Nanox at Sidoti’s Small-Cap Conference: Strategic Innovations in Medical Imaging

On Wednesday, 11 June 2025, Nano X Imaging Ltd (NASDAQ:NNOX) presented at Sidoti’s Small-Cap Virtual Conference, highlighting its strategic advancements in medical imaging technology. The discussion, led by CEO Ron, focused on the company’s innovative solutions and market expansion strategies, while addressing both the challenges and opportunities ahead.

Key Takeaways

• Nanox emphasized the advantages of its Nanox ARC system, which combines advanced imaging technology with a cloud-based platform.
• The company is pursuing a hybrid commercialization strategy in the U.S., combining capital sales and a pay-per-use model.
• Financially, Nanox reported $72.9 million in cash and a $3 million monthly burn rate, with a revenue of $2.8 million for Q1 2025.
• The company aims for breakeven in its AI division by 2026 and in its hardware division with 1,500 to 2,000 units deployed.
• Regulatory and market approvals have been secured for key products, including the Nanox ARC HX.

Financial Results

• Cash and cash equivalents stood at $72.9 million as of the end of Q1 2025.
• Revenue for the quarter was reported at $2.8 million.
• The company’s monthly burn rate is approximately $3 million.
• Significant fixed assets and inventory are linked to the fab in Korea and capitalized devices for the pay-per-use model.
• The AI division is expected to reach breakeven by 2026, while the hardware division targets breakeven with 1,500 to 2,000 units in the field.

Operational Updates

• The Nanox ARC system received clearance for general use in December 2024, and the ARC HX was cleared for U.S. marketing in April 2025.
• A hybrid commercial strategy is employed in the U.S., utilizing both pay-per-use and CapEx models.
• The pay-per-use model charges $30 per scan, with a minimum of seven scans per day, and an additional $20 per scan for teleradiology services.
• AI solutions for bone, cardiac, and liver health have received FDA and CE approvals.
• Nanox’s international presence includes installations in Israel and Ghana, with collaborations in the UK.

Future Outlook

• Nanox aims for breakeven in its AI division by 2026 and in its hardware division with 1,500 to 2,000 units deployed.
• The company continues to focus on product development and market expansion, particularly in the U.S.
• Innovations in AI, cloud technology, and early diagnosis remain central to Nanox’s strategy.

Q&A Highlights

• Success metrics are defined by performance across business divisions, including AI, hardware, and teleradiology.
• Nanox’s competitive edge lies in its innovative end-to-end solutions, positioning it strongly in the AI and cloud-based medical imaging market.
• The market may be underappreciating Nanox’s progress in product development and regulatory approvals compared to its early stages.

For more detailed insights, readers are invited to refer to the full transcript below.

Full transcript - Sidoti’s Small-Cap Virtual Conference:

Alex, Host/Operator: Welcome to submit questions using the Zoom Q and A interface at the bottom of your screen. After the presentation, we’ll open to your questions. And with that, Ron, I’ll turn it over to you.

Ron, Nanox: You, Alex, and good afternoon for everyone. Before we’ll get started, I would like to remind everyone that I’ll be making statements during this presentation that may be deemed forward looking statements regarding our activities, commercializations and any other matters. Computer is fraud. Anyway, I’m pleased to say that we are making progress in our mission to make to progress the medical imagings and improve patient outcomes. Our innovative technologies, including the Nanox ARC and RAI solutions, are gaining traction in the market.

I don’t know why it’s not going forward.

Alex, Host/Operator: Got it. Where okay. There you go.

Ron, Nanox: Yeah. Yep. Sorry. So, just to be official, this is the disclaimer. So okay.

So we have developed the Nanox ARC system, which combines a multi source Nanox ARC imaging device with our cloud cloud based Nanox Cloud platform. Our Nanox Arc system, which you can see behind me over here, it’s our, our own it’s a it’s our own, three d digital multi source systems, which combines our proprietary digital X-ray source to produce three d tomosynthesis images with multi stationary tubes arranged around the patient. I can show you over here. This is, our chip. This is our tube, which goes together into our assembly house of the tubes, which are positioned over here.

One, two, three, four, five tubes. This is the overhead camera, and this is where the patient lays down. The assembly the assembly house of the the tubes, or they are, just, is stationary, and the bed is moving with the patient and stop. To stop, that depends on the particular, or specific procedure that the patient moves. These systems together with our our cloud system is designed to streamline the medical images from scan to diagnosis, offering a scalable, cost effective solutions for early detection.

Our Nanox Cloud centralized all our AI solutions, AI diagnostic, radio radiologist machine and re and reporting. We re we’re using the IT infrastructure that you need, and we enable all this system to be operated remotely and to as well as to support it. It’s it’s also is being used as our billing systems. So the only physical, component of our solution that you see is actually the our ARC. All the other, it’s on the cloud.

I want just to give an illustration how exactly tomographic sweep is being done. So here you see the technician, which has a regular iPad programming the parameters for the patient and perform the overview. It’s chest scan. You can see the bed is moving. The arc is tilting 15 to 18 degrees to each sides creating the Tomo effect.

And the machine, the device is creating 30 to 60 images that are being that are going to our cloud and be reconstructed to one three d image with our reconstruction software. What are the clinical benefits for the tomosynthesis? of all, the visuality of the image is much better, is enhanced. It also reduces the superimposition of normal structure that are that may reduce the false positive cases. It also has contained many details, more details, is in more sensitive.

It’s also have additional depth views. And, since most of our solutions, you may say it’s an end to end solution, it’s everything is being, it’s it’s actually, creates a speeder diagnosis and faster treatment, of course. Are Thomas our technology is based on Thomas Synthesis. We actually we are positioned between an X-ray and a CT. The main difference is that CT produces hundreds of images, X-ray only one, and we, create 30 to 60 images.

The reading time our reading time is much closer to X-ray than CT, and the level of the dose is a little bit more than X-ray, and far from the CT. A few examples of what is the difference between X-ray and NanoX Arc. In this slide, you can see on the left side, a patient with a cast. Usually, a patient comes with a cast to take an X-ray, he needs to remove his cast. In our case, you can see that there’s no need to remove the cast.

Actually, our machine can read through the layers of the human body and you get a clearer image with no need to remove the cast. This is a case of an hip fracture compared to a conventional X-ray, and this is my favorite example of an X-ray versus digital tomosynthetic slice. You can see where you can find a needle over here, which cannot be seen in a regular two d radiograph. What is the regulatory pathway that we’ve made through? Just as a reminder, some history about the company.

The company was this current form of the company was founded in 2018 by our founder, Anpolio Kien. But actually, our technology was developed by a group of scientists from the University of Japan. There were a spin off from Sony itself. And I’m sorry. And, actually, they developed the chip, and, we we developed, from 2020 and further on our the the the tube itself.

Today, the company composed from three business divisions. The one the one is the hardware with the flat product of the Nanox ARC, as I explained before. The one is the AI division, which was acquired in 2021 from Zebra Medical Solution. We’ll discuss it later. And our teleradiology division as well.

We also have an OEM business, which is leveraging on the technology that we developed, the chip and the tube, the chip and the tube. What we have achieved regulation wise, the ARC itself, the version that you see over here, was cleared for MSKUs in May of twenty twenty three for general use in December 2024. The next version of the ARC, the Nanox ARC HX, which I will show later, was cleared to be marketed in The U. S. In April of twenty twenty five.

And we got the CE approval to for all body in February of twenty twenty five. All our AI solutions are cleared by the FDA and the CE as well. Commercialization. We divide the world for two parts, in the Ex U. S.

And The U. S. In The U. S, we do a direct approach. We have our own sales force in The US.

It’s composed from sales personnel, market personnel and clinical support personnel, which are very important to us because their job is actually to go from one customer to another and to show them the clinical value in our machine and to encourage them to use the machine. Outside of The US, we have we do indirect approach. We have distributor agreements with various distributors all around the world. What we target in The U. S.

Market? In The U. S. Market, we target imaging center, orthopedic clinics, multi special purpose medical centers, urgent cares and etcetera. We have two economic models that we work in The U.

Market. The one is capital sales. As we have in some other areas in the world, you simply can buy and buy our machine outright and use it. Of course, you can add the maintenance component if you wish to. We also offer our devices on an MSAS model.

MSAS means medical service as medical scan as a service. It’s simply our pay per use model. Sorry for that. We do charge $30 per scan. And we do charge we do oblige the customers to pay us seven scans as a minimum per day.

Of course, it’s a multiyear contract throughout the most of the economic life of the machine. We are sometimes we also offer an hybrid model, which means some of down payment and some of it is the balance in the pay per use model. We also can we also offer a party financing for the machine. What is the commercial strategy in The US? We do have an hybrid approach that, as I said, is a that combining the pay per use model with the CapEx model.

Why we think that our MSAS model is innovative? of all, when you offer someone as, to pay as you use, you save him the the need to invest, a large amount of CapEx to acquire the machine. Coupled with the fact that our covered procedure with the established reimbursement is the CPT code of 76100, which actually encompass most of the usage of tomosynthesis, which is very simple because you have to, deal with only one, one CPT code. As you can see, from this schedule, the global amount for the 76100 in various areas in The U. S.

Varies between $90 to $110 per procedure when the professional component is $30 per procedure. And the technical portion is $58 to $79 per procedure. We charge $30 under our pay per use model per procedure. We also offer the client to use our teleradiology services and to pay us an additional $20 The end result, it’s that the net operator is it gains a margin of 43% to 54%, very, very respectable margin. Couple of it’s simply a win win situation.

They economically, the operator has an incentive to use device more, and we, of course, enjoy from that usage. Other than what I said in in in in The US, we also have a few installations in We have three devices that are installed in the in Israel, two in the Reybild Medical Center. One is this version. The other one is the next version that I’ll explain later I’ll show later. We also have one device in Shamir, and we have another device in the largest hospital in Ghana.

In all of them, we conduct some of our clinical trial, whether it’s a specific trial or a general trial. So, I mentioned the Nanox ARC. What is the Nanox ARC? It’s actually our latest three d digital multisource thermal synthesis systems. It’s as I will show in the next slide, it says an improved design results in a smaller footprint.

It’s also the sis the new system is also designed to enable software upgrades and new capabilities. Today, as I said, the the capability of this machine is to yield the three d image. We are thinking of adding more capabilities to the machines on the top of the three d image. Of course, it’s, we can run and control the machines remotely in both version. So this is how the NanoX Arc look like.

I dare everyone to go to our website. There’s some more info about this new version. This new version, as I said, was cleared by the FDA in April of twenty twenty five. So as I said, this is a small footprint. This version actually in a full span, and I hope that everyone can see that.

It’s a 15 foot device. 15 foot device is not always practical to go in smaller rooms, just because in those type of customers that we target, sometimes real estate is expensive and the room is being used in a more effective way. So shorting this device by six foot gives us more opportunities to deploy more devices on the field. As the version that you can see over here, the new version is multi access tomographic systems. It still works on the same source of energy called cathode, which is the chip and the tube, just in this the the new version.

This is a ceramic tube, which we developed in our own fab in Korea. The the the the tubes that we use in that version, it’s actually glass tubes that are going to be manufactured by a few vendors. We are, of course, as you can see, it’s an open and sleek design. It’s very easy to access, very easy to use. It’s a cable free design.

I don’t know if you see, but in the version, we also have an external electric cabinet. You can see it in the in the corner of the room. It’s connected by cables on the on the floor. In this version, we actually condensed all the external parts into the device. It’s one device.

You simply come, install it, plug it, and play it. Very simple to use. Okay, I talked about the system design. I want to say a few words about our AI division. As I said, we have acquired AI business from Zebra Medical Solution in November of twenty twenty one.

We have several products that were actually cleared by the FDA and approved by the CE. Today, we are focused on three products that compose our suite of population health solutions. The one is the bone solution. It actually addresses vertebral compression fracture and low bone mineral density. The low bone mineral density version was actually cleared by this by the CE last week that we had PR about it, our cardiac solution component, which goes on the coronary arteries calcium measurement and our liver solution.

We work on additional products such as one for the ortho, another for full body composition, which is also going to be done with some collaboration with some universities in The U. S. Generally speaking, our AI solutions are, of all, standing by themselves. It’s every IDN that uses PAC systems, every client that uses PAC system can install and use our AI solutions. It usually runs over CT scans.

Of course, the version of that is going to work on our own machines on the ARC. And in the future, we may develop some interfaces that are going to connect automatically our devices to the AI solutions, simply saying to have the option to that we may automate the whole process. Today, we have a few customers in The U. S, namely, is an IDN in the Northeast Of The US. They entered into the fourth year of engagement with us.

They also expanded the scope of the usage for those three solutions. We have also other customers such as Covera Health, Dandeny Health, Intermountain, and etcetera. All of those customers have been working us on the base of an annual license fee. Recently, we also started to work with our AI solutions also on the paper model. Namely, as well, for example, we partnered with Ezra Medical to use our AI solutions.

They actually use our solutions on a pay per use model. They offer cancer diagnostic services. And if they wish to, if they want to, they use our as one of those solutions, our chest solutions, for example, where we start with them, and they will pay for this solution. So we have various options to work with our AI solutions and in various business models. In Europe, we had an installation of our bond solutions in The UK.

We had collaborations with the Minister of Health over there. That was a multiyear project. They also funded some of the development of those products today. This year, actually, we transitioned this project into its commercial phase. Just as a reminder, I said it was acquired in November of twenty twenty one.

When we acquired Zebra, we also acquired a database of over 500 millions of imaging CT scans, which facilitate the development of our AI medical imaging solutions. Of course, as I said, everything is approved by the C and the FDA. And that’s it. Let’s see. Okay.

A few words before I go to some financial highlights. We also have the teleradiologist division, we acquired in also in November of twenty twenty one. That’s U. S. Rad.

It’s based in Florida. We have a network of certified radiologists in The U. S. They work they do teleradiology, which means they also use our cloud platform to perform their job. Actually, our cloud platform connects all the stakeholders within our company, whether it’s the AI solution, whether it’s the ARC or teleradiologist, to the customers, to the one who ordered the job.

So the whole process, besides the scan, is being done over the cloud and shorten the time to market. We also have the own business, as I explained. We our core technology, it’s this chip and this tube. Already in the earnings, we already mentioned a project that we have with Oak Ridge. It’s a semi government agency.

We are past a few phases over there. We also have some other project with other commercial companies with regards to our technology. As for the financial highlights, we finished the first quarter of twenty twenty five with $72,900,000 in cash and cash equivalents. We had a quarter of revenue of $2,800,000 we have a big component of fixed assets and inventory on our balance sheet from two reasons. The one is the fab that we established in Korea, which developed the chip and the ceramic tube.

And we also all the devices that are being used for the per per use model are being capitalized into our balance sheet. Our burn rate at the moment is approximately $3,000,000 per month, and that’s it.

Alex, Host/Operator: Ron, that was great. Thank you for sharing a lot of exciting information with us. We’re getting some questions from the audience. You know, there there’s a lot of ways to measure success in democratizing medical imaging. It’s you know, is it the units installed, the AI licenses, the revenue, the clinical endpoints?

Could you help us, you know, sort of think about where the company is today in terms of success as you define it? And then maybe help us understand the timeline, you know, for growing the install base and and, you know, getting more success.

Ron, Nanox: K. So we have touched this in a few points in our latest earning calls. I will divide it per our business divisions. As I said, we have three business divisions, and we’d like to measure each one on a stand alone basis and their own company as stand alone basis. Of course, it depends on the interrelations between those three divisions.

But on a stand alone basis, we already said that we estimate that the AI division will be we may be breakeven on a quarterly run rate sometimes in 2026. We think that the hardware division will be breakeven when we’ll have somewhere between 1,500 to 2,000 units on the field. It’s not an official guidance, but it’s some kind of rule of thumbs. We did guide the market in our latest earnings calls that we may we estimate that we may have 100 units or more deployed by the end of the year this year, 2025.

Alex, Host/Operator: Okay. Great. Thank you. And question as well around, you know, partnerships. I think you mentioned, you know, Covera Health and and Ezra Medical.

What do you consider to be, you know, sort of competitive, you know, versus, like, synergistic partnerships? And, you know, just a a question around, you know, how NanoX fits into the competitive environment.

Ron, Nanox: So I I think it’s a combination of both. And without getting into much details and technology and etcetera, but our collaboration with Varex, CEI, and SysEM where we actually outsource the outsourced the chip and the tube itself. We developed ceramic tubes. Actually, with CEI and Varex, we are having glass tubes, which are cheaper, much more effective. Economic wise, it makes more sense to use those tubes in our newer versions.

But also, when you speak about, for example, in the AI business, if you talk about Corel, or if you talk about Ezra, all of them are customers, but we also do collaborate with them because all the information that we gain in our AI tools together with also with the ARC, when we accumulate those this information, it simply helps us to develop better version of the current products and even develop our future products.

Alex, Host/Operator: Great. And, Ron, for folks kind of newer to the stock, if they’re looking at the stock price over the last couple of years, what do you what do you think, you know, are are particular aspects of the business the street might be underappreciating?

Ron, Nanox: That’s a long question. I listen. I I I think that and, you know, it’s just my personal perspective. I think that when the company went public, there was an idea. There was some kind of momentum in the market.

It was during in the midst of COVID. Every medtech or health care that was related IPO was successful. But then we had no product, we had no FDA, we had no commercialization. Now the company was IPO ed at $18 per share, went up to $90 And today, we are even in much lower price. But I think today, if you compare the price and what we achieved and what we have right now, which is products, actually, it’s basket of products.

Regulation wise, we have C and FDA to most of our products. We continue to develop our current products. We continue to develop our future products. We started commercialization in The U. S, and we break in the water in other markets.

In The EU, we had some installation in Africa. We have some clinical deployments in Israel, in Africa. We are in more advanced progress of the life of the company, but with much lower share price. So I think it just say for itself.

Alex, Host/Operator: No. I I I think that’s a great answer because, you know, you you started answering my my next and last question, which was, you know, for folks who might be looking across medical imaging investment opportunities, you know, how do you think NanoX stands out? But, yeah, I think you did a a nice job summing that up.

Ron, Nanox: But I think that if you look a little bit for the long run and not on tomorrow, so you see how we can become not just a medical device player, but we also can emphasize the AI and the whole trend of having an end to end solution. You know what, I would say end to end, innovative solution because if you compare it to X-ray and CT, it’s like too, we are I think that we are more innovative. You can see where the future lays. It’s AI, cloud, time to market, preventive to early diagnosis. All of those factors comes into play.

At some point, you know, everything comes together, and, you’re going to the next phase.

Alex, Host/Operator: Makes sense. With that, we are at time. You know? But I’d like to thank you, Ron, for sharing the NanoX, you know, story with us and also thank everybody listening for spending time with us today.

Ron, Nanox: Thank you very much, Alex. Pleasure to be here.

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