Nano-X Imaging Ltd. Q3 FY2024 earnings call

• Deployed 47 Nanox.ARC units in various stages of shipments/deployments in the U.S. across seven states. • Strengthened sales, service, and support teams in the U.S. with plans to have 30-40 personnel by end of 2025. • Secured new deals for Nanox.AI solutions, including with Oxford University Hospital. • Nanox.AI selected for Time's Best Inventions of 2024 list. • USARAD teleradiology business generated $2.6 million in revenues, a quarterly record. • Ongoing regulatory efforts with FDA for 510(k) and EU for CE mark. • Clinical trials ongoing in Beilinson Hospital, Ghana, and Europe. • OEM partners like Varex assembling ARC tubes and working on multisource modules. • Demo kits shipped to prospective clients to educate on Nanox value proposition.

Revenue for the reported period was $3.0 million. Revenue from teleradiology services was $2.6 million with a GAAP gross profit of $0.3 million. Revenue from AI solutions was $0.4 million. Revenue from imaging systems sales was $29,000 with a gross loss. Non-GAAP gross loss for the reported period was $0.2 million. Teleradiology services had a non-GAAP gross profit margin of approximately 35% in the reported period. AI solutions revenue increased due to project completions. Imaging systems sales were from Nanox.ARC systems in the U.S. and 2D systems elsewhere.

• Aim to accelerate deployment of Nanox.ARC and expand footprint. • Continue regulatory efforts to secure FDA and CE mark clearances. • Anticipate growth in AI solutions revenue as customer base expands. • Plan to have 30-40 sales, service, marketing, and support personnel in place by end of 2025 in alignment with commercial progress.

• Uncertainty in regulatory approval timing for FDA and EU. • Dependence on market adoption of Nanox.ARC and AI solutions. • Risks associated with forward-looking statements based on current expectations.

Q: How many systems did you deploy in the U.S. during the quarter? And what types of imaging centers are adopting ARC?

A: Altogether 47 systems deployed. Majority are small and medium imaging centers, some imaging medical imaging chains, a few in hospitals or multi-functionality medical centers and some chiropractors' clinics.

Q: How are conversations with FDA going? Any updates on ARC-X and label expansion for full body?

A: Conversations are positive. ARC-X to be submitted in a few months, next early next year, and scheduled for deployment sometimes during next year, likely second half if everything goes well.

Q: Talk about Europe generally speaking and plans there, and APAC and LATAM?

A: Europe will be based on distributors with existing agreements. APAC and LATAM also based on distributors, with processes in place. Channel manager responsible for these areas.

Q: When might we see revenue inflection point?

A: Inflection point connected to various factors like expanded clinical indication, CE mark, and FDA approvals, with hope for near future milestones including FDA and CE clearances and ARC-X launch.