NANO-X IMAGING LTD

Good day, and thank you for standing by. Welcome to the Nanox Imaging's first quarter 2022 earnings conference call. At this time, all participants are in listen-only mode. After the speaker's presentation, there will be a question-and-answer session. To ask a question during this session, you'll need to press star 1 on your telephone. Please be advised that today's conference may be recorded. I would now like to hand the conference over to your speaker today, Mike Kavanaugh, Investor Relations. Please go ahead.

Good afternoon, and thank you for joining us today. Earlier today, Nanox Imaging Limited released financial results for the quarter ended March 31st, 2022. The release is currently available on the investor section of the company's website. Eris Meltzer, Chief Executive Officer, and Ron Daniel, Chief Financial Officer, will host this afternoon's call. Before we get started, I would like to remind everyone that management will be making statements during this call that include forward-looking statements regarding the company's financial results, research and development, manufacturing and commercialization activities, regulatory process operations, the impact of COVID-19 on its business and other matters. These statements are subject to risks, uncertainties, and assumptions that are based on management's current expectations as of today and may not be updated in the future. Therefore, these statements should not be relied upon as representing the company's views as of any subsequent date. Factors that may cause such a difference include, but are not limited to, those described in the company's filings with the Securities and Exchange Commission. We will also refer to certain non-GAAP financial measures to provide additional information to investors. A reconciliation of the non-gap-to-gap measures is provided with our press release, with the primary differences being stock-based compensation, amortization of intangible assets, and class action-related expenses. I'd now like to turn the call over to Erez Meltzer.

Thank you, Mike, and thank you all for joining the call today. As always, we appreciate your continued support of Nano-X. As on our last call, I will give an overview of our recent achievements and share our outlook on the year ahead, before turning the call over to Rand Daniel, our Chief Financial Officer, to review our financial results. We will then open the call up to questions. Overall, I am pleased with our performance in the first quarter, as Nanots experienced accelerating revenue growth, continue to advance the design and deployment of the nanosystem, and we continue to make headway in the FDA clearance process. The first quarter of 2022 was our first full quarter of revenue generation. The company generated top-line revenue of $1.8 million compared to $1.3 million revenue in Q4 2021. As in the previous quarter, the revenue growth was due to the acquisition of Zebra Medical Vision, now Nanox AI, a deep learning machine analytics company, MDW, now Nanox Marketplace, which is the centralized marketplace connecting imaging facilities with the radiologists, and U.S. Erad Holdings, Inc., leading provider of petro-radiology services. The acquisitions were were completed at the end of 2021 and started to generate revenue in mid Q4. Beyond the acquired revenue streams, we are pleased to note that we also experienced organic growth in the teleradiology business, which accelerated in the first quarter of 2022. The sales and marketing efforts around our teleradiology solution, which began in November of 2021, have begun to produce results. During the first quarter, our team generated growth from existing clients while also implementing new contracts with their new imaging centers. Our teleradiology solution now consists of a network of more than 300 independent radiologists that are certified by American Board of Radiology, and we provide our teleradiology service to over 500 imaging facilities, including hospitals. We believe that the progress in our teleradiology business will strengthen the Nano-X end-to-end medical imaging platform and will support our global deployment efforts and ultimately help to increase the accessibility of medical imaging solutions. These acquisitions are important pieces that we have put in place around the innovating Nano-XR technology, and we believe they will help prepare Nano-X to advance our vision democratizing healthcare around the world. It is gratifying to see our AI-powered software adopted by large hospital systems designed to promote increased early detection of risks for cardiovascular disease and osteoporosis, which was first announced on our last call. We believe the value of our AI solution will become stronger once it is being paired with a nanoXARC to create end-to-end connected, affordable, streamlined medical imaging solution from image capture through analytics to intervention by trained radiologists. It is well known that early detection saves lives, and we believe that the increasing use of advanced AI-enabled diagnostic equipment for the rapid diagnosis will shift healthcare from predictive to preventive. In developed countries, this is one of the major factors anticipated to contribute to the rising product demand as this technology continues to gain momentum with healthcare providers. Currently, on a handful players operating in the market are providing AI-enabled imaging technologies to the healthcare industry. We believe that these successes demonstrate the integration of the acquired companies is going smoothly. As part of our integration effort, we focused on improving our internal controls by implementing procedures, process, and policies. We are continuing to invest and improve our human capital and technological infrastructure. We plan to continue to evaluate our potential additive technologies that may enhance the value of NANUC's ecosystem. With that, I'd like to turn to the regulatory update. Our continuing dialogue with the FDA enabled us to receive feedback on our Q submission, and we expect that the next step in the process to be the submission of the supplement to the Q submission followed by a formal 510K application to the FDA for the multisource NANUX ARC that will have the power levels and indication that we believe will result in a successful deployment of the NANUX ARC. In another related matter to our regulatory efforts, we announced several weeks ago that NANUX AI had secured another FDA 510K clearance. this time for our HealthOast device, an AI software that provides qualitative and quantitative analysis of the spine from CT to support clinicians in the evaluation and assessment of vertebral compression fractures and low bone density. This is our 10th clearance with our innovative portfolio of AI-powered clinical decision assist tools. In addition to these FDA clearances, Nano-X has secured the CE mark in Europe for 11 radiology AI solutions, as well as numerous regulatory approvals in other countries for its radiology AI solutions. I'd like to finish up the regulatory update by announcing another new initiative on the regulatory front. We are now in discussions with several notified bodies in the European Union to begin the process of securing the CE mark in the EU for the non-ex system. This is an important step towards achieving a global footprint. We are pleased with our regulatory developments and we are committed to continue our efforts diligently to meet the goals we have set for ourselves. We took another important step to commercialization with the commencement of large-scale production of our MEMS chips at our new semiconductor fabrication plant in South Korea, as announced at the beginning of April. The facility will be the production site for the Nano-X source, the chip that produces the digital X-ray source and lies at the heart of the company's Nano-X Arc system. We continue to prepare for full-scale production soon and that this facility will support our manufacturing needs for the foreseeable future once we begin deployment. As we also reported last month, we are continuing to build our production lines for the Nano-X systems at our Israeli facility in anticipation of the first Nano-X Ark shipments. With that, I'd like to turn the call over to Rand Daniel, Chief Financial Officer, to review our financial results.