Nano-X Imaging Ltd. Q2 FY2025 Earnings Call

Good morning, and thank you for joining us today. Earlier today, Nanox Imaging Limited released financial results for the quarter ended June 30, 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 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-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. Good morning, and thank you all for joining our second quarter 2025 call. As we enter the second half of 2025, the entire Nanox team remains focused on disciplined execution and expanding our commercial footprint across our entire ecosystem, including AI and teleradiology solutions as we pursue our vision of making medical imaging more accessible and thereby improving patient outcomes. In line with the commitments outlined during our May 2025 earnings call, we are making steady progress toward our goal of 100 Nanox.ARC systems installations. Expanding our commercial footprint remains a top priority, and our sales team continues to expand the pipeline of qualified leads and successfully convert those leads into systems being shipped to customers. While most leads and new customer activity are now being sourced from the U.S. market, we also continue to expand our network in different countries outside of the U.S., including various European countries such as Romania and Greece on the heels of obtaining the CE mark designation earlier this year. We are well on our way to meeting our target of 100 systems installed or being deployed by year's end. As previously indicated, revenues are expected to grow in the second half of 2025. We are also advancing our clinical strategy on multiple fronts as we seek to strengthen our position as a transformative force in medical imaging. To support this movement, we are acting on multiple fronts, clinical data and publication collaboration with global academic institutes, hands-on clinical education initiatives, and expanding our key opinion leaders network. In other words, our commercial rollout involves bringing new technology to the market while also working to change the habits of health care providers. With respect to academic partners supporting our transformative vision, we seek to partner with organizations that are leaders in medical imaging innovation. A prime example is our collaboration with researchers at Duke University Medical Center, which I'll tell you about later in my prepared remarks. Another example can be found in our recent announcement that Keiser University has established a flagship training and demonstration site, integrating the Nanox.ARC into the radiologic technology graduate program and enabling hands-on education for future imaging professionals. This is particularly exciting as the radiologists of the future are immersed in Nanox.ARC early in their careers. To raise awareness and drive education on the Nanox.ARC systems, we created a clinical education program. The clinical education specialists who run this program play a central role delivering structured customer onboarding and ongoing training through site visits, working with the referral physicians, training the site personnel through webinars and tailored educational plans. We recently launched the Nanox Academy digital platform tailored for our clients, partners, and our Nanox network collaborators offering full product sales and clinical online training. Extending our clinical evidence, the ultimate output of these studies includes peer-reviewed publications and white papers and academic publications derived from data generated by studies such as those currently being conducted with Shamir and Beilinson Medical Centers. These papers demonstrate the diagnostic potential of our cold cathode tomosynthesis system in imaging, offering a lower radiation cost-effective alternative to CT. Moreover, we are constantly expanding the number of images bank of case studies, which serves to help illustrate the capabilities of the Nanox.ARC system. This growing bank of scans also serves as a useful tool for our sales team when in discussions with imaging centers about the utility of the Nanox.ARC. The final leg of our clinical development platform is our key opinion leaders network. This strategy is evolving into a structured segmented model that includes visionary leaders on our advisory board, clinical collaborators, and show sites. This approach enables us to amplify our clinical voice, holding seminars and webinars discussing the clinical value in conferences while supporting presales activities and beta testing in targeted specialties such as orthopedic and lung cancer screening. Together, these efforts form a cohesive clinical narrative that supports commercialization, enhances credibility, and drives adoption, positioning Nanox as a category-defining innovator in low-cost 3D digital radiography. With that said, let's now move ahead to our operational highlights and updates. Turning now to our installation progress in key U.S. markets. I'm happy to report that our pipeline has grown substantially since our last call. We continue to install systems in various facilities, primarily stand-alone multi-specialty, small- and medium-sized health clinics. These installations appear to be in line with the industry standard sales cycle. This increase in the sales pipeline is due to our investments in sales development representative initiatives, both internal and external, in order to increase the pipeline and conversion. These efforts are clearly resulting in traction with the medical imaging community and our commercial ramp will remain a primary focus. On another promising note, a growing number of customers with Nanox.ARC units installed are actively referring and scanning patients. Among the notable customers, the Nanox.ARC systems will soon be installed at Keiser University Sarasota campus for training health care professionals, including live demonstrations and incorporation into Keiser University Radiology Technology graduate program. We have also installed units in several imaging chains in California and New York. Of particular note, one of the largest medical imaging chains in the U.S. with hundreds of locations from which we recently generated revenues has completed installation of the ARC and began Nanox.ARC application training for its technicians in the last week of July. This is the final step before patient scanning begins, and we expect this chain to start scanning patients in the third quarter. The chain is also preparing to expand Nanox.ARC deployment to a second site within its network. As many of you are aware, we are supplementing our direct sales efforts via channel partnerships in select markets. The distributor partnerships we announced last quarter with ASI and Swiss Re are both fully completed and are off to good starts. Additionally, we are in advanced negotiation with a large distributor and equipment reseller with a presence throughout the U.S. To support these partnerships, we provide comprehensive training and onboarding covering everything from system fundamentals and the clinical positioning to sales processes and contracting workflows. Our goal is to equip our partners with the tools and knowledge they may need to confidently reengage their networks and promote the Nanox.ARC. As part of our efforts to expand our go-to-market strategy, we are working on developing a future project. Nanox is developing a mobile imaging solution that integrates the Nanox.ARC system into a commercial vehicle. The mobile Nanox.ARC vehicle will serve as a traveling medical imaging center visiting clinics to provide high-quality diagnostic imaging without requiring patients to travel to central hospitals. The goal is to expand access to high-quality imaging, improving patient reach and creating new opportunities for service delivery and revenue growth. Turning to our rapidly growing Nanox.AI business. I'd like to share details of several product collaborations that we are working on. First, I'm pleased to announce that Nanox.AI and a leading provider of advanced AI-powered medical imaging solutions are collaborating to integrate Nanox.AI's liver and bone products with a provider's advanced visualization software. This new partnership will allow us to extend the benefits of Nanox.AI to a larger customer base, enhancing our collective offering and providing greater value to our users. Another commercial collaboration I can share is between Nanox.AI and a leading company, which provides AI-powered health informatics with the aim of empowering breakthroughs in care through imaging. The collaboration leverages advanced AI for operational efficiency and improved clinical outcomes in lung. In another recent example, we have signed an agreement with deepc to incorporate cardiac, bone, and liver products onto the deepc platform. Deepc is a multinational company that markets an infrastructure platform, deepcOS, designed to unify diverse radiology AI workflows across the enterprise. Having Nanox.AI solutions integrated within this platform will make our products available to a much larger potential customer base. Another collaboration that I'd like to share today is with CTIS, a leading provider of health informatics solutions with decades of experience partnering with clinical trial and research stakeholders, particularly in support of NIH projects. Nanox.AI and CTIS have joined forces to pursue 2 NIH grants aimed at analyzing gland cancer in young vape users, which is acknowledged as a looming health problem in the U.S. Needless to say, it is encouraging that a growing group of AI platform providers recognize the value of our technology and are taking the time to integrate the Nanox.AI solutions into their open architecture platform offerings. Furthermore, as previously announced, we have finalized the collaboration between Nanox.AI and Ezra, a leading provider of full-body MRI screening services. Initially, the collaboration included Nanox.AI population health solutions integrated into Ezra medical screening processes at 28 imaging center locations across the United States, which feature AI-powered full-body MRI and CT scans to screen adults for early detection such as cancer and other serious conditions at their earliest and often most treatable stages. The solution is now integrated into 50 sites with both the number of installations and the volume of scans steadily increasing. To continue our updates for Nanox.AI, I'm pleased to report that a leading academic institution has launched a major collaboration with Nanox.AI, selecting 3 of our advanced artificial intelligence applications to power a new population health clinical study targeting asymptomatic individuals aged 70 and above. These mark another milestone in our ongoing academic collaboration. We continue to partner with leading academic institutions that are leveraging our AI solutions. I can also report that we signed an agreement to provide Nanox.AI solutions to customers of Radiology Diagnostic Group, RDG, a network of specialized senior radiologists offering rapid expert imaging interpretations, valuable second opinions and detailed explanations of imaging findings. In addition, we recently partnered with a reseller in India to market Nanox.AI solutions, securing 2 pilot projects and positioning us to expand our footprint in the region. Moreover, we are strengthening our U.S. presence with the expansion of our service and sales infrastructure to support growing market demand. Turning to deployment and other activities outside of the U.S., we continue to advance along multiple fronts such as key EU markets where we feel that the distributor model is an efficient way to make initial inroads into the various nations of the EU. We accelerated our efforts in the EU after Nanox.ARC was granted the CE mark designation under EU MDR standards earlier this year. Our team recently met with our partner in Romania, Medis Imaging, which is a leading medical equipment supplier in the country. It was a highly productive engagement, which included a training session for MEDDIC sales personnel. The next step is to launch the Nanox.ARC in the annual Radiology Congress in Romania with our new partner at the end of September. The system is ready for shipment for that purpose. This is an exciting step forward in making Nanox innovation and imaging solutions more accessible across Europe and promises a start to bringing next-generation medical imaging technology to Romania. We are currently working with our local partner in Greece to secure the required import permits and are engaged in advanced discussions with additional potential partners in the region. We will continue to focus on the large EU market and expect that our strong business momentum will continue in many other European countries in 2025 and beyond. In Latin America, we're also pursuing the import licenses to ship 2 demo units to a distributor in Mexico, and I will provide an update when I have something material to share. The company notified the FDA of its intent to submit the TAP2D software module to the FDA through the 510(k) program. The TAP2D submission aims to receive clearance for 2D view image output for the Nanox.ARC system, a practical tool for radiologists to enhance their diagnostic confidence as they become more experienced evaluating BTS images. TAP2D, once cleared, will be part of a wider vision held by Nanox to alleviate adjunctive use limitations in the future. Moving on to the clinical work that helps support all of our efforts by generating data supporting the use of our solutions. As I mentioned in my introductory remarks, we have several successes to share today, including our collaboration with Keiser University and our ongoing partnership with Duke University Center for Virtual Trials. We have mentioned the Duke partnership on previous calls, and I'm now able to share that this collaboration has resulted in the publication of a new paper that has just been published. In collaboration with Dr. Ehsan Samei's team at the Center for Virtual Imaging Trials, CVIT at Duke, we have seen promising results of the potential values of Nanox.ARC digital tomosynthesis, the DTS configuration in handling patient motion as opposed to the standard linear configuration DTS system. Patient movement during image acquisition can adversely affect the quality of medical images, and the study shows the benefit that Nanox.ARC configuration has the potential to effectively manage this issue. The study addressed various types of patient motions and showed that the Nanox.ARC configuration is less susceptible to motion-induced artifacts. The data and conclusions of the study have now been published in Biomedical Physics and Engineering Express, making key opinion leaders aware of the value of the Nanox.ARC for sound mounting a common imaging challenge. Earlier, I acknowledged the value of bringing medical imaging experts and key opinion leaders onto the Nanox team. With that goal in mind, we have recently strengthened our Medical Advisory Board with 2 new additions. Dr. Lawrence Tanenbaum is an active consultant in the medical imaging space. He is a long-term collaborator for the medical imaging industry and continues to chair the advisory board for imaging, OEMs, pharma, and AI concerns. He has an interest in developing applications for AI and machine learning, concert agents, MR, CT, and advanced rendering. Dr. Tanenbaum served as Vice President and Chief Technology Officer and Director of Advanced Imaging at RadNet Inc. from 2015 to 2024. Second, George Spire is a medical imaging executive with over 25 years of global leadership experience. He has held senior roles at various companies specializing in imaging technology and digital health transformation. He is an expert in bringing innovation to market and scaling customer-centric tech-driven health care solutions. We are excited to have these talented individuals join the Nanox team as we seek to innovate and change the medical imaging landscape. Our key opinion leader strategy is evolving into a structured segmented model that includes visionary leaders, clinical collaborators, and show sites. This approach enables us to amplify our clinical voice while supporting presales activities and beta testing in targeted specialties such as orthopedic and lung cancer screening. Together, these efforts create a cohesive clinical narrative that supports commercialization, enhances credibility, and drives adoption, positioning Nanox as a category-defining innovator in digital radiology. We continue close collaboration with our OEM partners toward the supply of components needed as our ARC deployment continues. Furthermore, we are seeking partnerships with additional providers of unique imaging equipment to develop new and innovative uses of our 3D tomosynthesis technology. Additionally, in Q2, we met with multiple companies across a handful of application areas we believe our technology provides unique and even disruptive technical benefits. These companies were approached based on an exhaustive review of their applications, market position, our perceived product fit, and of course, the commercial opportunity potential. Having received several requests for additional data and/or testing results, we are now reviewing, prioritizing, and formulating responses outlining proposed next steps. New applications and business development efforts take time, but this level of activity demonstrates our continuous probing for new use cases and applications for our differentiated imaging technology. I'd also like to follow up on my comments regarding Varex from our last call. We are sourcing glass tubes from Varex for our units as they are more economical than ceramic and advantageous for our application. At this time, I shared that Varex had delivered tubes for use in the newly developed Nanox.ARC and that Nanox has technical staff at Varex facility for validation and training on multiple source demo units. The ARC team in Israel began system integration of Varex tubes into the ARC X earlier this month, and we approached the time to start manufacturing the new ARC X at scale to meet anticipated customer demand. Also, delivery of the first multisource demonstrator from Varex is anticipated later this month. With regard to mass production, we have recently entered into a multi-year Volume Supply Agreement with Fabrinet, a leading global electronics manufacturing services provider to support the scalable production of Nanox.ARC X, Nanox Advanced Medical Imaging. Under this agreement, Fabrinet will provide contract manufacturing services, including assembly, testing, procurement, and quality control, ensuring reliable and cost-effective product delivery aligned with Nanox. SOURCE specification. The long-term agreement will help to ensure stable and high-quality manufacturing as well as flexible production and forecasting to support our anticipated growth. In addition to manufacturing services, Fabrinet will support regulatory compliance, quality assurance, and continuous improvement processes to help optimize the efficiency of the manufacturing process. We believe this collaboration will drive down our manufacturing costs over time and strengthen our global supply chain, which will, in turn, support our mission to expand access to innovative, affordable imaging technology worldwide.

Thank you, Erez. We reported a GAAP net loss for the second quarter of 2025 of $14.7 million, which is higher than the reported period compared with a net loss of $13.6 million in the second quarter of 2024, which is the comparable period. The increase in net loss was mainly due to the increase of $0.4 million in our gross loss and $1.0 million in our finance expense net, which was mitigated by a decrease of $0.4 million in our operating expenses. Revenue for the reported period was $3.0 million and gross loss was $3.2 million on a GAAP basis. Revenue for the comparable period was $2.7 million and gross loss was $2.9 million on a GAAP basis. Non-GAAP gross loss for the reported period was $0.6 million as compared to a gross loss of $0.2 million in the comparable period, which represents a gross loss margin of approximately 21% 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. The increase in the company's revenue and gross profit margins from the teleradiology services was mainly attributable to customer retention, increased rates, and increased volume of the company's reading services during weekdays, weekends, and night shifts. During the reported period, the company generated revenue through the sale and deployment of its imaging systems and OEM services, which amounted to $221,000 for the reported period with a gross loss of $1.7 million on a GAAP basis and non-GAAP basis compared to revenue of $68,000 with a gross loss of $1.3 million on a GAAP basis and non-GAAP basis in the comparable period. The company's revenue from its AI solutions for the reported period was $0.1 million with a gross loss of $2.0 million on a GAAP basis compared to revenue of $0.1 million with a gross loss of $2.0 million in the comparable period. Non-GAAP gross loss of the company's AI solutions for the reported period was $19,000 compared to a gross profit of $57,000 in the comparable period. Research and development expenses net for the reported and comparable period were $4.8 million, reflecting no change between the periods. Nevertheless, there was a decrease of $0.4 million in share-based compensation and $0.3 million in expenses related to our development activities, which were mitigated by an increase of $0.3 million in salaries and wages and a decrease of $0.4 million in grants received. Sales and marketing expenses for the reported period were $1.2 million compared to $0.8 million in the comparable period, which represents an increase of $0.4 million, mainly due to an increase of $0.3 million in salaries and wages and $0.1 million in marketing activities connected to the commercialization in the U.S. market. General and administrative expenses for the reported period were $5.1 million compared to $5.9 million in the comparable period. The decrease of $0.8 million was mainly due to a decrease of $0.5 million in share-based compensation, a decrease of $0.5 million in the company's legal expenses, and a decrease of $0.2 million in D&O insurance expenses, which was mitigated by an increase of $0.2 million in salaries and wages. Non-GAAP net loss attributable to ordinary shares for the reported period was $10.9 million compared to $8.4 million in the comparable period. The increase of $2.5 million was mainly due to an increase of $0.4 million in non-GAAP gross loss, an increase of $1.0 million in the non-GAAP operating expenses, and an increase of $1.0 million in non-GAAP financial expenses. Turning to our balance sheet. As of June 30, 2025, we had cash, cash equivalents, restricted deposits, and marketable securities of approximately $62.6 million and had $3.3 million in short-term loans from a bank. We ended the quarter with property and equipment net of $46.1 million. As of June 30, 2025, and December 31, 2024, with approximately 63.9 million and 63.8 million shares outstanding, respectively.

Thank you all for joining us today for our quarterly call. We appreciate the ongoing support from our investors, which is vital in helping us achieve our vision of making medical imaging more accessible worldwide and improving patient outcomes. Nanox has made progress advancing our Nanox.AI business on multiple fronts and the deployment of the Nanox.ARC system in the second quarter, and we are on pace to meet our target of 100 units in deployment by year's end with revenues expected in the second half of 2025. We are seeing a growing and increasingly robust manufacturing pipeline, and we are proud to mark a breakthrough in the European market with the first system ready for shipment, working on enlarging our network. By expanding our systems output with a 2D view image, we reaffirm our commitment to continuous product enhancement in line with evolving market needs. Alongside our commercial efforts, we are executing a robust clinical program designed to produce data supporting the use case of Nanox.ARC technology. We continue to partner with leading academic institutions that are leveraging our AI solutions and engaging key opinion leaders who can partner with Nanox to drive behavioral change in the medical imaging sector. I'm proud of our team's diligent execution of our multifaceted growth strategy. If you would like an update call with the team, please contact our Investor Relations partners at ICR Healthcare. Thanks again for your time and attention today, and we look forward to our next update.

So starting off, how many systems were operating during the quarter that resulted in $221,000 in imaging-related revenue?

Can you repeat the question?

Yes. How many systems were operating during the quarter, where scans were being performed that resulted in your reported $221,000 in imaging-related revenue?

Okay. So right now, more than 20 are operating and scanning patients. And all the numbers that we gave last time have increased. So the number of operating systems, the number of systems which are being in the process to install, and the number of fleets have grown exponentially that we are currently dealing with, namely the deal flow. Right now, as previously indicated, we can say that the 100 that we are talking about are identified. So we know each one of them, almost each one of them, when it's going to be installed and when it's going to be shipped and start to operate.

Okay. That's great to hear. And then looking at those 100 leads, are you expecting any of those to be capital sales? Or should we assume they will all be placed via the MSaaS model?

I would say that part of them will be CapEx.

Great. And then lastly, how many states in the United States are you now approved in for users to operate a system?

Right now, 8.

I guess, first, a follow-up on the placements of units. Could you talk about the current revenue model? Is it mostly subscriptions versus CapEx in licensing? Just trying to get an idea of how that model has evolved as the launch has continued.

Okay. You want to go ahead, Ran?

So Scott, as we have discussed in the past, our leading model is the MSaaS model. But as we said also in the past, we do want to do some CapEx sales. Just to remind you, we said in the past that all the sales in European countries will be in a CapEx sales model to our distributors. And in the U.S., we expect to be a mixture of CapEx sales and MSaaS model. Some other territories will be probably MSaaS or CapEx sales depending on the traits of the geographics.

Okay. Great. Looking at the quarterly revenues, the AI solutions line tends to fluctuate significantly, and the figures are relatively small. That would be the $96,000 reported in the second quarter. Could you provide insight into where that number might head in the future? Should we expect to see more consistent trends rather than the current volatility?

The answer is yes. From the AI perspective, we have already indicated that 2026 will be the breakeven point for revenues and expenses of the AI. We are seeing continuous growth in almost all the locations where the systems are deployed. It's important to consider that the revenue recognition policy has a significant impact on the AI. For instance, while we install the systems, we currently receive annual payments. Therefore, from a cash flow standpoint, our figures are significantly higher than what is reported for the quarter. Additionally, it's noteworthy that Ezra Medical, mentioned previously, is experiencing exponential growth in its numbers. This will contribute to our expanding activities in the B2B2C market. We also announced a similar agreement today that we believe will generate revenues even double those of Ezra Medical. In terms of OEM, we only register and report numbers when we ship products. Consequently, the figures for 2026 will likely better reflect the growth associated with the agreements we've signed.

Okay. Great. And then just quickly on operating expenses. Any trends we should expect? I mean it's been pretty consistent around that kind of $11 million to $12 million a quarter range. Should we expect that to continue going forward? And I guess it's probably the 2026 time frame as well. When would you expect to start seeing the quarterly losses start to decline? I know it's an expensive business model, but at some point, you reach that inflection where the revenues start to outweigh the cost. Just trying to get an idea of when that is. Sorry, there's 2 questions in there.

Yes. So with regards to the OpEx itself, you see there it's correct that it's maintaining the same level in the past few quarters, and that comes from more efficiencies and more measurements that we do to maintain the level of the expenses and to keep our brand to the minimum. On the other hand, you see an increase in our sales and marketing expenses as a result of the deployment in the U.S. market and the increase in our sales and marketing activities. All in all, we it's a trade-off. Once we increase in one place, we do decrease in one place, and we're trying to maintain the same level of expenses. And as we have said before and in the past, once you see, especially in the second half of this year, and going forward, when you're going to see the revenue alleviating, then you should see a decrease in the operating loss and the burn, et cetera.

Firstly, could you talk about studies and submittals and publications and presentations in the back half of the year, specifically around RSNA and your activities headed into RSNA?

So regarding RSNA, we have already submitted our materials. We will be showcasing the complete Nanox end-to-end solution at this significant industry event for the first time. We will present the ARC X, and we will also display the first installation of AI interpretation as part of the ARC X systems. Additionally, we have submitted a clinical paper focused on MSK, as mentioned earlier in the earnings prepared remarks. We will have a presentation at the AI theater led by our Chief Medical Officer, and our key opinion leaders, including Dr. Tanenbaum, will participate in various discussions throughout the event.

Could you discuss the geographical areas concerning both ARC placements and AI solutions, particularly looking ahead to the remainder of this year and into 2026 and 2027, focusing on the countries and regions where we anticipate significant growth?

Okay. So first of all, we have indicated today in my remarks that the focus will be in the U.S., both for the AI and for the ARC as well. And this will be a major part of our efforts, including the number of people that are going to be dedicated to the sales and marketing efforts. In addition, we are planning to focus on EU countries. Right now, we have in our list approximately 8 countries. A few of them already signed, and a few of them are in the process of being signed very shortly. We are very proud of the fact that less than half a year from the CE marks, the first system is going to be sent to Europe and installed in Romania at our distributor. Next probably in the line will be Greece. We are discussing about three or four countries in Europe as part of our second phase. Additionally, we will allocate resources, such as salespeople and channel managers, to focus on Mexico. We already have an agreement in place for Mexico, but obtaining the permit, import license, and local certification takes time. We have several systems prepared for shipment to Mexico and are awaiting the permit soon. We are currently negotiating with a few other countries in Latin America to be part of this initiative. Right now, the Far East will not be our first priority, although we do have a distributor working on the license in Korea; the rest will be on hold. We will not concentrate on Africa at this time until we gain more clarity on the economic conditions of the countries we are engaging with. In terms of AI, the U.S. is currently our primary market, followed by Europe and then Latin America. We have initiated two pilots in India and have one system installed in Thailand, among other efforts. For original equipment manufacturers, we are operating on an international scale. We have a significant customer in Europe and another major customer in the U.S., as well as one in Israel. Additionally, we have all our systems set up in hospitals across Israel, and we are planning to install several AI systems similar to the ones we have with Ezra Medical in Israel. Sorry for the long answer, but the detailed one. The one thing that I would say, Jeff, is basically from the call, what you can see is that we are really playing across the whole court with the business development in the workers' comp and in the mobile units that we are talking about the future. From our point of view, there are no shortcuts. We go step by step one after the other. We are really changing the standard of care. And therefore, it's very organized. It's widespread in terms of the areas that we're focused on. We see the results of the way that we operate this step-by-step and no shortcuts, we see the results that are coming time after the other, quarter after quarter.

And with that, this concludes the question-and-answer session. Thank you for your participation in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.