Nano-X Imaging (NNOX) - 2022 Q2 - Quarterly Report

Financial Performance - The company generated $2.2 million in revenue for Q2 2022, up from $1.8 million in Q1 2022, representing a growth of over 15% in sales of radiology services [4]. - The company reported a net loss of $19.6 million for Q2 2022, compared to a net loss of $13.6 million in the same period last year [6]. - Revenue for the six months ended June 30, 2022, was $4,008 thousand, compared to $0 for the same period in 2021 [32]. - Gross loss for the six months ended June 30, 2022, was $(3,674) thousand, with a gross loss of $(1,755) thousand for the three months ended June 30, 2022 [32]. - Net loss for the six months ended June 30, 2022, was $(41,280) thousand, compared to $(26,294) thousand for the same period in 2021, representing a 57.1% increase in loss [32]. - The company reported a basic and diluted loss per share of $(0.79) for the six months ended June 30, 2022, compared to $(0.56) for the same period in 2021 [32]. - The company reported a basic and diluted loss per share of $0.38 for the six months ended June 30, 2022, compared to $0.33 for the same period in 2021 [44]. Expenses - Research and development expenses increased to $6.5 million in Q2 2022 from $4.3 million in the comparable period, primarily due to the consolidation of Nanox.AI [7]. - Total operating expenses for the six months ended June 30, 2022, were $40,451 thousand, an increase of 54.5% from $26,168 thousand in the same period of 2021 [32]. - Research and development expenses for the six months ended June 30, 2022, were $13,323 thousand, up from $7,052 thousand in the same period of 2021, reflecting an increase of 88.5% [32]. - GAAP research and development expenses for the six months ended June 30, 2022, were $13.32 million, compared to $7.05 million in 2021, representing an increase of 89% [45]. - The company incurred $11.53 million in share-based compensation for the six months ended June 30, 2022, compared to $9.53 million in 2021, a 21% increase [44]. Cash and Assets - The company ended Q2 2022 with cash, cash equivalents, and marketable securities totaling $126.7 million [14]. - Cash and cash equivalents decreased to $51,676 thousand as of June 30, 2022, from $66,645 thousand as of December 31, 2021 [28]. - Total assets decreased to $317,724 thousand as of June 30, 2022, from $363,170 thousand as of December 31, 2021 [28]. - The company had total current assets of $89.8 million and total current liabilities of $40.6 million, resulting in working capital of $49.2 million as of June 30, 2022 [14]. - Cash and cash equivalents at the end of the period were $51.80 million, down from $116.86 million at the end of the same period in 2021, a decrease of 56% [41]. Liabilities and Equity - The company reported a goodwill impairment of $14.3 million in Q2 2022 due to changes in management estimates [10]. - Total liabilities decreased to $55,448 thousand as of June 30, 2022, from $71,022 thousand as of December 31, 2021 [28]. - The company had a total shareholders' equity of $262,276 thousand as of June 30, 2022, down from $292,148 thousand as of December 31, 2021 [28]. - Non-GAAP net loss attributable to ordinary shareholders for the six months ended June 30, 2022, was $19.78 million, up from $15.73 million in 2021, indicating a 25% increase [44]. Financing and Investments - Cash used in operating activities for the six months ended June 30, 2022, was $22.28 million, compared to $11.75 million in 2021, reflecting a 90% increase in cash outflow [41]. - Net cash provided by financing activities was $14.08 million for the six months ended June 30, 2022, compared to $3.90 million in 2021, indicating a significant increase in financing [41]. - The company’s total cash outflow from investing activities was $6.77 million for the six months ended June 30, 2022, compared to $89.08 million in 2021, showing a significant reduction in investment cash outflow [41]. Strategic Initiatives - The company secured an agreement with BIO Ventures for Global Health to develop a medical imaging training initiative in Nigeria [4]. - The company plans to make a 510(k) submission to the FDA for the multi-source Nanox.ARC system [3]. - The company was added to the Russell 2000® and Russell 3000® Indexes effective June 27, 2022 [4]. - The company reported a change in contingent earnout liability of $12.26 million for the six months ended June 30, 2022, which was not present in the previous year [41].