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ΝΑΝΟΧ Nanox Announces Third Quarter 2021 Financial Results and Provides Business Update November 17 , 2021 Reports progress towards global supply chain development Ended the third quarter with cash and marketable securities of $ 180.3 million Management to host conference call and webcast today , November 17 , at 8:30 AM ET NEVE ILAN , Israel -- ( BUSINESS WIRE ) -- Nov . 17 , 2021-- NANO - X IMAGING LTD ( NASDAQ : NNOX ) ( " Nanox " or the " Company " ) , an innovative medical imaging technology company , today announced results for the third quarter ended September 30 , 2021 and provided a business update . As previously reported , Nanox completed the merger with NANO - X AI LTD ( formerly Zebra Medical Vision LTD , " Nanox Al " ) , a deep - learning medical imaging analytics company , in an all - stock deal valued at approximately $ 110 million at closing , with up to $ 84 million in contingent consideration to be paid in additional stock if Nanox Al enters into any of two designated commercial agreements and achieve certain milestones . Additionally , the Company completed the acquisition of USARAD Holdings , Inc. , a leading provider of teleradiology services , and the assets of MDWEB , LLC . , a decentralized marketplace connecting imaging facilities with radiologists , together , for approximately $ 7.3 million in cash and $ 12.9 million in stock , with up to $ 2.0 million in cash and up to $ 8.0 million in stock in deferred consideration upon the completion of various milestones . " The third quarter was pivotal for Nanox.ARC , as we made meaningful progress toward the commercialization of the Nanox System across multiple fronts . Among our recent accomplishments , we continued to secure our supply chain , enlarged our backlog of orders by signing additional MSaaS agreements , and , importantly , finalized three previously announced strategic M & A transactions , " said Ran Poliakine , Chairman of the Board and Chief Executive Officer of Nanox . " We look forward to continuing our progress toward our goal of bringing the groundbreaking technology to market in 2022. " Third Quarter Highlights and Recent Developments : • Completed merger with Nanox Al and acquisitions of USARAD Holdings , Inc. and MDWEB , LLC . merger with Zebra and acquisitions of USARAD and MDWEB paragraph from above . • Entered into MSaaS agreement with International Clinics Group , a medical equipment distributor which serves public & private hospitals , health systems , military hospitals , and medical centers in Chile , Bolivia and Peru , for the deployment of 350 Nanox.ARC units . As of date , the Company entered into MSaaS agreements for deployment of 6,500 Nanox.ARC units . • Nanox Al secured its 8th FDA 510 ( k ) clearance for its Coronary Artery Calcium ( " CAC " ) solution as part of its population health offering . CAC is an important biomarker in determining the risk of coronary disease . The CAC solution is expected to empower clinicians to report findings and recommend preventative treatments before a coronary event occurs , which has the potential to save lives while lowering costs for the healthcare systems . Nanox Al's mission is helping to diagnose populations at scale with its Al - based solutions , enabling IDNs and commercial payers to detect and treat patients at risk for chronic conditions while accurately adjusting their covered population risk . • We have made a progress to commence commercial production of the silicon MEMs chip by the Company's Korean subsidiary , that is integral to the Nanox digital X - ray source . We expect production at the new facility to begin pilot production in early 2022 • Clinical and Regulatory update : The Company made progress toward the completion of the development of the Nanox.ARC System . The Company expect to continue to optimize and develop further features the Nanox.ARC System and is considering submitting an additional 510 ( k ) application for the next version of its multi - source Nanox.ARC System in the near term , which will benefit from the FDA feedback received on the first version of the multi - source Nanox.ARC System . Financial results for three months ended September 30 , 2021 For the three months ended September 30 , 2021 , the Company reported a net loss of $ 13.5 million , compared to a net loss of $ 11.1 million for the three - month period ended September 30 , 2020 , largely due to an increase in our research and development expenses and general and administrative expenses , which were mitigated by a decrease in our marketing expenses . Research and development expenses for the third quarter 2021 were $ 3.7 million , as compared to $ 2.1 million for the same period in 2020. The increase was due to Research and Development costs related to the multi - source Nanox.ARC and cloud , including increased R & D headcount , costs related to the ongoing regulatory approval process and share - based compensation . Marketing expenses for the third quarter 2021 were $ 1.5 million , as compared to $ 2.7 million for the same period in 2020. The decrease was mainly due to decrease of $ 1.7 million in share - based compensation which was partially offset by an increase of $ 0.5 million in marketing and branding