Daniel, I'm the CFO of Nano-X Imaging, symbol NNOX, since August 2021, and I'm going to present about the company. The basic stuff, I'm not going to go into details because that's kind of an introductory presentation for existing and new investors. Just to give you know, a 10,000 mi view of the company, who we are, from where we come, and where we're going, and what's our product, and what is our commercialization strategy. What are we offering? We are actually an imaging company. We're offering an end-to-end solution from scan to diagnosis. We do want to provide advanced diagnostic imaging capabilities to the benefit of the patients.
You will see that, even with our machine and, actually this is the pillar of our solution. You don't see here the teleradiology, and recently we also purchased a software company, name of Vaso. The current name is Nanox Health IT, so and it will join to our AI company and will form the AI and software division. The first pillar of our solution is the Nanox.ARC. This is where we come from. What is the Nanox.ARC? You can see this is the first generation of the ARC. We already have the second generation, which is the ARC X, so we'll show you that later.
Of course, I'll try to do it, the basic things because of lack of time, but if anyone wants, you can always go to our website, to the investor section in the website and look for more information and also on the other sections, if you're interested to see more clinical value, data and et cetera. The Nanox.ARC is a digital multi-source 3D tomosynthesis imaging system. It was cleared by the FDA. We already have three or four clearances. The first clearance was with the first generation for MSK.
December 2024, we got the clearance for general use, and recently we also got the clearance for tomo 2D, which means that today we are cleared by the FDA to sell both 3D and 2D solutions to images that are coming from our Arc. We also got the approval by the CE to market our devices in Europe. We already started commercialization in the U.S. market of this device back in 2023, and we start this year the commercialization in Europe sometime during this year. In the U.S., we do direct and indirect model, and in the other parts of the world, we only work with indirect, meaning only through distributors.
As for the AI, the AI is, of course, all of them are FDA, also CE, approved solution. Our AI tools are actually providing more enhancing, expanding to help the physician to identify patients with asymptomatic undetected chronic disease. Sometimes it's even three-five years down the road, and the whole purpose is to initiate an early diagnosis and to start preventative management, and not to wait to the problem to come. You can see over here the OEM. We actually came from this. This is our core technology. This is the chip and tube I'm going to explain about later.
We also besides the imaging devices we also are developing our own OEM business to leverage on our technology and IP. Where all this story of Nanox started? It started actually from the days of the race for the thin TV. This chip was developed by Sony actually, believe it or not. There was a group of scientists. Once Sony lost in the race, they spun off the technology with a group of scientists to the University of Tokyo. During the time, they met our founder, Ran Poliakine, and they partnered together.
All along, coming to our current days, what we have today, it's a chip that is a proprietary silicon-based, low voltage, nanoscale cold cathode, which actually is capable to generate electron stream needed for X-ray. It's via field emission technology, but we won't get into this. You can see on the bottom that our IP is protected. Although we are very young company, we were incorporated in 2018, it's really there were a lot of years of development in this chip. This chip was and is still developed in our fab in Korea via our subsidiary in Korea, which did a great job also with the development of the tube.
This is the second generation of the tube, but the first generation tube that was developed by our subsidiary in Korea is actually a ceramic tube. The second generation of our tubes, which will go to our newer generation of devices will be done in with glass. What actually is a tube. The tube is actually, you know, in the conventional and legacy X-ray imaging devices, we have a single metal filament heated to 2,000 degrees Celsius, which always require special cooling, special rotation of the mechanics. I'm sure that each one of you that went to take an X-ray or multiple X-ray always had to wait until the X-ray machine would cool off in order to take another X-ray.
In our machine, you don't have all of this because the core source of our energy is the chip and not the metal filament. It's actually give us many advantages. It's also give us an advantage with the cost. It's much cheaper relatively to make imaging devices based on cold cathodes and not hot cathode. Okay, I don't want to run with it. We have all this information in our website. It's like just to get to the gist. In every imaging device, in every ARC, we have five tubes. Every tube contain, of course, one chip that goes into the device.
By the way, this is the second generation device, which is the ARC X. I will go later to the business update. I want to finish this, the introduction of the device. This is really the first generation. This is the ARC, the first generation of the ARC. It's a 3D digital multi-source. It's small, it's light. Our second, the ARC X, is even lighter, it's even smaller. In this generation, you still have an external connection to the electric cabinet. In the second generation, everything is included in the device. The dimension is very, very small. It fits for very small areas. Don't take it as a guarantee, but if you use our machines, and because of the way that we radiate the radiation, it's vertical.
Really when you talk about large rooms, you may not need for a shielding. In small rooms, we need. Of course, you have to check it out. It's not guaranteed. I'm giving full disclaimer, but it's one of the advantage that you have with our device. Of course, as I said, it's multi-source, multi-axis, and I'll show you what I mean. In every device we have five chips, goes into five tubes, which goes to the Nanox.ARC. I'll show you in order to create the imaging. The platform capabilities, of course, it's low power. It's the regular electricity. With the new generation, it just come plug and play. It's quick installation, quick training. There's one overhead camera, five tubes.
As you can see, it's very simple. Every technician can operate it. Here is just a simulation of course we are tomosynthesis device, so it's tomosynthesis. We do a tomographic sweep of the human body. You can see that this is the patient. He comes. The technician positions him on the bed. You'll see now, she programs the iPad, and the bed takes the patient beneath the ARC, the assembly arms of the tubes, and you can see that the ARC tilts 15-18 degrees to each direction, and as it does, it takes shots over the body of the human, the part that needs to be imaged.
All this process takes not more than 12 seconds. Once we have done all those images, 30-50, even 60 2D images go into our cloud, being reconstructed by own sole proprietary software, and the results is a 3D image. I will show you later an example for that. I already told you that we have the Nanox here, the ARC.X, which is the second generation of our devices. It was already cleared by the FDA, and it was also presented in the latest RSNA. We're starting to commercialize those devices in the U.S. market. You can see over here the benefits. Of course it has a small footprint. As I said, it's nine feet.
It's really can fit to almost every room. In the Tri-State Area, there's real estate is expensive, so you must account for that fact, and that was one of the purpose of having a smaller footprint for the new generation. It's a multi-tube installation. It's very easy to use. One more advantage that you know is that if the alternative is to go for CT machines and actually you can do the 3D image with our machine, you don't have to go to. Some patients don't like to be in small spaces, being claustrophobic and et cetera. In our case, everything is open. We do monitoring of the cloud-based technology.
We do give an update for the customers on a regular basis. It's really seamless because we control the machines remotely. It's almost a seamless process for the customers. You can conclude that the maintenance is really easy. I don't say that there's no maintenance, but the maintenance is not that complicated, and many of the tasks are being done remotely by us. It's part of the service that we provide. Of course, we give a full training package for the radiographer, radiotherapists, technicians, radiologists, whoever needs in the imaging center. It's really low. It's lower radiation than CT, and you can integrate our machines in every PACS system.
Don't forget that we also purchased the Nanox Health IT, which is a reseller of medQ, RamSoft, Ambra, and Candelis PACS software. It's another block that we can use with our own machines. It's not that now we are capable to offer the customer, "Okay, this is our device. You can use our AI tools, and you can use our teleradiology for acute reading." Now you can also use our own PACS systems if there's need to. We don't sell it as a package. We don't force anyone to buy our end-to-end solutions. You know, we think that the clinical value and the economic value that we bring to customers is great by offering all this package.
As I said, what are the benefits? It's less space, less radiation, and less power. Actually, with the new generation, you can see that you can just drag the machines with the wheels, take it wherever you want, plug it to electricity, and start scanning. This is the production facility in Israel. Sorry, I'll go back to presentation mode. We also start the production of the ARC X's with Fabrinet in Thailand. The glass tubes actually are being manufactured by Varex and CA in Europe. As I said, the ceramic tubes are being manufactured also in South Korea. What is our go-to strategy?
As I said, in Europe, we do have distribution agreements. In the U.S., we do direct and indirect. You can see that we already have approximately nine or ten states, if I remember correctly, that we have sales coverage and installations. We target in the U.S. market, just because we don't want to be in the red ocean and compete with the gorillas, we targeting the blue ocean, which is imaging center, urgent cares, orthopedic clinics, and special multipurpose clinics. I will describe our business model. We actually offer two main models to the customers worldwide.
If you want to use our devices to buy it outright, you pay one lump sum, and sometimes we find the appropriate financing, so we also offer it to him. On the other end, we also do our medical scan-as-a-service, which is our pay-per-use model. The basic model says that you pay $30 per scan, seven-15 scans per day, and it's a multiyear pro contract. Usually, it's years. This is just to give you an illustration, the economics of our pay-per-use model. We charge $30 per scan and $20 for the reading itself, for the professional component of the reimbursement code.
We use a reimbursement code of 76100, which goes in a range of $88-$109 per procedure, I would say. It's actually providing very attractive margins for the operators because if they pay us $30 for the scan, but they get $58-$79 per scan, then the result is a net margin to the operator of 48%-62%. In the case of reading, it's even easier because it's really back to back. They get $30. They pay to us $20. They have a 33% margin. Outside of the U.S., our pay-per-use model rates are lower, but still very good for us economically.
I want to go back to the business update, just to complete this section. Sorry. Okay. What we have done in the past, let's say, six months, I think last time I appeared here was six months ago, we do continue with the commercial deployment of the ARC systems in the U.S. and outside of the U.S. We are actively continuing with the scanning and working hard on increasing the utilization and the clinical adoptions of our machine. We, as I said, we got a CE approval in early 2025. Today it's almost a year. We signed a few distribution agreements in Czech Republic, France, I think even Slovakia that we announced lately. There's another one or two or three that are on the way, hopefully.
The regulatory-wise, we actually submitted, we already got the approval, the clearance for the top 2D software. As I said, we already cleared in the U.S. to sell the 2D and 3D with respect to the FDA. We, as I said, we recently acquired VasoHealthcare IT. Today it's almost VasoHealthcare IT, which going to be part of our AI and software division, and going to resell PACS software of the four vendors that I said. What we got also with this acquisition, it was a great acquisition for us just because we got another footprint in the U.S. market, very low acquisition for all the customer base that we have received.
It also will enable us in the future, we hope so, to create cross-company sales, and to come with a more complete suit to prospect customers and simply offer them, you know, a one, like a complete suit of solutions. As I said, it's the imaging, it's the AI, it's the software, it's the teleradiology. OEM is not related to that. Okay. I'm not going to expand this, the portion of the speech because we pretty much achieved what we ever wanted with regulatory. Of course, there are always challenges and more goals to achieve, but I don't want to. I want just to go to show you some example of the clinical benefits.
I think there is even this, which you can find on our website. Of course, when you compare us to CT, the cost to operate our machines is much lower. We have less radiation. On the other hand, we don't cover one-on-one what CT covers. We cover, I would say, a great portion of the intended use of the CT. When you compare us to the X-ray, we are more expensive on one end, but on the other end, we do give more visibility. Of course, we provide 3D solution, which is much superior to the 2D. This is an example that I like to always share, to show.
On the left, you see an X-ray, a patient with a cast that took an X-ray. You can see you simply can't read anything. On the right side, you can see our 3D image. You don't see anything right now, but let me operate it, and slowly but surely you see how you can see more in depth into the arm. It's just because we do slice the human body to separate layers. This is another example of enhanced visualization to aid diagnosis of a fracture. The fracture is, don't know if you can see, here. Let me show you. On the left side, you can see the X-ray. Okay.
I will say more, a few words on our AI division. Of course, I don't want to repeat myself about all the advantages of the AI, but our AI solutions are built on three pillars. One is the chest. It's actually a coronary artery calcium score. We also have a gauge that, you know, the calcium score goes from 0 to 400, then you can see like in an oil gauge in the car, you can see where you got. This is a new thing, new features that we added. We also have our HealthOST solution, which is for spinal measurement.
It's basically target cases like vertebral compression. With the liver, over here you can see it's even more clearly. In the BoneTen solution, it's what we want to indicate the vertebral wedge loss. It's usually common with, as you grow old, getting older, you suffer from these type of things. Bone mineral density. In the cardiac solution, it's coronary artery calcium. You can see on the left over here the detected calciums that we find. In the liver solution, it's mainly fatty liver and other chronic situations with the. We have a few IDNs that are customers of our AI product. The more...
The largest one is the one in the Northeast. It's Spectrum Health, which enter into its fifth year with engagement with us. In 2025 we start to do a new model of B2B2C model. As an example, we did with an Ezra. We let them use which is a diagnostic center where everyone can come and take a scan to get a diagnostic. We let them use our AI solutions in the case that they want, especially with the chest and the bone scan solution. How much time do I have? Four minutes, correct? 'Cause, like, this is our OEM business, it's licensing royalty and et cetera.
Lately we did a project with a semi-government agency with respect to security. I assume they don't tell us, but they are examining our chip and tubes. That's it. I think I have only two minutes, so I'm trying to be on time.
All right. Thank you, Ran. We have a few questions on the chat.
We do have questions?
We can see it on a Q&A button. All right.
Okay. I can see it. I will try to.
Um-
I'm not sure that the questions that are addressed to me. It's still on the end.
Okay. All right. Just from Todor Mitev, the upper part of the chat. Okay. You can scroll up. Okay. Is that one? All right.
About the Oak Ridge, yes, as I said, they are testing our tube and chip. I will refer to our public statement. As I said, they don't tell us a lot. It's a multi-stage project where they test it and go further with the project if it's successful. For now, as for the war. No, regarding the war, I assume that you refer to the situation in Israel in general and to the latest war that we're experiencing. No, there's no disruption to the development or production of the Arc. Not as of today. Okay. Then are there investors that have more questions? Okay. How many Arcs is... Okay.
As for the rest of the questions, we are right now in the midst of the blackout period, so I won't say anything about systems that are deployed in the US. You will have to wait for the next earnings calls. Any more question? I think we are done with the time, correct?
Yes. That wraps up our Q&A session. Thank you so much, Ran, for your time and your participation.
Thank you very much. Thanks for hosting this.