Ladies and gentlemen, thank you for standing by. Welcome to the Nano-X Fourth Quarter 2025 Earnings Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would like now to turn the conference over to Mike Cavanaugh, Investor Relations. Please go ahead.

Good morning, and welcome to the Nano-X Imaging Fourth Quarter 2025 Investor Call. Earlier today, Nano-X Imaging Ltd. released financial results for the quarter ending December 31, 2025. The release is currently available on the Investors section of the company's website. With me today are Erez Meltzer, Chief Executive Officer and acting Chairman; and Ran Daniel, Chief Financial Officer. 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 and clinical activities, among 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-GAAP to GAAP measures is provided with our press release with the primary differences being non-GAAP net loss attributable to ordinary shares, non-GAAP cost of revenue, non-GAAP gross profit, non-GAAP gross profit margin, non-GAAP research and development expenses, non-GAAP sales and marketing expenses, non-GAAP general and administrative expenses and non-GAAP gross loss per share. With that, I'd now like to turn the call over to Erez Meltzer.

Thank you, Mike, and thank you all for joining us today. In the fourth quarter of 2025, we continued to move the business forward across multiple fronts. While our primary focus remains on expanding our commercial presence, given the current geopolitical situation, we spent a lot of efforts during the quarter and the beginning of 2026 to secure our supply chain and strengthen our financial positions as well. On top of that, we made good progress advancing the capabilities of Nanox platform and strengthening the operational infrastructure needed to support our long-term growth. I'm happy to report that we recently entered into an agreement with Howard Technology Solutions, a division of Howard Industries, which has a national reach and an established presence in health care and public sector market, providing us with a scalable framework for expanding Nanox.ARC deployment. This agreement reflects our confidence in the commercial demand for the Nanox.ARC and our ability to engage partners that can support sustained growth in system placement across the U.S. Under the framework of this agreement, Howard is expected to deploy 300 Nanox.ARC systems over a 3 years period, of which 60 are indicated to be deployed in the first year. We also recently announced multiple commercial agreement, which together accumulates to roughly 360 systems over a 2 to 3 years' period. These partnerships expand our reach across imaging centers and specialty care setting where point-of-care imaging is integral to clinical workflow and patient management. This represents a fundamental shift in how we are poised to scale our business from providing our technology to the deploying it in a meaningful volume, shifting toward a growing CapEx portion. This is what we see as getting us closer to our indicated revenue of 2026. The framework has the potential to become a meaningful contributor…

Thank you, Erez. We reported a GAAP net loss for the fourth quarter of 2025 of $33.4 million, which is the reported period, compared with a net loss of $14.1 million in the fourth quarter of 2024, which is the comparable period. The increase was largely due to an impairment of long-lived assets in the amount of $17.5 million which was recorded during the reported period as a result of the company's restructuring plan that is intended to better align the company's manufacturing activities. The increase was also due to an increase of $0.7 million in the gross loss, increase of $1.1 million in the sales and marketing expenses and increase of $1.4 million in other expenses. Revenue for the reported period was $3.7 million compared to revenue of $3.0 million in the comparable period. The increase of $0.7 million, increase of 23% in the revenues stems from an increase of $0.3 million in our revenue from the teleradiology services and an increase of $0.4 million in our revenue due to the consolidation of Nanox Health IT Inc. since the completion of its acquisition on November 19, 2025. Gross loss for the quarter period was $3.6 million on a GAAP basis compared to a gross loss of $2.9 million in the comparable period on a GAAP basis. Non-GAAP gross loss for the reported period was $1.2 million as compared to a gross loss of $0.3 million in the comparable period which represents a gross loss margin of approximately 32% on a non-GAAP basis for the reported period as compared to a gross loss margin of 9% on a non-GAAP basis in the comparable period. Revenue from the teleradiology services for the reported period was $3.1 million compared to revenue of $2.8 million in the comparable period. The company's GAAP gross…

Thank you, Ran. Before closing, I'd like to address the leadership update. After 5 years with the company, our great Chief Financial Officer, Ran Daniel, decided to step down from his role to explore other opportunities. During his tenure, Ran played an important role in strengthening our financial discipline, supporting our transition to a public company, in building the financial and reporting infrastructure needed to support our long-term strategy. He also led successful capital raises that strengthened our balance sheet. In addition to leading our finance organization, Ran also oversaw our Investor Relations activity and worked closely with investors and analysts throughout his tenure. We are grateful for his many contributions and wish him continued success in his future endeavors. Ran will remain with the company to support a smooth transition period. As we look ahead, we are pleased to announce that Guy Nathanzon will be joining Nanox as Chief Financial Officer. Guy brings extensive financial leadership experience with the U.S. publicly traded companies, including several senior CFO and CEO roles in the med-tech companies as well as his deep experience supporting growth, scale and global operations. His background includes capital raising, capital markets, both sell-side and buy-side M&A and global financial operations. Guy also brings deep medical technology leadership experience with senior CFO and COO roles at multiple med-tech companies during periods of commercialization, scale-up, and global expansion. Guy also brings medical technology experience, having served in senior leadership roles during periods of commercialization and expansion. He has previously served as the CFO of Scopio Labs medical technology company developing AI-based diagnostic platform and most recently was CFO of Valens Semiconductor, a New York Stock Exchange listed company. We are pleased to welcome Guy to the leadership team. He will join the company and will assume the role of…

[Operator Instructions] And the first question comes from Jeffrey Cohen with Ladenburg Thalmann & Company.

Just a couple of questions. I'd like you to dive in a little further. So could you talk a little bit about your footprint and commercial organization, mainly related in the U.S. as far as teams that are direct sales organizations and talk a little bit about how that works with your distribution channels in the U.S.

Okay. So we have in the U.S., what we call Nanox Impact. We have 5 direct salespeople with the Director of Sales, the national sales that is coming from one of the biggest distributors in the country with a lot of experience. In addition, we have which we call the clinical education specialists where their role and assignment is to go to the places that we have the systems installed, train the people, trying to get a better understanding of the referring physician who works with this site. So their job is to build awareness around the site and what's the clinical value that can be added for other referring physicians that will do there. We are -- we have a few administration and operational responsibilities, including tech people who are doing the part of the installation. And in addition, we have people who are doing the STR, like building the deal flow. We are in the process of adding another 2 people who would be responsible for the channel management. But right now, since we have almost 10 business partners, one of them, as mentioned today, is huge. This will require a lot of coordination, a lot of support. We have an onboarding process for each one of them, which is very methodological that we do in the process to -- when we sign an agreement, the training process, the demo unit, for example, we have a few of the business partners that we lately signed, we have tens of meetings that already were arranged with the potential customers in order to expand and to fulfill what they are committed to in this agreement.

Okay. Got it. And then as a follow-up, could you talk a little bit about the South Korean facility and the impairment, what should we expect for 2026, you anticipate further restructuring and impairment? And will that be in the front half of the year versus the back half of the year? And could you guesstimate for us if that will be cash and noncash?

Besides the impairment expenses we recorded in 2025, which was the impairment of mainly whatever is related to the chip line in Korean fab which was amounted to $17.5 million in the noncash expense, we do anticipate relatively minor expenses which are related to more efficiency steps that we're going to enact. It won't be -- we don't anticipate that it will be a significant amount of dollars. So that's actually going probably to be a cash expense. But as I said, it's not going to be material.

Bear in mind that this fab was built during COVID when semiconductors were not necessarily available. So right now, we are rationalizing the situation where we have a sustainable supplier with a much lower cost of the chips that we do. The fab in Korea will be converted to more of R&D center for the ceramic tubes that we are developing there and might be even another product which is going to come out from this region.

[Operator Instructions] Our next question will come from Scott Henry with AGP.

First, Ran, it was a pleasure working with you. I wish you the best in your future endeavors.

But don't give me yet. I have another one earnings call.

Excellent. And then, I guess, the first question. When we look at the guidance for 2026, the $35 million, which is strong growth. Can you talk about the cadence throughout the year? Q1 is over. So when will we see that inflection point to reach those impressive numbers?

I think that you will see most of it in the second half -- towards the second half of 2026. I don't think that they should expect a big ramp in the revenue in Q1. But I think once we will be able to materialize all the opportunities in terms of distribution agreements that we just announced, you will see -- you may see a ramp-up in the second half of 2026.

Scott, most of the agreements were signed beginning of about a month or 2 after the RSNA and part of them also after the ECR. And most of them -- most of the business partners agreements, which are going to shift our revenues to be more coming from more from CapEx rather than only the MSaaS has been signed in the last few weeks, let's say, a month. So right now, what we will do, we will start the onboarding the process and the ramp-up will be, hopefully, exponential towards, as Ran said, towards the second part of the year.

Okay. I appreciate that color. And just from a modeling perspective, the teleradiology services, which at this point is still your largest revenue driver. For 2026, should we be thinking about kind of low double-digit growth? Is it still on that trajectory?

I don't think that we refer to the specific segment in our guidance. So I don't want to make any specific attribution to any specific line of business or segments, but generally saying I think that your assumption would be...

Not far from real.

Not far from real, yes.

And then when we look at spending for Q4 removing the onetime items, it was a little elevated from Q3. With the restructuring, do you -- would you think that it should start declining from Q4 levels going forward? How should we think about those trends in spending?

Well, what happened in the -- you mean, if you look at the non-GAAP, of course, which adds on the impairment expenses and the expense -- the other expenses, that's mainly related to the settlement with the shareholder, you've seen an increase in G&A, which is, I would call it a seasonal increase mainly because of audit and all kind of other year-end items and expenses that were related to the acquisition of VasoHealthcare, which is onetime in nature. On the other hand, you also see an increase in the sales and marketing, which are -- some of it is related to the commercialization efforts in the U.S. market. So that's actually something that is not onetime item in nature, but on the other hand, and if we will participate again in RSNA conference, that will depend on the questions. We participated in the RSNA in the fourth quarter, as you remember, that cost money, unfortunately. But if we participate again, so then it will be recurring. If we won't, it won't.

Thank you. And this does conclude today's conference call. Thank you for your participation, and you may now disconnect.