Nano-X Imaging (US:NNOX)2022-05-19 14:49Financial Data and Key Metrics Changes - The company reported a GAAP net loss of $21.7 million for Q1 2022, compared to a net loss of $12.7 million in Q1 2021 [21] - Revenue for Q1 2022 was $1.8 million, an increase from $1.3 million in Q4 2021, marking the first full quarter of revenue generation [8][21] - The non-GAAP net loss for Q1 2022 was $12.0 million, compared to a non-GAAP net loss of $7 million for the same period in 2021 [24] Business Line Data and Key Metrics Changes - Revenue from teleradiology services for Q1 2022 was $1.7 million, with a gross profit of $0.1 million on a GAAP basis and $0.7 million on a non-GAAP basis, representing a gross profit margin of approximately 39% [21] - Revenue from licensing of AI applications was $0.1 million, with a gross loss of $2.0 million on a GAAP basis [21] Market Data and Key Metrics Changes - The company has established a network of over 300 independent radiologists and provides teleradiology services to over 500 imaging facilities, including hospitals [11] - The company is experiencing organic growth in its teleradiology business, with sales and marketing efforts yielding results since November 2021 [10] Company Strategy and Development Direction - The company aims to democratize healthcare globally through its innovative Nanox.ARC technology and the integration of acquired companies [11][12] - The company is focused on improving internal controls and investing in human capital and technological infrastructure [14] - The company is in discussions to secure CE Mark in the EU for the Nanox System, which is crucial for achieving a global footprint [17] Management's Comments on Operating Environment and Future Outlook - Management expressed satisfaction with the company's performance in Q1 2022, highlighting accelerating revenue growth and progress in FDA clearance processes [8][26] - The company anticipates that the increasing use of AI-enabled diagnostic equipment will shift healthcare from predictive to preventive, contributing to rising product demand [13] Other Important Information - The company commenced large-scale production of MEMs chips at a new semiconductor fabrication plant in South Korea [18] - As of March 31, 2022, the company had cash, cash equivalents, and marketable securities of approximately $139.4 million [25] Q&A Session Summary Question: Timing of 510(k) submission and CE Mark - Management indicated that they are waiting for FDA feedback on their Q submission before proceeding with the 510(k) submission [33][40] Question: Validation testing by clients on multisource - Management stated that no implementation can occur until FDA approval is received, but trials will commence in countries with different regulations [37] Question: Regulatory processes in countries not requiring FDA approval - Management described these processes as simpler than FDA and CE, with expectations to receive approvals shortly [50] Question: Additional MSaaS agreements - Management confirmed ongoing negotiations for additional agreements, with some in advanced stages [53] Question: Employee count changes - Management reported a decrease in total employee count but plans to recruit more in line with their annual operating plan [48]