Day: April 1, 2024

Nano-X Imaging Ltd. (NASDAQ:NNOX) This autumn 2023 Earnings Convention Name April 1, 2024 8:30 AM ET

Firm Contributors

Mike Cavanaugh – Investor Relations
Erez Meltzer – Chief Government Officer
Ran Daniel – Chief Monetary Officer

Convention Name Contributors

Ross Osborn – Cantor Fitzgerald
Jeff Cohen – Ladenburg Thalmann
Anthony Petrone – Mizuho

Operator

Good day and thanks for standing by. Welcome to the Nanox Fourth Quarter 2023 Earnings Name. Right now, all individuals are in a listen-only mode. After the speaker’s presentation, there will probably be a question-and-answer session. [Operator Instructions] Please be suggested that at present’s convention is being recorded.

I might now like handy the convention over to Mike Cavanaugh, Investor Relations. Please go forward.

Mike Cavanaugh

Good morning and thanks for becoming a member of us at present. Earlier at present Nano-X Imaging Restricted launched monetary outcomes for the quarter ended December 31, 2023. The discharge is at the moment accessible on the investor part of the corporate’s web site. Erez Meltzer, Chief Government Officer, and Ran Daniel, Chief Monetary Officer, will host this morning’s name.

Earlier than we get began, I want to remind everybody that administration will probably be making statements throughout this name that embrace forward-looking statements concerning the corporate’s monetary outcomes, analysis and growth, manufacturing and commercialization actions, regulatory course of operations, and different issues. These statements are topic to dangers, uncertainties, and assumptions which are primarily based on administration’s present expectations as of at present and might not be up to date sooner or later. Due to this fact, these statements shouldn’t be relied upon as representing the corporate’s views as of any subsequent date. Components that will trigger such a distinction embrace, however aren’t restricted to, these described within the firm’s filings with the Securities and Trade Fee.

We can even confer with sure non-GAAP monetary measures to supply further data to buyers. A reconciliation of the non-GAAP to GAAP measures is supplied with our press launch, with the first variations being non-GAAP internet loss attributable to unusual shares, non-GAAP price of income, non-GAAP gross revenue, non-GAAP gross revenue margin, non-GAAP analysis and growth bills, non-GAAP gross sales and advertising bills, non-GAAP normal and administrative bills, and non-GAAP gross loss per share.

With that, I would now like to show the decision over to Erez Meltzer.

Erez Meltzer

Thanks, Mike. And as all the time, thanks all for becoming a member of us at present for our monetary outcome name and company updates. Earlier than we get began I want to take a minute to acknowledge the passing of our founder Ran Poliakine again in January. All of us owe him our gratitude, and I am proud to guide our staff as we search to understand his imaginative and prescient of constructing medical imaging extra accessible to enhance early detection and therapy to assist folks obtain higher well being outcomes.

My remarks will probably be a bit longer at present than common and I’ll present quite a lot of particulars on the assorted enterprise elements of Nanox. As we share our fourth quarter replace and assessment our monetary outcomes, I’m extraordinarily happy with the progress our staff revamped the course of 2023, highlighted by the thrilling milestone of FDA clearance for the Nanox.ARC, a transparent validation of our know-how and mission and our first steps within the U.S. commercialization.

On at present’s name, we will probably be specializing in our fourth quarter actions, in addition to a few of our achievements in early 2024, a yr which I count on will probably be a metamorphosis of Nanox. We at the moment are within the strategy of increasing our commercialization of the Nanox.ARC system and are aiming for a gradual enhance in deployment as we increase consciousness of the Nanox answer. Nanox is dedicating to accelerating the implementation of our industrial infrastructure and future strategic plans within the U.S. Our mission is to supply healthcare practices with a game-changing benefit via the Nanox.ARC and accessible cost-effective answer that not solely offers superior diagnostic imaging capabilities, but in addition elevates total affected person care.

I would like to start out our name with an replace on our U.S. deployment actions. As we’ve disclosed up to now, we’ve already deployed the ARC on the first location within the U.S., in New Jersey, within the New York metropolitan space. Since then, we’ve launched throughout 5 states, marking an development in our U.S. Deployment, which goes as deliberate. As of at present’s name, ARC programs have been put in at a number of medical imaging and diagnostic programs facilities in New Jersey, New York, Florida, and Kansas, in addition to the Georgia 626 Imaging Academy, which serves as a technical and coaching middle, the Nanox.ARC system begun to scan sufferers.

Medical operation of the ARC system will start in different websites’ spending certification from the corresponding state’s regulatory our bodies. As already indicated in our buyers day, again in December, one of many functions of those installations is to validate our MSaaS assumptions. Primarily based on these preliminary deployments, it appears that evidently the mannequin is certainly validated and we’re scanning round seven scans per day, in addition to the indication for $30 per scan. As a part of the institution of our infrastructure, the Georgia web site at 626 Imaging Academy serves as a technical and coaching middle for technicians on the usage of the system, they usually have efficiently accomplished our engineers coaching program on the Atlanta 626 MIS Woodstock Coaching Middle. We’re in superior negotiation with one other set up, upkeep, and repair supplier with a purpose to develop our service protection. That is previous to scale.

As we enhance our footprint throughout america, we proceed to develop our U.S. gross sales and technical groups. We’re persevering with to develop our skilled staff and have recruited further personnel within the U.S. We purpose to develop regularly as wanted and are being even handed about our hires to make sure that further expenditure generate an excellent return on the funding. On the similar time, we’re extending our gross sales community as deliberate. As we ramp up the deployment, I can share that we’ve begun realizing income streams from ARC imaging scans on the U.S. deployed websites which are using the MSAS mannequin.

I would like to handle one remaining facet concerning our industrial operation within the U.S. As per our normal procedures, Nanox has submitted certification requests to develop the position of Nanox.ARC items to numerous states throughout the nation. I am keen to maintain you up to date on the progress of those future installations.

Turning now to our deployment effort in the remainder of the world outdoors of the important thing U.S. market, as we disclosed in our final name, we’re producing income from {hardware} deployments in Africa and have three installations as of the tip of March. As beforehand talked about, we’ve had a unit put in on the College of Ghana Medical Middle Restricted, UGMC, and which has obtained native regulatory clearance. I can now share that we’ve signed a Ghana Multisite Settlement, which was achieved as a part of our multisite trial in Ghana. We’re conducting the trial aiming to generate steady knowledge and medical proof on the Nanox.ARC. I’ll describe this trial in a bit extra element later in my remarks.

Now we have additionally made progress in increasing the Nanox footprint in Latin America. One current settlement is with a Peru-based medical gear distributor, which has partnered with us to distribute the Nanox join in that nation. The companion has a robust presence in Peru with good attain into the important thing native well being system and hospitals. And our cloud-based join answer must be complementary product for the product providing, as this companion is already actively advertising different healthcare options, which allow distant affected person exams by a clinician.

I may replace you that our distributor in Mexico is looking for an import license for the Nanox.ARC and getting ready for the primary set up. The companion has additionally obtained an import license for the Nanox Join and we’ve shipped the primary two programs. Much like the ARC, the distributor has utilized to acquire the required registration to promote this answer. And we additionally anticipate that Join can even proceed producing revenues in 2024. As a facet remark, I’ll say that it is vitally gratifying to see that the Arc and Join be marketed collectively as we’ve envisioned this complementary imaging answer from the very starting.

I want to present an replace on our {hardware} revenues, which Ron will assessment in additional particulars shortly. Whereas we’ve begun producing revenues via our AI options in Q3, Nanox begun to generate income outdoors of the U.S. for the gross sales and deployment of its imaging programs.

Now I would like to supply an replace on NanoxAI enterprise, which has had a rise of 250% in our shopper base, in comparison with final quarter. Now we have an put in base of well being system, who use Well being CCS, an AI-powered answer to detect ranges of coronary artery calcium, a confirmed indicator of future cardiac occasions. Now we have digested our expertise within the subject with this and gathered suggestions from customers, particularly cardiologists and radiologists, to improve the answer.

Revisiting one of many AI product companions, Corewell Well being, previously Spectrum, which begun utilizing our inhabitants well being answer in mid-2022 and is a big built-in well being system. Now we have constantly obtained constructive suggestions from Corewell Well being, which has absolutely built-in this into their standard-of-care. This has been a productive partnership, which has been prolonged for extra time period. A lot of you might be conscious that the Nanox options can be found on Nuance Precision Imaging Community, a Microsoft firm. Greater than 12,000 health-serve amenities and 80% of the U.S. radiologists will use Nuance PowerScribe for radiology reporting.

I can share that Intermountain Well being has signed on to deploy Well being CCS and was a part of Nuance Bundled. The Go dwell course of began, together with coaching actions and integration of the answer into inner programs. Nanox additionally achieved one other regulatory milestone final month after we obtained the 510(ok) clearance by the U.S. Meals and Drug Administration, FDA, for Well being FLD, a man-made intelligence software program that gives automated, qualitative, and quantitative evaluation of liver attenuation from routine CT scans. Well being FLD is meant to assist clinicians within the detection of fatty liver correlated with hepatic steatosis, an early signal of metabolic dysfunction related steatotic liver illness, MASLD, formally known as non-alcoholic fatty liver illness.

Well being FLD is a brand new and beneficial instrument for medical doctors because it has historically been troublesome to evaluate liver attenuation on contracts enhanced scans, which make up a big proportion of the CT scans. Well being FLD was designed to assist clinicians within the evaluation and the evaluation of fatty liver generally inhabitants from routine CT scans. We consider that AI modern answer and particularly well being FLD could ship substantial benefits to the bio-pharmaceutical trade to streamline the identification of candidates for medical trials of a lot wanted therapies for liver illnesses, together with NASH. This regulatory choice solidifies our management as a developer of automated AI software program medical gadgets.

We additionally introduced final month early findings from the AI-enabled ADOPT research, which makes use of the Nanox AI answer, HealthVCF, the earlier model of our present well being LSP answer. To assessment routine CT scans, have recognized as much as 6 occasions extra sufferers with vertebral compression issue that the nationwide common — at Nationwide Well being Companies, NHS hospitals within the U.Okay. The research is being carried out at varied Nationwide Well being Service or NHS websites, together with the Oxford College’s hospitals. The ADOPT knowledge reveals that HealthVCF has clearly demonstrated the power to establish vertebral compression fractures in much more sufferers than beforehand attainable with current instruments, enabling earlier intervention and probably higher affected person outcomes.

At the moment, the Nanox AI algorithms has recognized over 2,400 sufferers with beforehand unknown sufferers with beforehand unknown vertebral compression fractures and people sufferers have been designated for a follow-up analysis and therapy. As you possibly can see, we’ve been very busy not solely with this Nanox.ARC system deployment, but in addition advancing the uptake of Nanox AI, which is a crucial element of the entire Nanox answer.

Turning now to our OEM initiatives. After government partnership kickoff conferences at Varex headquarters in Salt Lake Metropolis final yr, the corporate’s technical groups are actively engaged in validating the tube design and advancing the roadmap in direction of manufacturing and exploring future growth. Increasing on our OEM associated exercise, we’ve issued our first manufacturing buy order to an industrial imaging gear producer and proceed to work in direction of a multi-year tube provide settlement to make sure an satisfactory future provide of tubes. Moreover, our collaboration with the U.S. authorities company exploring Nanox.ARC know-how to be used in safety purposes and progressing. After their acquisition of chips and tubes for analysis, we’re advancing towards collaboration on a novel tube primarily based on our meter.

Lastly, as a method of accelerating consciousness and permitting entry to our core applied sciences, we’ve created Nanox demonstration equipment containing a tube using our meter. And we’ve just lately obtained the required security and regulation certifications for the equipment and will probably be delivering our first few to events within the coming weeks.

Concerning the mass manufacturing as just lately introduced because of the scale up in commercialization, we proceed as deliberate with our collaboration with the system, a chip maker situated in Switzerland. As I discussed earlier in my feedback about Ghana, Nanox is conducting multicenter medical trial to reinforce Nanox.ARC with the objective of increasing its use with chest and different indications. The trial is scheduled to start affected person recruitment shortly, and Nanox.ARC programs which are being utilized in these trials are already scanning sufferers.

The system put in at Beilinson Hospital is prepared. The Institutional Overview Board IBR, has authorized the trial and we’re finalizing the remaining steps for integrating into multisite. In Ghana, the IRB has been submitted and at the moment is beneath assessment. Moreover, the Nanox.ARC is getting used to scan sufferers with irregular lung situations at Beilinson, one of many world’s high tutorial medical middle, and an establishment that has pioneered development in radiology. The system at UGMC can also be at the moment getting used to scan sufferers. Our pursuit of the CE mark in Europe is advancing in partnership with our notified physique.

Particularly, just lately we accomplished a five-day audit by the notified physique as a part of the certification course of for the CE certificates, the ISO 13485 plus medical system laws MDR certificates. Through the inspection, 100s of information, procedures, proofs, studies, and examples have been introduced. The MDR check was handed efficiently. The ISO 13485 check was handed with a fantastic success and with none adversarial findings. Generally after the audit, the formal assessment course of will start, which incorporates analyzing elements of the manufacturing course of.

And though we count on our software course of to proceed in a well timed method, I might word the regulatory our bodies worldwide are nonetheless working via a backlog of purposes, which amassed in the course of the multi-year COVID pandemic and the adjustment for the brand new MDR regulation. Nonetheless, as I stated, we’re properly alongside within the course of and can proceed to prioritize the work with our companions vital to finish the matter of assessments required to convey the CE certification course of with the end line.

With that, I would like now to show the decision over to Ran Daniel for a assessment of our monetary outcomes. Ran?

Ran Daniel

Thanks, Erez. We reported a GAAP internet loss for the fourth quarter of 2023 of $10.2 million, which is the reported interval, in contrast with a internet lack of $52.Eight million within the fourth quarter of 2022, which is the comparable interval. The lower was largely attributable to a goodwill impairment of $36.5 million and an accrual of $Eight million in reference to the settlements of the cloud part which have been recorded within the comparable interval and a lower of $4.Four million within the normal and administrative bills.

Income for the fourth quarter of 2023 was $2.Four million and gross loss was $1.7 million on a GAAP foundation. Income for the comparable interval was $2.1 million and gross loss was $1.Eight million on a GAAP foundation. Non-GAAP gross revenue for the reported interval was $0.9 million, as in comparison with $0.Eight million within the comparable interval, which represents a gross revenue margin of roughly 36% on a non-GAAP foundation for the reported interval, as in comparison with 39% on a non-GAAP foundation within the comparable interval.

Income from the teleradiology companies for the reported interval was $2.Three million with a gross revenue of $0.Three million on a GAAP foundation, as in comparison with income of $2.1 million with a gross revenue of $0.Three million on a GAAP foundation within the comparable interval, which represents a gross revenue margin of roughly 14% on a GAAP foundation for the reported interval as in comparison with 13% on a GAAP foundation within the comparable interval.

Non-GAAP gross revenue for the corporate’s teleradiology companies for the reported interval was $0.9 million, as in comparison with $0.Eight million within the comparable interval, which represents a gross revenue margin of roughly 38% on a non-GAAP foundation for the recorded interval, as in comparison with 40% on a non-GAAP foundation within the comparable interval. The lower within the gross revenue margin on a GAAP and non-GAAP foundation is principally attributable to a rise in the price of the corporate’s radiology because of the enhance within the [Indiscernible] and funds of incentive funds, which the corporate pays to the corporate’s radiologists to have interaction in readings in the course of the in a single day and weekend shifts.

Through the reported interval the corporate generated income for the gross sales of its AI options within the quantity of 84,000 as in comparison with income of 63,000 within the reported interval. Through the first quarter of 2024, Nanox AI bought its Well being CCS cardiac answer to a second IDN within the U.S. for an annual payment of $8.5 thousand in the course of the first yr of the engagement and an annual payment of $75,000 from the primary anniversary of the engagement and after.

Through the reported interval, the corporate generated income via the gross sales and deployment of its imaging system, which amounted to $17,000 with a gross lack of $44,000 on a GAAP and non-GAAP foundation. These income stems from the gross sales and deployment of our 2D programs in Africa.

Analysis and growth bills for the reported interval have been $6.Eight million, as in comparison with $7.1 million within the comparable interval. The lower of $0.Three million was primarily attributable to a lower within the firm’s growth bills.

Gross sales and advertising bills for the reported interval have been $1.Zero million, in comparison with $1.5 million within the comparable interval. The lower was primarily attributable to a lower in bills associated to our gross sales and advertising actions.

Normal and administrative bills for the reported interval have been $3.Eight million, as in comparison with $8.2 million within the comparable interval. The lower of $4.Four million was primarily attributable to a lower in our authorized bills within the quantity of $4.Zero million, largely on account of the finalization of the SEC investigation and the settlement of the category motion, a lower in share-based compensation within the quantity of $0.2 million, and a lower in the price of the administrators and officer stability reveals premium within the quantity of $0.Four million.

Different revenue was $2.7 million for the reported interval, as in comparison with an expense of $7.Eight million for the comparable interval. Different bills within the comparable interval included an accrual for the settlement in reference to the category motion lawsuit in opposition to the corporate within the quantity of $Eight million, which was reversed by the quantity of $Three million within the reported interval because the firm obtained this quantity from its D&O insurance coverage profession beneath the settlement settlement in reference to the category motion lawsuit in opposition to the corporate.

Turning to our stability sheet. As of December 31, 2023, we had money, money equivalents, restricted deposits and marketable securities of roughly $82.Eight million, and we had $3.5 million mortgage from a financial institution. We ended the quarter with a property and gear internet of $42.Three million. As of December 31, 2023, we had roughly 57.Eight million shares excellent, as in comparison with 55.1 million shares excellent as of December 31, 2022.

The rise was primarily because of the gross sales of roughly 2.1 million shares and warrants to buy as much as 2.1 billion shares in a registered direct providing in consideration of gross proceeds of $30 million and a internet revenue of roughly $27.1 million and the issuance of roughly 255,000 unusual shares to the previous shareholders of U.S. Rad beneath the modification to the U.S. Rad inventory buy settlement.

With that, I’ll hand the decision again over to Erez.

Erez Meltzer

Thanks all as soon as once more for becoming a member of our name at present and your continued assist of Nanox’s mission to make medical imaging extra environment friendly, accessible and inexpensive worldwide. It has been two years since I stepped into the CEO position. And after I got here right here, Nanox was in a really totally different place. In simply this yr, we achieved an necessary milestone of ADA clearance and are looking for to probably develop the use case for ARC with the FDA.

We’re additionally deep into the method of pursuing CE Mark designation within the European Union and have obtained native regulatory clearances in different nations like Ghana. We have additionally begun commercialization, earnest and RX programs at the moment are deployed for the use by imaging middle and hospital programs in Israel, three nations in Africa. And as of at present’s name, we all know we’ve quite a few deployed programs within the U.S.

Over these two years, we’ve built-in our AI technique throughout the corporate. Our main Nanox AI answer offers the power to make use of AI to focus on and assist establish sufferers with asymptomatic undetected power illness, initiating early analysis and preventative administration. On this yr, we additionally achieved two FDA clearances, a considerable medical validation of our AI answer.

We perceive this has been an extended highway, however our progress is tangible and we’re very excited for much more progress in 2024. Earlier than I finish the decision, I’ve 1 final piece of reports to share, and that is one thing a lot of you have got been anticipating. On Wednesday, April 10, we’ll display the usage of the put in ARC system, a dynamic medical imaging in Union, New Jersey, starting at 9:30 a.m. The demonstration will probably be adopted by a roundtable dialogue. Please contact our Investor Relations companions at ICR Westwicke in case you are all for attending, and word that area is restricted.

With that, I thanks as soon as once more and convey our fourth quarter and full yr 2023 investor name at shut.

Query-and-Reply Session

Operator

We are going to now conduct the question-and-answer session. [Operator Instructions]

Erez Meltzer

Simply earlier than we dive into the Q&A session, I want to point out that we’ve up to date our web site with attention-grabbing medical pathologies from the U.S. industrial web site and CHEST from our medical websites. Within the U.S. pattern, we word enhanced visualization, in comparison with conventional radiography. One instance is cervical backbone scan. Moreover, you’ll find the CHEST research from the Beilinson medical trial. And within the CHEST research, whereas the X-ray solely frankly reveals a lesion, this lesion was clearly visualized on the Nanox.ARC photographs and within the CT scan of the affected person scheduled for biopsy. So have a look and be at liberty to see it as properly. Q&A?

Operator

Our first query will come from the road of Ross Osborn with Cantor Fitzgerald.

Ross Osborn

Hey guys, congrats on the progress and thanks for taking our questions. So beginning off with ARC, would you focus on what number of programs within the U.S. are operational throughout the 5 states deployed in in the course of the fourth quarter? And in addition present us with how 2024 has progressed up to now when it comes to placements and visibility into your pipeline or backlog of orders? Thanks.

Erez Meltzer

So Ross, we’ve already indicated that alongside the yr, we’ll add extra particulars. Up to now, we’ve not knowledgeable precisely what number of programs. We simply say that we’ve programs put in proper now in 5 states. The one factor I might say is that we’ve already manufactured a couple of dozens of programs. And we’ve the programs put in within the medical amenities as indicated.

Subsequent, I might say that within the subsequent conferences, I’ll in all probability point out and offer you extra numbers. The numbers that we gave thus far are scans per day, the {dollars} per scan, and the few dozens that have been already been bought and shipped to the assorted places.

Ran Daniel

And Ross, thoughts you that there is a distinction between the quantity or the variety of the put in programs to those which are operated commercially since there is a hole of time between because of the native or state registration requirement.

Ross Osborn

Understood. After which perhaps may you present some coloration on what varieties of facilities are adopting ARC, and the way utilization has trended up to now, and their stage of consolation with $30 per scan?

Erez Meltzer

Sure. We truly. We will. So we’ve small and medium-sized medical imaging facilities proper now. Certainly one of them is massive. And the opposite factor that we are able to point out is that the — what else do we’ve? Sure, I feel that is most of them, sure. If I truly display all of them, all of them are these sort of medical areas. The opposite one which we’ve is within the Georgia web site of 626. And I might say, sure, a couple of installations are in orthopedic medical facilities. And sure, that is the numbers.

Ross Osborn

Bought it. After which lastly for us, would you remind us of the economics on Join, given your agreements in Peru and Mexico when it comes to whether or not that is going to be a capital sale or MSaaS? And whether it is MSaaS, how ought to we take into consideration…

Ran Daniel

Most of them are MSaaS fashions in the identical method that we apply to the ARC. Generally, we do a capital gross sales mannequin with reference to Join. However as I stated, most of them are MSaaS fashions.

Erez Meltzer

Ross, it relies upon additionally on the nations. In sure nations, particularly in Africa, we decide to promote the system. In a couple of of them, we promote for partial quantity after which cost per scan. Now we have varied fashions on the Join.

Ross Osborn

Okay, obtained it. Thanks for taking my query.

Erez Meltzer

No welcome.

Operator

Our subsequent query will come from the road of Jeff Cohen with Ladenburg Thalmann.

Jeff Cohen

Hello, Erez and Ran. How are you?

Erez Meltzer

Good, good.

Jeff Cohen

So I did wish to follow-up on a few Ross’ questions. Might you speak about Join a bit in slightly deeper scale and provides us a way of Join versus ARC and the way you anticipate each these platforms to play out each within the U.S. and OUS?

Erez Meltzer

Okay. Proper now, the join is being bought outdoors of the U.S. As soon as the Join goes to get the FDA within the U.S., we’ll promote it within the U.S. as properly. Now we have proper now Join in additional than 10 nations proper now. And quite a lot of them are Africa, a part of them are Latin America and in Israel. To start with, the aim of the Join was to increase or develop the road of merchandise that we’ve. And the fantastic thing about what we promote within the Join is that we promote it not solely as a bit of kit, however bundled with AI system included in what we promote. So the system can analyze the picture itself.

As well as, we’ve programs that have been bought in Morocco, for instance, and it was used within the earthquake by the shopper that the physique there. It was used additionally in Israel in varied excessive conditions, when you are able to do a check within the subject or screening within the subject. And the concept behind them is twofold. The primary one is that we are saying that generally we get the Join and in a while, we get the ARC, and second is the inclusion or how will we construct the AI system into the imaging itself.

And when it comes to the method of the Join, it is the identical course of. Generally they get the registration simply earlier than the ARC, generally after the ARC. If you happen to take the Join examples in Africa, in a single or two nations, we’ve achieved, with the Join, one of many nations a couple of days that the variety of scans per day have been above 120. And these are examples that may allow us truly to penetrate some clinics earlier than.

I’ll truly reemphasize the truth that for us, it is actually gratifying to see that the ARC and Join, the truth that they’re marketed collectively as we envisioned from the very starting, it is principally complementary and really useful for what we do. The truth that we’re very versatile when it comes to the enterprise mannequin and the hybrid mannequin, the MSaaS and the CapEx-based sale, this truly provides quite a lot of worth for us as properly.

Jeff Cohen

Positive. So I suppose, Erez, what you are saying is relying on clearances that you’d anticipate quite a lot of websites to or perhaps nearly all of websites to have each varieties of deployments, ARC and Join?

Erez Meltzer

I might not say majority as a result of generally some nation or want to use the Join greater than the ARC. However I might say that in Latin America and within the U.S., it is going to be primarily ARC. In the remainder of the world, we’ll see quite a lot of nations that can promote the Join. Generally there’s preparation to get entry to medical imaging, as a result of that is the mission that we took upon ourselves and we’re making an attempt to get it in varied ways in which as we do. However we noticed a couple of nations that firstly was with the Join after which we have been capable of signal for the ARC.

Jeff Cohen

Bought it. And will you make clear earlier feedback on manufacturing? Was that 2,000 programs manufactured?

Erez Meltzer

No, no, no. We stated that we’ve a couple of dozens of programs that have been already manufactured. We’re within the course of of producing a couple of extra dozens. And if you consider the long-lead gadgets and if you consider the provision of elements, this enabled us truly to cowl the tempo of the set up that we’re doing proper now. If you happen to keep in mind, within the Traders Day, we stated that we’re getting into a really conservative method. We do not have a second likelihood to make a primary impression, particularly not within the U.S. So we’re putting in the programs, we’re analyzing the info. We’re including and enhancing the method of the set up. Now we have been capable of shorten the time that we set up the programs. We’re getting — we’re negotiating proper now one other service firm that can have a greater protection for the U.S.

Now we have gained quite a lot of entry or the power to manage the programs additionally from distant. We’re opening the decision middle that can allow us to serve greatest these items we’re growing exponentially the variety of folks which are within the gross sales and the service staff, and we’re persevering with to develop our skilled groups and recruited personnel. And final however not least is that we’ve to, in fact, to work on the referrals and to make sure that folks will pay attention to the modifications that we’re doing within the standard-of-care, and we’ll do it professionally.

Jeff Cohen

Bought it. And lastly for Erez, any commentary on 2024 so far as first quarter sequential income modifications, et cetera, et cetera? Thanks.

Erez Meltzer

Sure. So initially, a part of the indication that I gave are the place we’re thus far. And so the quantity will probably be rising. We’re specializing in producing extra revenues, extra installations and extra scans within the present set up within the programs that we’ll set up. And I consider that subsequent quarter, we’ll be capable of share extra detailed replace and in addition to numbers of the place we’re and what is the course of that we’re heading.

Proper now, we’re making progress based on the plan and precisely based on what was introduced within the Traders Day. As you possibly can think about, we’re proper now, primarily based on greatest expertise, we’re rather more cautious and conservative in what we are saying, what we point out and we’re making an attempt to make sure that no matter we promise will probably be delivered.

Jeff Cohen

Tremendous, thanks for taking our questions.

Operator

[Operator Instructions] Our subsequent query will come from the road of Anthony Petrone with Mizuho.

Anthony Petrone

Thanks and congratulations on the sturdy finish of final yr and robust begin to this yr. Possibly, Erez, simply on the utilization per system for Nanox.ARC, you talked about $30 per scan, and a number of the early programs are doing seven scans per day. Simply on the way you count on that to scale, which areas are you seeing utilization? Is it extra on the orthopedic facet? Are you seeing it in chest X-ray? Just a bit bit on the place you are seeing the early use instances for Nanox.ARC, and the way you see that scaling over the 2024? After which I will have a few follow-ups. Thanks.

Erez Meltzer

Okay. No disrespect to the others, however nice query. To start with, I can say that seven scans per day is definitely the mannequin that we constructed and it appears that evidently from the early installations, that is what we see. I might say, nevertheless, greater than that, however we had, in medical imaging facilities, that are professionals and there are individuals who actually perceive what we’re doing, we had days with 15 scans per day. So that is firstly.

By way of the {dollars} per scan, that is the $30 should you keep in mind, in comparison with the $14 to $17 in the remainder of the world. So U.S. is about $30. And that is in line of the CPT code and the reimbursement that might be generated, which truly leaves quite a lot of room for us, for the middle, for the medical imaging middle, and for the radiologists. So these are the numbers that we see proper now.

With respect to medical indications, I would wish to remind the next, okay? Within the U.S., we’ve proper now the MSK FDA. In contrast to the remainder of the world, that we do quite a bit in Israel, in Africa, in different places, we do chest, we do stomach, we do cranium, we do all different form of indications. Our 2024 FDA submissions will embrace different indications as said within the remark that I made within the very starting.

So primarily based on, for instance, Beilinson Hospital in Israel, we do pulmonology most cancers screening, and that is truly a part of the check samples that we’re taking. We truly uploaded on our web site these examples and likewise the cervical backbone scan that we do. I’ve to be very cautious due to the regulation, due to the FDA, and due to all of the medical work that we do with different locations, however proper now, for us, it appears that evidently we’ll have much more medical indications as we transfer ahead than initially anticipated. Even a few of them weren’t a part of the unique plan.

Anthony Petrone

That is useful. And I’ve a few follow-ups on AI options and particularly HealthCCS for coronary artery calcification at InterMountain. It is deployed there, and it seems to be prefer it’s getting up and operating. How do you see that progressing in 2024? And after we take into consideration InterMountain, simply when it comes to the amount of sufferers they’re seeing with coronary artery illness, what number of instances do you suppose we’ll truly see being analyzed in CCS over the following few months and the way will it development over the following few years as this collaboration with Intermountain Well being evolves? Thanks.

Erez Meltzer

Okay. So with AI, I counsel to learn an article that our Chief Medical Officer wrote and one other one which I wrote within the Forbes in regards to the utilization of AI. Plainly proper now, not solely us, however different firms within the AI enterprise have like engines with actually excessive energy. However proper now they’re — due to the implementation and the deployment and the adoption by a part of particularly the U.S. well being economic system, it is not quick sufficient, which can be capable of generate extra revenues to every one of many establishments. However individuals are afraid from this example. By the best way, I feel that it’s proper for any or virtually every other enterprise elsewhere. However the adoption is slower than the power to supply the companies.

With respect to the CCS, calcium scoring, proper now, a lot of the expertise that we’ve is generally from Spectrum or from Corewell, which we gave these indications, and likewise from the U.Okay. So if I discuss in regards to the cardiac answer, I might say that 60% of the sufferers within the research have been undetected beforehand with the danger. And eventually, they have been with a cardiovascular occasion from the chest CTs that weren’t recognized. And the opposite expertise that we had with lots of people that have been recognized, 1 of them by the best way was in TV within the media is Beilinson in Israel. And within the U.Okay., which was primarily for the bones for the osteoporosis. However what you possibly can see is that the — I feel we printed the outcomes of the ADOPT and the opposite one in our web site.

Sure. You possibly can check out the web site and see the indication that we gave there with the variety of sufferers that weren’t detected with cardiac illnesses. And I feel that this provides a sign of the power to do. The one which was talked about with respect to the bone answer is with the Oxford College and this was printed that they’d recognized as much as 6 occasions extra sufferers with vertebral compression construction than that was indicated within the different CT scans that have been there.

So I feel that the AI and what we do is getting quite a lot of consideration, and the extra we go into the longer term, we’ll present as a lot as we are able to, as a result of that is beneath quite a lot of privateness restrictions, however the extra we are able to share with the general public and the extra the establishment, together with, by the best way, Intermountain, which is comparatively new, the extra they offer us the power to share, we’ll positively share with the general public.

Anthony Petrone

Thanks once more.

Operator

Thanks. This concludes at present’s convention name. Thanks for taking part. You could now disconnect.