Nano-X Imaging Ltd. current report, Q1 FY2023

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Nano-X Imaging Ltd. — Form 6-K Summary

Filing date: March 9, 2023. Reporting period: Month of March 2023. The filing reports that Nano-X Imaging Ltd. issued a March 9, 2023 press release, filed as Exhibit 99.1. The press release is not included in the provided filing text.

Financial and Operating Metrics

  • The provided filing text does not contain clear values for revenue, net income or loss, cash flow, margins, debt, cash, liquidity, or other operating metrics.
  • The company states that the press release includes certain non-GAAP financial measures. These measures exclude, among other items, legal and related expenses associated with disclosed legal matters.
  • Because Exhibit 99.1 is not provided, the filing text does not permit verification of the underlying GAAP results, non-GAAP adjustments, or reconciliation of those measures.

Material Changes and Unusual Items

  • In the White securities class action, lead plaintiffs filed an amended complaint on October 31, 2022. The company moved on February 3, 2023 to stay the action in favor of the McLaughlin action or until its motion to consolidate was decided.
  • In the McLaughlin securities class action, the company’s motion to dismiss remains pending after briefing was completed on September 9, 2022.
  • The company states that it has accrued no losses in either securities class action other than legal fees and cannot estimate a loss or range of loss for either matter.
  • The SEC is investigating potential federal securities-law violations and has subpoenaed information concerning development costs of Nanox.ARC prototypes and estimated costs of assembling the final Nanox.ARC product at scale. The company is cooperating, but the duration and outcome cannot be predicted and no loss or range of loss can be estimated.

Outlook, Risks, and Management Commentary

  • The company maintains that the securities lawsuits have no merit and intends to defend itself vigorously.
  • The filing does not provide specific financial guidance, revenue outlook, deployment targets, or other forward-looking operating targets.
  • Material risks include ongoing securities litigation, the SEC investigation, potentially unquantifiable losses, legal expenses, and uncertainty regarding Nanox.ARC development and production costs.

Key Facts to Verify

  1. Obtain and review Exhibit 99.1 for the company’s financial results, non-GAAP measures, reconciliations, and management commentary.
  2. Verify current cash, liquidity, debt, operating cash burn, and funding requirements, none of which are stated clearly in the provided text.
  3. Monitor the status and potential exposure of the White and McLaughlin securities actions.
  4. Monitor the SEC investigation and any disclosures regarding its scope, findings, or potential financial impact.
  5. Confirm whether legal expenses or other litigation-related items materially affected reported GAAP and non-GAAP results.