Q3 2025 Nano-X Imaging Ltd Earnings Call
Speaker #1: Good day, and thank you for standing by. Welcome to Nano's third-quarter 2025 earnings conference call. At this time, all participants are in listen-only mode.
Speaker #1: After the speaker's presentation, there will be a question-and-answer session. To ask a question during the session, you will need to press *11 on your telephone.
Speaker #1: You will then hear an automated message advising your hand is raised. Please note, today's conference is being recorded. I will now hand the conference over to your speaker host, Mike Cavanaugh, of Investigations.
Speaker #1: Please go
Speaker #1: ahead. Good morning and welcome to the
Speaker #2: Nanox Imaging third quarter 2025 investor call. Earlier today, Nanox Imaging Ltd. released financial results for the quarter ending September 30, 2025. The release is currently available on the investor section of the company's website.
Speaker #2: With me today are Erez Meltzer, Chief Executive Officer, and Acting Chairman, and Ran Daniel, Chief Financial Officer. 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 #2: These statements are subject to risks uncertainties and assumptions that are based on management's current expectations as of today and may not be updated in the views as of any subsequent relied upon as representing the company's future.
Speaker #2: Therefore, these statements should not be dated. Factors that may cause such a difference include, but are not limited to, those described in the company's filings with the Securities and Exchange Commission.
Speaker #2: 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-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general administrative expenses, and non-GAAP gross loss per share.
Speaker #2: With that, I'd now like to turn the call over to Erez.
Speaker #2: Meltzer: Good morning, everyone, and thank you.
Speaker #3: Thank you for joining Nanox's third quarter 2025 earnings call. While many companies talk about global expansion, Nanox is delivering on it. It is important for us to share not only where we stand today, but also the path we are shaping for 2026 as we work to fulfill our mission and strengthen Nanox as a leading company in the medical imaging industry.
Speaker #3: We are building a comprehensive medical imaging portfolio focused on increasing revenues and accelerating our path to profitability. Our strategy includes reinforcing our position in the medical AI sector, deepening our foothold in the US healthcare system, and driving meaningful change in the standard of care for medical imaging.
Speaker #3: We are entering our second execution phase. We plan to further expand the ARC deployment and pipeline, grow our AI presence through the acquisition of Vaso Healthcare IT, which is being completed, and explore further opportunities in imaging equipment with potential acquisitions and collaborations. While not every element is fully within our control, we believe it is the right time to share our growth roadmap for 2026.
Speaker #3: We are guiding for more than 35 million dollars in revenues. Coming back to 2025, the third quarter brought progress across the organization, including our technology expansion, market scaling, AI infrastructure, and operational efficiency.
Speaker #3: Today, I'm excited to share with you the progress we are making across our strategic three pillars where we are demonstrating real momentum in moving from innovation to commercial scale with a measurable result.
Speaker #3: Our first pillar focuses on technology expansion and market scaling. Where we see momentum in our commercial deployment efforts, Nanox ARC is now entering a growth phase in the retail imaging segment, expanding access to advanced imaging and community and outpatient settings where patients need it most.
Speaker #3: We recently signed two new agreements in the Czech Republic and France that represent an important milestone in Nano-X's European strategy. This follows our recent distribution agreements in Greece and Romania, demonstrating the rising demand for the Nanox Imaging ecosystem and strengthening our presence across Europe.
Speaker #3: We are progressing toward our goal of deploying 100 systems worldwide in various stages for clinical demo and commercial purposes by the end of 2025.
Speaker #3: A number of systems are pending final regulatory approval and site preparations. As we scale our current ARC deployment, we are simultaneously working on unlocking even greater market potential through the regulatory advancement.
Speaker #3: In the U.S., we continue to work with the FDA to remove the adjunctive use limitation, which will allow us to market the Nanox ARC as a standalone modality.
Speaker #3: Regulatory progress, we are deploying momentum and anticipating building on both our preparations to launch our next-generation platform that will further accelerate market penetration.
Speaker #3: The new Nanox ARC X system which is to be unveiled at the RSNA annual meeting in less than two weeks will extend further with its smaller footprint and simplified installation process.
Speaker #3: Importantly, it has the flexibility to support additional clinical indications in the future. This enhanced platform is designed specifically to meet the diverse needs of our growing customer base and expand our addressable market significantly.
Speaker #3: I'd like to highlight another example of how we are working to expand the market for Nanox ARC. The Nanox ARC X is AI ready, which means it is compatible with future AI solutions that are currently under development to interpret the ARC images.
Speaker #3: Ultimately, the clinical output will be an AI enhanced 3D digital tomosynthesis series with annotated pulmonary nodules which may be an innovative new tool in the arsenal of lung cancer detection.
Speaker #3: Our second pillar, AI infrastructure and integration, represents the technological heart of our strategy, connecting all the pieces of our ecosystem and driving new revenue opportunities.
Speaker #3: Artificial intelligence is part of our core value proposition, transforming us from a hardware company into a comprehensive imaging platform. In a key move to advance our AI business, we recently reached an agreement to acquire Vaso Healthcare IT (VHC IT), a wholly-owned subsidiary of Vaso Corporation, which provides best-of-breed healthcare IT solutions from various technology partners, specifically imaging information technology solutions that support imaging workflow for providers.
Speaker #3: Nanox and VHC IT together create a powerful synergy that connects Nanox AI's FDA cleared imaging AI solution with VHC IT's deep expertise in IT integration, implementation, and customer operation.
Speaker #3: This will potentially help us deliver improved customer service to our growing U.S. customer base. This acquisition will align with our ongoing progress on multiple fronts as we expand our network and.
Speaker #1: health Corvera and others . More details are included in my remarks below . Now for an update on our third strategic pillar , which focuses on operational efficiency and sustainable growth .
Speaker #1: We are building a leaner , more focused organization to support long term success . Our workers compensation and retail imaging initiatives continue to grow , creating scan based revenue opportunities that strengthens our financial foundation .
Speaker #1: Additionally , we are strengthening our production capabilities through our partnership with Fabrique , preparing to manufacture hundreds of systems . And in parallel , we continue to enhance our tube manufacturing infrastructure as well .
Speaker #1: dedicated to Nanox remain accelerating and development of a highly efficient manufacturing operation . Let's now review the progress we made during the quarter in our US deployment progress , which demonstrates the strong commercial traction we are building across multiple channels .
Speaker #1: Currently , we have a growing number of systems actively showing scanning consistent utilization and clinical adoption . One of the most active sites is an imaging center in California .
Speaker #1: During the third quarter, we achieved above-average scanning levels, and the feedback from our users has been very positive. Our installation plan provides us with a solid foundation for revenue generation and market presence.
Speaker #1: Another example is our recent collaboration with Kaiser University , where the Nanox Arc been has integrated into their radiological technology graduate program . This flagship training and and demonstration site is already actively scanning , giving future imaging professionals hands on experience with Nanox Arc early in their careers .
Speaker #1: The full engagement of our business partners and the upcoming retail infrastructure reinforces our confidence in the next year's guidance . I also want to let you know that Nanox will have a strong presence at the Radiology Society of North America , or in short , Rsna annual meeting , which begins on November 30th in Chicago .
Speaker #1: There, we will provide more detailed insights into our commercial progress and future strategy. We welcome you to visit our booth if you are attending the event.
Speaker #1: In a recently announced partnership , we entered into a distribution agreement with X-ray , a leading Czech distribution distributor of medical imaging systems , to .
Speaker #1: Introduce Nanox advanced imaging solution to healthcare providers Czech across the Republic . Under the terms of this agreement , X-ray will lead the market introduction , sales and service of Nanox medical imaging solution .
Speaker #1: The Nanox Arc, founded in 213 X-ray, is recognized as the number one supplier of digital radiography systems in the Czech Republic, with installations in more than half of the country's 200 healthcare facilities.
Speaker #1: And nationwide sales and service coverage . Additionally , this week we signed off a agreement distribution in France with Althea , France S.r.l. , part of Althea Group , one of the European Europe's largest independent providers of managed medical technology services .
Speaker #1: As part of the agreement , Althea lead the France will introduction , distribution , installation and service of Nanox Medical imaging solution . Than Onyx Arc across France's public and private healthcare sector .
Speaker #1: We have stated before that our initial foray into the many European countries will be best served by commercial partnerships such as this. Rest assured, we are working on others.
Speaker #1: These partnerships are just some of the steps we in the third quarter to better position us to scale globally and redefine the standard of care through innovation that makes imaging more accessible and efficient .
Speaker #1: As we scale our current ARC deployment, we are simultaneously working to unlock even greater market potential through a regulatory advancement in the US.
Speaker #1: company has submitted the Tap 2D software module to the FDA through the five 10-K program today is a . Tap 2D view image output for the Nanox arc systems .
Speaker #1: A practical tool for radiologists to enhance their diagnostic confidence as they become more experienced. Evaluating digital thermosynthesis images. Tap to. Once cleared, this will be part of a wider vision held by Nano-X to alleviate adjunctive use.
Speaker #1: Limitations in the future . For prospective adjunctive use . Limitations do not apply for the Cmaq nanox arc in the European market . This remains one of our top priorities , and we believe that removing the adjunctive use limitation will be a critical milestone that will may unlock significant new market opportunities for the Nanox Arc platform .
Speaker #1: This regulatory advancement represents a potential key catalyst for accelerated adoption across healthcare systems outside of the US . Our regulatory efforts continue , but it is worth nothing that these efforts will not be streamlined as those in the US , where FDA clearances allow distribution in the entire country .
Speaker #1: The rest of the world by nature , is a very fragmented , and we're working with many different countries which have their own processes and regulatory regulations .
Speaker #1: In some instances , regulatory progress is slower than we would like . Nevertheless , we have not stopped pushing ahead with our regulatory efforts , which continue to be our paramount importance to nanox .
Speaker #1: I'd like to discuss Now , some of the extensive clinical work are we that undertaking all of our supports commercial efforts by generating robust data supporting the use of our solution across multiple clinical applications .
Speaker #1: I'm happy to report that Cedars-Sinai Medical Center is joining a trial of Nanox AI . For a new AI model for aortic valve calcification measurement solution that is under development , the solution is intended to quantify the level of aortic valve , calcium , which is an important measure of risk for aortic valve disease .
Speaker #1: We are very pleased to be partnering with Cedars-Sinai , one of the nation's premier medical institutions . We also have begun a collaboration with MDS wellness , an independent provider of wellness screening programs located in Michigan with whom we are engaging clinical trials to further assess the clinical value of Nanox art in the context of lung cancer detection , management and screening .
Speaker #1: Last month, we attended the early Lung Cancer Action programs. The IHP 40th Conference in New York focused on lung cancer screening and early detection.
Speaker #1: Among several presentations about the advantages of digital thermosynthesis in the lung cancer screening . Doctor Lawrence Tenenbaum delivered an inspiring talk about how he believes that Nanox arc can be utilized in lung cancer screening and protocols disease management .
Speaker #1: Outside the U.S., we are excited about recent collaborations with OLAp imagery, which is a group of independent radiologists who practice at several sites in France, utilizing high-performance technical facilities.
Speaker #1: Through this collaboration , the Nanox system has been deployed at optical Privé , Jacques Cartier at Massy , one of the leading private hospital groups in Paris metropolitan area , for a clinical trial designed to further assess the value of the arc in supporting lung cancer detection , management and screening .
Speaker #1: This collaboration advance our clinical validation effort in the country second largest in the EU . The data , derived from this trial is intended to demonstrate the Arc's potential to improve patient outcomes through early screening for lung cancer , which is the deadliest cancer worldwide .
Speaker #1: We continue to engage with research partners globally to execute a comprehensive clinical evidence generation strategy . I mentioned . We will have a large presence at RSA this year , and I encourage you to visit our booth .
Speaker #1: All details regarding our participation were published last week . As I mentioned in my opening remarks , we are acquiring Vaso Healthcare . IP or EIT , a wholly owned subsidiary of Vaso Corporation , which provides best of breed healthcare .
Speaker #1: It solutions from various technology partners , specifically imaging , information technology , solution , which support imaging workflow for providers Nanox and CIP .
Speaker #1: Together, we create a powerful synergy that connects Nanox Ike, FDA, clear imaging, and AI solutions with Sits' deep expertise in IT integration, implementation, and customer operations.
Speaker #1: Under the terms of the proposed transaction , nano will acquire the Sit for a total consideration of up to $800,000 . Consisting of a $200,000 cash payment at closing and up to $600,000 in performance based Earnout payments over a period of up to two years , contingent upon revenue retention targets .
Speaker #1: With respect to existing customers, this transaction is intended to accelerate deployment of the Nanox AI solution across U.S. healthcare facilities and is expected to be executed and completed within a couple of weeks.
Speaker #1: Given the rapidly evolving nature of medical imaging technology , it is a challenge to keep up with these changes and informatics and Vaso healthcare .
Speaker #1: It serves as a trusted advisor to address and solve these . We issues expect this partnership to accelerate the commercialization of Nanox AI solutions and help generate scalable , recurring revenues .
Speaker #1: Key synergies include cross leveraging our organizational shared expertise , active accounts , sales funnels , and product offerings . We believe this acquisition immediately expands the value we deliver to customers and shareholders .
Speaker #1: We recently the entered commercial partnership with 3D R labs , one of the largest and most trusted providers of 3D medical imaging , postprocessing services in the US .
Speaker #1: 3D R Labs offers Nanox AI, an FDA-cleared imaging solution, to its network of more than 1,800 hospitals and imaging centers across the U.S.
Speaker #1: The partnership enables 3D R labs to market and distribute Nanox AI software solution to its based client network of more than 1800 hospitals and imaging centers .
Speaker #1: Of the US . The agreement positions Nanox AI technology to support initiatives to drive early disease and detection improving clinical outcomes at scale across the United States .
Speaker #1: We are also expanding direct to clinician access to Nanox AI solutions and launching new AI application that has the potential to improve diagnostic accuracy , early detection and patient management .
Speaker #1: I'm report we that have happy to our first deal under this closed new direct to clinician business model . This approach enables at the clinic AI level , equipping clinicians with a added tools on site and eliminating the need to send patients to other locations for CT scans and particularly excited about our current of advanced AI lineup solutions that analyze routine medical CT scans for any clinical indications to help identify , identify patients with asymptotic or undetected findings correlated with chronic conditions in cardiac , liver , and bone .
Speaker #1: Promoting preventive care management, where AI assists clinicians in generating numerical indications for further decision support. We are in the process of developing more innovations to add to our offering, and I look forward to announcing new developments as they become available.
Speaker #1: In other AI-related news, we have successfully expanded our existing agreement with Kuvera Health. This is our initial new collaboration upon agreement, which focuses on retrospective analysis to identify care gaps and support their platform.
Speaker #1: Our expanded agreement now includes prospective use cases such as opportunistic screening for improved care outcomes. We've also expanded our AI footprint to India, having recently signed a distribution agreement with an Indian commercial partner, and we are already running two pilot projects, with several more in the pipeline.
Speaker #1: A key element of the third pillar in the creation of sustainable and efficient supply chain to ensure we can meet anticipated future demand .
Speaker #1: With that in mind, we continue to engage with third-party manufacturers and suppliers for the commercial production of our digital X-ray tubes.
Speaker #1: Another components for the use in the Nanox arc , based on , among other things , cost effectiveness , etc. we are currently developing glass based digital X-ray tubes for use in the Nanox arc .
Speaker #1: As previously disclosed, we are working with third parties such as SII and Varex to build tubes and system A chipmaker located in Switzerland.
Speaker #1: For our chips, our work with our manufacturing partners is a key component of the third pillar of future success. We will continue close collaboration with our technology suppliers to secure the supply of components needed as our Arc deployment continues.
Speaker #1: As of today , call , have we fabricated enough emitters and begun scaling tube production to support the initial launch of our next generation arc , specifically to Varex , we .
Speaker #1: We are well underway with reforming all the necessary tubes and arc level testing to add them as an approved supplier early next year.
Speaker #1: We have additionally taken receipt from them of multiple multi-source demonstrations to advance our testing and the end development of stationary digital tomosynthesis and stationary CT-type solutions.
Speaker #1: Varex MHB or Multi x combines the precision of traditional x ray with a detailed insight of CT imaging and enable faster , higher quality scans with reduced radiation exposure , offering clearer images and better patient outcome .
Speaker #1: Varex personnel will visit our lab in Israel soon to support these efforts. We're also working in partnership with Novel Imaging Technology Company to explore the utilization of our emitter with their specialty detectors.
Speaker #1: These efforts toward low dose, single exposure, dual energy capabilities significantly enhance visualization for medical security and inspection applications on the OEM business development front.
Speaker #1: In response to requests from the security materials analyst analysis and high resolution inspection market , we are in the process of fabricating several novel amateur layouts , each with unique functionality to specifically address pain points or add requested capability as compared to their current offerings .
Speaker #1: We have also recently delivered two of our developer kits . One is the leading US academic institute for medical solution development for medical application development , and another to one of the largest global providers of industrial X-ray .
Speaker #1: NTT inspection sources their next . Developing generation system . Regarding our project with Oak Ridge National Laboratory , we are now towards working material acquisition and fabrication of the second generation to be prototype utilized in their novel and compact mobile X-ray technology .
Speaker #1: Development . As previously reported , we have entered into a multi-year volume supply agreement with Strawberrynet , a leading global electronics manufacturing services provider , to support the scalable manufacturing of Nanox .
Speaker #1: Arc system . We believe this collaboration will drive down our manufacturing costs over time , which will in turn to support our mission to expand access to innovative , affordable imaging technology worldwide .
Speaker #1: Looking ahead , Nanox is dedicated to accelerating the development of a highly efficient and manufacturing scalable infrastructure . We will always be looking for ways to extract more efficiencies and may include future strategic collaborations .
Speaker #1: As we look ahead , we would like to provide our investors with some financial guidance for the coming year , given our current business trajectory , sales funnel , new partnership and the acquisition we expect to a minimum generate of $35 million in revenue in 2026 .
Speaker #1: Furthermore , we project the AI business segment with the addition of Vcit will achieve EBITDA break even on quarterly basis . Sometime in 2026 .
Speaker #1: We expect Nano's as a whole to reach EBITDA break even on a quarterly basis in 2027 . These projections reflect our beliefs in and achievable path to sustainable , profitability driven by our expanding commercial deployments and recurring revenue streams .
Speaker #1: We are executing a clear and consistent strategy across all three pillars moving forward with a while confidence expanding systematically our market presence and strengthening our foundation for long term success .
Speaker #1: That, I would like to hand the call to Ran Daniel for a review of our financials. Run over to you.
Speaker #2: Thank you . Erin , we reported a GAAP net loss for the third quarter of 2025 of $13.7 million , which is the reported period compared with a net loss of $13.6 million in the third quarter of 2020 , four , which is the comparable period revenue for the reported period was $3.4 million , and gross loss was $2.9 million .
Speaker #2: a GAAP On basis . Revenue for the comparable period was $3.0 million , and gross loss was $2.8 million . On a GAAP basis , the increase of $0.4 million in the revenue stems from an increase of $0.6 million in revenue from our Teleradiology services , a decrease of $0.3 million in our revenue from our AI solutions , and an increase of $0.1 million in our revenue from the sales and deployment of its imaging systems .
Speaker #2: And a OEM services non-GAAP gross loss for the reported period was $0.3 million . As compared to a gross loss of $0.2 million in the comparable period , which represents a gross loss .
Speaker #2: Margins of approximately 8% on a non-GAAP basis for the reported period, as compared to a gross loss margin of 6% on a non-GAAP basis.
Speaker #2: In the comparable period , revenue from the Teleradiology services for the reported period was $3.1 million , with a gross profit of $0.8 million .
Speaker #2: On a GAAP basis . As compared to revenue of $2.6 million , with a gross profit of $0.3 million . On a GAAP basis .
Speaker #2: In the comparable period , which represents a gross profit margins of approximately 25% on a GAAP basis for the reported period . As compared to 13% on a GAAP basis .
Speaker #2: In the comparable period, non-GAAP gross profit of the company's Teleradiology services for the reported period was $1.3 million, as compared to $0.9 million in the comparable period, which represents a gross profit margin of approximately 43%.
Speaker #2: On a non-GAAP basis , for the reported period , as compared to 35% on a non-GAAP basis in the comparable period , the increase in the company's revenue and gross profit margins from the Teleradiology mainly services was attributable to customer retention , increased rates , and increased volume of the company's reading services during the weekend and weekdays .
Speaker #2: During the reported period , the company generated revenue through the sale and deployment of its imaging systems and OEM services , which amounted to $175,000 for the reported period , with a loss of $1.7 million on a GAAP basis and a non-GAAP basis compared to a revenue of $29,000 , with a gross loss of $1.5 million on a GAAP basis and a non-GAAP basis .
Speaker #2: In the comparable period , the company's revenue from its AI solution for the reported period was $0.1 million , with a gross loss of $1.9 million on a GAAP basis , compared to revenue of $0.4 million .
Speaker #2: With a gross loss of $1.6 million in the comparable period, the non-GAAP gross profit of the company's AI solution for the reported period was $75,000, compared to a gross profit of $370,000 in the comparable period.
Speaker #2: Research and development expenses , net for the reported period , were $4.6 million , compared to $4.7 million in the comparable period , which represents a decrease of $0.1 million .
Speaker #2: The decrease was mainly due to a decrease of $0.4 million in share based compensation , and $0.5 million in expenses related to our development activities , which were mitigated by an increase of $0.5 million in salaries and wages , and a decrease of $0.3 million in grants received .
Speaker #2: Sales and marketing expenses for the reported period were $1.5 million , compared to $0.9 million in the comparable period , which represents an increase of $0.6 million , mainly due to an increase of $0.5 million in salaries and wages , $0.5 million in marketing activities with connection to the commercial commercialization in the US market , which mitigated by a decrease of $0.1 million in share based compensation , general and administrative expenses for the reported period were $5.3 million , compared to $5.7 million in the comparable period .
Speaker #2: The decrease of $0.4 million was mainly due to a decrease of $0.6 million in share based compensation , decrease of $0.2 million in the company's legal expenses , and a decrease of $0.2 million in insurance expenses , which were mitigated by an increase of $0.5 million in salaries and wages , and recruiting fees .
Speaker #2: non-GAAP net loss attributable to ordinary shares for the reported period was $9.9 million , compared to $8.7 million in the comparable period . The increase of $1.2 million in the non-GAAP net loss attributable to ordinary shares was mainly due to an increase of $0.1 million in non-GAAP gross loss and an increase of $1.1 million in the non-GAAP operating expenses .
Speaker #2: Turning to our sheet as of September 30th , 2025 , we had cash , cash equivalents and marketable securities of approximately $55.5 million , and 3.2 million short term loans from a bank .
Speaker #2: We ended the quarter with the property and equipment , net of $46.7 million . As of September 30th , 2025 and December 31st , 2024 , with approximately 65.4 and 63.8 million shares outstanding , respectively .
Speaker #2: With that , I will end the call back over to Eric .
Speaker #1: Thank Ron . you The third quarter of 2025 was transformative for Nanox . As we evolved from a hardware company into a comprehensive imaging platform with our acquisition of Vasa Healthcare .
Speaker #1: It knew partnerships with 3D labs Altea and X-ray , and the upcoming launch of our AI ready other system at Rsna , we are building the infrastructure for sustainable , recurring revenue streams that will define our future growth .
Speaker #1: with Together , our recent collaboration in Greece , Romania , the Czech Republic and France , where a strengthening our European footprint and in parallel , our collaborations with Cedars-Sinai and our ongoing clinical trials in France continue to advance the clinical of our technology validation and contribute global to the momentum behind our platform through our three strategic pillars , we are executing a comprehensive commercial strategy that combined innovative technology with robust clinical evidence generation and systematic market deployment .
Speaker #1: Although some elements being beyond our control , we believe this is the right moment to present our growth roadmap . And for 2026 , we are guiding to revenues of over $35 million .
Speaker #1: Our purpose remain unchanged to redefine medical imaging by uniting innovation , intelligence and accessibility , creating meaningful impact for patients , clinicians and systems healthcare worldwide .
Speaker #1: The momentum we are building across our commercial deployments and clinical evidence generation positions us well for continued growth and market leadership. Thank you for your continued support.
Speaker #1: Operator please open the call for questions . Operator . Just before the question is one comment regarding the what actually was said that last night , we have actually closed the vaso healthcare .
Speaker #1: It acquisition . So it's actually done with that . You can go ahead and open for the Q&A .
Speaker #3: Thank you . Ladies and gentlemen , to ask a question . At this time , you will need to press star one one on your telephone and wait for your name to be announced .
Speaker #3: To withdraw your question , simply press star one one again , please stand by while we compile a roster . Now first question coming from the line of Ross Osborne with Cantor Fitzgerald , your line is now open .
Speaker #4: Hi . Good morning . taking our Thanks for questions . Congrats on the progress . So starting with the quarter , would you walk through how many systems were in the and performing scans that resulted in your revenue of 175,000 ?
Speaker #1: She doesn't . Out of the all the together . A few of them are being installed as we speak . And a few will be installed in the next few weeks .
Speaker #1: And as mentioned , we are counting on a the expansion of the retail expansion of the business , expansion of the partners are closing deals right now .
Speaker #1: We have a few , as mentioned , some of them are regulatory approvals for physics approval for site preparation . But altogether , this is the number .
Speaker #4: Okay . Yeah . Sorry if I wasn't clear . Looking back during the three Q so your reported revenue , how did you generate 175,000 ?
Speaker #4: Not for the rest of this year, but during the quarter.
Speaker #2: It was a combination of revenue from scans and our OEM services . Okay . We are regarding to the to the paragraph in the script in the and the PR that describes the revenue from deployed systems and OEM services .
Speaker #2: Correct ?
Speaker #4: Yes . So just curious how many systems were deployed .
Speaker #5: So I'll .
Speaker #2: I'll you . refer I'll refer you to this paragraph . And I don't think in general saying that the answer is changing , with regards to the systems .
Speaker #4: Okay . And then looking to the balance of 2025 and meeting 100 units in various stages of deployment , what types of agreements should we thinking about in terms of those being at versus capital sales ?
Speaker #1: Most , I would say the majority of the majority are are MCs .
Speaker #4: Okay , thanks for taking .
Speaker #5: Our .
Speaker #2: But we still see we we can see an increased activities in in the CapEx sales arena . Okay . So we do expect to have some CapEx over .
Speaker #6: Here .
Speaker #1: And the okay .
Speaker #5: Got it .
Speaker #4: I'll jump back in queue . Thank you .
Speaker #5: Thank you .
Speaker #3: Thank you . Our next question comes from the line of Jeffrey Cohen with Latam in your line is now open .
Speaker #7: Oh , hi . And thanks taking our for questions . And nice to see the company at our medica this week . So a few from our end , it seems like we got a good sense of the top line from what you're talking about .
Speaker #7: For the balance of this year . And certainly for 2026 , with the many partnerships and activities .
Speaker #5: Jeff , I'm sorry .
Speaker #2: Can you raise your voice , please , because you are a .
Speaker #5: Little bit .
Speaker #2: Far away .
Speaker #5: From the .
Speaker #8: So .
Speaker #5: Could .
Speaker #7: You talk about how opex could look over the next 4 to 6 quarters as you talk about achieving these 2026 targets versus currently .
Speaker #5: You .
Speaker #2: say what Generally you would expect to see is that our investment in deployment efforts , namely the sales and marketing expenses , will increase .
Speaker #2: Of course , because we need to invest in all activities the with that are related to the deployment of the systems and the sales .
Speaker #2: On the other hand , you , you you should see more tame the R&D expenses as the focus is going to towards commercialization and less on on development activities and we are trying our best to be more , as you know , to be as efficient as we can be .
Speaker #2: And you should see the same level of DNA with some fluctuations .
Speaker #7: Okay . Got it . Could you talk .
Speaker #5: About don't forget .
Speaker #2: The major portion of our G&A expenses are related to us being a public company and you know , sometimes those expenses are increase .
Speaker #7: Got it . Could you talk about Vaso ? I saw in the press release there was a mention of approximately 100 customers . Could you talk about what types of customers that they currently have and the opportunity for those customers into the the Nanox family ?
Speaker #1: So , so the 100 customers of Vaso are all of them are medical related . And they are actually serving hospitals imaging centers across the United States from our point of view , the we we have have a lot of cross-selling that can be achieved .
Speaker #1: They can the majority of the or would say the main purpose of the Vaso acquisition will be to serve the operational and and the customer base , the growing customer base of a of a nanox .
Speaker #1: I . But the more we go into into the the details , what we see right now within the PMI and the post-merger integration that they will be able to expand our sales force to the Arc systems , to those institutions to expand the services of the IT services that they are providing .
Speaker #1: Because many of the of those customers are modality related customers in addition , what we see is that customers a few of the customers already mentioned an interest that USA rod , the Teleradiology business will be provided by our Teleradiology services .
Speaker #1: And in addition , the Taylor ideology , the those customers are are saying that they can actually refer few of their customers to teleradiology services to be obtained .
Speaker #1: The I would say that this will actually strengthen our IT and software , which is one of the major pillars of our growth and and and we definitely can see there network and their customer as , base a as a , as a way to grow our business , our existing business .
Speaker #7: Got it . One more , if I may . I did hear you mentioned breakeven 2027 EBITDA levels , but just prior to that , you mentioned something about 26 .
Speaker #7: Could you reiterate that ?
Speaker #1: we mentioned Yeah , this is already the second time that we say that what we are aiming that that on a run rate basis on 26 , the where AI business will be breakeven , in fact , this was even before before the acquisition .
Speaker #1: So right now . We believe probably that accelerate the the it will the probability of this to be breakeven . Sometimes at the end of 2026 .
Speaker #1: And thing the other that we said that the Arc hardware business . Will , will shoot for a break even . And in 2027 , this is something that we already mentioned in the past .
Speaker #1: And what you can see right now , based on the wide and the what you see , is that we are making progress in all the fronts in the technology and regulation in the in the commercialization of the business .
Speaker #1: And we strongly believe that the retail business, the business partners, and our facility would actually enable us to be there.
Speaker #1: Ron , would you like to add anything ?
Speaker #5: Yes . Let me .
Speaker #2: Fine tune it . What we have said in the past that the AI business will be breakeven on a quarterly breakeven during sometime during 2026 , within specify any quarter .
Speaker #2: We do we do emphasize the the growth of the I division by the expansions of their B2B to to be to B C to models enter into new geographics .
Speaker #2: And of course , with acquisition of Vaso , which expands expands their operations and the potential for growth and achieving the quarterly on a break even on a quarterly run rate .
Speaker #2: And while we also have said that we expect that sometimes the during 2027 , we may be break even in the arc division , all in total , it will bring us sometime in 2027 .
Speaker #2: We may be breakeven on a wide company range just to be more accurate .
Speaker #7: Okay , that's perfect . Thank you for taking our questions .
Speaker #5: No problem. Thank you, Joe.
Speaker #2: Hopefully you enjoyed the medical conference .
Speaker #5: Yeah .
Speaker #3: Thank you . Our next question coming from the line of Scott Henry with AGP . Your line is now open .
Speaker #8: Thank you. Good morning, or depending on your location, good afternoon. I want to talk a little bit about the 2026 number: 35 million.
Speaker #8: That's a pretty big number. So my question is, how should you think about the cadence of the year? Do you expect that to start in Q1 and ramp up, or should we think about that in the second part?
Speaker #8: And then as well , do you have any pre-orders or any just trying to gauge your confidence in that number ? Thank you .
Speaker #1: So first of all , I would start with second comment . Most of what we say we are based on , not most , but I would say major part , we are based on on pre-order and the and the the outcome of what we are doing right now , including the the , the those three elements the the business partners , the retail , which is a major part and the and the sales force that we currently have , not to mention the the new acquisition .
Speaker #1: Second , I would say that it will start slowly from Q1 and ramp up over the quarters the and and achieve the the number at the fourth quarter .
Speaker #1: If I have to say something about mathematics, I would say that the line will be kind of an exponential one. Not a And.
Speaker #1: . Okay
Speaker #5: .
Speaker #8: great . Thank Okay , that color . you for And in terms of levers .
Speaker #2: Just to add a your question is that we do do we see some more activities . I'm going to refer to the article .
Speaker #2: That's what we said in the last questions for Jeffrey of Jeffrey. Don't forget that the current census and your estimates are based without the vessel acquisition.
Speaker #2: So when you add the vessel acquisitions, you are already going up. You have to account for the $4 million in revenues that approximately that vessel has.
Speaker #2: So other than this , the growth may come probably organic and enough .
Speaker #8: Okay, I think, Ron, did you say that Visa would contribute $4 million in revenues?
Speaker #5: Proximately .
Speaker #8: You broke up a little?
Speaker #5: Yes , approximately .
Speaker #8: Okay. And as far as the levers in 2026, what about teleradiology? It reported a strong growth rate in the third quarter.
Speaker #8: Is that growth increasing ? I mean , historically it's been kind of a 10% grower . Are you looking for kind of a breakout in that category ?
Speaker #8: Certainly, we were strong in Q3.
Speaker #1: The answer is if you look at the the numbers that we gave as guidance , the the numbers are not based on on a major quantum leap growth on the Teleradiology .
Speaker #1: We we we hope that that it will grow . But based on the indication that we gave it's based on the sort of the existing plus minus numbers , the all the growth will come from the other business that we have , namely the the arc business and the especially the deployment of the Arc and especially the hopefully the elimination of the adjunct device of the FDA and and the other business that we and the said AI business that that we're talking , I think that OEM also will grow slowly and we will see a major growth from 2027 based on the indication that we currently have from our existing customers and potential customers of the OEM business .
Speaker #8: Okay .
Speaker #5: Yeah , great .
Speaker #2: God will be the AI and the Arc. Okay. And the hardware and the product.
Speaker #8: great . Okay , Thank you for taking the questions . And I look forward to seeing you down at the conference .
Speaker #5: See you there . See you .
Speaker #1: Thank you very much .
Speaker #3: you . Thank And that's the end of our Q&A session . Ladies and gentlemen , this concludes today's conference call . Thank you for your participation .