Nanox Announces Fourth Quarter of 2024 Financial Results and Provides Business Updates
Recorded noted regulatory successes with FDA general use clearance and granting of CE Mark in the EU
Advanced commercialization globally, signing new customer and channel partner agreements for Nanox.ARC and Nanox AI
Management to host conference call and webcast Monday, March 31, 2025 at 8:30 AM ET
PETACH TIKVA, Israel, March 31, 2025 (GLOBE NEWSWIRE) -- NANO-X IMAGING LTD $(NNOX)$ ("Nanox" or the "Company"), an innovative medical imaging technology company, today announced results for the fourth quarter ended December 31, 2024, and provided a business update.
Recent Highlights:
-- Generated $3.0 million in revenue in the fourth quarter of 2024, compared
to $2.4 million in the fourth quarter of 2023.
-- Regulatory achievements: FDA clearance of the Nanox.ARC for general use
in December 2024, and a CE mark of the Nanox.ARC in February 2025 with no
adjunctive requirements. The Company also submitted the Nanox.ARC X for
510 (k) FDA clearance.
-- US commercialization advanced with a new Nanox.ARC channel partner
agreement.
-- During the first quarter of 2025, we signed two new Nanox.AI customers,
Ezra AI Inc., a healthcare AI company revolutionizing consumers'
screening for early cancer detection, and another outpatient medical
imaging provider.
-- Recently engaged with two new distributors for the Nanox.ARC in Romania
and Greece which will be the Company's initial entry points into the EU.
"The fourth quarter capped off a dynamic year for Nanox, during which we accelerated our US commercialization effort of both the Nanox.ARC and Nanox.AI products, generated additional clinical evidence supporting the use of the Nanox.ARC system and technology, and successfully passed key regulatory hurdles among other achievements." said Erez Meltzer, Nanox Chief Executive Officer and Acting Chairman.
Mr. Meltzer continued, "We enter 2025 a portfolio of cutting-edge technologies and pursuing a vision to reimagine imaging. Our operational progress in 2024, coupled with a growing and innovative portfolio, leaves us confident that we are well-positioned to build our momentum and drive our new technologies into a medical imaging market that is ripe for new tools that improve accessibility, lower costs, and streamline the delivery of healthcare for providers and patients."
Financial results for three months ended December 31, 2024
For the three months ended December 31, 2024 (the "reported period"), the Company reported a net loss of $14.1 million, compared to a net loss of $10.2 million for the three months ended December 31, 2023 (which is referred as the "comparable period"), representing an increase of $3.9 million. The increase was largely due to a one time income in the amount of $3.0 million that was recognized in the comparable period, related to compensation from its D&O insurance carrier under the settlement agreement in connection with the class action lawsuits against the Company.
The Company reported revenue of $3.0 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 of its imaging products and services, and its AI solutions.
The Company's gross loss during the reported period totaled $2.9 million (gross loss margin of 96%) on a GAAP basis, as compared to $1.7 million (gross loss margin of 72%) in the comparable period. Non-GAAP gross loss for the reported period was $0.3 million (gross loss margin of approximately 9%), as compared to Non-GAAP gross profit of $0.9 million (gross profit margin of approximately 36%) in the comparable period.
The Company's revenue from teleradiology services for the reported period was $2.8 million, compared to revenue of $2.3 million in the comparable period. The Company's GAAP gross profit from teleradiology services for the reported period was $0.6 million (gross profit margin of approximately 21%), compared to $0.3 million (gross profit margin of approximately 14%) in the comparable period. Non-GAAP gross profit of the Company's teleradiology services for the reported period was $1.1 million (gross profit margin of approximately 41%) compared to gross profit of $0.9 million (gross profit margin of approximately 38%) in the comparable period. The increase in the Company's revenue and gross profit margins from teleradiology services was mainly attributable to customer retention, increased rates and increased volume of the Company's reading services during the weekdays shifts.
During the reported period, the Company generated revenue through the sales and deployment of its imaging systems which amounted to $136 thousand for the reported period, with a gross loss of $1.5 million on a GAAP basis and $1.4 million on a non-GAAP basis compared to revenue of $17 thousand with a gross loss of $44 thousand on a GAAP and Non-GAAP basis in the comparable period. The revenue stems from the sale and deployment of our 2D systems and the sale of our OEM services in the U.S.
The Company's revenue from its AI solutions for the reported period was $83 thousand with a gross loss of $2.0 million on a GAAP basis, compared to revenue of $84 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 $6 thousand, compared to $21 thousand in the comparable period.
Research and development expenses, net, for the reported period were $5.4 million, compared to $6.8 million in the comparable period, reflecting a decrease of $1.4 million. The decrease was mainly due to a decrease of $0.2 million in salaries and wages, a decrease of $0.5 million in share-based compensation and $0.7 million in expenses related to our research and development activities.
Sales and marketing expenses for the reported period were $0.9 million compared to $1.0 million in the comparable period.
General and administrative expenses for the reported period were $5.8 million, compared to $3.8 million in the comparable period. The increase of $2.0 million was mainly due to an increase of $1.8 million in our legal expenses since the Company received $2 million from the Company's directors' and officers' liability insurance carrier during the comparable period under the Company's policy and the settlement agreement which reduced the Company's legal expenses in the same amount during the comparable period.
Non-GAAP net loss attributable to ordinary shares for the reported period was $10.0 million, compared to $10.4 million in the comparable period. The decrease of $0.4 million was mainly due to an increase of $0.5 million in financial income, net.
Non-GAAP gross loss for the reported period was $0.3 million, compared to a non-GAAP gross profit of $0.9 million in the comparable period. Non-GAAP research and development expenses, net for the reported period, were $5.0 million, compared to $5.9 million in the comparable period. Non-GAAP sales and marketing expenses for the reported period were $0.6 million, compared to $0.8 million in the comparable period. Non-GAAP general and administrative expenses for the reported period were $5.0 million, compared to $4.7 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, impairment of Goodwill, expenses related to an offering and legal fees and settlement expenses in connection with the class-action litigation and the SEC investigation. A reconciliation between GAAP and non-GAAP financial measures for the three- and twelve-month periods ended December 31, 2024, and 2023 is provided in the financial results that are part of this press release.
Liquidity and Capital Resources
As of December 31, 2024, the Company had total cash, cash equivalents, short-term and long-term deposits, restricted deposits and marketable securities of $83.5 million, compared to $82.8 million as of December 31, 2023. During the reported period the Company experienced negative cash flow from operations of $36.6 million and a positive cash flow from financing of $39.5 million.
Other Assets
As of December 31, 2024 the Company had property and equipment of $45.4 million, compared to $42.3 million as of December 31, 2023.
As of December 31, 2024, the Company had intangible assets of $70.0 million 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 $10.6 million.
Shareholders' Equity
As of December 31, 2024, the Company had approximately 63.8 million shares outstanding. As of December 31, 2023, the Company had approximately 57.8 million shares outstanding. During the fourth quarter of 2024, the Company sold approximately 5.0 million ordinary shares, which generated net proceeds of approximately $37.8 million, pursuant to the Company's previously announced Controlled Equity OfferingSM Sales Agreement, dated as of June 7, 2024 with Cantor Fitzgerald & Co. and Mizuho Securities USA LLC relating to the issuance and sale from time to time of our ordinary shares, an aggregate offering price of up to $100 million from time to time through the Agents pursuant to the sales agreement. During 2024, 0.9 million options to purchase ordinary shares were exercised to ordinary shares in consideration of $1.7 million, including 0.7 million options to purchase ordinary shares that were exercised by the estate of the late Company's Chairman of the Board in consideration of $1.6 million.
Conference Call and Webcast Details
Monday, March 31, 2025 @ 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 driving the world's transition to preventive health care by bringing a full solution of affordable medical imaging technologies based on advanced AI and proprietary digital X-ray source.
Nanox's vision encompasses expanding the reach of Nanox technology both within and beyond hospital settings, providing a seamless end-to-end solution from scan to diagnosis, leveraging AI to enhance the efficiency of routine medical imaging technology and processes, in order to improve early detection and treatment and maintaining a clinically driven approach. The Nanox ecosystem includes Nanox.ARC -- a multi-source digital tomosynthesis system that is cost-effective and user-friendly; Nanox.AI Ltd., a subsidiary of Nanox Imaging, an AI-based suite of algorithms that augment the readings of routine CT imaging to highlight early signs often related to chronic diseases; Nanox.CLOUD -- a cloud-based software platform that manages and stores data collected by Nanox devices, and provides users with tools for in-depth imaging analysis; Nanox.MARKETPLACE -- 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. By improving early detection and treatment, Nanox aims to enhance better health outcomes worldwide. 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, any statements 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 complete development of the Nanox 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 the 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 System and the proposed pay-per-scan business model; (vii) Nanox's expectations regarding collaborations with third-parties and their potential benefits; (viii) Nanox's ability to conduct business globally; (ix) changes in global, political, economic, business, competitive, market and regulatory forces; (x) risks related to the current war between Israel and Hamas and any worsening of the situation in Israel; (xi) risks related to business interruptions resulting from the COVID-19 pandemic or similar public health crises, among other things; and (xii) potential litigation associated with our transactions.
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 (loss), non-GAAP gross profit (loss) margin, non-GAAP research and development expenses, net, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP other expenses (income) 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, impairment of Goodwill, change in contingent earnout liability, expenses related to an offering, legal fees in connection with class-action litigation and the SEC investigation, accrual in connection with the settlement of the SEC investigation and class-action. 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.
CONSOLIDATED BALANCE SHEETS
(U.S. dollars in thousands except share and per share
data)
December 31, December 31,
2024 2023
---------------- ------------
U.S. Dollars in thousands
-------------------------------
Assets
CURRENT ASSETS:
Cash and cash equivalents 39,304 56,377
Restricted deposit - 46
Short-term deposits 15,500 -
Marketable securities 18,402 26,006
Accounts receivables net of
allowance for credit losses of
$112 and $55 as of December
31, 2024, and December
31,2023, respectively. 1,805 1,484
Inventories 1,493 2,356
Prepaid expenses 827 1,274
Other current assets 1,349 1,092
--------------- ------------
TOTAL CURRENT ASSETS 78,680 88,635
--------------- ------------
NON-CURRENT ASSETS:
Restricted deposit 337 327
Long-term deposits 10,000 -
Property and equipment, net 45,355 42,343
Operating lease right-of-use
asset 3,843 4,573
Intangible assets 69,995 80,607
Other non-current assets 1,792 2,163
--------------- ------------
TOTAL NON-CURRENT ASSETS 131,322 130,013
--------------- ------------
TOTAL ASSETS 210,002 218,648
=============== ============
Liabilities and Shareholders'
Equity
CURRENT LIABILITIES:
Current maturities of long-term
loan 3,061 3,490
Accounts payable 2,209 3,303
Accrued expenses 3,968 3,920
Deferred revenue 140 543
Current maturities of operating
lease liabilities 745 861
Other current liabilities 3,849 3,407
--------------- ------------
TOTAL CURRENT LIABILITIES 13,972 15,524
--------------- ------------
NON-CURRENT LIABILITIES:
Non-current operating lease
liabilities 3,640 4,045
Deferred tax liability 2,576 2,953
Other long-term liabilities 695 612
--------------- ------------
TOTAL NON-CURRENT LIABILITIES 6,911 7,610
--------------- ------------
TOTAL LIABILITIES 20,883 23,134
--------------- ------------
COMMITMENTS AND CONTINGENCIES
(Note 3)
SHAREHOLDERS' EQUITY:
Ordinary Shares, par value NIS
0.01 per share 100,000,000
authorized at December 31,
2024 and 2023, 63,762,001 and
57,778,628 issued and
outstanding at December 31,
2024 and 2023, respectively 181 165
Additional paid-in capital 562,688 515,887
Accumulated other comprehensive
loss (1) (305)
Accumulated deficit (373,749) (320,233)
--------------- ------------
TOTAL SHAREHOLDERS' EQUITY 189,119 195,514
--------------- ------------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY 210,002 218,648
=============== ============
NANO-X IMAGING LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND
COMPREHENSIVE LOSS
(U.S. dollars in thousands except share and per share
data)
Twelve Months Ended Three Months Ended
December 31, December 31,
------------------- ------------------
2024 2023 2024 2024
-------- -------- ------- --------
REVENUE 11,283 9,905 3,000 2,397
COST OF REVENUE 21,892 16,497 5,890 4,113
------- -------- ------- --------
GROSS LOSS (10,609) (6,592) (2,890) (1,716)
------- -------- ------- --------
OPERATING
EXPENSES:
Research and
development,
net 20,182 26,049 5,401 6,812
Sales and
marketing 3,410 4,168 889 1,034
General and
administrative 22,455 24,272 5,786 3,791
Goodwill
impairment - 7,420 - -
Change in
contingent
earnout
liability - (4,488) - 18
Other expenses
(income), net 90 (1,424) 9 (2,684)
------- -------- ------- --------
TOTAL OPERATING
EXPENSES 46,137 55,997 12,085 8,971
------- -------- ------- --------
OPERATING LOSS (56,746) (62,589) (14,975) (10,687)
------- -------- ------- --------
REALIZED INCOME
(LOSS) FROM SALE OF
MARKETABLE
SECURITIES 2 (178) - -
FINANCIAL INCOME,
net 2,870 1,652 820 360
------- -------- ------- --------
OPERATING LOSS
BEFORE INCOME
TAXES (53,874) (61,115) (14,155) (10,327)
======= ======== ======= ========
INCOME TAX BENEFIT 358 339 94 79
------- -------- ------- --------
NET LOSS (53,516) (60,776) (14,061) (10,248)
======= ======== ======= ========
BASIC AND DILUTED
LOSS PER SHARE (0.91) (1.08) (0.23) (0.18)
Weighted average
number of basic and
diluted ordinary
shares outstanding
(in thousands) 58,673 56,368 60,139 57,758
======= ======== ======= ========
NET LOSS (53,516) (60,776) (14,061) (10,248)
Other
comprehensive
income (loss):
Reclassification of
net losses (income)
realized in income
statement (2) 178 - -
Unrealized gain
(loss) from
marketable
securities 306 1,491 (13) 341
------- -------- ------- --------
Total comprehensive
loss (53,212) (59,107) (14,074) (9,907)
======= ======== ======= ========
NANO-X IMAGING LTD.
UNAUDITED CONDENSED STATEMENT OF CHANGES IN SHAREHOLDERS'
EQUITY
(U.S. dollars in thousands, except share and per share
data)
Accumulated
Ordinary shares Additional other
-------------------
Number of paid-in comprehensive Accumulated
shares Amount capital loss 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 2023:
Issuance of
ordinary shares
and warrants, net
of issuance
expenses ** 2,142,858 6 27,133 - - 27,139
Issuance of
ordinary shares
upon exercise of
RSUs 34,750 * - - *
Issuance of
ordinary shares
upon exercise of
options 251,391 * 903 - - 903
Issuance of
ordinary shares
under settlement
agreement with
former
stockholders of
USARAD Holding
Inc. 255,392 1 1,560 - - 1,561
Reclassification of
earn-out liability
to equity - - 1,500 - - 1,500
Share-based
compensation - - 6,838 - - 6,838
Unrealized gain
from marketable
securities, net - - - 1,669 - 1,669
Net loss for the
year - - - - (60,776) (60,776)
---------- ------ ---------- ------------- ----------- -------
BALANCE AT DECEMBER
31, 2023 57,778,628 165 515,887 (305) (320,233) 195,514
CHANGES DURING 2024:
Issuance of ordinary
shares, net of
issuance expenses ** 5,046,990 14 37,820 - - 37,834
Issuance of ordinary
shares upon exercise
of RSUs 190,000 * - - - -
Issuance of ordinary
shares upon exercise
of options 746,383 2 1,668 - - 1,670
Share-based
compensation - - 7,313 - - 7,313
Unrealized gain from
marketable
securities, net - - - 304 - 304
Net loss for the year - - - - (53,516) (53,516)
---------- ------ ---------- ------------- ----------- -------
BALANCE AT DECEMBER
31, 2024 63,762,001 181 562,688 (1) (373,749) 189,119
========== ====== ========== ============= =========== =======
* Less than $1.
** Issuance expenses totaled $2,861 in 2023 and $970
in 2024.
Accumulated
Ordinary shares Additional other
-------------------
Number of paid-in comprehensive Accumulated
shares Amount capital loss deficit Total
----------- ------ ---------- ------------- ----------- -------
U.S. Dollars in thousands
----------------------------------------------------------------------
BALANCE AT OCTOBER
1, 2024 58,521,934 167 523,396 12 (359,688) 163,887
Changes
during the
period:
Issuance of
ordinary
shares, net of
issuance
expenses ** 5,046,990 14 37,820 - - 37,834
Issuance of
ordinary
shares upon
exercise of
RSUs 190,000 * - - - -
Issuance of
ordinary
shares upon
exercise of
options 3,077 * 4 - - 4
Share-based
compensation - - 1,468 - - 1,468
Unrealized loss
from
marketable
securities - - - (13) - (13)
Net loss for
the period - - - - (14,061) (14,061)
---------- ------ ---------- ------------- ----------- -------
BALANCE AT
DECEMBER 31,
2024 63,762,001 181 562,688 (1) (373,749) 189,119
========== ====== ========== ============= =========== =======
Accumulated
Ordinary shares Additional other
-------------------
Number of paid-in comprehensive Accumulated
shares Amount capital deficit deficit Total
----------- ------ ---------- ------------- ----------- -------
U.S. Dollars in thousands
----------------------------------------------------------------------
BALANCE AT OCTOBER 1,
2023 57,717,425 165 512,497 (646) (309,985) 202,031
Changes during the
period:
Issuance of
ordinary shares
upon exercise of
RSUs 34,750 * - - - *
Issuance of
ordinary shares
upon exercise of
options 26,453 * 33 - - 33
Reclassification of
earn-out liability
to equity - - 1,500 - - 1,500
Unrealized gain
from marketable
securities - - - 341 - 341
Share-based
compensation - - 1,857 - - 1,857
Net loss for the
period - - - - (10,248) (10,248)
---------- ------ ---------- ------------- ----------- -------
BALANCE AT DECEMBER
31, 2023 57,778,628 165 515,887 (305) (320,233) 195,514
========== ====== ========== ============= =========== =======
* Less than $1.
** Issuance expenses totaled $970.
NANO-X IMAGING LTD.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS
(U.S. dollars in thousands)
Year ended December 31,
------------------------------
2024 2023
------------- -----------
U.S. Dollars in thousands
------------------------------
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net loss for the year (53,516) (60,776)
Adjustments required to
reconcile net loss to net cash
used in operating activities:
Share-based compensation 7,261 6,838
Amortization of intangible assets 10,612 10,612
Impairment of goodwill - 7,420
Change in contingent earnout
liability - (4,488)
Depreciation 1,121 1,198
Deferred tax liability, net (377) (377)
Realized loss (income) from
sale of marketable
securities (2) 178
Exchange rate differentials (512) 69
Amortization of premium, discount
and accrued interest on
marketable securities (260) 735
Loss from disposal of property
and equipment 202 1,297
Changes in operating assets and
liabilities:
Change in inventories (277) -
Accounts receivable, net (321) (507)
Prepaid expenses and other
current assets 190 1,940
Other non-current assets 218 (251)
Accounts payable (1,316) (153)
Accrued expenses and other
liabilities 490 (8,956)
Operating lease assets and
liabilities 209 352
Deferred revenue (403) (37)
Other long-term liabilities 83 129
------------ -----------
Net cash used in operating
activities (36,598) (44,777)
------------ -----------
CASH FLOWS FROM INVESTING
ACTIVITIES:
Investment in (release of)
restricted deposits 46 (373)
Proceeds from maturity of
marketable securities 41,187 38,287
Purchase of marketable securities (33,017) -
Proceeds from sale of marketable
securities - 822
Investment in short term deposits (15,500) -
Investment in long term deposits (10,000) -
Purchase of property and
equipment (2,767) (3,303)
------------ -----------
Net cash provided by (used in)
investing activities (20,051) 35,433
------------ -----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Proceeds from issuance of
ordinary shares and warrants,
net of issuance costs 37,834 27,139
Payment due to settlement of
contingent earnout liabilities - (790)
Proceeds from issuance of
ordinary shares upon exercise of
options 1,670 903
------------ -----------
Net cash provided by financing
activities 39,504 27,252
------------ -----------
EFFECT OF CHANGES IN EXCHANGE RATES
ON CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH EQUIVALENTS 72 (60)
------------ -----------
NET CHANGE IN CASH AND CASH
EQUIVALENTS AND RESTRICTED CASH
EQUIVALENTS (17,073) 17,848
============ ===========
CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH EQUIVALENTS AT
BEGINNING OF THE YEAR 56,377 38,529
============ ===========
CASH AND CASH EQUIVALENTS AND
RESTRICTED CASH EQUIVALENTS AT END
OF THE YEAR 39,304 56,377
============ ===========
SUPPLEMENTARY INFORMATION ON
ACTIVITIES INVOLVING CASH FLOWS:
Cash paid for income taxes 53 3
============ ===========
Cash paid for interest 140 149
============ ===========
SUPPLEMENTARY INFORMATION ON
ACTIVITIES NOT INVOLVING CASH
FLOWS:
Issuance of ordinary shares in
connection with earnout liability. - 1,561
============ ===========
Reclassification of earn-out
liability to equity - 1,500
============ ===========
Non-cash purchase of property and
equipment 223 -
============ ===========
Operating lease liabilities arising
from obtaining operating right-of
use assets - 4,411
============ ===========
(*) Less than 1 thousand US dollars.
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements
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 (loss), non-GAAP gross profit (loss) margin, non-GAAP research and development expenses, net, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses, non-GAAP other expenses (income) 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, impairment of Goodwill, change in contingent earnout liability, expenses related to an offering, legal fees in connection with class-action litigation and the SEC investigation, accrual in connection with the settlement of the SEC investigation and class-action. 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)
Twelve Months Three Months
Ended Ended
December 31, December 31,
--------------- ---------------
2024 2023 2024 2023
------- ------ ------ -------
GAAP net loss
attributable to
ordinary shares 53,516 60,776 14,061 10,248
Non-GAAP
adjustments:
Less:
Class-action
litigation and
SEC
investigation 81 2,504 5 (1,699)
Less:
Amortization of
intangible
assets 10,612 10,612 2,653 2,653
Less: Impairment
of goodwill - 7,420 - -
Less: Offering
expenses 420 - - -
Less (Add):
Change in the
fair value of
earn out
liabilities'
obligation - (4,488) - 18
Less: Change in
accrual in
connection with
the estimated
settlement of
the SEC
investigation
and the
class-action - (2,350) - (3,000)
Less:
Share-based
compensation 7,261 6,838 1,416 1,857
------ ------ ------ -------
Non-GAAP net loss
attributable to
ordinary shares 35,142 40,240 9,987 10,419
====== ====== ====== =======
BASIC AND DILUTED
LOSS PER SHARE 0.60 0.71 0.17 0.18
====== ====== ====== =======
WEIGHTED AVERAGE
NUMBER OF ORDINARY
SHARES (in
thousands) 58,673 56,368 60,139 57,758
====== ====== ====== =======
Reconciliation of GAAP cost of revenue to non-GAAP cost of revenue (U.S. dollars in thousands)
GAAP cost of revenue 21,892 16,497 5,890 4,113
Non-GAAP adjustments:
Amortization of
intangible assets 10,224 10,224 2,556 2,556
Share-based
compensation 227 56 54 15
------ ------ ----- -----
Non-GAAP cost of revenue 11,441 6,217 3,280 1,542
====== ====== ===== =====
Reconciliation of GAAP gross loss to non-GAAP gross profit (U.S. dollars in thousands)
GAAP gross loss (10,609) (6,592) (2,890) (1,716)
Non-GAAP
adjustments:
Amortization of
intangible
assets 10,224 10,224 2,556 2,556
Share-based
compensation 227 56 54 15
------- ------ ------ ------
Non-GAAP gross
profit (loss) (158) 3,688 (280) 855
======= ====== ====== ======
Reconciliation of GAAP gross loss margin to non-GAAP gross profit margin (in percentage of revenue)
GAAP gross loss margin (94)% (67)% (96)% (72)%
Non-GAAP adjustments:
Amortization of
intangible assets 91% 103% 85% 107%
Share-based compensation 2% 1% 2% 1%
--- --- --- ---
Non-GAAP gross profit
(loss) margin (1)% 37% (9)% 36%
=== === === ===
Reconciliation of GAAP research and development, expenses, net, to non-GAAP research and development expenses, net (U.S. dollars in thousands)
GAAP research and
development expenses,
net 20,182 26,049 5,401 6,812
Non-GAAP adjustments:
Share-based
compensation 2,448 3,818 409 925
------ ------ ----- -----
Non-GAAP research and
development expenses,
net 17,734 22,231 4,992 5,887
====== ====== ===== =====
Reconciliation of GAAP sales and marketing expenses to non-GAAP sales and marketing expenses (U.S. dollars in thousands)
GAAP sales and marketing
expenses 3,410 4,168 889 1,034
Non-GAAP adjustments:
Amortization of intangible
assets 388 388 97 97
Share-based compensation 717 484 145 150
----- ----- --- -----
Non-GAAP sales and marketing
expenses 2,305 3,296 647 787
===== ===== === =====
Reconciliation of GAAP general and administrative expenses to non-GAAP general and administrative expenses (U.S. dollars in thousands)
GAAP general and
administrative
expenses 22,455 24,272 5,786 3,791
Non-GAAP adjustments:
Class-action
litigation and SEC
investigation 81 2,504 5 (1,699)
Offering expenses 420 - - -
Share-based
compensation 3,869 2,480 808 767
------ ------ ----- ------
Non-GAAP general and
administrative
expenses 18,085 19,288 4,973 4,723
====== ====== ===== ======
Reconciliation of GAAP other expenses (income) to non-GAAP other expenses (U.S. dollars in thousands)
GAAP other expenses (income) 90 (1,424) 9(2,684)
Non-GAAP adjustments:
Change in accrual in
connection with the
estimated settlement of the
SEC investigation and
class-action - (2,350) -(3,000)
------ ------
Non-GAAP other expenses 90 926 9 316
====== ======
Contacts
Investor Contact
Mike Cavanaugh
ICR Healthcare
mike.cavanaugh@icrhealthcare.com
Media Contact
ICR Healthcare
NanoxPR@icrinc.com
(END) Dow Jones Newswires
March 31, 2025 08:00 ET (12:00 GMT)
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