Core Viewpoint - The collaboration between Zhejiang University First Affiliated Hospital and Alibaba Damo Academy has led to the development of an AI model, iAorta, which can quickly identify potential acute aortic syndrome risks in routine CT scans, significantly improving diagnostic accuracy and speed [1][3]. Group 1: AI Model Development - The iAorta model was developed to address the challenge of diagnosing acute aortic syndrome, which often presents with non-specific symptoms leading to high misdiagnosis rates [2][3]. - The model integrates with hospital PACS systems, allowing simultaneous analysis of CT scans as doctors review them, providing alerts for potential risks [3][4]. Group 2: Performance Metrics - iAorta demonstrated a sensitivity of 97% and specificity of 94% in identifying acute aortic syndrome during validation [4]. - In a retrospective study involving 130,000 patients, iAorta achieved a sensitivity of 92.6% and specificity of 99.2%, significantly reducing the misdiagnosis rate from 48.8% to 4.8% [4][5]. Group 3: Clinical Impact - The average diagnosis time for acute aortic syndrome was reduced from 11.4 hours to 1.1 hours with the use of iAorta [5]. - In a prospective study with 13,000 patients, iAorta identified 9 cases of acute aortic syndrome, compared to only 2 identified by doctors alone [6]. Group 4: Deployment and Future Plans - iAorta has been deployed in the first 10 hospitals in Zhejiang, with plans for nationwide expansion [6]. - The model is expected to streamline the diagnosis, transfer, and treatment processes for patients with acute aortic syndrome [6].

Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $14.7 million for Q2 2025, compared to a net loss of $13.6 million in Q2 2024, primarily due to a $400,000 increase in gross loss and a $1 million increase in finance expenses, offset by a $400,000 decrease in operating expenses [34] - Revenue for the reported period was $3 million, with a gross loss of $3.2 million on a GAAP basis, compared to revenue of $2.7 million and a gross loss of $2.9 million in the comparable period [34] - Non-GAAP gross loss for the reported period was $600,000, representing a gross loss margin of approximately 21%, compared to 9% in the comparable period [35] Business Line Data and Key Metrics Changes - Revenue from teleradiology services for the reported period was $2.7 million, with a gross profit of $500,000, compared to revenue of $2.5 million and a gross profit of $400,000 in the comparable period, indicating a gross profit margin increase from 15% to 18% [35] - Revenue from imaging systems and OEM services amounted to $221,000, with a gross loss of $1.7 million, compared to revenue of $68,000 and a gross loss of $1.3 million in the comparable period [36] - Revenue from AI solutions for the reported period was $100,000, with a gross loss of $2 million, consistent with the previous period [36] Market Data and Key Metrics Changes - The company is focusing on expanding its commercial footprint in the U.S. market while also establishing a presence in European countries such as Romania and Greece following the CE Mark designation [6][22] - The company has installed systems in various facilities, primarily in small and medium-sized health clinics, with over 20 systems currently operating and scanning patients [45] Company Strategy and Development Direction - The company aims to install 100 Nanox ARC systems by the end of 2025, with a focus on disciplined execution and expanding its commercial footprint [5] - The strategy includes partnerships with academic institutions and clinical education initiatives to enhance the adoption of Nanox technology [7][10] - The company is developing a mobile imaging solution to improve access to diagnostic imaging services [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting revenue growth expectations for 2025, driven by increased installations and customer retention [7][40] - The company anticipates that operating expenses will remain stable, with a focus on efficiency while increasing sales and marketing efforts [60] Other Important Information - The company has entered into a multi-year volume supply agreement with Fabrinet to support scalable production of advanced medical imaging systems [33] - The company is actively pursuing collaborations with AI platform providers to enhance its offerings and expand its market reach [19][20] Q&A Session Summary Question: How many systems were operating during the quarter that resulted in $221,000 in imaging-related revenue? - More than 20 systems are currently operating and scanning patients, with a significant increase in the number of leads and installations expected [45][46] Question: Are you expecting any of the 100 leads to be capital sales? - A portion of the leads will be CapEx sales, particularly in the U.S. market [47] Question: How many states in the U.S. are you now approved in for users to operate a system? - The company is currently approved in eight states [48] Question: Could you talk about the current revenue model? - The leading model is the MTSS model, but there will be a mixture of CapEx sales and MSOS model in the U.S. market [53] Question: What should be expected for the AI Solutions revenue going forward? - Continuous growth is expected, with 2026 projected to be breakeven in terms of revenues and expenses for AI solutions [55] Question: Any trends expected in operating expenses? - Operating expenses are expected to remain consistent, with a focus on maintaining efficiency while increasing sales and marketing activities [60]