Q4 2024 Nano-X Imaging Ltd Earnings Call
Speaker Change: Good day and thank you for standing by. Welcome to the Nano-X 4th quarter 2024 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. To ask a question during the session, you'll need to press star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 1-1 again.
Please be advised that today's conference is being recorded.
Speaker Change: I would now like to hand the conference over to Mike Cavanaugh, Investor Relations. Please go ahead.
Speaker Change: Thank you for joining us today. Earlier today, Nano-X Imaging Limited released financial results for the quarter-ended December 31, 2024.
Speaker Change: The release is currently available on the Investors section of the company's website.
Speaker Change: With me today are Erez Meltzer, Chief Executive Officer and Acting Chairman, and Ran Daniel, Chief Financial Officer.
Speaker Change: Before we get started, I would like to remind everyone that management will be making statements during this call, that include forward-looking statements regarding the company's financial results, research and development, manufacturing and commercialization activities, regulatory process and clinical activities, and other matters.
Speaker Change: These statements are subject to risks on certain fees and assumptions that are based on management's current expectations as of today and may not be updated in the future.
Speaker Change: Therefore, the statement should not be relied upon as representing the company's views as of any subsequent date.
Speaker Change: Factors that may cause such a difference include but are not limited to those described in the company's filings with the Securities and Exchange Commission.
Speaker Change: We will also refer to certain non-GAAP financial measures to provide additional information to investors.
Speaker Change: non-GAAP Cost of Revenue, non-GAAP Gross Profit, non-GAAP Gross Profit Margin, non-GAAP Research and Development Expenses, non-GAAP Sales and Marketing Expenses.
Speaker Change: non-GAAP General and Administrative Expenses and non-GAAP Gross Loss Per Share.
Speaker Change: With that, I'd now like to turn the call over to Erez Meltzer.
Erez Meltzer: Thank you, Mike. Thank you for joining us today for our financial result call. As always, we appreciate your continuous support of Nano-X Imaging.
Erez Meltzer: During our call today, I will use my preferred remarks to provide selected operational updated covering the time since our last update call in November .
Erez Meltzer: Then run, we'll review our financials, and we will close the call, we'll quick question an answer station.
Speaker Change: Since our last call, the Nano-X team achieved two notable regulatory successes.
Erez Meltzer: The first being the general use clearance from the FDA in December .
Erez Meltzer: Subsequent to the FDA clearance, we were informed that the CE Mark designation was granted for Nano-X Art in February , 2025.
Beyond these notable regulatory achievements
Erez Meltzer: The fourth quarter in the beginning of 2025 has been a period of significant progress and strategic advancement.
Erez Meltzer: for Nano-X across our business areas, as we continue to revolutionize the field of medical imaging with our innovative technologies.
Erez Meltzer: I will cover a wide range of topics in my prepared remarks.
Erez Meltzer: In the key U.S. market, we continue to advance Nano-X Arc System deployment. We received positive feedback on the Nano-X Arc for our first customers, while we also signed agreements with new channel partners.
and we are negotiating additional ones as we speak.
These agreements are expected to accelerate our market presence.
Erez Meltzer: We're also beginning our entry into the European market now that we have obtained the CMARK and I will talk about that in some detail along with our progress outside of the US market.
Erez Meltzer: Our Nano-X-8 IT continued to make progress as we added new customers.
Erez Meltzer: I will wrap up my remarks with an update on our OEM relationship as well as our clinical trial, which are designed to build on the body of the data supporting the use of nanostarch technology in the delivery of self-care across varied settings.
With that, let's begin [inaudible]
Erez Meltzer: As was previously announced, we achieved a significant regulatory milestone with the FDA General
Erez Meltzer: The 510K clearance is for general use including human musculoskeletal system, pulmonary, intraabdominal and parinasocinus indication.
Erez Meltzer: Adjunctive to Conventual Radiography, and we believe that it will advance our commercializations as it does not extend the use cases for our Nano-X Imaging.
Erez Meltzer: Advancing our agronautor discussion with the FDA, we have submitted the Nano-X Arc X for FDA clearance, which will further enhance our product portfolio.
Erez Meltzer: The Nano-X Arc X will have an even smaller footprint than the existing Nano-X Arc system.
and Hempfield, one of our key differentiations.
Erez Meltzer: The new system will also be easy to deploy and use with an anticipated one-day setup time and plug-and-play functionality.
Erez Meltzer: Equally exciting is the announcement made just a few weeks ago that we received the CE March certification to market the multi-source Nano-X Arc system including Nano-X Cloud. It's a company cloud based infrastructure.
Erez Meltzer: Pursuing the CMARK with the key priority to enable to market our designs in the EU.
Erez Meltzer: With this in mind, we have remained highly focused on fulfilling our promise to our investors that we would do everything within control to ensure a successful outcome in this crucial review process.
Erez Meltzer: I'm happy to say that we delivered on this and we view it in another errant validation of our unique and possible transformative technology.
Erez Meltzer: I would also like to emphasize that due to differences in standard of fear approaches,
Erez Meltzer: The CD mark allows us to market the Nano-X R in Europe as a stand-alone modality which does not require objective use.
Erez Meltzer: Our primary focus remains on accelerating the deployment of the Nano-X R and our AI solution in the United States.
Erez Meltzer: As I have mentioned on previous calls, we have been carefully extending the U.S.-based commercial team to help ensure that we have the appropriate sales, clinical education and support infrastructure necessary to drive our deployment in the U.S.
Erez Meltzer: An important element of our go-to-market strategy in the US as it will be another market is to pursue the education of our potential customer base and key appear leaders in medical imaging.
Erez Meltzer: Education and raising awareness are therefore key elements of our marketing effort as we are expanding our Ethiopian leaders ecosystem and increasing clinical value evidence.
Erez Meltzer: Tainted commercial deployment, there are a few dozens of systems in various stages of shipping a deployment for both commercial and clinical use in the US.
We are deployed across several states.
We are focusing on extending our network of strategic collaboration
Erez Meltzer: Channel Partners and Client Based. As of today, I can report that we added another state Tennessee to our commercial coverage.
Erez Meltzer: Of these units deployed, I can share that in one of the multi-specialty clinics, we scan about 10 scans a day out of which 20% are chest scans.
Erez Meltzer: Our Nano-X Arc pipeline remains robust and we are currently targeting a few hundreds of
Erez Meltzer: We are continuously recruiting to expand our sales and clinical support team in the US, and this expansion is crucial to support our growing customer base and ensure the successful deployment of our technology.
Erez Meltzer: We see a lot of interest from prospective and current customers and professional health
Erez Meltzer: As a result, we have seen an increase in the number of referrals, scans, and additional use cases.
As we continue to pursue multiple avenues to commercialization
We made significant strides in establishing strong distributor partnerships.
Erez Meltzer: Working with well-known players in the durable medical equipment space makes good business
Erez Meltzer: is these companies are recognized by medical imaging customers and can rapidly enlarge our sales presence.
Erez Meltzer: We have recently engaged with advanced southern imaging known as ASI based in Georgia. They will support the commercialization of the Nano-X R and this is additive as it gives a new presence in the Southern United States.
Erez Meltzer: Additionally, we are in advanced negotiation with more channel partners and I will provide an update on our next calls.
Erez Meltzer: I would like to focus now on our strategy for penetrating the European market.
Erez Meltzer: As you all know, we recently got the very welcome news that the Nano-X Arc was granted the E-Mark, extending our total addressable marketing.
Erez Meltzer: Our regulatory team is work long and hard to secure this and it is another strong validation of our technology.
Erez Meltzer: It also paved the way for our entry into a large and influential market, which has long
Erez Meltzer: With achievement, represent the significant milestones in our global extension effort and builds on the strong momentum we have generated since the security multithope FDA clear
Erez Meltzer: This certification for a whole body imaging in Europe combined with our existing infrastructure and ongoing pursuit of strategic partnerships.
Positions
As to accelerate the outlooks of our commercial introduction across the region.
Erez Meltzer: Just days after we announced that we received the CMARC, we presented data supporting the Nano-X ARC performance at the 2025 European Congress of Radiology, the ECR, which took place recently in Vienna, Austria.
Erez Meltzer: New data was shared around three different abstracts at the conference. You can find the full details on this scientific abstract on our website.
We take pride in our robust clinical efforts.
to generate data supporting the use of Nano-X R.
Erez Meltzer: We understand that bringing a new technology into the healthcare continuum as we are doing introducing the Nano-X Arc to medical imaging industry requires a great deal of data generation, clinical validation and education.
Erez Meltzer: While we are bringing a valuable new tool to the radiology profession,
Speaker Change: The burden of proof is on nano-X to demonstrate why hospitals and imaging centers need to provide this new technology.
Speaker Change: Bride Prioritizing Clinical Needs and Development Efforts in Collaboration with the Medical Community. We ensure that our innovations are not only advanced
but also relevant and visible to those we serve.
Speaker Change: and the population ages, and the demand for medical imaging increases in lock steps. There is an increasing need for accessible advanced imaging solutions across various care settings.
Speaker Change: We expect the Nano-X R to be a good fit for these dead drop because, at its core, the Nano-X R offers an advanced medical imaging solution that is more accessible and affordable.
Speaker Change: There will be additional revenue generated through the use of service contracts and Nano-X
Speaker Change: We will also, of course, be seeking to sell our growing number of AI solutions and tell our geology services into our customer base as well.
Speaker Change: At this time, we anticipate that our failed strategy in the EU will mainly work indirectly through the distributors [inaudible]
Speaker Change: As I've just described, we have been gathering a geographically diverse group of distribution partners, and we will aim to do the same as we begin to penetrate the EU.
Speaker Change: With a sea marking hand, we are not wasting any time and have already signed new distribution agreements for Nano-X R in Romania and Greece, which will be our additional entry point into the market.
Speaker Change: We are also in advanced stages of additional negotiations of distribution agreements in additional countries in the U.
Speaker Change: As we increase our commercialization effort and our dedicated commercial team and continuous progress with our effort in other international markets, focusing on receiving local regulatory approvals in various countries.
Speaker Change: Turning now to our AI commercialization vences, our Nano-X AI-powered Images Interpretation Algorithms, continue to gain traction.
with engaged with two new customers in the U.S.
Speaker Change: The first is one of the largest outpatient medical imaging providers in the US. We should find out for health oaths.
Speaker Change: The installation will utilize Nano-X AI Imaging Analytics platform within the Blackford platform marketplace.
Speaker Change: highlighting the strategic value of our partnership, followed by the success we already experienced in the UK. This represents our first significant success in the US with the help of us.
in the Imaging Center's market.
and Blackford.
The Pioneering Enterprise AI Platform and Solutions Providers
which offers...
All Nano-X AI solutions, including health oaths, to health care providers worldwide.
Speaker Change: We also finalize the collaboration between Nano-X AI and Ezra, a health care, artificial intelligence company revolutionizing early detection through full-body city string.
under the terms of the collaboration.
Nano-X AI Population Health Solution
Speaker Change: will be integrated into Ezra's medical screening process at 28 Imaging Center locations across the United States.
Speaker Change: which feature AI-powered full body MRI and CT scans to screen adults for early detection such as cancer and other serious conditions at their earliest and often most readable pages.
Speaker Change: We are particularly excited about the Azure Collaboration, and it connects us to a consumer health care market indirectly through our business partners.
Speaker Change: Individuals today are better informed and technology enable people to manage more aspects of their healthcare journey themselves.
Speaker Change: Given this backdrop, we can see an emerging opportunity to provide imaging and early detection to consumers as part of their routine healthcare activities.
Speaker Change: We know the cost of technology tends to decrease over time, and in the future proactive scanning would be an important part in maintaining a healthy lifestyle.
Speaker Change: We will continue exploring opportunities to leverage our AI technology to promote accessible early diagnosis and preventive management.
Speaker Change: We're constantly working on additional collaboration with different customers' types and industries world-wide.
Speaker Change: We clearly have a lot to be excited about with our NRSAI solutions.
Speaker Change: As previously reported, we are developing a pulmonary solution which is expected to be the first AI application designed specifically for the Nano-X R.
Speaker Change: Nano-X identified the need for tomosynthesis AI solution, its prime requirement to support the growing market demand for cancer screening initiatives in the EU.
Speaker Change: This initiative will increase the need for drug affairs and radiologists to respond in a faster way for the increased readings.
Speaker Change: Another important aspect of our work is with our OEM partners, which is critical to ensuring that we have the components necessary to meet our glowing demand for not-of-sourced systems.
Speaker Change: I would like to provide an update on the aforementioned Technology Development Center in our headquarters which was created to advance the development of our technology into the future.
Speaker Change: In addition to cheap and cheap leather testing, this tender includes a robotic laboratory.
Speaker Change: We will soon utilize the lab to perform multi-source application development.
Speaker Change: Multi-source involved placing several of our emitters into a single vessel with active pumping mechanism to ensure an optimal operating environment for a mission.
Speaker Change: The benefit of a multi-source approach can include minimized imaging times, system size, wind complexity reduction, and more flexible approaches to imaging.
Attaction
A multi-source to our robot and manipulating the robot into different positions allows us to easily simulate and work to optimize various imaging positions.
and Quantities
and Industrial Instruction.
Application
Speaker Change: This will become an important tool towards the development of additional, advanced, Thomas synthesis and potentially stationary seed solutions.
Speaker Change: As reported before, Cube utilizing system chips has been successfully built and tested, and where you remain on schedule for initial sub-production quality chips this quarter. This is another example of the Nano-X team dedication to securing, manufacturing agreements to ensure the supply of Ranoxar system can meet our expected demands.
Speaker Change: Turning to one of our key OEM partners, Varic, continues production launch preparation as we continue system-level integration and pre-FDA submission testing on tubes to be used in
Speaker Change: Right is also engaged in development of multi-source modules for us utilizing the aforementioned Nano-X emitters and will include their modules in some of our application development and rather testing to reference the results.
Speaker Change: Additionally, a leading global medical and diagnostic solution provider has assembled the first prototype tubes utilizing the Nano-X Amateur. We are working closely with them and has delivered Nano-X Arc demo kits to serve as a test bench for prototypes under development.
Speaker Change: We will continue to actively, but selectively, develop partnerships with two manufacturers and X-ray solution providers, if they will serve an important challenge to the market for our proprietary technology.
Speaker Change: An update on our U.S. government security application project, the team has successfully completed component build, assembly and testing, and moved to finalize two unique tube designs for advanced prototyping.
Speaker Change: We are pleased with our democute, inclusive of our amateur tube-ivalentage power supply and software, continue to enable potential clients and partners to more easily experience our technologies.
Speaker Change: In summary, we continue to develop strategic OEM partnerships both to enhance our Nano-X arts supply chain as well as develop channels to the various markets.
Speaker Change: We are increasing our resources and focused on the way in business development opportunities and continue to expand our panel of potential opportunities.
Speaker Change: We will update on them as appropriate. I will close my prepared remarks with an update on our clinical activities which are designed to provide further validation and extended use cases for
Speaker Change: As I mentioned earlier, Nano-X attended ECR, the European Congress of Fardology in February , which was very successful.
Speaker Change: Recently, rojogies in our Independent Review Committee, the IRC, confirmed that Nano-X Arts, Digital Thomas Intercepts, DTS provides superior detail and added clinical value over X-ray.
Speaker Change: Each expert independently review over 80-80 DTS studies noting good image quality and ability to detect lesions and amenable for learning curves.
These insights further validate BTS as an advanced imaging solution.
Speaker Change: Our Nano-X R-Clinical Trial, our Advancing World, the Nano-X R-C Multi-Side Trial continues to progress.
Speaker Change: in the UGMC and Bellingham Medical Center. And we are in discussion with prominent clinical sites in two locations in Europe to add them to our multi-site trial. Today we have enrolled more than 100 patients into the various clinical trials.
Speaker Change: Incoclusions were a major significant stride in deploying our innovative imaging solution, expanding our market presence and advancing our clinical and regulatory milestones.
Speaker Change: We remain committed to our mission of presented health care and improving patient outcomes worldwide.
Rem: With that, I would like now to turn the call over to Rem for review our financials.
Thank you Erez.
Rem: We reported a gap net loss for the fourth quarter of 2023 of $14.1 million, which is the reported period compared with the net loss of $10.2 million in the fourth quarter of 2023, which is the comparable period. The increase was largely due to an increase of $1.2 million in the gross loss and increase of $2.7 million in other expenses.
Rem: Mainly due to a one-time income in the amount of 3 million dollars that was recorded in the comparable period since
Rem: The company received that amount in the port quarter of 2023 from the D&O insurance carrier under the settlement agreement in connection with the class action, both against the company.
Revenue for the reported period was three-pointed.
Rem: Zero million dollars in gross loss was 2.9 million dollars on a gas basis, revenue for the comparable period was 2.4 million dollars in gross loss was 1.7 million dollars on a gas basis.
Rem: None got gross loss for the report period, but 0.3 million dollars as compared to a gross profit of 0.9 million dollars in the comparable period.
Rem: which will present the gross loss margins of approximately 9% on a non-GAAP basis for the report a period as compared to a gross profit margin of 36% on a non-GAAP basis in the comparable period.
Rem: as compared to revenue of $2.3 million with the gross profit of $0.3 million on a gas basis in the comparable period.
Rem: Which will present the most profit margins of approximately 21% on a gas basis for the reported period as compared to a 14% on a gas basis in the comparable period?
41% on the none-dubbed basis for the big-product periods.
Rem: and as compared to 38% of the non-dub basis in the comparable periods.
Rem: The increase in the company's revenue and growth profit margins from the third or the other services was mainly attributable to customer retention, increased rates, and increased volume of the company's within services during the weekday shift.
Rem: with a growth load of $1.5 million on a gas per basis and 1.4 million on a non-GAAP basis compared to revenue of $17,000.
Rem: with the gross loss of 44,000 from a gas and non-gas basis in the comparable periods. The increase in the revenue stems mainly from the sales of and deployment of our 2D systems and the sale of our OEM project in the US.
Rem: The company's revenue from AI Solutions for the reported period was $83,000 with a gross block of $2.3 million on a gas pay fee.
Rem: Compared to a revenue of 84,000 with a gross loss of $2.0 million in the comparable period.
Rem: Non-gas gross profit for the company's AS solutions for the reported period was $60,000 compared to a $21,000 in their comparable period.
Rem: Research and development expenses nets for the reported period were $5.4 million, compared to $6.8 million in the comparable period, reflecting a decrease of $1.4 million.
Rem: The decrease was mainly due to a decrease of 0.2 million dollars in salaries and wages, a decrease of 0.5 million dollars in share-based compensation and 0.7 million dollars in expenses related to our research and development activities.
[inaudible]
Rem: Sales and marketing expenses for the report a period were $0.9 million, compared to $1.0 million in the comparable periods.
Rem: General administrative expenses for the reported period were $5.8 million, compared to $3.8 million in the comparable period.
Rem: The increase of $2.0 million was mainly due to an increase of $1.7 million in our legal expenses since the company received $2 million from the company's directorate and officer's ability insurance carrier during the comparable period under the company's policy and the settlement of Reminds Pooch.
Rem: with just a company's legal expenses in the same amount during the comparable period.
Turning to a banishit [inaudible]
[inaudible]
Speaker Change: As of December 31, 2024, we had cash, cash-free violence, disruptive deposits, and marketable securities of approximately $83.5 million and add $3.1 million in loan from a bank.
Rem: We ended the quarter with the property and equipment, NETO.
45.4 million dollars.
Rem: As of December 31, 2024, with approximately 63.8 million shares outstanding.
Rem: As of December 31st, 2023, we had approximately 57.8 million shares outstanding.
Rem: Turdeth, the controlled equity offering sales agreement with our two agents, David June 7th.
Rem: 2024, the company may offer a sale ordinary shares up to one other being adults from time-to-time to the agents, persons to the sales agreement. The agents are entitled to compensation at the commission's rate of 2.5% of the aggregate growth proceeds from each sales of the ordinary shares.
Rem: During the reported period, the company issued approximately 5 million ordinary shares in cost, consideration of those 38.80 million.
Rem: Dollar, a net consideration of $37.8 million under the sale agreement. Additionally, during 2024, approximately 1 million options.
Rem: to purchase ordinary shares where access lies to ordinary shares in consideration of approximately $1.7 million.
Rem: including 760,000 options to purchase ordinary shares that were exercised by the state of the late company's chairman of the board in consideration of $1.6 million.
Erez Meltzer: With death, I will end the call back over to Erez.
Thank you, Ron.
to close my prepare remarks.
Erez Meltzer: I want to thank you all for a continuous support of the Nanoms.
Erez Meltzer: Our team continues to deliver in its promises with advance on the AI technology, regulatory and clinical fronts during the quarter.
Erez Meltzer: and has entered a new market in the EU. I'm especially proud for FDA general use clearance and the recent sea mark designation for the Nano-X R. We added new deployments, distribution agreements, and new customers for the Nano-X AI technology.
Erez Meltzer: Not a strategic approach to regulatory milestones and commercial rollout, including targeted installations and phases scaling, underscore a disciplined path to sustainable growth.
Erez Meltzer: I'm proud of what we have accomplished so far and I look forward to sharing details of more successes to come on our 2021 2025 Investor Code.
Erez Meltzer: Thanks again for joining us today and operator, please open the call for questions.
Speaker Change: As a reminder to ask a question, please press star 11 on your telephone and wait for your name to be announced. To withdraw your question, please press star 11 again.
. . . . . .
Speaker Change: Our first question comes from a line of Jeffrey Cohen with Leidenberg-Dowman
Thank you.
Jeffrey Cohen: Hey, good morning. Thank you for taking our questions. Erez, could you...
Speaker Change: Found upon the DME partners in the U.S. under DMEs, will you be selling the York outright with the opportunity for Imaging Revenue behind it or could DMEs place that under the Imaging Only scenario?
Speaker Change: We are currently working we are extending.
Speaker Change: Support clinical support and clinical education in order to build there.
Speaker Change: Market and brands and.
Speaker Change: And that value awareness.
Speaker Change: To ensure that we expand the number of physicians, who will be able to refer to.
Speaker Change: To the to the stomach synthesis to the art. This seems to be very successful one of the examples I gave.
Speaker Change: In the call that.
Speaker Change: One of the one of the clinics that we started to work.
Speaker Change: We have been facing that a lot of physicians that have written referring and we achieved <unk> per day, which is more than the average that we expect.
Speaker Change: This is with respect to the team who we are.
Speaker Change: Planning to get into a major impact as a result of the.
Speaker Change: General partners that we signed in specific.
Speaker Change: States or coverage.
Speaker Change: Or state that we want to extend our coverage.
Speaker Change: We're not planning specifically.
Speaker Change: With our own salespeople.
Speaker Change: And a lot of introduction.
Speaker Change: The people who are actually working on building the deal flow that currently is pretty pretty large.
Speaker Change: And given indication also in the.
Speaker Change: In the comments about what do we expect in 2025.
Speaker Change: In terms of.
Speaker Change: The numbers that we are either negotiating or starting the process of.
Speaker Change: Of the.
Speaker Change: Either a building in the room or getting the regulation the local regulation of the approval of the state for approval of the city and in the <unk>.
Speaker Change: Physics that are coming to check et cetera, the whole process.
Speaker Change: That we mentioned.
Speaker Change: Right now what we can see definitely is.
Speaker Change: Net.
Speaker Change: The sectors, who are the early adopters are either.
Speaker Change: Small and medium sized.
Speaker Change: Medical imaging centers.
Speaker Change: In orthopedics.
Speaker Change: <unk> and <unk>.
Speaker Change: And in addition to the one that we are accelerating right now and we expect more.
Speaker Change: To be build on the success of the first one is the what is called a multi specialty medical centers. This is.
Speaker Change: This is definitely an area, where we can add value to their X-ray capability and.
Speaker Change: And in some of them are we are replacing the CTV old CP that.
Speaker Change: They have been.
Speaker Change: In the past.
Speaker Change: Last but not least is the.
Speaker Change: The one that we mentioned.
Speaker Change: Is the medical imaging chains, we have already a few that were assigned we have placed the system also in a few of them already and.
Speaker Change: This is.
Speaker Change: An area that we're working.
Speaker Change: And we have a focus on in order to extend the.
Speaker Change: The number of.
Speaker Change: Change that we're going to be in touch way then.
Speaker Change: Our system.
Speaker Change: Perfect and one more quick one could you talk about the.
Speaker Change: B.
Speaker Change: On the manufacturing sites out there.
Speaker Change: Two ships and other components and has there been any material change on any of those channels in the past quarter.
Speaker Change: Nope.
Speaker Change: We work according to the plan that was presented.
In Italy, our manufacturing of the tubes for US <unk> started to ship tubes also for us.
Speaker Change: Both.
Speaker Change: And manufacturing facilities.
Speaker Change: Nonetheless in Korea.
Speaker Change: And the system in Switzerland are both manufacturing.
Speaker Change: And.
Speaker Change: And we are building depth and.
Speaker Change: We are.
Speaker Change: Right now, while we do the scale and the manufacturing facility in the future.
Speaker Change: Manufacturing of the Arc X.
Speaker Change: To have the low cost.
Speaker Change: Manufacturing facility. In addition to the ones that we have in Israel.
Speaker Change: Perfect. Thanks for taking our questions.
Speaker Change: Thank you.
Speaker Change: Our next question comes from Ross Osborne with Cantor Fitzgerald.
Ross Osborne: Hi, good morning, and thank you for taking our questions.
Ross Osborne: How many systems are deployed and operating in the U S. During the quarter that resulted in a 136000 in system revenue.
Ross Osborne: So we have already indicated that we don't give the exact number as they are all in.
Ross Osborne: Various stages.
Ross Osborne: Those that were already installed. This is these are that are ready to be installed in the when the rooms are getting.
Ross Osborne: Ready.
We are adding states, we expect that the.
Ross Osborne: Channel partners will add another <unk>.
Ross Osborne: Value what we see also that every salesman that we are hiring.
Ross Osborne: To expand on the extended to be expand the number of.
Ross Osborne: Place that we are installing and I think that the more we go into the 2025.
Ross Osborne: Can you give more details on this one.
Ross Osborne: Okay got it and then how should we think about and by the way.
Ross Osborne: We actually also mentioned.
Ross Osborne: In the in the call that.
Ross Osborne: The pipeline remains pretty.
Robust and.
Ross Osborne: Ali I'll.
Ross Osborne: While we think that we're trying to do is to make sure that they are going to be.
Ross Osborne: Converted too.
Ross Osborne: Installations, and scams or they are going to create and also give an indication of the scans.
Ross Osborne: We're able to create in the.
Ross Osborne: In the places that the system is installed.
Ross Osborne: Understood and then.
Ross Osborne: How should we think about pricing for Oregon, Europe, given you're going to sort of assess the marathon capital sale and how do you think thats all bags gross margin this year next.
Ross Osborne: Okay, I hope that they heard the question so in.
Ross Osborne: In Europe.
Ross Osborne: We are also.
Ross Osborne: Last month, we have extended the team when we got the.
Ross Osborne: The CE clearance.
Ross Osborne: The show that we attended.
Ross Osborne: In Vienna was.
Ross Osborne: Very successful we are engaged with.
Ross Osborne: Quite a lot.
Ross Osborne: Yeah.
Ross Osborne: And new distributors that.
Ross Osborne: Yes.
Ross Osborne: We will work.
Ross Osborne: With them.
Ross Osborne: In.
Ross Osborne: In the.
Ross Osborne: So right now we have three salespeople our regional salespeople.
Ross Osborne: We are we are.
Ross Osborne: <unk> added, Romania, and Greece as mentioned to be.
Speaker Change: So the new distributors, we are working with the distributors in Italy and Spain.
Ross Osborne: And.
And we have also a few more distributors in the pipeline and we do hope that.
Ross Osborne: We'll extend our presence.
Ross Osborne: I think that it's fair to say that we will start installations currently sometimes.
Ross Osborne: During the.
Ross Osborne: At six months.
Ross Osborne: A quarter or two quarters.
Ross Osborne: We'll start to.
Ross Osborne: Install systems.
Ross Osborne: So systems in Europe.
Ross Osborne: I would say that will be frozen.
Ross Osborne: Major part of it will be Capex sales.
Ross Osborne: Smaller part of it will be the emphasis.
Ross Osborne: Okay. Thank you for taking my questions.
Ross Osborne: Thank you.
Speaker Change: Our next question comes from Scott Henry with Alliance Global Partners.
Scott Henry: Thank you and good morning or afternoon, depending on your location.
Speaker Change: Hi.
Speaker Change: I guess the first question.
Speaker Change: And then I'll go into a little more detail but.
Speaker Change: Do you want to give any thoughts to the outlook for.
Speaker Change: 2020, fives in terms of big picture any guidance or if you can provide any.
Speaker Change: And then I did have a couple of more specific items on that.
Speaker Change: What specifically.
Speaker Change: Are you referring to well I guess, if we go by category it looks like.
Speaker Change: Teva radiology services tends to grow around the 10% range.
Speaker Change: Changing there or should we expect that to continue to grow at similar rates.
Speaker Change: Okay.
Scott Henry: Scott, we don't provide guidance as you remember.
Scott Henry: But if you look at the consensus of analysts I think that the.
Scott Henry: <unk>.
Scott Henry: The company actually came out in line with.
Scott Henry: Absolutely.
Speaker Change: Okay, and I won't ask for guidance, but just in terms of directionally in magnitude.
Speaker Change: AI solutions.
Speaker Change: You should we I mean thats moved around a lot it dipped down in Q4 after a very strong Q3 should.
Speaker Change: Should we expect a strong year for that and in 2025.
Speaker Change: Not specific numbers, but what are you seeing there.
Speaker Change: They would indicate how we should think about it.
Speaker Change: Well as you remember in Q in the third quarter, we saw a one time income over there we completed the project.
Speaker Change: <unk>.
Erez Meltzer: As we mentioned as Erez mentioned portion of the call.
Erez Meltzer: Do see an increase in the number of decline in the number of the pilot.
Erez Meltzer: So you can assume that that will be translated.
Erez Meltzer: It may be translated into an increase in the revenue.
Erez Meltzer: Of course, we'll give a better numbers published.
Erez Meltzer: The upcoming quarter results.
Erez Meltzer: But from a general perspective, we view 2025 is there a strong year for where AI.
Speaker Change: Okay, Great and then probably the most important question I have is when we look at the imaging solutions line.
<unk> gains have been substantial.
Speaker Change: Doubling year over year, but the numbers are still relatively small obviously as the rollout goes we'll start to reach an inflection point, where those numbers will get bigger.
Speaker Change: When would you expect that inflection point is that a kind of a middle of 2025 event.
Speaker Change: Or second half just trying to get a sense of when we should see that really kind of curve upwards.
Speaker Change: Again, we don't provide any guidance. So I cant tell you exactly when it will be the inflection point, but you should look at.
Speaker Change: Some above trend about how we work together with the partners in the U S market.
Speaker Change: And we did see within the Europe.
Speaker Change: We also announced that we submitted the new version of dark.
Two the FDI. So there may be also.
Speaker Change: Inflexion point.
Speaker Change: Once we get the.
Speaker Change: The clearance for that.
Speaker Change: And I think as the time goes and we accumulate more experience and expanding our team.
Speaker Change: And and the market dislocation in the market awareness and.
Speaker Change: Increase in showing the.
Speaker Change: The clinical value in our devices.
Speaker Change: That should be translated into what we call.
Speaker Change: Coming toward the key point.
Speaker Change: Okay. Thank you for that color.
Speaker Change: Just.
Speaker Change: Couple of modeling questions, yes, typically opex operating expenses, we think about growth with inflation.
Speaker Change: All else being equal is there anything unique in the Opex that we should factor into 2025 or maintain similar trends.
Speaker Change: No not really but.
Speaker Change: Don't forget that.
Speaker Change: Some of our labor.
Speaker Change: And the other.
Speaker Change: Overhead is actually things today Israeli shekels.
Speaker Change: And that some of it a little bit to the Caribbean.
Speaker Change: Competencies, though in terms of.
Speaker Change: In term.
Tim.
Speaker Change: Any kind of impact on the Opex.
Speaker Change: Only if there is going to be some kind of.
Speaker Change: Sharp fluctuations with both currencies other than this.
Speaker Change: Thank you.
Speaker Change: In line, you can see that our G&A G&A or more so in the range and above.
Speaker Change: Two years is actually decreasing.
Speaker Change: The completion of the <unk>.
Speaker Change: And in that cross section.
Speaker Change: Also last year.
Speaker Change: It's more of this or more of the same over the same.
Speaker Change: Of course loans.
Speaker Change: Mr. <unk> you can.
Speaker Change: I have more details about it.
Speaker Change: Okay, great. Thank you for taking the questions.
Speaker Change: Yes.
Speaker Change: <unk>.
Speaker Change: As a reminder to ask a question. Please press star one one.
Jason Kolbert: Our next question comes from Jason Kolbert with BMO capital.
Speaker Change: Yeah.
Jason Kolbert: Hi, guys I basically at the same question that Scott does which is I'm looking for guidance I'm trying to understand system placement and when we're going to see that inflection point.
Speaker Change: That you don't want to provide that.
Jason Kolbert: <unk> its very hard.
Jason Kolbert: Understand as an analyst following the company.
Jason Kolbert: Okay.
Jason Kolbert: Where that inflection point is and given the fact that the stock's down by almost 50% from its recent high.
Jason Kolbert: Investors are trying to understand where that inflection point is also.
Jason Kolbert: You raised some capital in the period can you talk a little bit about the capital you raised and how you might deploy that cap, but all in order to drive system placements.
Jason Kolbert: Okay.
Jason Kolbert: I'll give you an answer was about the second part of your question you raised.
Jason Kolbert: Approximately.
Jason Kolbert: 38, gross seven net golar.
Jason Kolbert: During the fourth quarter of 2024.
Jason Kolbert: That was under the ATM program in place.
Jason Kolbert: That's a program that we already put in.
Jason Kolbert: In place.
Jason Kolbert: Already mid of 2024, we have an opportunity to use it in.
Jason Kolbert: After.
Jason Kolbert: Out of that.
Jason Kolbert: Have received in the U S and we have done so.
Jason Kolbert: What is going to be to be used of course contribute or.
Jason Kolbert: Acceleration of the commercialization of our products.
Jason Kolbert: Both.
Jason Kolbert: The imaging and the AI and.
Jason Kolbert: We don't think that we do think that the.
Jason Kolbert: Both of their efforts will be.
Speaker Change: Concentrating the commercialization at the moment.
Speaker Change: The one other thing <unk> that I would I would say that.
Speaker Change: Do you have enough.
Speaker Change: So with not enough tour.
Speaker Change: For analyst, but I would say that we gave a lot of indications that at <unk>.
Speaker Change: Blaine I'll give you an indication of where the.
Speaker Change: The inflection point will be as a result of the fact that.
Speaker Change: The increase in revenue will be generated from the EU penetration from the fact that we moved in the U S and the FDA for a general use from the.
Speaker Change: Mmk only in the past and the fact that we're going to.
Speaker Change: <unk> X.
Speaker Change: Okay.
Speaker Change: From the SBA.
Speaker Change: Sometimes.
Speaker Change: During 2025, and this will be part of the scale that we are doing but we also gave some indication about the pipeline, we give any indication about the number of scans that.
Speaker Change: We are going to generate.
Speaker Change: Right now for us it's hard to.
Speaker Change: Hard to predict.
Speaker Change: What will be the percentage of the Capex sales, namely that the system will be sold in and serve.
Speaker Change: And what will be the part which is going to be.
Speaker Change: Based on the <unk> right now.
Speaker Change: Almost all of our systems, our <unk> model, but you probably will be.
Speaker Change: More of the Capex.
Speaker Change: Sales.
Speaker Change: And last but not least I think that.
Speaker Change: We are trying to show that basically.
Speaker Change: Say something and we ensure that we are delivering.
Speaker Change: This way I went through from the regulation point of view from a building the clinical validation that point of view of the clinical trials.
Speaker Change: The market awareness.
Speaker Change: Of the <unk>.
Speaker Change: The arc and needs.
Speaker Change: Clinical use.
Speaker Change: The key opinion leaders that are joining us.
Speaker Change: Overtime.
Speaker Change: The number of salespeople that we're very.
Speaker Change: We are very conservative in adding expenses to be.
Speaker Change: So when we see that the salesman is generating.
Speaker Change: Sales and revenues.
Speaker Change: Then we will add enough flooding.
Speaker Change: The company with.
Speaker Change: People that before we know that we're going on a very strong.
Speaker Change: Base.
Speaker Change: Moving forward so this week.
Speaker Change: With respect to the teams that we.
Speaker Change: We have.
Speaker Change: So we always said that 2025 will be a meaningful.
Speaker Change: Year for us going forward.
Speaker Change: <unk>.
Speaker Change: And that's where we are.
Speaker Change: Can you give us some idea.
Speaker Change: Of either how long the existing cash on the balance sheet will last you or when you think you are going to be cash flow positive.
Speaker Change: Its again, we don't provide any guidance.
Speaker Change: But if you look at.
Speaker Change: You can look at.
Speaker Change: R.
Speaker Change: Our earnings release.
Speaker Change: Analyze it then.
Speaker Change: Come to your own conclusion.
Speaker Change: I think the.
Speaker Change: The.
Speaker Change: Positive and very supportive.
Speaker Change: Feedback that we mentioned in the very beginning of the call.
Speaker Change: But we're getting from the customers and people are really believe that.
Speaker Change: It's a game changer in this medical imaging market.
Speaker Change: The value that we saw.
Speaker Change: In the in the review that the independent review that we had in.
Speaker Change: In Europe, and what we see right now.
Speaker Change: The chest approval.
Speaker Change: But we see the.
Speaker Change: For a pulmonologist and for the.
Speaker Change: Lung screening.
Speaker Change: And what we've seen in terms of the MSA.
Speaker Change: As mentioned sinus sinus citizen kidney stones and other indications.
Speaker Change: Use cases, I think this actually gives us a lot of.
Speaker Change: Positive.
Speaker Change: And.
Speaker Change: That equates to move forward then to to ensure that we're going to add value to our customers and ensure that we are going to mix change.
Speaker Change: In the.
Speaker Change: Hello.
Speaker Change: And standards of care.
Speaker Change: Do you anticipate continuing to use the ATM facility this year.
Speaker Change: Again, we don't we don't give any indication on the.
Speaker Change: Any forward looking forward and looking at actions that we may take.
Speaker Change: Okay. Thank you.
Speaker Change: Rob.
Speaker Change: Yes, there are a lot of investors that are pushing us to.
Speaker Change: Go with them in the race.
Speaker Change: And.
Speaker Change: And take money.
Speaker Change: We are very conservative when we also consider very carefully the existing shareholders. So when the stock is down.
Speaker Change: The.
Speaker Change: A decision is.
Speaker Change: Accordingly.
Speaker Change: I'm showing no further questions in queue at this time.
Speaker Change: This concludes today's conference call. Thank you for participating you may now disconnect.