Nano-X Imaging (NNOX) - 2024 Q2 - Quarterly Report

Financial Performance - Generated $2.7 million in revenue in Q2 2024, a 3.8% increase from $2.6 million in Q2 2023[2] - Reported a net loss of $13.6 million in Q2 2024, down from a net loss of $17.4 million in Q2 2023, representing a decrease of $3.8 million[5] - Total revenue for the six months ended June 30, 2024, was $5,252 thousand, a 4.4% increase from $5,029 thousand for the same period in 2023[23] - Net loss for the six months ended June 30, 2024, was $(25,816) thousand, compared to $(29,125) thousand for the same period in 2023, reflecting an improvement in net loss[23] - The company reported a basic and diluted loss per share of $(0.45) for the six months ended June 30, 2024, compared to $(0.53) for the same period in 2023[23] - The company reported a basic and diluted loss per share of $0.28 for the six months ended June 30, 2024, compared to $0.37 for the same period in 2023[72] Revenue Breakdown - Revenue from teleradiology services was $2.5 million for both reported and comparable periods, with a gross profit margin of approximately 15%[8] - Revenue from AI solutions was $113 thousand in Q2 2024, with a gross loss of $2.0 million, compared to $53 thousand and a gross loss of $2.1 million in Q2 2023[9] - Total revenues for the six months ended June 30, 2024, were $5,252,000, with the Nanox.ARC division contributing $116,000, Radiology Services $4,926,000, and AI Solutions $210,000[64] - Approximately 96% of the company's total revenue for the six months ended June 30, 2024, was generated in the United States[68] Expenses - Research and development expenses decreased to $4.8 million in Q2 2024 from $6.9 million in Q2 2023, reflecting a decrease of $2.1 million[9] - General and administrative expenses were $5.9 million in Q2 2024, down from $7.6 million in Q2 2023, a decrease of $1.7 million[10] - Total operating expenses for the six months ended June 30, 2024, were $22,725 thousand, a decrease of 14.7% from $26,695 thousand for the same period in 2023[23] - GAAP research and development expenses were $10,032,000, with Non-GAAP adjustments resulting in a net of $8,716,000[76] - GAAP general and administrative expenses reached $10,958,000, with Non-GAAP adjustments bringing it down to $8,662,000[77] Cash and Assets - As of June 30, 2024, the company had total cash and equivalents of $64.2 million, down from $82.8 million as of December 31, 2023, a decrease of $18.6 million[14] - Total current assets decreased to $69,626 thousand as of June 30, 2024, down 21.5% from $88,635 thousand at December 31, 2023[22] - Cash and cash equivalents decreased to $38,982 thousand as of June 30, 2024, down 30.5% from $56,377 thousand at December 31, 2023[22] - As of June 30, 2024, the total cash, cash equivalents, and restricted cash equivalents for Nano-X Imaging Ltd. amounted to $38,982 thousand[30] - The company’s total assets as of June 30, 2024, were $195,721,000, with $114,380,000 from Nanox.ARC, $20,714,000 from Radiology Services, and $60,627,000 from AI Solutions[64] Liabilities and Equity - Total liabilities decreased to $20,586 thousand as of June 30, 2024, down 11.0% from $23,134 thousand at December 31, 2023[22] - Total shareholders' equity as of June 30, 2024, was $175,135 thousand, a decrease of 10.4% from $195,514 thousand at December 31, 2023[22] - The company reported a total of $24,884 million in debt securities due within one year as of June 30, 2024, down from $26,006 million as of December 31, 2023[46] Operational Developments - The company installed Nanox.ARC systems in seven states and has a robust sales pipeline[2] - Nanox.AI received FDA 510K clearance for HealthCCSng V2.0, enhancing its AI cardiac solution capabilities[2] - The company received FDA clearance for its multi-source Nanox.ARC system on April 28, 2023, enhancing its product offerings[31] - The company maintains contingency plans for manufacturing and assembly locations due to the ongoing security situation in Israel, which has not materially impacted operations as of June 30, 2024[33] Legal and Settlement Matters - The company entered into a settlement agreement for $8 million related to class action litigation, with $5 million deposited by the company and $3 million by the D&O insurance carrier[49] - The company has not yet responded to a claim filed in Israel demanding approximately $26.26 million, which includes $1.26 million for unpaid consulting fees and $25 million for claimed securities[50] Shareholder Information - The company had a total of 58,497,123 ordinary shares issued and outstanding as of June 30, 2024, an increase from 57,778,628 shares as of December 31, 2023[55] - The company granted a total of 203,500 options and 190,000 RSUs to employees during the six months ended June 30, 2024, with a fair value of $1,102 thousand for the options granted[57] - The company granted a total of 140,000 RSUs on April 16, 2024, and 50,000 RSUs to the CEO on June 25, 2024, with a fair value of $1,298 and $326, respectively[60] Market and Stock Information - The expected volatility of the company's stock is 80.29%, with a risk-free interest rate of 4.23%[60]