: Set to commence later this year.
Erez I. Meltzer: Our previously announced collaboration with the leading global medical technology company is also continuing as planned. We are still in the relatively early stages here, but I can share that they are now in the process of performing design and simulation for the purposes of finalizing a proposal which would enable them to produce tubes for us. As part of their design and production simulation, they did purchase and test our chips, which allowed the Nano-X team to meet them and their design team at their production facility in Europe.
Speaker Change: Our previously announced collaboration with a leading global medical Technology Company is also continuous plan.
Speaker Change: We are still in the relatively early stages here, but I can share that we are now in the process of performing design and stimulation for the purposes of finalizing a proposal, which would enable them to produce chips for us.
Speaker Change: As part of their design and production stimulation, they did purchase and test our chips, which allowed the networks team to meet them and their design team and they're a production facility in Europe.
Erez I. Meltzer: We will share updates as this collaboration moves toward the formal production agreement. We have identified our first few clients to take delivery of our demonstration. As described, the Nano-X demonstration kit, inclusive of the Nano-X chip, cold cathode tube, power supply, and the necessary software to operate the system, has been developed to expose potential partners to our technology and capabilities in a simplified manner.
Speaker Change: We will share updates as this collaboration and moved toward a formal production agreement.
Speaker Change: We have identified our first few clients to take delivery of our demonstration kits.
Speaker Change: As described dynamics demonstration inclusive of non <unk> chip cold cathode tube power supply and the necessary software to operate the system has been developed to expose potential partners through our technology and capabilities in a simplified manner.
Erez I. Meltzer: Now I'd like to provide an update on the clinical aspect. Recognizing the fundamental clinical value of Nano-X Arc system to our future success, we devote substantial effort to conducting clinical trials and creating clinical evidence for broader intended use.
Speaker Change: Now I'd like to provide an update on.
Speaker Change: On the clinical aspects.
Speaker Change: Recognizing the fundamental clinic value of our system to our future success.
We devote substantial effort to conducting clinical trials in.
Speaker Change: And create clinical evidence for a broader intended use.
Erez I. Meltzer: We have three clinical trials, but Shamir Hospital in Israel, Billingson Hospital, and the Ghana Hospital, UGMC, and we are currently working to extend to a fourth facility, a prominent medical institution in Israel. In Ghana, the multi-center trial site is currently well-positioned to start soon.
Speaker Change: To date.
Speaker Change: We have three clinical trial site.
Speaker Change: Shamir Hospital near zero balance on the hospital and the Ghana Hospital Youll GMC and we're currently working to expand to a fourth facility at prominent medical institution in Israel.
Speaker Change: In Ghana, the Multicenter trial site is currently well positioned to start soon.
Erez I. Meltzer: The trial has received local IRB approval and is currently under the review of the Ghana FDA; the Nano-R system that will be used in the trial is now actively scanning patients. I would also like to share some real-world feedback on the value of Nano-X technology. In a recent review with our clinical collaboration at Shamir Hospital and Beilinson Hospital in Israel, we observed the significant impact our Nano-X Arc system can have on the daily routines of radiologists and referring clinicians.
Speaker Change: The trial has received local IRB approval and currently under the review of the FDA.
Our system that will be used in the trial is now actively scanning patients.
Speaker Change: I would like also to share some real world feedback on the value of economics technology.
Speaker Change: In a recent review with our clinical collaborations at Shamir Hospital and believes in our hospital in Israel, we observed the significant impact.
Speaker Change: Our announced oryx system can have on the daily routines of radiology and referring clinicians.
Erez I. Meltzer: A Nano-X art system added valuable information to regular X-rays in almost all reviewed studies, showing excellent results for lung module detection, visualization of fractures that are hard to see on a standard radiograph, and Accurate Localization of Fractals.
Alex: And Alex our system added valuable information to regular X Ray.
Alex: Almost all reviewed studies showing excellent results for logging module detection visualization of structures that are hard to see on our standards of our geography.
Alex: And accurate localization of Rockford.
Erez I. Meltzer: We look forward to sharing these results with the clinical and scientific community, at a top coming medical conference. Speaking of Bailingston Hospital, the chest trial being run there is well underway. We have already scanned more than a dozen chest patients, and initial results are promising. As I just mentioned, we hope to be able to share data from this study at some upcoming medical industry conference. In addition, Beilinson has been formally integrated into the Multi-Center Trial as the first site, and the trial is now actively recruiting with additional referring departments being added to the trial, mainly orthopedics and internal wards.
Alex: We look forward to sharing these results with a clinical and scientific community.
Alex: At upcoming medical conferences.
Alex: Speaking of balanced on hospital, the chest trial being run there is.
Alex: He is well underway.
Alex: We have already scan more than a dozen patients and initial results are promising.
Alex: As I just mentioned, we hope to be able to share data from this study in some upcoming medical industry conferences.
Alex: In addition daily.
Speaker Change: <unk> has been formally integrated into the multicenter trial is the first site and the trial is now actively recruiting with additional referring departments are being added to the trial, mainly arts of boutiques and internal words.
Erez I. Meltzer: I would like to take a moment to share that we have fortified our group of advisors and key opinion leaders with the addition of Dr. Greg Kishkin. Dr. Kishka is a cardiothoracic radiologist with a Ph. D. in biochemistry. Dr. Kishkan embarked on a career at the University of Washington in the Cardiothoracic Imaging Division. During his 12-year tenure at UW, he was awarded a grant from GE to study the clinical application of chest thomasin.
I would like to take a moment to share that we have fortified our group of advisors and key opinion leaders with the addition of Dr. Greg Kitchener.
Speaker Change: Dr <unk>.
Speaker Change: Is the card deal.
Speaker Change: So Robert Radiologists with a Phd.
Speaker Change: In biochemistry.
Speaker Change: Dr. Keisha embarked on a career at the University of Washington.
Speaker Change: In the carrier Cirrhotic imaging division during his 12 years of tenure.
Speaker Change: <unk> was awarded a grant from GE to study the clinical application of chest.
Speaker Change: Just from a simplicity.
Erez I. Meltzer: Dr. Kishke's clinical expertise included imaging diseases of the chest, heart, and blood vessels with specialized training in cardiac MRI and cardiac CT. His research on digital tests, tonal synthesis, explores the unique... Advantages of these Hybrid Imaging Methods.
Speaker Change: Dr. <unk> clinical expertise included imaging diseases of the chest heart and blood vessels with specialized training in cardiac MRI and cardiac <unk>.
Speaker Change: Research on digital test Thomaston explore the unique.
Advantages of these hybrid imaging method.
Erez I. Meltzer: We are excited to welcome Dr. Kischke to the Nano-X family and look forward to a productive collaboration. Turning to our regulatory efforts, we recently received an ISO 13485 Certificate for the Quality Management System of the Division from BSI. We completed this important step during the core quarter as we continue to work with our notified body to secure CMR designation. I believe the diverse areas of development across multiple geographies and business segments I was able to share today underscore our commitment to making our innovative medical imaging technology accessible to healthcare providers and patients worldwide.
Speaker Change: We are excited to welcome Dr. Keith just towards the non externally and look forward to a productive collaboration.
Speaker Change: Turning to our regulated regulatory efforts, we have recently received.
Speaker Change: And <unk> 13 for 185 certificate for the quality management system of the division from BSI.
Speaker Change: We completed this important step.
Speaker Change: During the quarter as we continue to work with our notified body to secure CE Mark designation.
Speaker Change: I believe the diverse area for development across multiple geographies.
Speaker Change: And business segments, I was able to share today underscore our commitment to making our innovative medical imaging technology accessible to healthcare providers and patients worldwide.
Erez I. Meltzer: In summary, the first quarter of 2024 has been a period of significant growth and progress for Nano. We are excited about the opportunities ahead and look forward to sharing more updates in the coming months. I will now turn the call over to Ran Daniel, our Chief Financial Officer.
Speaker Change: In summary, the first quarter of 2024 has been a period of significant growth and progress for non ops. We are excited about the opportunities ahead and look forward to sharing more updates in the coming months.
Ran Daniel: Thank you, Erez. We reported a government loss for the first quarter of 2024 of $12.2 million, which I'll refer to as the reported period, compared with a net loss of $11.8 million in the first quarter of 2023, which I'll refer to as the comparable period. The increase was largely due to a one-time income that was recorded in the comparable period due to a decrease in the company's earnings liabilities in the amount of $4.7 million and a decrease in gross profit in the amount of $0.5 million, which was offset by a decrease of $1.1 million in research and development expenses and a decrease of $0.4 million in sales and marketing expenses.
Speaker Change: I will now turn the call over to ran <unk> Chief Financial Officer.
Speaker Change: Thank you Erin we reported a GAAP net loss for the first quarter of 2024 of 12 point Tony in Chile.
Speaker Change: Trial referred to as the reported period compared with a net loss of $11 8 million in the first quarter of 2023, which I'll refer to as the comparable period. The increase was largely due to a one time income that was recorded in the comparable period due to a decrease in the companies that are now live.
Speaker Change: And that model.
Speaker Change: $12 7 million.
Speaker Change: And a decrease in the gross profit in the amount of zero point $5 million.
Speaker Change: Which was offset by a decrease of $1 1 million in the research and development expenses, a decrease of zero point for being involved in the sales and marketing expenses.
Ran Daniel: $2.8 million in general and administrative expenses, an increase of $0.4 in the company's financial income. Revenue for the reported period was $2.6 million, and the gross loss was $2.0 million on a gap basis compared to $2.4 million and a gross loss of $1.45 million on a gap basis for the comparable period. Non-gap gross profit for the reported period was $0.6 million as compared to $1.0 million in the comparable period, which represents a gross profit margin of approximately 22% on a non-gap basis for the reported period as compared to 43% on a non-gap basis in the comparable period.
Speaker Change: Two 8 million general and administrative expenses, an increase of zero point for in the company's financial income.
Speaker Change: Our revenue for the reported period was $2 6 million.
While two point million below on a GAAP basis, compared to $2 4 million and a gross loss of $1 45.
Speaker Change: $5 million on the government basis for the comparable period.
Speaker Change: non-GAAP gross profit for the reported period.
Speaker Change: $6 million as compared to 1.0.
Speaker Change: In the comparable period, which represents a gross profit margin of approximately 22% on a non-GAAP basis for the reported period as compared to 43% on a non-GAAP basis in the comparable period.
Ran Daniel: Revenue from the teleradiology services for both the reported period and the comparable period was $2.4 million, with a gross profit of $0.3 million on a GAFA basis in the reported period, as compared to a gross profit of $0.5 million on a GAFA basis in the comparable period, which represents a gross profit margin of approximately 14% on a GAFA basis for the reported period, as compared to 21% on a GAFA basis in Non-GAFA gross profit of the company's teleradiology services for the reported period was $0.9 million, as compared to $1.1 million in the comparable period, which represents a gross profit margin of approximately 37% on a non-GAFA basis for the reported period, as compared to 44% on a non-GAFA basis in the comparable period.
Speaker Change: Revenue from the Teleradiology services for both the reported period and comparable period was $2 $4 million with a gross profit of zero point $3 million on the Gulf of basically in the reported period as compared to a gross profit of <unk> $5 million on the Gulf of basis.
Speaker Change: Comparable period, which represents the gross profit margin of approximately 14% on a GAAP basis for the reported period as compared to 21% on a GAAP basis in the comparable period non-GAAP gross profit of the company to tell of a geologist services for the report.
Speaker Change: What does your $9 million as compared to $1 $1 million in the comparable period, which represents a gross profit margin of approximately 77% on a non-GAAP basis.
Speaker Change: For the reported period as compared to 44% on a non-GAAP basis in the comparable period. The decrease in the gross profit margins on a GAAP and non-GAAP basis, mainly due to inventory in the cost of their companies about geology due to the increase in there with rates doing the overnight and we can ship.
Ran Daniel: The decrease in the gross profit margins on a GAFA and non-GAFA basis is mainly due to an increase in the cost of the company's radiologists due to an increase in the read rates during the overnight and weekend shifts. During the reported period, the company generated revenue through the sale of its AI solutions for an amount of $97,000, as compared to revenue of $49,000 in the comparable period. As noted previously, during the first quarter of 2024, Nano-X AI licensed its LCCS cardiac solution to Intermountain for an annual fee of $8,500 during the first year of the engagement and an annual fee of $75,000 on the first anniversary of the engagement.
Speaker Change: Okay.
During the reported periods the company generated revenues for the first of its AI solutions in the amount of $97000.
Speaker Change: As compared to revenue of $49000 in the comparable period as noted previously during the first quarter of 2024, gnomic VIII licensee F. Tcs cardiac solution to Intermountain for an annual fee.
$5000.
Speaker Change: During the first year of the engagement and an annual fee of $75000.
Speaker Change: The first anniversary of the engagement and after.
Ran Daniel: During the second quarter of 2024, Nano-X AI entered into a three-year contract to license its three advanced AI solutions, Cardiac, Bones, and Liver, for an annual base fee of $50,000. During the reported period, the company generated revenues from the sale and deployment of its imaging systems, which amounted to $46,000 with a gross loss of $387,000 on a gap and non-gap basis. Those revenues stem from the sales and deployment of Nano-X R systems in the U.S. and the sales of our 2D systems in Africa.
Speaker Change: During the second quarter of 2024 networks I entered into a three year.
Speaker Change: Contract to licensee.
Speaker Change: <unk> AI solution cardiac bump and lever for an annual base fee of $50000.
Speaker Change: During the reported periods the company generate revenue through the sale and deployment.
Speaker Change: <unk> system, which amounted to $46000 with the gross local 397.
Speaker Change: <unk> dollars on a GAAP and non-GAAP basis, those revenues from the sales and deployment of dynamics our system.
Speaker Change: And the terms of our.
Speaker Change: Two of these systems in Africa.
Ran Daniel: Research and development expenses for the reported period were $5.2 million, as compared to $6.3 million in the comparable period. The decrease of $1.1 million was mainly due to a research grant of $0.9 million that was received in connection with the NHS AX project. [inaudible] Sales and marketing expenses for the reported period were $0.8 million, as compared to $1.2 million in the comparable period. The decrease was mainly due to a decrease in expenses related to our sales and marketing activities.
Speaker Change: Research and development expenses for the reported period were $5 2 million as.
Speaker Change: Compared to $6 $3 million the comparable period.
Speaker Change: Picked up $1 1 billion.
Was mainly due to a research grant.
Speaker Change: <unk> 9 million thats about to be physically connection with the NHS.
Speaker Change: Project decreased zero point doing in salaries and wages the equator.
Speaker Change: 0.2 in share based compensation, which was offset by an increase of 0.4 million blog and the expenses related to our research and development and regulatory execution.
Speaker Change: Sales and marketing expenses for the reporting period.
Speaker Change: Zero point $8 million.
Speaker Change: As compared to $1 $2 million in the comparable period. The decrease was mainly due to a decrease in expenses related to our sale and marketing activity.
Ran Daniel: General and administrative expenses for the reported period were $5.0 million, as compared to $7.8 million in the comparable period. The decrease of $2.8 million was mainly due to a decrease in our legal expenses in the amount of $2.2 million, largely as a result of the finalization of the SEC investigation and the settlement of the tax action, and it decreased the cost of directors and officers of the Billings Insurance Payment by $0.4 million.
Speaker Change: General and administrative expenses for the report.
Speaker Change: Reported periods were five point of view.
Speaker Change: As compared to $7 $8 million in the comparable period.
Speaker Change: The decrease of $2 8 million, mainly due to a decrease in our legal expenses in the amount of $2 $2 million largely as a result of the finalization of the FCC investigation and the settlement of the class action and a decrease in the cocoa and directors' and officers' liability insurance chemo in the amount of <unk> 4 million.
Ran Daniel: Turning to our balance sheet, as of March 31st, 2024, we had cash, cash equivalents, restricted deposits, and marketable securities of approximately $73.3 million, plus a $3.3 million loan from a bank. We ended the first quarter of 2024 with a property and equipment net of $42.7 million. As of March 31st, 2024, we had approximately 57.8 million shares outstanding.
Speaker Change: Turning to our balance sheet as of March 31, 2024, we had cash cash equivalents restricted deposits and marketable securities of approximately $73 3 million and $3 $3 million loan from <unk> Bank.
Speaker Change: We ended the first quarter of 2024, with our property and equipment net of $42 7 million.
Speaker Change: As of March 31, 2024, we had approximately 57 8 million shares outstanding.
Erez I. Meltzer: With that, I will hand the call back over to Erez.
Speaker Change: With that I will end the call back over to Eric.
Erez I. Meltzer: I want to thank you all once again for joining us on our call today and your continued support of Nano. As stated, the first quarter of 2024 was one of the strongest periods of commercial progress. This progress was not confined solely to the deployment of the Nano-X Rx system. We now have several Connect systems deployed, and some are generating revenue. Regarding Nano-X AI, we are proceeding with a pipeline of current and new product applications upgrades, and we continue to generate revenues and gain adoption from healthcare providers worldwide.
Eric: I want to thank you all once again for joining us on our call today.
Speaker Change: <unk> continued to support us.
Speaker Change: As stated the first quarter of 2020, Florida was one of the strong commercial progress.
Speaker Change: This progress was not confined solely to the deployment of Danone ups. Our system. We now have several connect system.
Speaker Change: Lloyd and some are generating revenues.
Speaker Change: <unk> none of CDI, we are proceeding with a pipeline of current and new product applications upgrades.
Speaker Change: We need to generate revenues and <unk> adoption helped.
Erez I. Meltzer: As always, we welcome your comments and are always available to meet with investors. Thanks again for your time today. That concludes our prepared remarks. Operator, please open the call for questions. Ladies and gentlemen, do you have a question?
Speaker Change: Health care providers worldwide as always we will look at your comments and are always available to meet with investors.
Speaker Change: Thanks again for your time today that concludes our prepared remarks.
Speaker Change: Operator, please open the call for questions.
Operator: Thank you. Ladies and gentlemen, to ask a question, you will need to press star 1-1 on your telephone and wait for your name to be announced. To withdraw your question, simply press star 1 1 again. Please stand by while we compile the Q&A roster. And our first question comes from the line of Ross Osborn.
Speaker Change: Thank you, ladies and gentlemen to ask a question you will need to press star one on your telephone and we're planning to be announced switch all your question simply press Star One again, please standby, while we compile the Q&A roster.
Speaker Change: And our first question coming from the line of Ross Osborne with Cantor Fitzgerald. Your line is now open.
Ross Everett Osborn: Hi guys. Thanks for taking our questions. So starting off, you mentioned 20 systems in the U.S. at some stage of commercialization. How many of those were placed and were being used during the quarter? How many? Yes, of the 20, as we've said, some have been imported but are not necessarily active. So just trying to, you know, update our model properly for the first quarter in terms of those 20 systems that were actually being used during the quarter and more. Thank you.
Ross Everett Osborn: Hi, guys. Thanks for taking our questions. So let's.
Ross Everett Osborn: Starting off you mentioned 20 systems and are you at some stage of commercialization how many of those were placed in being used kind of quarter.
Ross Everett Osborn: How many.
Ross Everett Osborn: Yes.
Speaker Change: Ladies had some had been imported about not necessarily active.
Speaker Change: So just trying to you know.
Speaker Change: Update our model properly for the first quarter in terms of 2000 and systems that are actually being used during the quarter.
Speaker Change: Hi, Rob.
Speaker Change: Okay.
Please.
Speaker Change: Okay.
Erez I. Meltzer: Ross, as to your question, as of date, there are approximately 20 units, but as of March 31st, we had already 13 of those 20 already installed. So I hope that
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: As for your question.
Speaker Change: Dave.
Speaker Change: Approximately 20 units.
Speaker Change: But as of March 31, we had already 13 of those weren't there I mean, though.
Speaker Change: So I hope that answers your question.
Erez I. Meltzer: Yes, that's very helpful. There may be additional points,
Dave: Yes, that's very helpful.
Speaker Change: Then breaking targeting.
Erez I. Meltzer: Basically, this is making progress, on an almost daily or weekly basis, as we have already mentioned that we have dozens in the sales pipeline, and when I mean dozens, it's not one or two or three dozens, but by far more. And another point that should be mentioned that we are, in fact, installing today, one of the national radiology providers, the first system. This is basically going forward on a weekly basis and being updated. Great. Glad to hear that, and very helpful as well.
Speaker Change: Let's maybe additional that point.
Speaker Change: Basically this is making progress on that.
Yes.
Speaker Change: Daily or weekly basis.
Net.
Speaker Change: And we already mentioned that we have that.
Speaker Change: <unk>.
Speaker Change: In the sales pipeline and what it means.
Speaker Change: One or two or three dozen base far more.
And.
Speaker Change: Another.
Speaker Change: Point that could be mentioned that we are in fact, starting today.
Speaker Change: It's one of the national radiology providers.
Speaker Change: The first system so.
Speaker Change: This is basically growing.
Speaker Change: On a marina, which we basis.
Speaker Change: Any update.
Erez I. Meltzer: And then maybe just switching to the utilization levels. During the fourth quarter call, you were saying that you were seeing initial scans of about seven per day. Would you say that was consistent for the duration of the first quarter? And have you seen that uptick?
Speaker Change: Great glad to hear that.
Speaker Change: Very helpful as well.
Speaker Change: And then maybe just switching to the utilization levels. During the fourth quarter call you were saying that you're seeing on Michelle stands at about seven per day.
Speaker Change: Would you say that was consistent for the duration of the first quarter and have you seen that uptick any.
Speaker Change: Given take yes.
Erez I. Meltzer: Yeah, but don't forget, it's too early to call. We're still in the midst of the soft launch, so we'll make all the conclusions once we conclude this phase.
Speaker Change: Yes, but don't forget it's too early to call and we're still in the midst of the soft launch so we'll do all the conclusions.
Speaker Change: We concluded phase of the deployment.
Erez I. Meltzer: Okay. And one other indication that I'm referring to, an item that I mentioned during the call, is that the more clinical protocols that we are adding, we see more scans per day. For example, the spine that we edit and the fact that we can do it online without the necessity to go onsite and the fact that we have the initial reimbursement. Each one of these components, the clinical intended use, even sometimes the incidental findings that we have that we talked about, and we'll talk further, these are, each one of them is adding to the number of scans more and more. Yeah,
Speaker Change: Okay.
Speaker Change: On other indications.
Speaker Change: <unk> debt.
Okay.
Speaker Change: I am referring to awhile items.
Speaker Change: Adam.
Speaker Change: During the call is that the more clinical protocols that we're adding.
Speaker Change: We see.
Speaker Change: Sure.
<unk>.
Speaker Change: For example.
Speaker Change: Our spine that we added and the fact that we can do it online without the necessity to go to.
Speaker Change: Two more sites and the fact that.
Speaker Change: We have the initial reimbursement each one of these components the clinical.
Speaker Change: Did you even sometimes.
Speaker Change: Incidental findings.
Speaker Change: But we have that we've talked about and we will talk further.
Speaker Change: Each one of them is adding to the.
Speaker Change: So the number of skins.
Erez I. Meltzer: In essence, you can see it as a chain of reactions that start from the clinical data that we accumulate and enhance and extend the commercial use of the machine.
Speaker Change: More and more.
Speaker Change: In essence, you can see that the channel reactions that starts from the clinical data that we accumulate then.
Speaker Change: And then spend extent.
Speaker Change: The commercial use of the machine.
Ross Everett Osborn: Got it. That makes perfect sense. Thanks for taking our questions and congrats on the progress.
Speaker Change: Got it that makes perfect sense, thanks for taking our questions and congrats on the progress.
Speaker Change: <unk>.
Speaker Change: Thank you.
Operator: And as a reminder, ladies and gentlemen, to ask a question, please press star 1, 1. And our next question comes from the line of Jeff Cohen with Latin.
Speaker Change: And gentlemen, ladies and gentlemen to ask a question. Please press star one line.
Speaker Change: And our next question coming from the line of Jeff Cohen with Ladenburg Thalmann. Your line is now open.
Jeffrey Scott Cohen: Oh, good morning, Erez.
Jeffrey Scott Cohen: Hey, good morning, Eric.
Eric: How are you.
Erez I. Meltzer: Hi. Hey, good morning, Jeff. So...
Yes.
Jeffrey Scott Cohen: So just a few questions on our end. I guess firstly, you talked about two other programs. Can you elaborate a little further as far as your comment about it being non-invasive? Is it similar to your current platform, or what may be
Joe: Hey, good morning, Joe.
So just a few questions on our end just firstly you talked about.
Speaker Change: Another two program can you elaborate a little further as far as your comment about it being non invasive is it similar to your current platform or what may be the difference.
Joe: Yeah.
Jeffrey Scott Cohen: I'm not sure I got the question.
Im not sure I got the question.
Jeffrey Scott Cohen: Are you referring to the tubes? Yes.
Speaker Change: Are you referring about the tubes.
Erez I. Meltzer: So basically, we have indicated that we will have three suppliers for the tubes right now, and we may cooperate with other players in the future. The first one is, of course, what we do in Nano-X Korea. We spoke about the Italian, We spoke about the future and the intense and very broad cooperation that we have with Varex, and we already have the final design. This will actually be a very broad technological breakthrough that will come in the future.
Speaker Change: Yes.
Speaker Change: Okay.
Speaker Change: So so basically what we have indicated that we will have.
Speaker Change: Three suppliers for the tubes.
Speaker Change: Right now.
Speaker Change: We may cooperate on other layer.
Speaker Change: Players in the future.
First one is of course, what we do it in Korea, we spoke about the Italian <unk>.
Speaker Change: <unk>.
Speaker Change: We spoke about.
Speaker Change: Future.
Speaker Change: Intense.
Speaker Change: Very broad cooperation that we have with <unk>.
Speaker Change: That we have already begun the final design.
This will actually be a very broad.
Speaker Change: Allergy breakthroughs that will come.
Erez I. Meltzer: And we always spoke about our OEM business. We spoke about the U.S. National Laboratory that we spoke about, and we spoke about another layer in the medical imaging industry that might and currently has an interest in our tubes. So, all of them basically are expanding our tube availability and tube installation in our
In the future.
Speaker Change: We only spoke about our OEM business.
Speaker Change: We spoke about.
Speaker Change: English National Laboratory.
Speaker Change: We spoke about <unk>.
Speaker Change: Spoke about another layer in the medical imaging industry.
Speaker Change: Mike and has currently interesting our cubes so.
Speaker Change: All of that basically are expanding our view.
Speaker Change: Availability in June.
Speaker Change: Installation in our systems.
Jeffrey Scott Cohen: Got it. Okay. Next, could you talk about the Second Opinion Service and where or when you might launch that, and would that be cash only, as in not reimbursed by payers, and any specific data on that front would be helpful.
Speaker Change: Got it Okay next week could you talk about the R. The.
Speaker Change: Second opinion service and where.
Speaker Change: Or when you may launch and would that be cash owners.
Speaker Change: Not reimbursed by payers and any specific data on that front would be helpful.
Erez I. Meltzer: So, in fact, it's being used right now. We are expanding these services to be available in other states. This is initially based on the technology and the platform that we have, first of all, integrated with the acquisition of USA RAD and the Marketplace MBW that we did, and we build upon it the availability of other players. So, right now, it's operating, and we are planning to expand its generated revenues, and it's part of what the U.S. is around offering as a service offering.
Speaker Change: So in fact, its been gears right now we are extending our services to be.
Speaker Change: To be available.
Speaker Change: The other states.
Speaker Change: Additionally, based on the technology and that lasts for a bit.
Speaker Change: First of all integrated with the acquisition of say USA rod in the marketplace and BW that.
Speaker Change: And we build upon our products.
Speaker Change: Other.
Speaker Change: Players so.
Speaker Change: Right now the operating debt, we are planning to expand to generate revenues.
Speaker Change: And.
Speaker Change: It's part of what to use.
Speaker Change: Great.
Jeffrey Scott Cohen: Service offering currently, right? Got it. Okay. It does not depend on reimbursement. Yeah. And it's paid in cash. And we are adding AI capabilities to these services as well. Okay, got it. And then lastly for us, we've been doing some work on medical analytics regarding spine, skeletal, and orthopedics. So could you talk about your platform versus CT straight up and the ability to transfer files directly into Analytic Software?
Speaker Change: Certainly service offerings currently right now.
Speaker Change: Got it Okay and then.
Speaker Change: Yes.
Speaker Change: It does not depend on me.
Speaker Change: Reimbursement.
Speaker Change: Yes.
Speaker Change: It's paid in cash and we are adding.
Speaker Change: AI capabilities to the.
Speaker Change: To be exact services as well.
Speaker Change: Okay got it and then lastly for US who have been doing some work on medical analytics.
Speaker Change: Regarding spine skeletal orthopedics, so could you talk a barrel.
Speaker Change: Your platform versus Cte straight up and the ability to transfer files directly into.
Speaker Change: Sure.
Speaker Change: Analytic software.
Speaker Change: Sure.
Speaker Change: I'm not sure I got the question.
Speaker Change: For a company the Hudson.
Speaker Change: Input of Cts versus Nasdaq's imaging.
Speaker Change: Could one be substituted for the other and could you compare and contrast, perhaps the capabilities amongst the skeletal system.
Speaker Change: So first of all this is.
Speaker Change: This is an area that we are going to elaborate.
Speaker Change: Or and lowering the foreseeable.
Speaker Change: In the coming months.
Speaker Change: Because <unk>.
Speaker Change: Based on the.
Speaker Change: Based on the various clinical trials that can we view and based on the.
Speaker Change: <unk>.
Speaker Change: First installations that we have together a lot of a lot of clinical data.
Speaker Change: Based on this <unk>.
Speaker Change: And so regionally stock.
Speaker Change: And plan.
Speaker Change: We would like to do is to be as close as the.
Speaker Change: As the value that <unk> is providing.
Speaker Change: As more and more and more.
Speaker Change: Turning to use our political.
Speaker Change: In Chile.
Speaker Change: We bring them, we'll be able to add value for the.
Speaker Change: The users what.
Speaker Change: What we see right now.
Speaker Change: Lots and lots of freight.
Speaker Change: Indications.
Speaker Change: Yes.
Speaker Change: Our offerings.
Speaker Change: Basically we are in many ways changing standards of care.
Speaker Change: It's something that we are adding that value by far more than the X ray.
Speaker Change: <unk> is providing buy very close to the city.
We can talk about examples currently looked up curve.
Speaker Change: It later.
Speaker Change: The answer is definitely trying to do as much as we can.
Speaker Change: Yes.
With our.
Speaker Change: Equipment.
Speaker Change: It will enable to.
Speaker Change: A lot of the CPE.
Speaker Change: And then with US as we go forward.
Speaker Change: Got it Super helpful. Thanks for taking our questions.
Speaker Change: Thank you.
Jim: Thank you Jim.
Speaker Change: Thank you.
Speaker Change: And that is all the time, we have for questions. Today I will now hand, the conference back to Mr. Erez Milton for any closing remarks.
Jeffrey Scott Cohen: I'm not sure I got the question.
Jeffrey Scott Cohen: for a company that has been, comparing CTs versus Nano-X Imaging. Could one be substituted for the other, and could you compare and contrast, perhaps, the capabilities amongst the skeletal?
Speaker Change: No.
Erez I. Meltzer: Thank you all.
Erez Milton: Sure.
Speaker Change: Giving the time to listen to the progress we have made.
Erez Milton: Made.
Erez Milton: As you all know we are putting a lot of efforts.
Erez Milton: Area.
Speaker Change: Commercial which we make a lot of progress that we'll continue to update as we move forward.
Erez Milton: One of the amazing.
Speaker Change: The findings or the.
Speaker Change: The progress that we've made is something that we've put a lot of efforts and dedication that this is the clinical.
Erez I. Meltzer: So first of all, this is an area that we are going to elaborate on more and more in the foreseeable months. Because based on the various clinical trials that we do and based on the first installations that we have, we gather a lot of clinical data. Based on this, its original thought..., and plan, what we would like to do is to be as close to the value that the CT is providing, but more and more, an intended use or clinical and QA type that we bring will be able to add value to users.
Speaker Change: Evidence of this.
Erez I. Meltzer: What we see right now is a lot of great indications that our offering can basically, we are in many ways changing standards of care, is something that we are adding value by far, more than the X-ray, the regular X-ray is providing, but very close to CT. And, you know, we can talk about examples, probably we'll talk about it later, but the answer is definitely trying to do as much as we can, with with our equipment, it will enable to replace a lot of the CP invented use as we go forward.
Jeffrey Scott Cohen: Got it. Super helpful. Thanks for taking our questions. Thank you.
Speaker Change: It's coming from.
Jeffrey Scott Cohen: Thank you, Jeffrey. Thank you, Jeff.
Operator: And that is all the time we have for questions today. I will now hand the conference back to Mr. Erez Meltzer for any closing remarks.
Speaker Change: Clinical trials as well as the.
Erez I. Meltzer: So thank you all for making the time to listen to the progress that we have made. As you all know, we are putting a lot of effort into three areas, commercial, which we have made a lot of progress on and will continue to update as we move forward. One of the amazing findings or the progress that we made is something that we put a lot of effort and dedication into, and this is the clinical evidence.
Speaker Change: Initial indications for the deployed their systems and last but not least I would say that technology breakthrough that we are at.
Erez I. Meltzer: This is coming from the clinical trials, as well as the initial indications for the deployed systems. And last but not least, I would say the technological breakthroughs that we are adding to the product roadmap for the future, a lot of the lessons learned from the process. We are, of course, making all the necessary steps in order to ensure that the regulatory environment will be the same and to ensure that our promised premise that software, namely AI, and hardware will be the basis of our contract conceptual offering from the end-to-end solution.
Speaker Change: Adding to the product roadmap for the future a lot of the lessons learned from the process.
We are of course, they keep all the necessary step in order to ensure that the regulatory will be the same at to ensure.
Speaker Change: Promised I missed that.
Software.
Speaker Change: AI and hardware will be the basis up for a good chunk of conceptual outbreak from the end to end solution.
Erez I. Meltzer: I would say that every week we are making progress. Today we received a few new orders, and an indication of the time that we're going to install the first system in Mexico has been given. We received another purchase order from the Philippines, so we are expanding on a global basis, and this will be something that will be shared as we move forward more and more.
Speaker Change: I would say that.
Speaker Change: Every week, we are making progress.
Speaker Change: Today, we received a few orders.
Speaker Change: And then vacation now takes time, but were going to install the first system in Mexico has indicated.
Speaker Change: We received another.
Speaker Change: Purchase order from Philippines. So we are expanding on a global basis and this will be something that.
Speaker Change: Will be shared as we move forward.
Speaker Change: More on board thanks.
Speaker Change: Well and has a great day.
Operator: This concludes today's conference. Thank you for your participation, and you may now disconnect.
Speaker Change: This concludes today's conference. Thank you for your participation and you may now disconnect.
Okay.
Speaker Change: [music].
Speaker Change: Yeah.
Speaker Change: Yeah.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: [music].
Speaker Change: Okay.
Speaker Change: Yes.