Q2 2026 Nano-X Imaging Ltd Earnings Call

September 9, 2026

Operator: Good day, and thank you for standing by. Welcome to the Nanox Q2 2026 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 will need to press star one one on your telephone. You will then hear an automated message advising that your hand is raised.

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 that your hand is raised. To withdraw your question, please press *11 again. Please be advised that this conference is being recorded.

Operator: To withdraw your question, please press star one one again. Please be advised that this conference is being recorded. I would now like to hand the conference over to your speaker today, Mike Cavanaugh, Investor Relations. Please go ahead.

Speaker #1: I would now like to hand the conference over to your speaker today, Mike Cavanaugh, Vesta Relations. Please go ahead.

Speaker #2: Good morning and welcome to Nanox Imaging's second quarter 2026 investor call. Earlier today, Nanox Imaging Limited released financial results for the quarter ending June 30, 2026.

Mike Cavanaugh: Good morning, and welcome to Nanox Imaging's second quarter 2026 investor call. Earlier today, Nanox Imaging Ltd. released financial results for the quarter ending 30 June 2026. The release is currently available on the investors section of the company's website. With me today are Erez Meltzer, Chief Executive Officer and Acting Chairman, and Guy Nathanzon, 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, commercialization activities, regulatory process, and clinical activities, 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, these statements should not be relied upon as representing the company's views as of any subsequent date.

Mike Cavanaugh: Good morning, and welcome to Nanox Imaging's Q2 2026 Investor Call. Earlier today, Nanox Imaging Ltd. released financial results for the quarter ending 30 June 2026. The release is currently available on the investors section of the company's website. With me today are Erez Meltzer, Chief Executive Officer and Acting Chairman, and Guy Nathanzon, Chief Financial Officer.

Speaker #2: The release is currently available on the investor section of the company's website. With me today are Erez Meltzer, Chief Executive Officer and Acting Chairman; and Guy Nathanson, Chief Financial Officer.

Speaker #2: Before we get started, I would like to remind everyone that management will be making statements during this call that include forward-looking statements regarding the company's financial results, research and development, manufacturing, commercialization activities, regulatory process, and clinical activities, and other matters.

Mike Cavanaugh: 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, 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 future.

Mike Cavanaugh: 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, these statements should not be relied upon as representing the company's views as of any subsequent date.

Speaker #2: Therefore, these statements 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 filings with the Securities and Exchange Commission.

Mike Cavanaugh: 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. 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, which reconciles the following non-GAAP measures to the closest equivalent figures under GAAP: non-GAAP gross margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP net loss, and adjusted EBITDA loss. With that, I would now like to turn the call over to Erez Meltzer.

Speaker #2: We'll 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 which reconciles the following non-GAAP measures to the closest equivalent figures under GAAP.

Mike Cavanaugh: A reconciliation of the non-GAAP to GAAP measures is provided with our press release, which reconciles the following non-GAAP measures to the closest equivalent figures under GAAP: non-GAAP gross margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP net loss, and adjusted EBITDA loss. With that, I would now like to turn the call over to Erez Meltzer.

Speaker #2: Non-GAAP gross margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP net loss, and adjusted EBITDA loss.

Speaker #2: With that, I'd now like to turn the call over to Erez Meltzer.

Speaker #3: Thank you all for joining us today. In the two-month since our last call, we have advanced commercialization across several areas of the business. Our management team has completed a thorough review of the business and started implementing lessons learned with progress reflected across our commercial operational and strategic priorities.

Erez Meltzer: Thank you all for joining us today. In the two months since our last call, we have advanced commercialization across several areas of the business. Our management team has completed a thorough review of the business and started implementing lessons learned with progress reflected across our commercial, operational, and strategic priorities. Today, I will focus on the steps we are taking to improve execution, extend commercialization, and support the long-term value of the Nanox platform. While our business is trending in the right direction, as we discussed last quarter, our commercialization has taken longer than we expected when we initiated the commercial phase. We have already provided preliminary financial results last month, and our results are substantially consistent with those previously disclosed figures. The main friction points have been, as mentioned, operational.

Speaker #3: Today, I will focus on the steps we are taking to improve execution, extend commercialization, and support the long-term value of the Nanox platform. While our business is trending in the right direction, as we discussed last quarter, our commercialization has taken longer than we expected.

Erez Meltzer: Today, I will focus on the steps we are taking to improve execution, extend commercialization, and support the long-term value of the Nanox platform. While our business is trending in the right direction, as we discussed last quarter, our commercialization has taken longer than we expected when we initiated the commercial phase.

Speaker #3: When we initiated the commercial phase, we had already provided preliminary financial results last month, and our results are substantially consistent with those previously disclosed figures.

Erez Meltzer: We have already provided preliminary financial results last month, and our results are substantially consistent with those previously disclosed figures. The main friction points have been, as mentioned, operational.

Speaker #3: The main friction points have been, as mentioned, operational. Commercialization requires close side-by-side coordination with small and medium-sized imaging centers particularly around permitting, shielding, construction timelines, and integration into clinical workflows.

Erez Meltzer: Commercialization requires close side-by-side coordination with small and medium-sized imaging centers, particularly around permitting, shielding, construction timelines, and integration into clinical workflows. These are practical deployment requirements, but they have been important lessons as we refine how we move systems from commercial agreement to active utilizations. By identifying where the frictions has occurred, we have been able to shape the changes we are now implementing. Most importantly, we are increasingly leveraging commercial partners with established relationship and workflow in the imaging space to meaningfully enhance our presence in the US. At the same time, our direct sales effort continue to support additional Nanox.ARC CapEx agreements and deployment activity, including the first Nanox Imaging Network installation in Philadelphia, which has already scanned its first patients.

Speaker #3: These are practical deployment requirements, but they have been important lessons as we refine how we move systems from commercial agreement to active utilization. By identifying where the frictions has occurred, we have been able to shape the changes we are now implementing.

Erez Meltzer: By identifying where the frictions has occurred, we have been able to shape the changes we are now implementing. Most importantly, we are increasingly leveraging commercial partners with established relationship and workflow in the imaging space to meaningfully enhance our presence in the US.

Speaker #3: Most importantly, we are increasingly leveraging commercial partners with established relationships and workflow in the imaging space to meaningfully enhance our presence in the US.

Speaker #3: At the same time, our direct sales effort continues to support additional Nanox ARC CAPEX agreements and deployment activity. Including the first Nanox Imaging Network installation in Philadelphia, which has already scanned its first patients.

Erez Meltzer: At the same time, our direct sales effort continue to support additional Nanox.ARC CapEx agreements and deployment activity, including the first Nanox Imaging Network installation in Philadelphia, which has already scanned its first patients.

Speaker #3: Beyond the US, we continue Nanox ARC deployment activity across Europe and Latin America, advanced new Nanox AI commercial and pilot programs in India and the US, and moved forward with a restructuring of our South Korea operations to better align resources with our core technologies and commercialization priorities.

Erez Meltzer: Beyond the US, we continue Nanox.ARC deployment activity across Europe and Latin America, advanced new Nanox.AI commercial and pilot programs in India and the US, and moved forward with the restructuring of our South Korea operations to better align resources with our core technologies and commercialization priorities. We continue to broaden our US footprint through strategic collaborations, customers evaluations, and deployment activities, including our recently announced collaboration with RadNet and ongoing work with leading clinical institutions with a goal of expanding our engagement with healthcare chains and increasing activity within those chains. As we disclosed in our last call, the Nanox.ARC system has been operational for several months at RadNet sites.

Speaker #3: We continue to broaden our US footprint through strategic collaborations customers evaluations and deployment activities, including our recently announced collaboration with Radnet and ongoing work with leading clinical institutions with the goal of expanding our engagement with healthcare chains and increasing activity within those chains.

Erez Meltzer: We continue to broaden our US footprint through strategic collaborations, customers evaluations, and deployment activities, including our recently announced collaboration with RadNet and ongoing work with leading clinical institutions with a goal of expanding our engagement with healthcare chains and increasing activity within those chains. As we disclosed in our last call, the Nanox.ARC system has been operational for several months at RadNet sites.

Speaker #3: As we disclosed in our last call, the Nanox ARC system has been operational for several months at RadNet sites. RadNet is the largest outpatient imaging center operator in the United States and has deployed a Nanox ARC system at one of its facilities, where it is now in commercial use and integrated into routine clinical workflow.

Erez Meltzer: RadNet is the largest outpatient imaging center operator in the United States and has deployed the Nanox.ARC system at one of its facilities, where it is now in commercial use and integrated into routine clinical workflow. We continue to explore opportunities for clinical research, including early lung nodule detection. We believe this represents an important step in demonstrating Nanox.ARC's clinical value in a major outpatient imaging setting, and we are excited to continue this collaboration. We recently deployed a Nanox.ARC system through a capital equipment sale to an internationally recognized orthopedic center in Florida, which is part of an IDN, integrated delivery network. As this organization integrates the system into its orthopedic imaging workflow, we are launching a strategic collaboration aimed at broadening the clinical use of Nanox.ARC in orthopedics and generating clinical experience in a high volume specialty care environment.

Speaker #3: We continue to explore opportunities for clinical research, including early lung nodule detection. We believe this represents an important step in demonstrating Nanox ARC's clinical value in a major outpatient imaging setting, and we are excited to continue this collaboration.

Erez Meltzer: We believe this represents an important step in demonstrating Nanox.ARC's clinical value in a major outpatient imaging setting, and we are excited to continue this collaboration. We recently deployed a Nanox.ARC system through a capital equipment sale to an internationally recognized orthopedic center in Florida, which is part of an IDN, Integrated Delivery Network.

Speaker #3: We recently deployed a Nanox ARC system through a capital equipment sale to an internationally recognized orthopedic center in Florida which is part of an IDN integrated delivery network.

Speaker #3: As this organization integrates the system into its orthopedic imaging workflow, we are launching a strategic collaboration aimed at broadening the clinical use of Nanox ARC in orthopedics and generating clinical experience in a high volume specialty care environment.

Erez Meltzer: As this organization integrates the system into its orthopedic imaging workflow, we are launching a strategic collaboration aimed at broadening the clinical use of Nanox.ARC in orthopedics and generating clinical experience in a high volume specialty care environment.

Speaker #3: We believe the true measure of innovation in medical imaging lies in clinical relevance and the potential to improve patient care. Our continued engagement with leading healthcare organizations reflects our commitment to generating more real-world evidence and evaluating a growing number of clinical applications for our technology.

Erez Meltzer: We believe the true measure of innovation in medical imaging lies in clinical relevance and potential to improve patient care. Our continued engagement with leading healthcare organization reflects our commitment to generating more real-world evidence and evaluating a growing number of clinical applications for our technology. For example, we recently installed an ARC system in an urgent care unit located in New Jersey. Turning to our commercial distribution partnership, we are seeing channel partners build pipelines activity that supports future CapEx sales. In addition, our US-based subsidiary, Nanox Impact Inc., has entered into a distribution agreement with Associated X-Ray Imaging Corp., a New England-based provider of medical imaging equipment and services, specializing in X-ray, MRI, and CT system to support deployment of the Nanox.ARC across the region. We now have 10 signed commercial distribution partnership in the United States.

Speaker #3: For example, we recently installed an ARC system in an urgent care unit located in New Jersey. Returning to our commercial distribution partnership, we are seeing channel partners build pipelines activity that supports future CAPEX US-based subsidiary Nanox Impact, Inc. has entered into a distribution agreement with associated X-ray imaging corp, a New England-based provider of medical imaging equipment and services, specializing in X-ray MRI and CT system to support deployment of the Nanox ARC across the region.

Erez Meltzer: Turning to our commercial distribution partnership, we are seeing channel partners build pipelines activity that supports future CapEx sales. In addition, our US-based subsidiary, Nanox Impact Inc., has entered into a distribution agreement with Associated X-Ray Imaging Corp., a New England-based provider of medical imaging equipment and services, specializing in X-ray, MRI, and CT system to support deployment of the Nanox.ARC across the region.

Speaker #3: We now have 10 signs commercial distribution partnership in the United States. Associated has already supported the customer installation of the Nanox ARC that is installed in operational, further demonstrating its ability to support deployment and service in the region.

Erez Meltzer: We now have 10 signed commercial distribution partnership in the United States.

Erez Meltzer: Associated has already supported the customer installation of the Nanox.ARC that is installed and operational, further demonstrating its ability to support deployment and service in the region. The agreement follows other recent engagements, including Digital X-Ray Imaging, Integrity Medical Service, and Elite Surgical. The goal is to supplement our direct sales force and increase our presence economically as we pursue broader coverage of major US markets. We are also expanding joint commercialization activity with our partners, including participation in Howard's annual sales summit, our webinar partnership with ROS, and ongoing sales and marketing initiatives. As more customers, channel partners, and physical gain first-hand experience with Nanox.ARC, we are seeing encouraging utilization, including sites performing hundreds of scans per month, and one customer transitions from MSaaS to CapEx purchase.

Speaker #3: The agreement follows other recent engagements, including digital X-ray imaging, Integrity Medical Services, and Elite Surgical Technologies. The goal is to supplement our direct sales force and increase our presence economically as we pursue broader coverage of major U.S. markets.

Speaker #3: We're also expanding joint commercialization activity with our partners, including participation in Howard's annual sales summit, our webinar partnership with ROS, and ongoing sales and marketing initiatives.

Erez Meltzer: We are also expanding joint commercialization activity with our partners, including participation in Howard's annual sales summit, our webinar partnership with ROS, and ongoing sales and marketing initiatives. As more customers, channel partners, and physical gain first-hand experience with Nanox.ARC, we are seeing encouraging utilization, including sites performing hundreds of scans per month, and one customer transitions from MSaaS to CapEx purchase.

Speaker #3: As more customers, channel partners, and physical sites gain firsthand experience with Nanox ARC, we are seeing encouraging utilization, including sites performing hundreds of scans per month, and one customer transitioning from EMSAS to a CAPEX purchase.

Speaker #3: The Nanox Imaging Network proof of concept is beginning to contribute to our commercialization strategy by targeting segments that may offer potentially higher reimbursement rates such as worker compensation groups and concierge medical providers.

Erez Meltzer: The Nanox Imaging Network proof of concept is beginning to contribute to our commercialization strategy by targeting segments that may offer potentially higher reimbursement rates, such as worker compensation groups and concierge medical providers. Through this initiative, Nanox completed the first Nanox Imaging Network installation in Philadelphia, and the site has begun scanning its first patients. It is encouraging that we are already seeing reimbursement from insurers and payers with paid claims in the range of $200 to $700 per claim. This provides early validation of the commercial opportunity for the Nanox Imaging Network and support our focus on targeted care segments where reimbursement dynamics can be favorable. Based on the preliminary business model, we believe each site may have the potential to generate annual revenue in the range of half a million dollars to 1 million dollars, depending on utilization, reimbursement, payer mix, and site level execution.

Speaker #3: Through this initiative, Nanox completed the first Nanox Imaging Network installation in Philadelphia. And the site has begun scanning its first patients. It is encouraging that we are already seeing reimbursement from insurers and payers with paid claims in the range of $200 to $700 per claim.

Speaker #3: This provides early validation of the commercial opportunity. The Nanox Imaging Network can support our focus on targeted care segments where reimbursement dynamics can be favorable.

Erez Meltzer: This provides early validation of the commercial opportunity for the Nanox Imaging Network and support our focus on targeted care segments where reimbursement dynamics can be favorable. Based on the preliminary business model, we believe each site may have the potential to generate annual revenue in the range of $500,000 to 1 million dollars, depending on utilization, reimbursement, payer mix, and site level execution.

Speaker #3: Based on the preliminary business model we believe each site may have the potential to generate annual revenue in the range of $500,000 to $1,000,000 depending on utilization reimbursement, payer mix, and site level execution.

Speaker #3: In our rest of the world markets, we advance commercialization activities across Europe and Latin America. During the quarter, we completed an end user deployment in the Czech Republic and advanced system deliveries in Romania and Greece through local distribution partners which we have discussed on previous calls.

Erez Meltzer: In our rest of the world markets, we advanced commercialization activities across Europe and Latin America. During the quarter, we completed an end user deployment in the Czech Republic, and advanced system deliveries in Romania and Greece through local distribution partners, which we have discussed on previous calls. We also appointed Solmed RCSA as our new distribution partner in Costa Rica, further extending our presence in Latin America. We also continue to develop commercial opportunities with distributors in Slovenia and Ecuador, and are preparing to ship a system to Argentina. Since the acquisition, our teleradiology services division, USARAD, continued to deliver strong and consistent revenues during the H1 2026, which grew on a year-over-year basis, averaging 14% growth, driven by continued expansion of our teleradiology client base. USARAD Holdings, Inc.

Speaker #3: We also appointed Solveig RCSA as our new distribution partner in Costa Rica. Further expanding our presence in Latin America. We also continue to develop commercial opportunities with distributors in Slovenia, and Ecuador, and our preparing to ship a system to Argentina.

Erez Meltzer: We also continue to develop commercial opportunities with distributors in Slovenia and Ecuador, and are preparing to ship a system to Argentina. Since the acquisition, our teleradiology services division, USARAD, continued to deliver strong and consistent revenues during the H1 of 2026, which grew on a year-over-year basis, averaging 14% growth, driven by continued expansion of our teleradiology client base.

Speaker #3: Since the acquisition, our teleradiology services division, USA-RAD, continues to deliver strong and consistent revenues during the first half of 2026, which grew on a year-over-year basis, averaging 14% growth, driven by continued expansion of our teleradiology client base.

Speaker #3: USA-RAD Holdings, Inc. has once again earned the joint commissions gold seal of approval for ambulatory healthcare accreditation by demonstrating continuous standards. The gold seal is a symbol of quality that reflects a healthcare organization's commitment to providing safe and quality patient care.

Erez Meltzer: USARAD Holdings, Inc. has once again earned The Joint Commission's Gold Seal of Approval for ambulatory healthcare accreditation by demonstrating continuous compliance with its performance standards. The Gold Seal is a symbol of quality that reflects a healthcare organization's commitment to providing safe and quality patient care. We also extended USARAD engagement with a leading multinational aerospace organization.

Erez Meltzer: has once again earned The Joint Commission's Gold Seal of Approval for ambulatory healthcare accreditation by demonstrating continuous compliance with its performance standards. The Gold Seal is a symbol of quality that reflects a healthcare organization's commitment to providing safe and quality patient care. We also extended USARAD engagement with a leading multinational aerospace organization. This renewal reflects the value of USARAD services offering, and our ability to support large organizations with reliable, high-quality teleradiology services. We continue to view the teleradiology business as both a source of recurring revenues and an important channel for advancing the commercialization of our broader imaging and AI solutions. Nanox.AI advanced on both the commercial and the clinical fronts during the quarter. We recently announced that Nanox entered into an exclusive sales reseller agreement with Vertec Scientific Ltd for the Nanox.AI Bone solution in the United Kingdom.

Speaker #3: We also extended USA-RAD engagement with a leading multinational aerospace organization. This renewal reflects the value of USA-RAD services offering and our ability to support large organizations with reliable, high-quality teleradiology services.

Erez Meltzer: This renewal reflects the value of USARAD services offering, and our ability to support large organizations with reliable, high-quality teleradiology services. We continue to view the teleradiology business as both a source of recurring revenues and an important channel for advancing the commercialization of our broader imaging and AI solutions. Nanox.AI advanced on both the commercial and the clinical fronts during the quarter.

Speaker #3: We continue to view the teleradiology business as both a source of recurring revenue and an important channel for advancing the commercialization of our broader imaging and AI solutions.

Speaker #3: Nanox AI advanced on both the commercial and the clinical fronts during the quarter. We recently announced that Nanox entered into an exclusive sales reseller agreement with Vertex Scientific Limited for the Nanox AI bone solution in the United Kingdom.

Erez Meltzer: We recently announced that Nanox entered into an exclusive sales reseller agreement with Vertec Scientific Ltd for the Nanox.AI Bone solution in the United Kingdom.

Erez Meltzer: Vertix is also the exclusive supplier of Hologic DXA scanners in the UK, with an extensive network of opinion leaders, clinics, and hospitals. Moreover, we launched five new AI installations pilots across the United States and India. These engagements expand our clinical and commercial footprint and provide opportunities to demonstrate the value of our AI solution in real world healthcare settings. We are actively supporting these organizations through the evaluation process and look forward to advancing discussion around broader deployment. We also completed a pilot study with Cedars-Sinai, comparing Nanox.AI Health AVC with standard of care tools for assessing aortic valve calcification. The study demonstrated greater than 92% agreement between the two approaches, reinforcing the accuracy of our technology and supporting its potential integration into existing imaging workflows.

Erez Meltzer: Vertec is also the exclusive supplier of Hologic DXA scanners in the UK, with an extensive network of opinion leaders, clinics, and hospitals. Moreover, we launched five new AI installations pilots across the United States and India. These engagements expand our clinical and commercial footprint and provide opportunities to demonstrate the value of our AI solution in real world healthcare settings.

Speaker #3: Vertex is also the exclusive supplier of Hologic DXA scanners in the UK with an extensive network of Keopen leaders clinics and hospitals. Moreover, we launched five new AI installations pilots across the United States and India these engagements expand our clinical and commercial footprint and provide opportunities to demonstrate the value of our AI solution in real world healthcare settings.

Speaker #3: We're actively supporting these organizations through the evaluation process and look forward to advancing discussions around broader deployment. We also completed a pilot study with Cedars-Sinai comparing Nanox AI Health AVC with standard-of-care tools for assessing aortic valve calcification.

Erez Meltzer: We are actively supporting these organizations through the evaluation process and look forward to advancing discussion around broader deployment. We also completed a pilot study with Cedars-Sinai, comparing Nanox.AI Health AVC with standard of care tools for assessing aortic valve calcification.

Speaker #3: The study demonstrated greater than 92% agreement between the two approaches reinforcing the accuracy of our technology and supporting its potential integration into existing imaging workflows.

Erez Meltzer: The study demonstrated greater than 92% agreement between the two approaches, reinforcing the accuracy of our technology and supporting its potential integration into existing imaging workflows.

Speaker #3: In addition, IRB approval has been received from a leading university affiliated medical center for an upcoming clinical study and we are now moving forward with data collection.

Erez Meltzer: In addition, IRB approval has been received from a leading university-affiliated medical center for an upcoming clinical study, and we are now moving forward with data collection. To end my update on the AI business, I would like to share some reimbursement news. In the US, the Centers for Medicare & Medicaid Services established a new healthcare common procedures coding system, Code G0680, effective 1 April 2026, for algorithmic analysis of coronary artery calcium and/or aortic valve calcification from chest CT scans. This creates a potential reimbursement pathway for the Nanox.AI Cardiac Solution when used with eligible chest CT exams, and when applicable payer documentation and medical necessity requirements are met. We view this as a positive development that may help support commercial adoption of Nanox.AI by enabling providers to incorporate AI-driven analysis into existing imaging workflow.

Speaker #3: To end my update on the AI business, I'd like to share some reimbursement news. In the US, the Centers for Medicare and Medical Services establish a new healthcare common procedures coding system code GO680 effective April 1st, 2026 for algorithmic analysis of coronary artery calcium and/or aortic valve calcification from chest CT scans.

Erez Meltzer: In the US, the Centers for Medicare & Medicaid Services established a new healthcare common procedures coding system, Code G0680, effective 1 April 2026, for algorithmic analysis of coronary artery calcium and/or aortic valve calcification from chest CT scans. This creates a potential reimbursement pathway for the Nanox.AI Cardiac Solution when used with eligible chest CT exams, and when applicable payer documentation and medical necessity requirements are met.

Speaker #3: This creates a potential reimbursement pathway for the Nanox AI cardio solution when used with eligible chest SCT exams and when applicable payer documentation and medical necessity requirements are met.

Speaker #3: We view this as a positive development that may help support commercial adoption of Nanox AI by enabling providers to incorporate AI-driven analysis into existing imaging workflows.

Erez Meltzer: We view this as a positive development that may help support commercial adoption of Nanox.AI by enabling providers to incorporate AI-driven analysis into existing imaging workflow.

Speaker #3: The new reimbursement code may expand the addressable market for the Nanox AI cardio solution by creating a direct reimbursement pathway for outpatient imaging centers and clinics performing eligible chest CT examinations.

Erez Meltzer: The new reimbursement code may expand the addressable market for the Nanox.AI Cardiac Solution by creating a direct reimbursement pathway for outpatient imaging centers and clinics performing eligible chest CT examinations. This pathway may enable qualifying provider to incorporate our Cardiac Solution into existing CT workflows and receive reimbursement without requiring an additional imaging procedure. We are exploring further our engagement with two of our leading research sites, Meir Medical Center and Rabin Medical Center by expanding our ongoing clinical work into rheumatology, an area we believe may represent a meaningful extension of the Nanox.ARC value proposition. Together with these centers, we are evaluating the potential role of the Nanox.ARC in the assessment and long-term management of chronic rheumatology conditions. While still in the research stage, we believe this work may help broaden our understanding of additional clinical applications for the Nanox.ARC and inform future opportunities in rheumatology.

Speaker #3: This pathway may enable qualifying provider to incorporate our cardio solution into existing city workflows and receive reimbursement without requiring an additional imaging procedure. We are exploring further our engagement with two of our leading research sites, Mayer Medical Centers and Rabin Medical Center by expanding our ongoing clinical work into rheumatology an area we believe may represent a meaningful extension of the Nanox ARC value proposition.

Erez Meltzer: We are exploring further our engagement with two of our leading research sites, Meir Medical Center and Rabin Medical Center by expanding our ongoing clinical work into rheumatology, an area we believe may represent a meaningful extension of the Nanox.ARC value proposition. Together with these centers, we are evaluating the potential role of the Nanox.ARC in the assessment and long-term management of chronic rheumatology conditions.

Speaker #3: Together with these centers, we are evaluating the potential role of the ARC in the assessment and long-term management of chronic rheumatology conditions. While still in the research stage, we believe this work may help broaden our understanding of additional clinical applications for the ARC and inform future opportunities in rheumatology.

Erez Meltzer: While still in the research stage, we believe this work may help broaden our understanding of additional clinical applications for the Nanox.ARC and inform future opportunities in rheumatology.

Speaker #3: I'd like to share a few additional updates on our OEM relationship and pursuits. Varx tubes are undergoing the final integration process to become our main X-ray tubes source for the Nanox ARC X system.

Erez Meltzer: I would like to share a few additional updates on our OEM relationship and pursuits. Varex tubes are undergoing the final integration process to become our main X-ray tubes source for the Nanox.ARC X system. We have additionally taken receipt of a Varex multi-beam X-ray vessel utilizing multiple Nanox emitters, and have begun our initial testing. We are excited to measure our emitter's capabilities in this configuration and have potential partner interest in the areas of security, food inspection, and of course, medical. Regarding Oak Ridge National Laboratory prototypes, we have completed and delivered prototypes of the latest design iteration to Oak Ridge for their assessment in integration with their intended application in security use cases. We are also pursuing discussions with other entities for this purpose. Overall, interest in the Nanox breakthrough source technology remains very strong.

Speaker #3: We have additionally taken receipt of the Varx multi-beam X-ray vessel utilizing multiple Nanox emitters and have begun our initial testing. We are excited to measure our emitters capabilities in this configuration and have potential partner interest in the areas of security, food inspection, and of course medical.

Erez Meltzer: We are excited to measure our emitter's capabilities in this configuration and have potential partner interest in the areas of security, food inspection, and of course, medical. Regarding Oak Ridge National Laboratory prototypes, we have completed and delivered prototypes of the latest design iteration to Oak Ridge for their assessment in integration with their intended application in security use cases.

Speaker #3: Regarding Oak Ridge National Laboratory prototypes, we have completed and delivered prototypes of the latest design, iteration to Oak Ridge for their assessment and integration with their intended application in security use cases.

Speaker #3: We're also pursuing discussions with other entities for this purpose. Overall, interest in the Nanox breakthrough source technology remains very strong. The Nanox Health IT that we acquired at the end of 2025 has proven to be a valuable addition to Nanox and continues to contribute meaningful revenue in the first half of the year, supported by an expanding customer base and more than 20 new projects going live.

Erez Meltzer: We are also pursuing discussions with other entities for this purpose. Overall, interest in the Nanox breakthrough source technology remains very strong.

Erez Meltzer: The Nanox Health IT that we acquired at the end of 2025 has proven to be a valuable addition to Nanox and continues to contribute meaningful revenue in the H1 of the year, supported by an expanding customer base and more than 20 new projects going live. As we complete our integration to make the business more scalable and begin to more fully leverage its synergies with Nanox.AI, Nanox.ARC, and UroSurround business segments, we are very excited about the growth potential of this business. Turning to our South Korea operations, as we previously disclosed, we have been evaluating a range of strategic alternatives aimed at optimizing our cost structure and maximizing the value of our asset in Korea. Following this review, we have decided to move forward with a broader structural transformation of our South Korea operation.

Speaker #3: As we complete our integration to make the business more scalable and began to more fully leverage its synergies with Nanox AI, Nanox ARC, and USA Route business segments, we are very excited about the growth potential of this business.

Erez Meltzer: As we complete our integration to make the business more scalable and begin to more fully leverage its synergies with Nanox.AI, Nanox.ARC, and USARAD business segments, we are very excited about the growth potential of this business. Turning to our South Korea operations, as we previously disclosed, we have been evaluating a range of strategic alternatives aimed at optimizing our cost structure and maximizing the value of our asset in Korea.

Speaker #3: Turning to our South Korea operations, as we previously disclosed, we have been evaluating a range of strategic alternatives aimed at optimizing our cost structure and maximizing the value of our asset in Korea.

Speaker #3: Following this review, we have decided to move forward with a broader structural transformation of our South Korea operation. As part of this process, we've idled our chip production line and reduced our workforce in Korea by two-thirds.

Erez Meltzer: Following this review, we have decided to move forward with a broader structural transformation of our South Korea operation.

Erez Meltzer: As part of this process, we have idled our chip production line and reduced our workforce in Korea by two-thirds. We are transitioning volume production activities to qualified third-party manufacturing partners. In parallel, we have initiated the necessary processes with the relevant authorities and other stakeholders in preparation for the sale of the manufacturing facility. We believe these actions will further streamline our operating model, reduce our fixed cost base and burn rate, and allow us to focus our resources on our core technologies and commercialization priorities. Guy will work through the specifics of the restructuring in his financial overview. We are also preparing for RSNA 2026, where we plan to engage with customers, partners, and key opinion leaders across the radiology community.

Speaker #3: We are transitioning volume production activities to qualified third-party manufacturing partners. In parallel, we have initiated the necessary processes with the relevant authorities and other stakeholders in preparation for the sale of the manufacturing facility.

Speaker #3: We believe these actions will further streamline our operating model reduce our fixed cost based and burn rate and allow us to focus our resource on our core technologies and commercialization priorities.

Erez Meltzer: We believe these actions will further streamline our operating model, reduce our fixed cost base and burn rate, and allow us to focus our resources on our core technologies and commercialization priorities. Guy will work through the specifics of the restructuring in his financial overview. We are also preparing for RSNA 2026, where we plan to engage with customers, partners, and key opinion leaders across the radiology community.

Speaker #3: Guy will work through the specifics of the restructuring in his financial overview. We are also preparing for RSNA 2026 where we plan to engage with customers partners and key opinion leaders across the radiology community.

Speaker #3: RSNA provides an important platform to present our end-to-end imaging solution across Nanox ARC, Nanox AI, and our broader imaging ecosystems while supporting business development, customer engagement, and awareness of our recent commercial and clinical activity.

Erez Meltzer: RSNA provides an important platform to present our end-to-end imaging solution across Nanox.ARC, Nanox.AI, and our broader imaging ecosystems, while supporting business development, customer engagement, and awareness of our recent commercial and clinical activity. We are preparing for RSNA 2026 with the goal of building on last year's success and using the event as a strong commercial kickoff for 2027. I will now turn the call over to Guy, whom we are very pleased to officially welcome to the team.

Speaker #3: We are preparing for RSNA 2026 with the goal of building on last year's success and using the event as a strong commercial kickoff for 2027.

Speaker #3: I will now turn the call over to Guy, whom we are very pleased to officially welcome to the team.

Erez Meltzer: I will now turn the call over to Guy, whom we are very pleased to officially welcome to the team.

Speaker #2: Thank you, Erez. Before I begin, I would like to say that I'm very excited to be at Nanox and I look forward to helping drive our future success as we seek to change medical imaging.

Guy Nathanzon: Thank you, Erez. Before I begin, I would like to say that I am very excited to be at Nanox, and I look forward to helping drive our future success as we seek to change medical imaging. As we implement the lessons we have learned and drive commercial growth, we have also sought various ways to extend our cash runway to the point where we are at a sustainable run rate. During the quarter and subsequently, we have taken deliberate steps to implement effective measures, including reductions to our cash expenditures and cash burn. Among those steps have been a 15% headcount reduction of our Israeli-based employees and, as previously noted, a reduction in our activities at our Korean location, mainly in the chip fabrication facility, as well as approximately 67% in our headcount in Korea.

Speaker #2: As we implement the lessons we have learned and drive commercial growth, we have also sought various ways to extend our cash runway to the point where we are at a sustainable run rate.

Speaker #2: During the quarter end, subsequently, we have taken deliberate steps to implement effective measures, including reductions to our cash expenditures and cash burn. Among those steps have been a 15% headcount reduction of our Israeli-based employees and, as previously noted, a reduction in our activities at our Korean location—mainly in the chip fabrication facility—as well as an approximately 67% reduction in our headcount in Korea.

Guy Nathanzon: During the quarter and subsequently, we have taken deliberate steps to implement effective measures, including reductions to our cash expenditures and cash burn. Among those steps have been a 15% headcount reduction of our Israeli-based employees and, as previously noted, a reduction in our activities at our Korean location, mainly in the chip fabrication facility, as well as approximately 67% in our headcount in Korea.

Speaker #2: We will instead rely on our OEM partners to supply the chips we need for future demand. The estimated annualized cost savings from this steps are expected to be approximately $2 million beginning in 2027.

Guy Nathanzon: We will instead rely on our OEM partners to supply the chips we need for future demand. The estimated annualized cost savings from these steps are expected to be approximately $2 million beginning in 2027. Along with cost reductions, we also recognize the need for additional capital and have recently raised fresh capital via an existing ATM program and a registered direct offering in August that raised together a total of $8.5 million of gross proceeds. All figures that I'm reviewing now relate to the Q2 ending 30 June 2026, and all comparable figures relate to the comparable quarter of 2025, unless otherwise noted. Q2 2026 revenue were $4.2 million, compared to $3 million in Q2 2025, representing a year-over-year increase of 37%.

Speaker #2: Along with cost reductions, we also recognize the need for additional capital and have recently raised fresh capital via an existing ATM program and a registered direct offering in August that together raised a total of $8.5 million of gross proceeds.

Speaker #2: All figures that I'm reviewing now relate to the second quarter ending June 30, 2026 and on comparable figures relate to the comparable quarter of 2025 unless otherwise noted.

Guy Nathanzon: All figures that I'm reviewing now relate to the Q2 ending 30 June 2026, and all comparable figures relate to the comparable quarter of 2025, unless otherwise noted. Q2 2026 revenue were $4.2 million, compared to $3 million in Q2 2025, representing a year-over-year increase of 37%.

Speaker #2: Q2 2026 revenue were $4.2 million compared to $3 million in Q2 2025 representing a year over year increase of 37%. The increase was driven mainly by the consolidation of the Nanox Health IT formerly known as Vaso Healthcare IT business which was consolidated as of November 19, 2025 and accounted for $0.9 million of revenue in Q2 2026.

Guy Nathanzon: The increase was driven mainly by the consolidation of the Nanox Health IT, formerly known as VasoHealthcare IT business, which was consolidated as of 19 November 2025, and accounted for $0.9 million of revenue in Q2 2026. The company generated revenue of $3 million from our teleradiology services, $1 million from our AI and software solutions, and $0.2 million from the sale of imaging systems and OEM services. Q2 2026 adjusted EBITDA loss, a financial measure that is derived as described below under non-GAAP financial measures, was $11.3 million, compared with adjusted EBITDA loss of $10.4 million in Q2 2025. Q2 2026 GAAP gross loss margin was -1,051% compared to a GAAP gross loss margin of -107% for Q2 2025. Non-GAAP gross loss margin was -13%, compared to a non-GAAP gross loss margin of -21% in Q2 2025.

Speaker #2: The company generated revenue of $3 million from our tele radiology services $1 million from our AI and software solutions and $0.2 million from the sale of imaging systems and OEM services.

Speaker #2: Q2 2026 adjusted EBITDA loss a financial measure that is derived as described below under non-gap financial measures was 11.3 million compared with adjusted EBITDA loss of 10.4 million in Q2 2025.

Guy Nathanzon: Q2 2026 adjusted EBITDA loss, a financial measure that is derived as described below under non-GAAP financial measures, was $11.3 million, compared with adjusted EBITDA loss of $10.4 million in Q2 2025. Q2 2026 GAAP gross loss margin was -1,051% compared to a GAAP gross loss margin of -107% for Q2 2025. Non-GAAP gross loss margin was -13%, compared to a non-GAAP gross loss margin of -21% in Q2 2025.

Speaker #2: Q2 2026 gap gross loss margin was minus $1,051% compared to a gap gross loss margin of minus $107% for Q2 2025. Non-gap gross loss margin was minus 13% compared to a non-gap gross loss margin of minus 21% in Q2 2025.

Speaker #2: In accordance with applicable accounting standards, as of June 30, 2026, the company performed an impairment assessment of its asset groups. The impairment assessment was triggered by significant decline in the company's share price and reduced forecasted revenue and operating results.

Guy Nathanzon: In accordance with applicable accounting standards, as of 30 June 2026, the company performed an impairment assessment of its asset groups. The impairment assessment was triggered by a significant decline in the company's share price and reduced forecasted revenue and operating results. The company recorded an impairment charge of $40.7 million, which was accorded to cost of revenue, impairment of intangible assets, reducing the fair value of the intangible assets related to its AI solutions business unit, excluding Nanox Health IT, to $1.9 million. The company also reevaluated the remaining useful life of the intangible assets and concluded that no change were necessary. The impairment charge did not result in any cash outflow or impact the company's liquidity, and was excluded from the calculation of the adjusted EBITDA for the period. Q2 2026 GAAP operating expense were $11.8 million, compared to GAAP operating expense of $11.3 million in Q2 2025.

Speaker #2: The company recorded an impairment charge of 40.7 million which was recorded to cost of revenue impairment of intangible assets reducing the fair value of the intangible assets related to its AI solutions business unit excluding Nanox Health IT to $1.9 million.

Guy Nathanzon: The company recorded an impairment charge of $40.7 million, which was accorded to cost of revenue, impairment of intangible assets, reducing the fair value of the intangible assets related to its AI solutions business unit, excluding Nanox Health IT, to $1.9 million. The company also reevaluated the remaining useful life of the intangible assets and concluded that no change were necessary.

Speaker #2: The company also re-evaluated the remaining useful life of the intangible assets and concluded that no changes were necessary. The impairment charge did not result in any cash outflow or impact the company's liquidity and was excluded from the calculation of the adjusted EBITDA for the period.

Guy Nathanzon: The impairment charge did not result in any cash outflow or impact the company's liquidity, and was excluded from the calculation of the adjusted EBITDA for the period. Q2 2026 GAAP operating expense were $11.8 million, compared to GAAP operating expense of $11.3 million in Q2 2025.

Speaker #2: Q2 2026 gap operating expense were $11.8 million. Compared to gap operating expense of $11.3 million in Q2 2025. Q2 2026 non-gap operating expense were $11.1 million.

Guy Nathanzon: Q2 2026 non-GAAP operating expense were $11.1 million, compared to a non-GAAP operating expense of $10.0 million in Q2 2025. The increase was mainly driven by the consolidation of Nanox Health IT business and an increase in the legal expense. Q2 2026 GAAP net loss was $55.5 million, compared to a GAAP net loss of $14.7 million in Q2 2025. Q2 2026 non-GAAP net loss was $11.6 million, compared to a non-GAAP net loss of $10.9 million in Q2 2025. The increase in net loss was mainly related to the impairment of certain intangible assets as described above. Cash and cash equivalents and restricted deposits as of 30 June 2026, were at $31.4 million. This compares to a cash and cash equivalents, short-term deposits, and restricted deposits balance of $60 million as of 31 December 2025.

Speaker #2: Compared to a non-gap operating expense of $10.0 million in Q2 2025. The increase was mainly driven by the consolidation of Nanox Health IT business and.

Speaker #2: An increase in the legal expense. Q2 2026 gap net loss was $55.5 million compared to a gap net loss of $14.7 million in Q2 2025.

Speaker #2: Q2 2026 non-gap net loss was $11.6 million. Compared to a non-gap net loss of $10.9 million in Q2 2025. The increase in net loss was mainly related to the impairment of certain intangible assets as described above.

Guy Nathanzon: The increase in net loss was mainly related to the impairment of certain intangible assets as described above. Cash and cash equivalents and restricted deposits as of 30 June 2026, were at $31.4 million. This compares to a cash and cash equivalents, short-term deposits, and restricted deposits balance of $60 million as of 31 December 2025.

Speaker #2: Cash and cash equivalents and restricted deposits as of June 30, 2026, were $31.4 million. This compares to a cash and cash equivalents, short-term deposits, and restricted deposits balance of $60 million as of December 31, 2025.

Speaker #2: Post-quarter end, the company raised aggregate gross proceeds of $8.5 million from its ATM program and a registered direct offering the company intends to continue raising funds from various sources to improve its cash balance and support its activities.

Guy Nathanzon: Post quarter end, the company raised aggregate gross proceeds of $8.5 million from its ATM program and a registered direct offering. The company intends to continue raising funds from various sources to improve its cash balance and support its activities. I will now turn the call over to Erez for final comments and the questions and answer session.

Speaker #2: I'll now turn the call over to Erez for final comments and the question-and-answer session.

Speaker #1: Before we open the call for questions, I want to close by reflecting on the priorities I outlined today and the progress they have produced so far.

Erez Meltzer: Before we open the call for questions, I want to close by reflecting on the priorities I outlined today and the progress they have produced so far. We are focused on moving Nanox.ARC systems into active use, extending our commercial footprint through new partnerships, advancing the Nanox Imaging Network, and adding new Nanox.AI customers, all while managing our resource decisively and responsibly. We made real progress across these areas. We are also taking the necessary steps to improve our operating structure and extend our runway. There is still plenty of work ahead, but we believe we are taking the right actions to support Nanox's long-term opportunity in medical imaging. I want to thank our employees, partners, customers, and shareholders for your continued support. Operator, you may now open the call for Q&A.

Speaker #1: We are focused on moving Nanox Rx systems into active use expanding our commercial footprint through new partnerships advancing the Nanox imaging network and adding new Nanox AI customers oil while managing our resource decisively and responsibly.

Speaker #1: We made real progress across these areas while also taking the necessary steps to improve our operating structure and extend our runway. There is still plenty of work ahead but we believe we are taking the right actions to support Nanox long-term opportunity in medical imaging.

Erez Meltzer: We are also taking the necessary steps to improve our operating structure and extend our runway. There is still plenty of work ahead, but we believe we are taking the right actions to support Nanox's long-term opportunity in medical imaging. I want to thank our employees, partners, customers, and shareholders for your continued support. Operator, you may now open the call for Q&A.

Speaker #1: I want to thank our employees, partners, customers, and shareholders for your continued support. Operator, you may now open the call for Q&A.

Speaker #3: Certainly. As a reminder, to ask a question, please press *11 on your telephone and wait for your name to be announced. To withdraw your question, please press *11 again.

Operator: Certainly. 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. Please stand by while we compile our Q&A roster. Our first question will be coming from the line of Jeffrey Cohen of Ladenburg Thalmann & Co. Inc. Your line is open.

Operator: Certainly. As a reminder, to ask a question, please press star one one on your telephone and wait for your name to be announced. To withdraw your question, please press star one one again. Please stand by while we compile our Q&A roster. Our first question will be coming from the line of Jeffrey Cohen of Ladenburg Thalmann & Co. Inc. Your line is open.

Speaker #3: Please stand by while we compile our Q&A roster. And our first question will be coming from the line of Jeffrey Cohen of Ladenberg Thaumann & Company Inc. Your line is open.

Speaker #4: Hey, good morning. Just a few questions. From our end, I guess firstly for Guy, what's expected on the impairment for the balance of 2026?

Jeffrey Cohen: Hey, good morning. Just a few questions from our end. I guess firstly for Guy, what is expected on the impairment for the balance of 2026? I know you are at 40.69 currently.

Jeffrey Cohen: Hey, good morning. Just a few questions from our end. I guess firstly for Guy, what is expected on the impairment for the balance of 2026? I know you are at $40.69 million currently.

Speaker #4: I know you're at 40.69 currently.

Speaker #2: So, hi. Currently, we—we're not—we already completed the process as of today, and if required, according to the accounting rules, we will continue in the future.

Guy Nathanzon: Currently, we already completed the process as of today, and if required, according to the accounting rules, we will continue in the future. Currently, we have no visibility for any other elements around the impairment. We do the assessment according to the accounting rules, every period, and we will do what we need to do.

Speaker #2: Currently we have no visibility for any other elements around the impairment but we do the assessment according to the accounting rules every period and we'll do what we need to do.

Speaker #4: Okay, got it. What's the latest pro forma share count?

Jeffrey Cohen: Okay, got it. What is the latest pro forma share count?

Speaker #2: Sorry, could could you repeat the question?

Guy Nathanzon: Sorry, could you repeat the question?

Jeffrey Cohen: The latest pro forma outstanding share count.

Jeffrey Cohen: The latest pro forma outstanding share count?

Speaker #4: The latest pro forma outstanding share count.

Speaker #2: I believe it is 70.6 if I remember correctly. Million.

Guy Nathanzon: I believe it is 70.6, if I remember correctly, million.

Jeffrey Cohen: Got it. Could you talk about the placements out there? I am curious about the evaluations and the ARC placements. Could you give us a sense of how many were placed during the last quarter, and maybe give us a sense of the pipeline that you expect throughout the balance of the year as far as placements, analysis, and evaluations?

Speaker #4: Got it. And then could you talk about the the placements out there or I'm curious about the evaluations and the art placements. Could you give us a sense of how many were placed during the last quarter and maybe give us a sense of the the pipeline that you expect throughout the balance of the year as far as placements analysis and evaluations?

Speaker #2: Got it. I I believe Erez would you like to take this this answer?

Guy Nathanzon: Erez? I believe, Erez, would you like to take this answer?

Speaker #4: Yep.

Erez Meltzer: Yep.

Guy Nathanzon: Erez?

Speaker #2: Erez?

Speaker #4: Yes.

Erez Meltzer: Yes.

Guy Nathanzon: Would you like to answer this question?

Speaker #2: Would you like to to answer this question?

Speaker #4: Oh. No, I was just wondering about placements.

Jeffrey Cohen: Oh, no, I was just wondering about placements of the ARC.

Speaker #2: Can you can you hear me?

Erez Meltzer: Can you hear me?

Speaker #4: Okay.

Jeffrey Cohen: Okay.

Speaker #2: Now we can no, we can't placements for the balance of the year.

Guy Nathanzon: Now we can hear you.

Jeffrey Cohen: Just wondering how wide are placements for the balance of the year.

Erez Meltzer: Jeff, can you hear me?

Speaker #1: Jeff, can you hear me?

Speaker #4: Yes, I can.

Jeffrey Cohen: Yes, I can.

Speaker #1: Okay. So since the the the latest update we have placed systems in Greece, in Romania, in Czech Republic, the system for Peru are waiting for import license.

Erez Meltzer: Okay. Since the latest update, we have placed systems in Greece, in Romania, in Czech Republic. The system for Peru are waiting for import license. Same goes with Argentina. In the US, we have one system which is converted from MSaaS to CapEx. We have installed another one in an IDN. Another system for the first system in urgent care unit in the US. We have three systems that are currently in the Nanox Imaging Network that we were talking about. One of them has already started. So, another one in the orthopedic clinic. So, in a nutshell, that is where we are. So, quite nice progress in the last quarter.

Speaker #1: Same goes with Argentina. In the US, we have one system which is converted from from EMSAS to CAPEX. We've installed another one in an IDN.

Speaker #1: Another system for the first system is in urgent care units. In the US, we have three systems that are currently in the Nanox imaging network that we were talking about.

Speaker #1: One of them has already started. So, yeah, another one in the orthopedic clinic. In a nutshell, that's where we are. Quite nice progress in the last quarter.

Erez Meltzer: One of them has already started. So, another one in the orthopedic clinic. So, in a nutshell, that is where we are. So, quite nice progress in the last quarter.

Speaker #4: Perfect. Thank you for taking our questions.

Jeffrey Cohen: Perfect. Thank you for taking the questions.

Speaker #1: Thank you.

Erez Meltzer: Thank you.

Speaker #3: And our next question will be coming from the line of Scott Henry of AGP. Scott, your line is open.

Operator: And our next question will be coming from the line of Scott Henry of AGP. Scott, your line is open.

Speaker #5: Thank you. And and good morning. Sounds like there's a lot of progress going on behind the scenes as far as building momentum for for future sales.

Scott Henry: Thank you, and good morning. Sounds like there is a lot of progress going on behind the scenes, as far as building momentum for future sales. Could you give us a sense of how we should think about the timing of when that traction should start? How should we think about Q3 relative to Q2 in terms of revenues? If we are not going to see much there, when should we start to see that traction result in revenues? Thank you.

Speaker #5: Could you give us a sense of, you know, how we should think about the timing of when that traction should start? You know, how should we think about Q3 relative to Q2 in terms of revenues?

Speaker #5: And and if we're not going to see much there, how how when when should we start to see that traction result in revenues? Thank you.

Speaker #1: I think that we have addressed this question during the the last call that that we saw the middle of the year as a sort of reflection point.

Erez Meltzer: I think that we have addressed this question during the last call, that we saw the middle of the year as a sort of reflection point. First of all, what you can see is the progress that you actually were talking about. Second, we will start to see the impact of this progress in the next few months, as previously indicated already. We view the Nanox Imaging Network as part of the scale, which is moving forward. The business partners are, in terms of the pipeline, which is being converted right now to installations or to sales. From our point of view, the direct sales is also showing the progress. So I think that the reflection of these efforts and this momentum, we will see, as we said, in the next few months.

Speaker #1: First of all, you what you can see is the number the the progress that you actually were talking about. And and the second, we will start to see the the the the the impact of these of this progress in the next few months as in as previously indicated already.

Speaker #1: We view the the the Nanox imaging network as part of the the scale which is moving forward. The the business partners are in terms of the pipeline which is being converted right now to to installations or to sales and and from our point of view, the direct sales is also showing the progress.

Erez Meltzer: The business partners are, in terms of the pipeline, which is being converted right now to installations or to sales. From our point of view, the direct sales is also showing the progress. So I think that the reflection of these efforts and this momentum, we will see, as we said, in the next few months.

Speaker #1: So I think that the reflection of this efforts and this momentum we will see as we said in the next few months.

Speaker #5: Okay, great. So so it is on track with prior expectations. Thank you. And then the 2 million in cost savings for for 2027, should we expect that to show up in kind of the gross margin line or more in the G&A line?

Scott Henry: Okay, great. It is on track with prior expectations. Thank you. The $2 million in cost savings for 2027, should we expect that to show up in the gross margin line or more in the G&A line?

Speaker #1: Which one?

Erez Meltzer: Which one?

Speaker #2: All

Scott Henry: On over.

Speaker #1: Were you referring to?

Erez Meltzer: Were you referring to?

Speaker #5: The $2 million in cost savings on target for 2027—I just wanted to get a sense of where in the model most of those cost savings should be located.

Scott Henry: The $2 million in cost savings on target for 2027. I just want to get a sense where in the model most of those cost savings should be located.

Speaker #5: Well, because it is a manufacturing plant.

Erez Meltzer: Right.

Scott Henry: Because it is a manufacturing plant.

Speaker #2: Yeah, so the simple answer is that probably most of the expenses would be reflected in the operating expenses. Some of them in the COGS, but most of them in the OPEX.

Erez Meltzer: Well, the simple answer that probably most of the expenses would be reflected in the operating expenses, some of them in the COGS, but most of them in the OPEX.

Speaker #5: Okay, great. And and when we think about I mean, it sounds like there there are a lot of kind of cost rationalizations getting getting costs out of the system whether through contracting.

Scott Henry: Okay, great. When we think about, it sounds like there are a lot of cost rationalizations, getting costs out of the system, whether through contracting or what other reasons necessary. Where do you think you could get that operating expense? That is on a GAAP basis. If it has been around $11 million, maybe $11 million to $12 million per quarter on a GAAP basis, how much could you pull out of that as costs are shifted outside the system?

Scott Henry: Okay, great. When we think about, it sounds like there are a lot of cost rationalizations, getting costs out of the system, whether through contracting or what other reasons necessary. Where do you think you could get that operating expense? That is on a GAAP basis. If it has been around $11 million, maybe $11 to 12 million per quarter on a GAAP basis, how much could you pull out of that as costs are shifted outside the system?

Speaker #5: Or what other reasons necessary. Where do you think you could get that operating expense? And and that's on a on a a gap basis.

Speaker #5: If it's you know, been around 11 million maybe 11 to 12 million per quarter on a gap basis, you know, how much how much could you pull out of that as costs are are shifted outside the system?

Erez Meltzer: Right. I'll try to be very cautious, at this point, and, if it's okay for you, I'll prefer not to answer this question directly. Once we have something to announce, we'll probably announce. At this point, in high level, I would say we are always doing ongoing examination and evaluation of our expenses. There is no number that I can specifically announce right now, and the would-be number, we'll definitely announce, like we just did on the Korean site.

Speaker #1: Guy.

Speaker #2: I try to be very cautious at this point and if if it's okay for you, I'll I'll I'll I prefer not to answer this question directly.

Speaker #2: Once we have something to announce, we'll probably announce. At this point, in high level, I would say we are always doing ongoing examination and evaluation of our our expenses.

Speaker #2: There is no number that I can specifically announce right now. And once the the would-be number will definitely announce like we just did on the Korean side.

Scott Henry: Okay. I'll look forward to that. Also, in the press release, there was mention of a CMS reimbursement pathway. What would be the timing of developments on that front? Thank you.

Speaker #5: Okay. Then I'll look forward to that. Also, I in the press release, there was mention of a CMS reimbursement pathway. What would be the timing of developments on that front?

Speaker #5: Thank you.

Speaker #1: The reimbursement of the Nanox imaging network?

Erez Meltzer: The reimbursement of the Nanox Imaging Network?

Scott Henry: As far as through CMS.

Speaker #5: As far as through CMS.

Erez Meltzer: The AI, the AI or the Nanox Imaging Network?

Speaker #1: the the AI. The AI or the Nanox imaging network?

Speaker #5: Both. Any just the timing on either. How how would we think about that?

Scott Henry: Both. Just the timing on either. How would we think about that?

Speaker #1: So the the Nanox the Nanox AI, the the GO 680 is already right now. And and we see we'll probably see the the impact of it right now.

Erez Meltzer: The Nanox.AI, the G0680, is already right now, and we will probably see the impact of it. Right now, we expect that it will be affected in the very near future. We are going to address this segment of the market in order to benefit from this effort. In terms of the reimbursement, first of all, it is already done, so we have already revenues which are generated from this reimbursement. The more systems and sites we add to the Nanox Imaging Network, which actually we have already previously indicated what is the pipeline on this, the more we will see the revenues growing up.

Speaker #1: We expect that it will be affected in the very near future, and we are going to address this segment of the market in order to benefit from this effort.

Speaker #1: In terms of the reimbursement, first of all, it's already done. So we have already revenues which are generated from this reimbursement. And the more systems and sites we add to the Nanox imaging network, indicated what's the what's the pipeline on this, the more we'll see the revenues growing up.

Erez Meltzer: The more systems and sites we add to the Nanox Imaging Network, which actually we have already previously indicated what is the pipeline on this, the more we will see the revenues growing up.

Speaker #1: I think that that based on the model that we currently have and right now we are we are in the first proof of concept for this, but based on the model right now in the in the indications that we have from current scans that are being done on this segment of the market, we expect these numbers to be the hundreds of million of thousand dollars or can go up to even more than that, close to a million if the system is operating on a very wide scale.

Erez Meltzer: I think that based on the model that we currently have, and right now we are in the first proof of concept for this, but based on the model right now and the indications that we have from current scans that are being done on this segment of the market, we expect these numbers to be the hundreds of thousands of dollars, or can go up to even more than that, close to USD 1 million, if the system is operating on a very wide scale. This will generate for each one of the systems as was recorded in the press release.

Erez Meltzer: I think that based on the model that we currently have, and right now we are in the first proof of concept for this, but based on the model right now and the indications that we have from current scans that are being done on this segment of the market, we expect these numbers to be the hundreds of thousands of dollars, or can go up to even more than that, close to $1 million, if the system is operating on a very wide scale.

Speaker #1: And this will generate for each one of the systems as as was recorded in the press release.

Erez Meltzer: This will generate for each one of the systems as was recorded in the press release.

Speaker #5: Okay, great. Thank you for taking the question.

Scott Henry: Okay, great. Thank you for taking the questions.

Speaker #1: Thank you so much.

Erez Meltzer: Thank you so much.

Operator: I am showing no further questions. This concludes today's conference call. Thank you for participating. You may now disconnect.

Speaker #3: And I am showing no further questions. This concludes today's conference call. Thank you for participating. You may now disconnect.

Erez Meltzer: Thank you.

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Q2 2026 Nano-X Imaging Ltd Earnings Call

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Nano-X Imaging

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