Good day and welcome to Q2 Investor Summit Virtual. We appreciate your participation in today's virtual event. Up next, we are pleased to introduce Nanox Imaging Ltd. If you would like to ask a question during the webcast, you may click the Q&A icon button on the right side of your screen. Please type your question into the box and click Send to submit it. At this time, it is my pleasure to hand over the session to Ran Daniel, CFO at Nanox Imaging Limited, who will lead the presentation. Sir, the floor is yours.
Thank you very much, and thank you for hosting us today. I'm the CFO, not the CEO. Before I'm starting, I would like to remind everyone that I will be making statements during this presentation that may be deemed forward-looking statements regarding the company's commercialization activities and other matters. This is our disclaimer. Please take two seconds and read it. I'm very pleased to say that we are making progress in our mission to progress the medical imaging and improve patient outcomes. Our innovative technologies, including Nanox.ARC and our AI solutions, are gaining traction in the market. I'm going to start with who we are and from where we came. So short history, the company's history comes from Sony from the days for the race for the thin TVs. The group of scientists developed this chip, which you can see over here on the bottom, which this is our source.
At some point, Sony retired from the race and spun off this technology to this group of scientists that went to the University of Tokyo. In December of 2018, the current Nanox was established after development of the technology. Our founder and those group of scientists, which were partnered together a long time ago. The application of their technology was applied in the medical device sector. You can see here, this is our flag product. This is the Nanox.ARC 3D digital multi-source product. We developed these systems, which are actually you can see behind me. It combines the multi-source Nanox.ARC imaging device with our cloud-based Nanox Cloud platform. The system uses a proprietary digital X-ray source, which you can see over here, our source as opposed to a warm hot cathode. In our case, it's a cold cathode. It's the source itself.
This is the MEMS chip that was developed by us and Nanox Tube, which also are a proprietary tube that we also developed in our fab in Korea. The system actually produces 3D tomosynthetic images, and I'll show you some examples later in this presentation with the multiple stationary tubes arranged around the patient. Now, if you can see here, the machine, the machine itself, actually, if you see on the bottom of the slide, you can see the tube and the source which goes into together. We put five tubes spaced evenly on the assembly house of the tubes and over here you can see over the camera. This, the bed simply goes back and forward with the patient on it. The arc itself, it's 15-18 degrees to each side, which creates the tomosynthetic effect. What it brings us.
Excuse me, Ran, your slides did not go.
It's okay. I'm still on the same slide.
Okay.
The system is designed, you do not see the, you see the picture, correct, with the Nanox.ARC?
Mm-hmm. That one.
Okay. All right. What's so unique about our system? It's small, it's lighter. You can see the system over here. It's a simpler X-ray system. It's not complex. There's no requirement to, all the system is designed to streamline the medical imaging from scan to diagnosis. We're offering a scalable, cost-effective solution for an early global detection. If you think about it, you see only the machine over here, but on the top of the machine, you should imagine our cloud platform, which contains all of our various solutions, such as, first of all, the processing of the imaging is being done on our cloud platform, on our own proprietary software that we have developed. Then you can also find over there the AI solutions and also our teloradiology solution has also been done on the cloud. Even our billing system has been done on the cloud.
You can think about it, once the image goes to our cloud, then everything is really done on a real-time basis. I want to show you a demonstration of how the scan has been done. Now, you can see over here that all you need over here is a technician with an iPad. Actually, I have the iPad over here. You can see its size. It's a regular iPad. The technician programs the software. The patient lays on the bed, and then the bed is moving. You can see, in this case, it's a chest scan. The arc is simply tilting to each direction, 15-18 degrees, which creates the tomosynthesis effect. The end result, it's 30-60 2D images that are going to our cloud and reconstructed to 1 3D images. I'll let the illustration finish.
I'll move back to presentation mode with your permission. What are the tomosynthetic clinical benefits? First of all, the visuality is much better. It's a reduced superimposition of the normal structure that may reduce false positive cases. It's more details, more sensitivity, depth view. As I said, it gives you the opportunity to expedite the diagnosis, which is important. Actually, as I said, we are in the tomosynthetic world, but we are actually between the spectrum of an X-ray and the CT machines. While an X-ray produces only one image, the reading time is relatively short, and the dose amount is relatively short. It's slow. The CT machine produces hundreds of images. The reading time is much longer, and the dose is much higher. You can see that with regards to the images, we are somewhere between the X-ray and the CT.
The reading time and the dose were very close to the X-ray. Actually, the main benefit, you can see it as the main benefit of our machine, is that it gives two main benefits. First, economically, our cost and the cost for the patient is much lower than a CT. On the other hand, we produce 3D images such as CT. We do not cover 1% of the procedures or the intended use of the CT, but we do cover various cases that can be done in lieu of the CT. This is just an example of a comparison between a 2D and our image. You see over here a patient with a cast. Usually, when a patient comes with a case for a checkup or a follow-up, he needs to remove the cast. It goes through the examination, and then they put the cast again.
In our case, you can see that there's no need to remove the cast because simply the machine reads through the cast. Actually, it reads through, as I said, it reads through the layers of the human body. This is another example of hip fracture. My favorite example, which is this one. You can see over here, you can see over here a needle over here, which simply cannot be seen in a regular X-ray image. Okay, what we have done, what we have achieved regulatory-wise, we have achieved, first of all, we got to this machine, the FDA, the 510(k) clearance of the FDA in the U.S. for MSK in May 2023 and in general using 2024. We also got in February of 2025, we got our CE for all body.
In April of 2025, we actually got a second general use clearance for the next version of our machine. I will discuss it later. We have a clearance, we have clinical clearance in other various countries. Also, with regards to our AI solutions, most of our AI solutions are cleared by the FDA and FSCE. Regulatory-wise, we are in a very progressive status. Commercialization. We're currently planning to target in the US market where we work direct imaging center, multispecialty medical centers, orthopedic groups, urgent cares, etc. We do have our internal sales team and consultants and business partners. Actually, I'm sitting, I'm based in New Jersey, in Richfield, New Jersey, where our headquarters in the US is based. We have a team that includes a sales team, marketing person, and clinical support personnel.
Technical support personnel are very important to us because those are the guys that go from one customer to another and go on the functionality and the clinical value that our devices have. Other than our direct sales force, we have also partnered with some distributors and business partners in the U.S. Those are covering geographic areas and some other niche that we do not cover directly. We have a deployment in the U.S. of eight states, and we are going forward. In ex-U.S., we work usually only via distributors. This is just an illustration. It is pretty straightforward, so I am going forward. By the way, you can find this presentation on our investor section in the website. I am just going to explain things that need to be explained. Over here, you can see our business models. We do work in a various business model.
First of all, of course, we have the regular capEx sales model where you can come and buy the machine. On the top, we will also offer the client a maintenance contract, a multi-year maintenance contract. On the other end, and this is the most of the transaction that we have right now in the U.S., and there are actually our MSaaS model, medical scan as a service or simply pay-per-use. We do charge $30 per scan. We require a minimum scans per day of seven scans per day with a multi-year agreement. As for the rationale that goes behind our pay-per-use model in the U.S., just as a general explanation, our system is covered procedure with established CPT code of 76100 in the U.S. It actually covers most, if not all of the tomosynthetic intended use that we are doing.
The global reimbursement amount to end user totals approximately $88-$109, depending on the location. The total amount, the portion of the professional amount is usually $30 per procedure, which leaves $58-$79 for the technical portion for the operator. We charge $30 per scan for the technical portion, for the scan itself, for the usage of this machine. We also charge $20 for the reading itself through our teleradiology division, which is based in Florida. All in total, you can see that it leaves a net to a very hefty margin to the operator, somewhere between $43-$54, estimated $43-$54. It's a win-win situation. The operator enjoys a hefty margin, and it doesn't need really to invest a big capEx outlay and doesn't need to go through all the sales process. It's actually, you can deem it as an operation lease.
For us, we have pretty nice margins from the service that we provide. We have a few installations within some hospitals worldwide. We have three installations in the U.S. Mostly, they are being used for clinical trials that we conduct. In Rabin Medical Center in Israel, we have two devices. One is this version, and the other one is the new version, which I'll explain later. In Shamir Medical Center, we have one machine, and in the largest hospital in Ghana, we have another machine. The Nanox.ARC, we are constantly working on product and technology future developments. After we got our FDA clearance for that version, we worked and created an upgraded version of the machine. This is our latest, this is going to be our latest 3D digital multi-source tomosynthesis system.
It's improved design, which results in a smaller footprint and enables us for more software upgrades and more new capabilities to be added remotely following future regulatory clearances, namely some of the outputs. At the moment, both versions come with the same output. On the other hand, this version, you can see that it's a smaller footprint. This version, the new version, it actually comes with a 15-foot full span of the bed. It may be very long. We found out that some locations, it simply doesn't fit to the rooms because sometimes real estate in New York City, for example, it's very expensive. You want to get the full utilization. This version, actually, with the smaller footprint of 9 foot, will enable us to even install it in much smaller rooms. Of course, it's a multi-axis tomographic system, same as the other version. It has five cathode tubes.
The main difference is that in this system, we use our own proprietary ceramic tubes. In this version, we use our own glass tubes, which are much cheaper. It makes this system more cheap.
Excuse me, Ran.
Of course. Yes.
They were asking if you could show them the other slides.
The other slides of what?
Of your presentations.
I'm showing the other slides.
All right. Yeah, go ahead.
You don't see the slides with the machine?
We can see it now.
Because that's what I see. I'll work over here. It's just not convenient, but it's okay.
Yeah. All right. Thanks, Ran.
All right. So this is, I can see it. It's a little bit too small for me, but okay. It is a smaller footprint, multi-axis tomographic system. Yeah, try the presentation mode. That's what it is. It's a plug-and-play.
If you can see this version, we have the electric cabinet on the other side of the room. In the new version, the electric cabinet and all the other parts are simply going into the bed. Actually, what we created, it's a one-sleek design that goes into a corner of the room. You simply need to plug and use it. Okay, tell me if I'm going to flip into the next slide, you can see that. You can see the slides on our AI solutions?
Yep.
Okay. All right. As I said, as of today, we have three business divisions. The first one is the hardware, which I just explained. The flag product is the Nanox.ARC and the Nanox.ARC X. We also acquired in November 2021 our AI division, formerly from Zebra Medical Vision in Israel.
We also acquired our teleradiology division at the same time. I'll explain a little bit of what we offer with our AI solutions and where we are as of today because I see that the time is getting short. We have several solutions that were cleared, as I said, but today we are offering three main solutions. The first one is the Bone Health Solution. This is actually the second version of this product, actually is made to address vertebral compression fracture and low bone mineral density. The second product is Cardiac Solution, which works on a coronary artery calcium measurement. The third one is the Liver Solution. In the pipeline, we have also future applications that can be applied to the ortho and the full body composition, which we do in venture with some universities in the U.S. We have a few customers in the U.S.
The largest one is Kaiser Permanente, which entered into its fourth year of engagement with us. He actually expanded the scope of the AI portfolio from the two to the three that you can see on the screen. Those three solutions actually compose our broad suite of population health solutions, which will add the future development, as I said before. Besides Kaiser , we have clients such as Intermountain , Covera Health, Dundee Health. Recently, we also engaged with Ezra Medical in New York City. Mostly, this is a standalone solution, but in the future, it can also work on our tomo images. You can also use it on your PAC systems. Usually, the customers will take it and install it on the PAC systems to scan all those CT scans that they do to their patients, of course, in those specific applications.
In the U.K., we had a big project with the U.S. Health Minister for quite a while, which we installed our Bone Health Solution in five different locations in the U.K. As of this year, this project went into its commercialization phase. Since the time is short, I'm just going to, I don't know if you can see the slides. I'm just going to say some more words about some of our financials. Besides that, we have also our teleradiology division, and we also have our OEM business where we have partnering with different customers regarding our core technology, which is the chip and the tube that I showed before. Some financial highlights. As of March 31, 2025, we had $73 million in cash and cash equivalents. We have a run rate of $3 million a quarter, so we aspire to increase it, of course.
We have approximately 165 full-time employees. Now, I'm open for questions if there are some. I see how we can get a user manual for the new Nanox.ARC X. There is a lot of materials that are available on our website, but usually, user manuals are going to go to our customers. So I think it's our customers. Is there any other questions over here? Stefan.
You can look it up in the Q&A section.
Okay. The Q&A section. All right. Okay. I'm going to open it. I'm going for the last one. Can you provide a clear timeline for the rollout of the Nanox.ARC systems? As for the timeline and the milestones of the rollout of the Nanox.ARC systems, I will refer you to our latest earnings. We gave some kind of guidance in our earnings.
We said that we estimate to have more than 100 units or more deployed in the U.S. and the rest of the world. We do report revenues from the ARC. Maybe they are not significant, but there are some revenues from the ARC and the OEM business. We do not engage with the journey solutions, although it is an option for the future. As for the Omni-ARCs, again, I will refer to the language that we had in the latest earnings. I think you should read over there. There are a few dozens of systems that are deployed in various stages of deployment, but the accurate language is there. Is there any other questions? Okay.
Have you also received any buyout offers? Someone is asking from the chat.
Even if we received the buyout offers and, first of all, we have to disclose it first if we are about to talk about something like that. I assume if there was something that we had to report through the SEC and according to all the regulations and the laws of security laws that I know, I think it will be public information by now. Any other questions?
There's also someone from Alastair from the chat.
From the chat. All right. I'm going back to the chat. Alastair, where is it? Advisory Industry Relation is the Nanox systems. The common spend seems very low on this. I think that what Alastair refers to is commercializations. We are in the beginning of the commercializations in the U.S. market.
We have received the FDA clearance for an MSK only in mid of 2023, and we have started the commercialization in the U.S. market only in the beginning of 2024. It is a very short time, of course, with the additions of the clearance for the general use. We have more opportunities in the U.S. market. We have received only this February, for the European market, so obviously, we are only in the beginning over there. What is the Nanox portable device? Can you be more specific? The question is for Gilly. If you are referring to the Connect, there are no new, any other new updates, you can read all about it in our 20F. Okay.
Any other questions, guys?
As I said, you can find a copy of the deck in our investors' section in our website.
If anyone wants to have a call with me, is more than welcome to contact our IR person. His name is Mike Cavanaugh. His contact details are also on our website. We would love to answer any questions that any investor has. Okay.
All right.
Okay. Thank you very much.
Thank you, Ran.
Thank you.
You have a good one.
You too. Thank you.
I appreciate you.
No problem.
That concludes Nanox Imaging's presentation. You may now disconnect. For details on upcoming presentations, please refer to the conference agenda. Thank you for your participation, and we look forward to welcoming you to the next session.