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Nanox Announces First Quarter of 2024 Financial Results and Provides Business Update

Nano-X Imaging LTD.
Nano-X Imaging LTD.

Accelerates Deployment of Nanox.ARC in United States

Signed two commercial agreements for Nanox.AI

Management to host conference call and webcast Tuesday, May 28, 2024 at 8:30 AM ET

PETAH TIKVA, Israel, May 28, 2024 (GLOBE NEWSWIRE) -- NANO-X IMAGING LTD (NASDAQ: NNOX) (“Nanox” or the “Company”), an innovative medical imaging technology company, today announced results for the first quarter ended March 31, 2024 and provided a business update.

First Quarter 2024 Highlights and Recent Developments:

  • Generated $2.6 million in revenue in the first quarter of 2024, compared to $2.4 million in the first quarter of 2023.

  • In the first quarter of 2024, we have continued to make strides in our U.S operational performance.

  • Secured agreements for Nanox.AI with Dandelion Health and Covera Health.

  • Hosted a live demonstration of the Nanox.ARC, scanning a patient at Dynamic Medical Imaging in New Jersey in early April, which showcased the clinical utility of the Nanox.ARC in real time.

  • Entered into an agreement with US-based Swissray, a leading provider of radiology services, to further strengthen Nanox’s customer support infrastructure.

  • Continued to generate clinical data supporting the use of Nanox.ARC for chest and other musculoskeletal indications.

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“The entire Nanox team performed at a high level in the first quarter of 2024, marking positive strides commercializing the full Nanox technology suite worldwide, while also strengthening our customer support network and building the clinical data to support the use of the Nanox.ARC for an expanded array of musculoskeletal indications,” said Erez Meltzer, Nanox Chief Executive Officer. “We have also strengthened the crucial Nanox.AI product suite, receiving a new FDA clearance for Health FLD in February, and securing agreements with leading healthcare AI data platforms Dandelion Health and Covera. Alongside our commercial efforts in the US, we are also advancing in other geographies. The entire Nanox team is focused on acceleration into the rest of 2024.”

Financial results for three months ended March 31, 2024

For the three months ended March 31, 2024 (the “reported period”), the Company reported a net loss of $12.2 million, compared to a net loss of $11.8 million for the three months ended March 31, 2023 (which is referred as the “comparable period”), representing an increase of $0.4 million. The increase was largely due to onetime income that was recorded in the comparable period due to a decrease in the Company’s earn-out liabilities in the amount of $4.7 million and an increase in gross loss in the amount of $0.5 million, which was offset by a decrease of $1.1 million in the research and development expenses, a decrease of $0.4 million in the sales and marketing expenses, a decrease of $2.8 million in the general and administrative expenses and increase of $0.4 in the Company’s financial income.

The Company reported revenue of $2.6 million in the reported period, compared to $2.4 million in the comparable period. During the reported period, the Company generated revenue through teleradiology services, the sales and deployment of its imaging systems and the sale of its AI solutions.

The Company’s gross loss during the reported period totaled $2.1 million (gross loss margin of (81%)) on a GAAP basis, as compared to $1.5 million (gross loss margin of (62%)) in the comparable period. Non-GAAP gross profit for the reported period was $0.6 million (gross profit margin of approximately 22%), as compared to $1.0 million (gross profit margin of approximately 43%) in the comparable period.

The Company’s revenue from teleradiology services for the reported period was $2.4 million in the reported and comparable periods. The Company’s GAAP gross profit from teleradiology services for the reported period was $0.3 million (gross profit margin of approximately 14%), as compared to $0.5 million (gross profit margin of approximately 21%) in the comparable period. Non-GAAP gross profit of the Company’s teleradiology services for the reported period was $0.9 million (gross profit margin of approximately 37%) as compared to $1.1 million (gross profit margin of approximately 45%) in the comparable period. The decrease was attributable mainly to an increase in the cost of the engaged radiologists due to increases in reading rates.

During the reported period the Company generated revenue through the sales and deployment of its imaging systems which amounted to $48 thousand for the reported period, with a gross loss of 0.4 million on a GAAP and non-GAAP basis. The revenue stems from the sale and deployment of our 2D systems in Africa and our ARC systems in the U.S.

The Company’s revenue from its AI solutions for the reported period was $97 thousand with a gross loss of $2.0 million on a GAAP basis, as compared to revenue of $49 thousand with a gross loss of $2.0 million in the comparable period. Non-GAAP gross profit of the Company’s AI solutions for the reported period was $29 thousand, as compared to a loss of $20 thousand in the comparable period. During the reported period, Nanox AI continued to complete pilot programs with health organizations and other prospects in anticipation of full deployment of its products.

Research and development expenses net for the reported period were $5.2 million, as compared to $6.3 million in the comparable period, reflecting a decrease of $1.1 million. The decrease was mainly due to a research grant of $0.9 million that was received as part of the NHSX project, decrease of $0.2 million in salaries and wages, decrease of $0.2 million in share-based compensation which was offset by an increase of $0.3 million in the expenses related to our research and development activities.

Sales and marketing expenses for the reported period were $0.8 million, as compared to $1.2 million in the comparable period, reflecting a decrease of $0.4 million in the Company’s marketing expenses.

General and administrative expenses for the reported period were $5.0 million, as compared to $7.8 million in the comparable period. The decrease of $2.8 million was mainly due to a decrease in our legal expenses in the amount of $2.2 million, largely as result of the finalization of the SEC investigation and the settlement of the class action and a decrease in the cost of the directors’ and officers’ liability insurance premium in the amount of $0.4 million.

Non-GAAP net loss attributable to ordinary shares for the reported period was $8.1 million, as compared to $10.5 million in the comparable period. The decrease of $2.4 million was mainly due to a decrease in non-GAAP operating expenses of $2.4 million and an increase of $0.4 million in our non-GAAP interest income which was mitigated by a decrease of $0.6 million in our non-GAAP cost of goods sold.

Non-GAAP gross profit for the reported period was $0.6 million, as compared to $1.0 million in the comparable period. Non-GAAP research and development expenses, net for the reported period, were $4.6 million, as compared to $5.5 million in the comparable period. Non-GAAP sales and marketing expenses for the reported period were $0.6 million, as compared to $1.0 million in the comparable period. Non-GAAP general and administrative expenses for the reported period were $4.3 million as compared to $5.4 million in the comparable period.

The difference between the GAAP and non-GAAP financial measures above is mainly attributable to amortization of intangible assets, share-based compensation, change in contingent earnout liability and legal fees in connection with the class-action litigation and the SEC investigation. A reconciliation between GAAP and non-GAAP financial measures for the three months periods ended March 31, 2024, and 2023 is provided in the financial results that are part of this press release.

Liquidity and Capital Resources

As of March 31, 2024, the Company had total cash, cash equivalents, restricted deposits and marketable securities of $73.3 million, compared to $82.8 million as of December 31, 2023. The decrease of $9.5 million during the reported period was primarily due to negative cash flow from operations of $9.4 million.

Other Assets

As of March 31, 2024 and December 31, 2023, the Company had property and equipment of $42.3 million.

As of March 31, 2024, the Company had intangible assets of $78.0 million as compared to $80.6 million as of December 31, 2023. The decrease was attributable to the periodic amortization of intangible assets in the amount of $2.6 million.

Shareholders’ Equity

As of March 31, 2024, and December 31, 2023, the Company had approximately 57.8 million shares outstanding.

Conference Call and Webcast Details

Tuesday, May 28, 2024 @ 8:30am ET

Individuals interested in listening to the conference call may do so by joining the live webcast on the Investors section of the Nanox website under Events and Presentations. Alternatively, individuals can register online to receive a dial-in number and personalized PIN to participate in the call. An archived webcast of the event will be available for replay following the event.

About Nanox:

Nanox (NASDAQ: NNOX) is focused on applying its proprietary medical imaging technology and solutions to make diagnostic medicine more accessible and affordable across the globe. Nanox’s vision is to increase access, reduce costs and enhance the efficiency of routine medical imaging technology and processes, in order to improve early detection and treatment, which Nanox believes is key to helping people achieve better health outcomes, and, ultimately, to save lives. The Nanox ecosystem includes Nanox.ARC— a multi-source Digital Tomosynthesis system that is cost-effective and user-friendly; an AI-based suite of algorithms that augment the readings of routine CT imaging to highlight early signs often related to chronic disease (Nanox.AI); a cloud-based infrastructure (Nanox.CLOUD); and a proprietary decentralized marketplace, through Nanox’s subsidiary, USARAD Holdings Inc., that provides remote access to radiology and cardiology experts; and a comprehensive teleradiology services platform (Nanox.MARKETPLACE). Together, Nanox’s products and services create a worldwide, innovative, and comprehensive solution that connects medical imaging solutions, from scan to diagnosis. For more information, please visit www.nanox.vision.

Forward-Looking Statements:

This press release may contain forward-looking statements that are subject to risks and uncertainties. All statements that are not historical facts contained in this press release are forward-looking statements. Such statements include, but are not limited to, those relating to the initiation, timing, progress and results of the Company’s research and development, manufacturing, and commercialization activities with respect to its X-ray source technology and the Nanox.ARC, the ability to realize the expected benefits of its recent acquisitions and the projected business prospects of the Company and the acquired companies. In some cases, you can identify forward-looking statements by terminology such as “can,” “might,” “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “should,” “could,” “expect,” “predict,” “potential,” or the negative of these terms or other similar expressions. Forward-looking statements are based on information the Company has when those statements are made or management’s good faith belief as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. Factors that could cause actual results to differ materially from those currently anticipated include: risks related to (i) Nanox’s ability to continue to develop of the Nanox imaging system; (ii) Nanox’s ability to successfully demonstrate the feasibility of its technology for commercial applications; (iii) Nanox’s expectations regarding the necessity of, timing of filing for, and receipt and maintenance of, regulatory clearances or approvals regarding its technology, the Nanox.ARC and Nanox.CLOUD from regulatory agencies worldwide and its ongoing compliance with applicable quality standards and regulatory requirements; (iv) Nanox’s ability to realize the anticipated benefits of acquisitions, which may be affected by, among other things, competition, brand recognition, the ability of the acquired companies to grow and manage growth profitably and retain their key employees; (v) Nanox’s ability to enter into and maintain commercially reasonable arrangements with third-party manufacturers and suppliers to manufacture the Nanox.ARC; (vi) the market acceptance of the Nanox imaging system and the proposed pay-per-scan business model; (vii) Nanox’s expectations regarding collaborations with third-parties and their potential benefits; and (viii) Nanox’s ability to conduct business globally; (ix) changes in global, political, economic, business, competitive, market and regulatory forces, including the continuation and escalation of the military conflicts in Israel and current war between Israel and Hamas; (x) the costs incurred with respect to and the outcome of litigation Nanox is currently subject to and any similar or other claims and potential litigation it may be subject to in the future; and (xi) risks related to business interruptions resulting from the COVID-19 pandemic or similar public health crises, among other things.

For a discussion of other risks and uncertainties, and other important factors, any of which could cause Nanox’s actual results to differ from those contained in the Forward-Looking Statements, see the section titled “Risk Factors” in Nanox’s Annual Report on Form 20-F for the year ended December 31, 2023, and subsequent filings with the U.S. Securities and Exchange Commission. The reader should not place undue reliance on any forward-looking statements included in this press release.

Except as required by law, Nanox undertakes no obligation to update publicly any forward-looking statements after the date of this press release to conform these statements to actual results or to changes in the Company’s expectations.

Non-GAAP Financial Measures

This press release includes information about certain financial measures that are not prepared in accordance with generally accepted accounting principles in the United States (“GAAP”), including 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 and administrative expenses and non-GAAP basic and diluted loss per share. These non-GAAP measures are not based on any standardized methodology prescribed by GAAP and are not necessarily comparable to similar measures presented by other companies. These non-GAAP measures are adjusted for (as applicable) amortization of intangible assets, share-based compensation expenses, change in contingent earnout liability and legal fees in connection with class-action litigation and the SEC investigation. The Company’s management and board of directors utilize these non-GAAP financial measures to evaluate the Company’s performance. The Company provides these non-GAAP measures of the Company’s performance to investors because management believes that these non-GAAP financial measures, when viewed with the Company’s results under GAAP and the accompanying reconciliations, are useful in identifying underlying trends in ongoing operations. However, these non-GAAP measures are not measures of financial performance under GAAP and, accordingly, should not be considered as alternatives to GAAP measures as indicators of operating performance. Further, these non-GAAP measures should not be considered measures of the Company’s liquidity. A reconciliation of certain GAAP to non-GAAP financial measures has been provided in the tables included in this press release.

 

 

 

 

 

 

 

NANO-X IMAGING LTD.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands except share and per share data)

 

 

 

 

 

 

 

 

 

March 31,
2024

 

 

December 31,
2023

 

 

 

U.S. Dollars in thousands

 

Assets

 

 

 

 

 

 

CURRENT ASSETS:

 

 

 

 

 

 

Cash and cash equivalents

 

 

44,921

 

 

 

56,377

 

Restricted deposit

 

 

46

 

 

 

46

 

Marketable securities

 

 

28,043

 

 

 

26,006

 

Accounts receivables net of allowance for credit losses of $55 as of March 31, 2024 and December 31, 2023, respectively.

 

 

1,442

 

 

 

1,484

 

Inventories

 

 

2,952

 

 

 

2,356

 

Prepaid expenses

 

 

1,004

 

 

 

1,274

 

Other current assets

 

 

625

 

 

 

1,092

 

TOTAL CURRENT ASSETS

 

 

79,033

 

 

 

88,635

 

 

 

 

 

 

 

 

 

 

NON-CURRENT ASSETS:

 

 

 

 

 

 

 

 

Restricted deposit

 

 

323

 

 

 

327

 

Property and equipment, net

 

 

42,328

 

 

 

42,343

 

Operating lease right-of-use asset

 

 

4,370

 

 

 

4,573

 

Intangible assets

 

 

77,954

 

 

 

80,607

 

Other non-current assets

 

 

1,869

 

 

 

2,163

 

TOTAL NON-CURRENT ASSETS

 

 

126,844

 

 

 

130,013

 

TOTAL ASSETS

 

 

205,877

 

 

 

218,648

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity

 

 

 

 

 

 

 

 

CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Current maturities of long term loan

 

 

3,341

 

 

 

3,490

 

Accounts payable

 

 

1,860

 

 

 

3,303

 

Accrued expenses

 

 

3,267

 

 

 

3,920

 

Deferred revenue

 

 

496

 

 

 

543

 

Current maturities of operating lease liabilities

 

 

883

 

 

 

861

 

Other current liabilities

 

 

3,762

 

 

 

3,407

 

TOTAL CURRENT LIABILITIES

 

 

13,609

 

 

 

15,524

 

 

 

 

 

 

 

 

 

 

NON-CURRENT LIABILITIES:

 

 

 

 

 

 

 

 

Non-current operating lease liabilities

 

 

3,819

 

 

 

4,045

 

Deferred tax liability

 

 

2,859

 

 

 

2,953

 

Other long-term liabilities

 

 

629

 

 

 

612

 

TOTAL NON-CURRENT LIABILITIES

 

 

7,307

 

 

 

7,610

 

TOTAL LIABILITIES

 

 

20,916

 

 

 

23,134

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS’ EQUITY:

 

 

 

 

 

 

 

 

Ordinary Shares, par value NIS 0.01 per share 100,000,000 authorized at March 31, 2024 and December 31 2023, 57,779,033 and 57,778,628 issued and outstanding at March 31, 2024 and December 31, 2023, respectively

 

 

165

 

 

 

165

 

Additional paid-in capital

 

 

517,388

 

 

 

515,887

 

Accumulated other comprehensive loss

 

 

(118

)

 

 

(305

)

Accumulated deficit

 

 

(332,474

)

 

 

(320,233

)

TOTAL SHAREHOLDERS’ EQUITY

 

 

184,961

 

 

 

195,514

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

205,877

 

 

 

218,648

 


 

 

 

 

NANO-X IMAGING LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND
COMPREHENSIVE LOSS
(U.S. dollars in thousands except share and per share data)

 

 

 

 

 

 

Three Months Ended
March 31,

 

 

 

2024

 

 

2023

 

REVENUE

 

 

2,553

 

 

 

2,447

 

 

 

 

 

 

 

 

 

 

COST OF REVENUE

 

 

4,607

 

 

 

3,970

 

 

 

 

 

 

 

 

 

 

GROSS LOSS

 

 

(2,054

)

 

 

(1,523

)

 

 

 

 

 

 

 

 

 

OPERATING EXPENSES:

 

 

 

 

 

 

 

 

Research and development, net

 

 

5,220

 

 

 

6,286

 

Sales and marketing

 

 

800

 

 

 

1,153

 

General and administrative

 

 

5,042

 

 

 

7,808

 

Change in contingent earnout liability

 

 

-

 

 

 

(4,660

)

Other expense (income), net

 

 

9

 

 

 

(32

)

TOTAL OPERATING EXPENSES

 

 

11,071

 

 

 

10,555

 

OPERATING LOSS

 

 

(13,125

)

 

 

(12,078

)

 

 

 

 

 

 

 

 

 

REALIZED LOSS FROM SALE OF MARKETABLE SECURITIES

 

 

-

 

 

 

(178

)

FINANCIAL INCOME, net

 

 

790

 

 

 

401

 

OPERATING LOSS BEFORE INCOME TAXES

 

 

(12,335

)

 

 

(11,855

)

 

 

 

 

 

 

 

 

 

INCOME TAX BENEFIT

 

 

94

 

 

 

94

 

NET LOSS

 

 

(12,241

)

 

 

(11,761

)

 

 

 

 

 

 

 

 

 

BASIC AND DILUTED LOSS PER SHARE

 

 

(0.21

)

 

 

(0.21

)

Weighted average number of basic and diluted ordinary shares outstanding (in thousands)

 

 

57,901

 

 

 

55,157

 

Comprehensive Loss:

 

 

 

 

 

 

 

 

Net loss

 

 

(12,241

)

 

 

(11,761

)

Other comprehensive gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reclassification of net losses realized in income statement

 

 

-

 

 

 

178

 

Unrealized gain from available for-sale securities

 

 

187

 

 

 

414

 

Total comprehensive loss

 

 

(12,054

)

 

 

(11,169

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NANO-X IMAGING LTD.
UNAUDITED CONDENSED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY
(U.S. dollars in thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares

 

 

Additional

 

 

Accumulated
other

 

 

 

 

 

 

 

 

 

Number of
shares

 

 

Amount

 

 

paid-in
capital

 

 

comprehensive
loss

 

 

Accumulated
deficit

 

 

Total

 

BALANCE AT JANUARY 1, 2024

 

 

57,778,628

 

 

 

165

 

 

 

515,887

 

 

 

(305

)

 

 

(320,233

)

 

 

195,514

 

Changes during the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of ordinary shares upon exercise of options

 

 

405

 

 

 

*

 

 

 

24

 

 

 

-

 

 

 

-

 

 

 

24

 

Share-based compensation

 

 

-

 

 

 

-

 

 

 

1,477

 

 

 

-

 

 

 

-

 

 

 

1,477

 

Unrealized gain from marketable securities

 

 

-

 

 

 

-

 

 

 

-

 

 

 

187

 

 

 

 

 

 

 

187

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(12,241

)

 

 

(12,241

)

BALANCE AT MARCH 31, 2024

 

 

57,779,033

 

 

 

165

 

 

 

517,388

 

 

 

(118

)

 

 

(332,474

)

 

 

184,961

 


* Less than $1.


 

 

Ordinary shares

 

 

Additional

 

 

Accumulated
other

 

 

 

 

 

 

 

 

 

Number of
shares

 

 

Amount

 

 

paid-in
capital

 

 

comprehensive
deficit

 

 

Accumulated
deficit

 

 

Total

 

 

 

U.S. Dollars in thousands

 

BALANCE AT JANUARY 1, 2023

 

 

55,094,237

 

 

 

158

 

 

 

477,953

 

 

 

(1,974

)

 

 

(259,457

)

 

 

216,680

 

Changes during the period:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of ordinary shares upon exercise of options

 

 

56,108

 

 

 

-

 

 

 

176

 

 

 

-

 

 

 

-

 

 

 

176

 

Unrealized gain from marketable securities, net

 

 

-

 

 

 

-

 

 

 

-

 

 

 

592

 

 

 

 

 

 

 

592

 

Share-based compensation

 

 

-

 

 

 

-

 

 

 

1,043

 

 

 

-

 

 

 

-

 

 

 

1,043

 

Net loss for the period

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

 

 

(11,761

)

 

 

(11,761

)

BALANCE AT MARCH 31, 2023

 

 

55,150,345

 

 

 

158

 

 

 

479,172

 

 

 

(1,382

)

 

 

(271,218

)

 

 

206,730

 


* Less than $1.


 

 

 

 

NANO-X IMAGING LTD. 
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(U.S. dollars in thousands)

 

 

 

 

 

 

Three Months Ended
March 31,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

 

 

 

 

 

 

Net loss for the period

 

 

(12,241

)

 

 

(11,761

)

Adjustments required to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

 

 

 

Share-based compensation

 

 

1,477

 

 

 

1,043

 

Amortization of intangible assets

 

 

2,653

 

 

 

2,653

 

Exchange rate differentials

 

 

(174

)

 

 

(19

)

Change in contingent earnout liability

 

 

-

 

 

 

(4,660

)

Depreciation

 

 

286

 

 

 

255

 

Deferred tax liability, net

 

 

(94

)

 

 

(94

)

Realized loss from sale of marketable securities

 

 

-

 

 

 

178

 

Amortization of premium, discount and accrued interest on marketable securities

 

 

73

 

 

 

324

 

Impairment of property and equipment

 

 

25

 

 

 

145

 

Changes in Operating Assets and Liabilities:

 

 

 

 

 

 

 

 

Inventories

 

 

(676

)

 

 

-

 

Accounts receivable

 

 

42

 

 

 

(331

)

Prepaid expenses and other current assets

 

 

737

 

 

 

1,404

 

Other non-current assets

 

 

219

 

 

 

142

 

Accounts payable

 

 

(1,443

)

 

 

706

 

Operating lease assets and liabilities

 

 

(1

)

 

 

(7

)

Accrued expenses and other liabilities

 

 

(298

)

 

 

(559

)

Deferred Revenue

 

 

(47

)

 

 

(107

)

Other long-term liabilities

 

 

17

 

 

 

14

 

Net cash used in operating activities

 

 

(9,445

)

 

 

(10,674

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

 

 

 

Purchase of property and equipment

 

 

(141

)

 

 

(1,495

)

Proceeds from maturity of marketable securities

 

 

12,874

 

 

 

10,289

 

Purchase of marketable securities

 

 

(14,797

)

 

 

-

 

Proceeds from sale of marketable securities

 

 

-

 

 

 

822

 

Net cash provided by (used in) investing activities

 

 

(2,064

)

 

 

9,616

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

 

 

 

Proceeds from Issuance of ordinary shares upon exercise of options

 

 

24

 

 

 

176

 

Net cash provided by financing activities

 

 

24

 

 

 

176

 

EFFECT OF CHANGES IN EXCHANGE RATES ON CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS

 

 

29

 

 

 

(11

)

NET CHANGE IN CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS

 

 

(11,456

)

 

 

(893

)

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS AT BEGINNING OF THE PERIOD

 

 

56,377

 

 

 

38,529

 

CASH AND CASH EQUIVALENTS AND RESTRICTED CASH EQUIVALENTS AT END OF THE PERIOD

 

 

44,921

 

 

 

37,636

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTARY INFORMATION ON ACTIVITIES INVOLVING CASH FLOWS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash paid for interest

 

 

37

 

 

 

40

 

 

 

 

 

 

 

 

 

 

Cash paid for income taxes

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTARY INFORMATION ON ACTIVITIES NOT INVOLVING CASH FLOWS -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating lease liabilities arising from obtaining operating right-of use assets

 

 

-

 

 

 

572

 


UNAUDITED RECONCILIATION OF GAAP AND NON-GAAP RESULTS
(U.S. dollars in thousands (except per share data))

Use of non-GAAP Financial Measures

The unaudited condensed consolidated financial information is prepared in conformity with GAAP. The Company uses information about certain financial measures that are not prepared in accordance with GAAP, including 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 and administrative expenses and non-GAAP basic and diluted loss per share. These non-GAAP measures are adjusted for (as applicable) amortization of intangible assets, share-based compensation expenses, change in contingent earnout liability and legal fees in connection with the class-action litigation and the SEC investigation. The Company believes that separate analysis and exclusion of the one-off or non-cash impact of the above reconciling items (as applicable) adds clarity to the constituent parts of its performance. The Company reviews these non-GAAP financial measures together with GAAP financial measures to obtain a better understanding of its operating performance. It uses the non-GAAP financial measures for planning, forecasting, and measuring results against the forecast. The Company believes that the non-GAAP financial measures are useful supplemental information for investors and analysts to assess its operating performance. However, these non-GAAP measures are not measures of financial performance under GAAP and, accordingly, should not be considered as alternatives to GAAP measures as indicators of operating performance.

Reconciliation of GAAP net loss attributable to ordinary shares to Non-GAAP net loss attributable to ordinary shares and Non-GAAP basic and diluted loss per share (U.S. dollars in thousands)

 

 

Three Months Ended

 

 

 

March 31,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

GAAP net loss attributable to ordinary shares

 

 

12,241

 

 

 

11,761

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Less: Class-action litigation and SEC investigation

 

 

32

 

 

 

2,236

 

Less: Amortization of intangible assets

 

 

2,653

 

 

 

2,653

 

Less (Add): Change in contingent earnout liability

 

 

-

 

 

 

(4,660

)

Less: Share-based compensation

 

 

1,477

 

 

 

1,043

 

Non-GAAP net loss attributable to ordinary shares

 

 

8,079

 

 

 

10,489

 

Non-GAAP BASIC AND DILUTED LOSS PER SHARE

 

 

0.14

 

 

 

0.19

 

WEIGHTED AVERAGE NUMBER OF ORDINARY SHARES (in thousands)

 

 

57,901

 

 

 

55,157

 


Reconciliation of GAAP cost of revenue to Non-GAAP cost of revenue (U.S. dollars in thousands)

GAAP cost of revenue

 

 

4,607

 

 

 

3,970

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

2,556

 

 

 

2,556

 

Share-based compensation

 

 

53

 

 

 

14

 

Non-GAAP cost of revenue

 

 

1,998

 

 

 

1,400

 


Reconciliation of GAAP gross loss to Non-GAAP gross profit (U.S. dollars in thousands)

GAAP gross loss

 

 

(2,054

)

 

 

(1,523

)

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

2,556

 

 

 

2,556

 

Share-based compensation

 

 

53

 

 

 

14

 

Non-GAAP gross profit

 

 

555

 

 

 

1,047

 


Reconciliation of GAAP gross loss margin to Non-GAAP gross profit margin (in percentage of revenue)

GAAP gross loss margin

 

 

(80

)%

 

 

(62

)%

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

100

%

 

 

104

%

Share-based compensation

 

 

2

%

 

 

1

%

Non-GAAP gross profit margin

 

 

22

%

 

 

43

%


Reconciliation of GAAP research and development expenses to Non-GAAP research and development expenses (U.S. dollars in thousands)

GAAP research and development expenses, net

 

 

5,220

 

 

 

6,286

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Share-based compensation

 

 

589

 

 

 

788

 

Non-GAAP research and development expenses, net

 

 

4,631

 

 

 

5,498

 


Reconciliation of GAAP sales and marketing expenses to Non-GAAP sales and marketing expenses (U.S. dollars in thousands)

GAAP sales and marketing expenses

 

 

800

 

 

 

1,153

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Amortization of intangible assets

 

 

97

 

 

 

97

 

Share-based compensation

 

 

146

 

 

 

78

 

Non-GAAP sales and marketing expenses

 

 

557

 

 

 

978

 


Reconciliation of GAAP general and administrative expenses to Non-GAAP general and administrative expenses (U.S. dollars in thousands)

GAAP general and administrative expenses

 

 

5,042

 

 

 

7,808

 

Non-GAAP adjustments:

 

 

 

 

 

 

 

 

Class-action litigation and SEC investigation

 

 

32

 

 

 

2,236

 

Share-based compensation

 

 

689

 

 

 

163

 

Non-GAAP general and administrative expenses

 

 

4,321

 

 

 

5,409

 


Contacts

Media Contact:
Ben Shannon
ICR Westwicke
NanoxPR@icrinc.com

Investor Contact:
Mike Cavanaugh
ICR Westwicke
mike.cavanaugh@westwicke.com