Nano-X Imaging (NNOX) Q3 2025 earnings call transcript

of what you speak of host, Mike Kavanaugh of Invest Relations. Please go ahead. Good morning and welcome to the NANOX Imaging third quarter 2025 investor call. Earlier today, NANOX Imaging Limited released financial results for the quarter ending September 30, 2025. The release is currently available on the investor section of the company's website. With me today are Eris Meltzer, Chief Executive Officer and Acting Chairman, and Ron 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 administrative expenses, and non-GAAP gross loss per share.

With that, I'd now like to turn the call over to Erez Meltzer.

Good morning, everyone, and thank you for joining Nanook's third quarter 2025 earnings goal. While many companies talk about global expansion, Nanook is delivering on it. It is important for us to share not only where we stand today, but also the path we are shaping for 2026 as we work to fulfill our mission and strengthen Nanooks as a leading company in the medical imaging industry.

We are building a comprehensive medical imaging portfolio focused on increasing revenues and accelerating our path to profitability. Our strategy includes reinforcing our position in the medical AI sector, deepening our foothold in the U. S. healthcare system, and driving meaningful change in the standard of care for medical imaging. We are entering into our second execution phase. We plan to further expand the ARC deployment and pipeline, grow our AI presence through the acquisition of VASO healthcare IT that is being contemplated, contemplated and explore further opportunities in imaging equipment with potential acquisitions and collaborations. While not every element is fully within our control, we believe it is the right time to share our growth roadmap. For 2026, we are guiding for more than $35 million in revenues.

Coming back to 2025, the third quarter brought progress across the organization, including our technology expansion, market scaling, AI infrastructure, and operational efficiency. Today, I'm excited to share with you the progress we're making across our strategic three pillars, where we are demonstrating real momentum in moving from innovation to to commercial scale with the measurable results.

Our first pillar focuses on technology expansion and market scaling, where we see momentum in our commercial deployment efforts. Nanook's Arc is now entering a growth phase in the retail imaging segment, expanding access to advanced imaging and community and outpatient settings where patients need it most.

We recently signed two new agreements in the Czech Republic and in France that represent an important milestone in Nanox European strategy and follows recent distribution agreement in Greece, Romania, demonstrating the rising demand for Nanox imaging ecosystem and strengthening its presence across Europe. We are progressing toward our goal of deploying 100 systems worldwide in various stages for clinical, demo, and commercial purposes by the end of 2025. A number of system are pending final regulatory approval and site preparations. As we scale our current ARC deployment, we are simultaneously working on unlocked even greater market potential through the regulatory advancement.

In the U. S. , we continue to work with the FDA to remove the adjunctive use limitation, which will allow us to market the NanoX arc as a standalone modality.

Building on both our deployment momentum and anticipated regulatory progress, we are preparing to launch our next-generation platform that will further accelerate market penetration. The new Nanox ARC-X system, which is to be unveiled at the RSNA annual meeting in less than two weeks, will extend our commercial reach even further with its smaller footprint and simplified installation process. Importantly, it has the flexibility to support additional clinical indication in the future.

This enhanced platform is designed specifically to meet the diverse needs of our growing customer base and expand our addressable market significantly. I'd like to highlight another example of how we are working to expand the market for NanoX Arc. The Nanox ArcX is AI-ready, which means it is compatible with future AI solutions that are currently under development to interpret the Arc images. Ultimately, the clinical output will be an AI-enhanced 3D digital tomosynthesis series with annotated pulmonary nodules, which may be an innovative new tool in the arsenal of lung cancer detection. Our second pillar, AI infrastructure and integration, represent the technological heart of our strategy, connecting all the pieces of our ecosystem and driving new revenue opportunities.

intelligence is part of our core value proposition, transforming us from a hardware company into a comprehensive imaging platform. In a key move to advance our AI business, we recently reached an agreement to acquire VASO Healthcare IT, or VHCIT, a wholly owned subsidiary of VASO Corporation. which provides based-of-breed healthcare IT solutions from various technology partners, specifically imaging information technology solutions, which support imaging workflow for providers.

Nanox and VHSCIT together create a powerful synergy that connects Nanox AI's FDA-cleared imaging AI solution with VHCIT's deep expertise in IT integration, implementation, and customers operation. This will potentially help us deliver improved customer service to our growing U. S. customer base. This acquisition will align with our ongoing progress on multiple fronts as we expand our network and collaborations with prominent organizations such as CiroSynon, 3DR, Covera Health, and others.

More details are included in my remarks below. Now for an update on our third strategic pillar, which focuses on operational efficiency and sustainable growth. We are building a leaner, more focused organization to support long-term success. Our workers' compensation and retail imaging initiatives continue to grow, creating scan-based revenue opportunities that strengthen our financial foundation. Additionally, we are strengthening our production capabilities through our partnership with FabriNet, preparing to manufacture hundreds of systems, and in parallel, we continue to enhance our tube manufacturing infrastructure as well.

Nanox remains dedicated to accelerating and development of a highly efficient manufacturing operation. Let's now review the progress we made during the quarter in our U. S. deployment progress, which demonstrates the strong commercial traction we are building across multiple channels. Currently, we have a growing number of ARC systems actively scanning, showing consistent utilization and clinical adaption. One of the most active sites is an imaging center in California. During the third quarter, it achieved above average scanning levels and the feedback from them has been very positive. Our installation plan provides us with a solid foundation for revenue generation and market presence. Another example is our recent collaboration with Kaiser University, where the Nanux art has been integrated into their Radiological Technology graduate program, this flagship training and demonstration site is already actively scanning, giving future imaging professionals hands-on experience with Nanook's art early in their careers.

The full engagement of our business partners and the upcoming retail infrastructure reinforces our confidence in the next year guidance. I also want to let you know that NANUX will have a strong presence at the Radiology Society of North America, or in short, RSNA, annual meeting, which begins on November 30th in Chicago. There, we will provide more detailed insights into our commercial progress and future strategy. We welcome you to visit our booth if you are attending the event.

In a recently announced partnership, we enter into a distribution agreement with X-Ray, a leading Czech distributor of medical imaging system, to introduce Nanox advanced imaging solution to healthcare providers across the Czech Republic. Under the terms of this agreement, X-Ray will lead the market introduction, sell and service of Nanox Medical Imaging Solution, the Nanox Arc. Founded in 2013, X-Ray is recognized as the number one supplier of digital radiography system in the Czech Republic, with installations in more than half of the country's 200 healthcare facilities and nationwide sales and service coverage. Additionally, this week, we signed off a distribution agreement in France with Althea France SARL, part of Althea Group, one of Europe's largest independent providers of managed medical technology services.

As part of the agreement, Althea France will lead the introduction, distribution, installation, and service of NANUC's medical imaging solution, the NANUC's ARC, across France's public and private healthcare sector. we have stated before that our initial foray into the many European countries will be best served by commercial partnerships such as this and rest assured we are working on others These partnerships are just some of the steps we took in the third quarter to better position us to scale globally and redefine the standard of care through innovation that makes imaging more accessible and efficient.

As we scale our current ARC deployment, we are simultaneously working to unlock even greater market potential through regulatory advancement. In the U. S. , the company has submitted the TAP2D software module to the FDA through the 510 program.

TAP2D is a 2D view image output for the Nanox Arc systems, a practical tool for audiologists to enhance their diagnostic confidence as they become more experienced evaluating digital tomosynthesis images. TAP2D, once cleared, will be part of a wider vision held by Nanox to alleviate adjunctive use limitation in the future.

For perspective, adjunctive use limitation do not apply for the C-Mark NanoXR in the European market. This remains one of our top priorities, and we believe that removing adjunctive use limitation will be a critical milestone that may unlock significant new market opportunities for the NanoXR platform. This regulatory advancement represents a potential key catalyst for accelerated adoption across healthcare systems.

Outside of the U. S. , our regulatory efforts continue, but it is worth nothing that these efforts will not be as streamlined as those in the U. S. where FDA clearances allow distribution in the entire country. The rest of the world by nature is very fragmented, and we're working with many different countries which have their own processes and regulations. In some instances, regulatory progress is slower than we would like.

Nevertheless, we have not stopped pushing ahead with our regulatory efforts, which continue to be paramount, important to Nanox. Now, I'd like to discuss some of the extensive clinical work we are undertaking that supports all of our commercial efforts by generating robust data supporting the use of our solution across multiple clinical applications. I'm happy to report that Cedar Sinai Medical Center is joining a trial of NanoX AI for a new AI model for aortic valve calcification measurement solution that is under development. The solution is intended to quantify the level of aortic valve calcium, which is an important measure of first for aortic valve disease.

We are very pleased to be partnering with Cedars-Sinai, one of the nation's premier medical institutions. We also have begun a collaboration with NDS Wellness, an independent provider of wellness screening programs located in Michigan, with whom we are engaging clinical trials to further assess the clinical value of Nanook's ARC in the context of lung cancer detection, management, and screening.

Last month, we attended the Early Lung Cancer Action Programs, the ECLIT 40S conference in New York, focused on lung cancer screening and early detection. Among several presentations about the advantages of digital thomasynthesis in the lung cancer screening, Dr. Lorenz Tannenbaum delivered an inspiring talk about how he believes that Nanux Arc can be utilized in lung cancer screening and disease management protocols. outside the u. s we are excited about recent collaboration with all of imagery which is a group of independent radiologists who practice at several sites in leather france utilizing high performance technical facilities through this collaboration the nanox rx system has been deployed at Hôpital Trivé Jacques Cartier at Massey, one of the leading private hospital groups in Paris' metropolitan area, for a clinical trial designed to further assess the value of the NAMOX ARC in supporting lung cancer detection, management, and screening.

This collaboration advanced our clinical evaluation effort in the second-largest country in the EU. The data derived from this trial is intended to demonstrate the AHRQ's potential to improve patient outcomes through early screening for lung cancer, which is the deadliest cancer worldwide. We continue to engage with research partners globally to execute a comprehensive clinical evidence generation strategy. I mentioned we will have a large presence at RSNA this year, and I encourage you to visit our booth.

All details regarding our participation were published last week. As I mentioned in my opening remarks, we are acquiring VASO Healthcare IT, or VHPIT, a wholly owned subsidiary of VASO Corporation, which provides best-of-breed healthcare IT solution from various technology partners, specifically imaging information technology solutions, which support imaging workflow for providers. NanoX and VHCIT together create a powerful synergy that connects NanoX FDA Clear Imaging AI solutions with VHCIT's deep expertise in IT integration, implementation, and customer operation. Under the terms of the proposed transaction, Nano will acquire VHCIT for a total consideration of up to $800,000, consisting of a $200,000 cash payment at closing and up to $600,000 in performance-based earn-out payments over a period of up to two years, contingent upon revenue retention targets with respect to existing customers.

This transaction is intended to accelerate deployment of Nanox AI solution across U. S. healthcare facilities and is expected to be executed and completed within a couple of weeks. Given the rapidly evolving nature of medical imaging technology, it is a challenge to keep up with these changes and informatics, and VASO Healthcare IT serves as a trusted advisor to address and solve these issues. We expect this partnership to accelerate the commercialization of Nanox AI solutions and help generate scalable recurring revenues.

Key synergies include cross-leveraging our organizational shared expertise, active accounts, sales funnels, and product offerings. We believe this acquisition immediately expands the value we deliver to customers and shareholders.

We recently entered a commercial partnership with 3DR Labs, one of the largest and most trusted providers of 3D medical imaging post-processing services in the U. S. 3DR Labs offers NanoX AI FDA-cleared imaging solutions to its network of more than 1,800 hospitals and imaging centers across the US. The partnership enables 3DR Labs to market and distribute NanoX AI software solutions to its client-based network of more than 1,800 hospitals and imaging centers across the US. The agreement positions NanoX AI technology to support initiatives to drive early disease detection and improving clinical outcomes at a scale across the United States.

We are also expanding direct-to-clinician access to NanoX AI solutions and launching new AI applications that have the potential to improve diagnostic accuracy, early detection, and patient management. I'm happy to report that we have closed our first deal under this new direct-to-clinician business model. This approach enables AI at the clinic level, equipping clinicians with value-added tools on-site, and eliminating the need to send patients to other locations for CT scans. I'm particularly excited about our current lineup of advanced AI solutions that analyze routine medical CT scans for any clinical indications to help identify patients with asymptotic or undetected findings correlated with chronic conditions in cardiac, liver, and bone, promoting preventive care management where AI assists clinicians in generating numerical indications for further decision support.

We are in the process of developing more innovations to add our offering, and I look forward to announcing new AI developments as they become available.

In other AI-related news, we have successfully expanded our existing agreement with Covera Health. This new agreement builds upon our initial collaboration, which focuses on retrospective analysis to identify care gaps and support their platform.

Our expanded agreement now includes prospective use cases such as opportunistic screening for improved care outcomes. We've also expanded our AI footprint to India, having recently signed a distribution agreement with an Indian commercial partner, and we're already running two pilots projects with several more in the pipeline.

A key element of the third pillar in the creation of sustainable and efficient supply chain to ensure we can meet anticipated future demand. With that in mind, we continue to engage with third-party manufacturers and suppliers for the commercial production of our digital X-ray tubes and other components for the use in the Nanox arc, based on, among other things, cost-effectiveness, etc. We are currently developing glass-based digital X-ray tubes for use in the Nanox arc. As previously disclosed, we are working with third parties such as CEI and Varex to build tubes and system a chip maker located in Switzerland for our chips. Our work with our manufacturing partners is a key component of the third pillar of future success.

We will continue close collaboration with our technology suppliers to secure the supply of components needed as our ARC deployment continues. As of today call, we have fabricated enough emitters and begun scaling tube production to support the initial launch of our next generation ARC-X. Specifically, to Varex, we are well underway with performing all the necessary tubes and arc level testing to add them as an approved supplier early next year. We have additionally taken receipt from them of multiple MBX multi-source demonstrations to advance our testing and development of stationary digital tomosynthesis and stationary CT-type solution. Varix's MBX or multi-beam x-ray combines the precision of traditional x-ray with a detailed insight of CT imaging and enables faster, higher quality scans with reduced radiation exposure, offering clearer images and better patient outcomes.

CARIC's personnel will visit our lab in Israel soon to support these efforts. We're also working in partnership with Novel Imaging Technology Company to explore utilization of our emitter with their speciality detectors. These efforts toward low-dose single-exposure dual-energy capabilities significantly enhance visualization for medical security and inspection applications On the OEM business development front in response to requests from the security materials analyst analysis and high-resolution inspection market, we are in the process of fabricating several novel emitter layouts, each with unique functionality to specifically address pain points or ad requested capability as compared to their current offering. We've also recently delivered two of our developer kits.

One is the leading US academic institutes for medical solution development for medical application development, and another to one of the largest global providers of industrial x-ray NPT inspection sources, developing their next generation system.

Regarding our project with Oak Ridge National Laboratory, We are now working towards material acquisition and fabrication of the second-generation prototype to be utilized in their novel and compact mobile X-ray technology developments. As previously reported, we have entered into a multi-year volume supply agreement with Fabrinet, a leading global electronics manufacturing services provider, to support the scalable manufacturing of Nanux Arc systems. We believe this collaboration will drive down our manufacturing cost over time, which will in turn support our mission to expand access to innovative, affordable imaging technology worldwide.

Looking ahead, Nanox is dedicated to accelerating the development of a highly efficient and scalable manufacturing infrastructure. We will always be looking for ways to extract more efficiencies and may include future strategic collaborations.

As we look ahead, we would like to provide our investors with some financial guidance for the coming year. Given our current business trajectory, sales funnel, new partnership, and the VASO acquisition, we expect to generate a minimum of $35 million in revenue in 2026. Furthermore, we project the AI business segment with the addition of VHCIT will achieve EBITDA break-even on quarterly basis sometimes in 2026. We expect NANOS as a whole to reach EBITDA break-even on a quarterly basis in 2027. These projections reflect our beliefs in an achievable path to sustainable profitability driven by our expanding commercial deployments and recurring revenue streams. We are executing a clear and consistent strategy across all three pillars, moving forward with a confidence while systematically expanding our market presence and strengthening our foundation for long-term success.

With that, I would like to hand the call to Rand Daniel for review of our financials. Rand, over to you.

Thank you, Eric. We reported a gap net loss for the third quarter of 2025 of $13.7 million, which is the reported period, compared with a net loss of $13.6 million in the third quarter of 2024, which is the comparable period. Revenue for the reported period was $3.4 million and growth loss was $2.9 million on a GAP basis. Revenue for the comparable period was $3.0 million and growth loss was $2.8 million on a GAP basis. The increase of $0.4 million in the revenue stems from an increase of $0.6 million in our revenue from our tele-radiology services, a decrease of $0.3 million in our revenue from our AI solutions, and an increase of $0.1 million in our revenue from the sales and deployment of imaging systems and OEM services.

Non-GAP gross loss for the reported period was $0.3 million, as compared to a gross loss of $0.2 million in the comparable period, which represents a gross loss margin of approximately 8% on a non-GAAP basis for the reported period, as compared to a gross loss margin of 6% on a non-GAAP basis in the comparable period. Revenue from the teleardiology services for the reported period was $3.1 million, with a gross profit of $0.1 million on a GAAP basis as compared to revenue of $2.6 million with a gross profit of $0.3 million on a gut basis in the comparable period, which will present a gross profit margin of approximately 25% on a gut basis for the reported period as compared to 13% on a gut basis in the comparable period.

Non-gut gross profit of the company's cell radiology services for the reported period was $1.3 million as compared to $0.9 million in the comparable period, which represents a gross profit margin of approximately 43 on a non-doubt basis for the reported period as compared to 35% on a non-doubt basis in the comparable period. The increase in the company's revenue and gross profit margins from the tele-radiology services was mainly attributable to customer retention, increased rates and increased volume of the company's reading services during the weekend and weekdays.

During the reported period, the company generated revenue through the sale and deployment of imaging systems and OEM services, which amounted to $175,000 for the reported period. with a gross loss of $1.7 million on a GAAP basis and a non-GAAP basis compared to a revenue of $29,000 with a gross loss of $1.5 million on a GAAP basis and a non-GAAP basis in a comparable period.

The company's revenue from its AI solution for the reported period was $0.1 million with a gross loss of $1.9 million on a GAAP basis compared to revenue of $0.4 million with a gross loss of $1.6 million in the comparable period. Non-GAAP gross profit of the company's AI solution for the reported period was $75,000 compared to a gross profit of $370,000 in the comparable period.

Research and development expenses net for the reported period were $4.6 million dollars compared to $4.7 million in the comparable period, which represents a decrease of $0.1 million. The decrease was mainly due to a decrease of $0.4 million in share-based compensation and $0.5 million in expenses related to our development activities, which were mitigated by an increase of $0.5 million in salaries and wages and a decrease of $0.3 million in in grants received.

Sales and marketing expenses for the reported period were $1.5 million compared to $0.9 million in the comparable period, which represents an increase of $0.6 million, mainly due to an increase of $0.5 million in salaries and wages, $0.5 million in marketing activities with connection to the commercialization in the US market, which mitigated by a decrease of $0.1 million in share-based compensation.

General and administrative expenses for the reported period were $5.3 million compared to $5.7 million in the comparable period. The decrease of $0.4 million was mainly due to a decrease of $0.6 million in share-based compensation, decrease of $0.2 million in the company's legal expenses, and a decrease of $0.2 million and ZNO insurance expenses, which were mitigated by an increase of $0.5 million in salaries and wages and recruiting fees.

Non-GAAP net loss attributable to ordinary shares for the reported period was $9.9 million. Compared to $8.7 million in the comparable period, the increase of $1.2 million in the non-GAAP net loss attributable to ordinary shares was mainly due to an increase of $0.1 million in the non-GAAP gross loss and an increase of $1.1 million in the non-GAAP operating expenses.

Turning to our balance sheet, as of September 30th, 2025, we had cash, cash equivalents, and marketable securities of approximately $55.5 million and at $3.2 million short-term loans from a bank. We ended the quarter with the property and equipment net of $46.7 million.

As of September 30, 2025 and December 31, 2024, we had approximately 65.4 and 63.8 million shares outstanding, respectively. With that, I will end the call back over to Erez.

Thank you, Ron. The third quarter of 2025 was transformative for NanoX as we evolved from a hardware company into a comprehensive imaging platform. With our acquisition of VASO Healthcare IT, new partnerships with 3DR Labs, Altea and X-Ray, and the upcoming launch of our AI-ready ARCX system at RSNA, we are building the infrastructure for sustainable recurring revenue streams that will define our future growth.

Together, with our recent collaboration in Greece, Romania, the Czech Republic, and France, we are strengthening our European footprint. And in parallel, our collaborations with Cedars-Sinai and our ongoing clinical trials in France continue to advance the clinical validation of our technology and contribute to the global momentum behind our platform. Through our three strategic pillars, we are executing a comprehensive commercial strategy that combines innovative technology with robust clinical evidence generation and systematic market deployment. For those some elements being beyond our dire control, we believe this is the right moment to present our growth roadmap, and for 2026, we are guiding to revenues of $35 million. dollars. Our purpose remains unchanged to redefine medical imaging by uniting innovation, intelligence, and accessibility, creating meaningful impact for patient, clinician, and healthcare system worldwide.

The momentum we are building across our commercial deployments and clinical evidence generation positions us well for continued growth and market leadership. Thank you for your continued support. Operator, please open the call for a question.

Operator, just before the question, it's Erez. One comment regarding what actually was said, that last night we have actually closed the VASO Healthcare IT acquisition, so actually it's done.

With that, you can go ahead and open for the Q&A.

A few dozens. Out of all the together, a few of them are being installed as we speak. and a few will be installed in the next few weeks.

And as mentioned, we are counting on the expansion of the retail, expansion of the business partners, expansion of the salespeople that are closing deals right now. We have a few, as mentioned, some of them are waiting for regulatory approvals, for physics approval, for site preparation, but altogether this has been a moment.

I assume that we are regarding to the paragraph in the script and the PR that describes the revenue from deployed systems and OEM services, correct?

So, I'll refer you to this paragraph. And I don't think in general saying that the answer is changing with regards to the system.

Most, I would say, the majority are MSAS.

But we still see, we can see an increased activities in the CAPEX sales arena.

And the return.

No problem.

Jeff, I'm sorry. Can you raise your voice, please? Because you are a little bit far away from the table.

Generally saying, what you would expect to see is that our investment in the deployment efforts, namely the sales and marketing expenses, will increase, of course. because we need to invest in all the activities that are related to the deployment of the systems and the sales. On the other hand, you should see more tamed R&D expenses as the focus is going towards commercializations and less on development activities. and we're trying our best to be more, as you know, to be as efficient as we can be. And you should see the same level of GNA with some fluctuations.

Don't forget that a major portion of our GNA expenses are related to us being a public company. And, you know, sometimes those expenses increase.

So the 100 customers of VASO, all of them are medical-related. They are actually serving hospitals, imaging centers across the United States. From our point of view, we have a lot of cross-selling that can be achieved. And the majority of the, I would say, the main purpose of the VASO acquisition will be to serve the operational and the customer base, the growing customer base of Nanox AI. But the more we go into the details, what we see right now within the PMI and the post-murderial integration, that they will be able to expand our sales force to the ARC systems, to those institutions, to expand the services of the IT services that they are providing. because many of those customers are modality-related customers.

In addition, what we see is that a few of the customers already mentioned an interest that the USA RUD, the teloradiology business, will be provided by our teloradiology services. And in addition, those customers are saying that they can actually refer a few of their customers to Taylor Radiology services to be obtained. I would say that this will actually strengthen our IT and software, which is one of the major pillars of our growth.

And we definitely can see their network and their customer base as a way to grow our business, our existing business.

Yeah, we mentioned this is already the second time that we say that what we are aiming that on a run-route basis on 26, where the AI business will be break-even. In fact, this was even before VASO acquisition. So right now, we believe probably that it will accelerate the probability of this to be a break-even sometimes at the end of 2026. And the other thing that we said, that the ARC hardware business will shoot for a break-even in 2027.

This is something that we already mentioned in the past. And what you can see right now, based on the wide and what you see is that we are making progress in all the fronts, in technology and the regulation and the commercialization of the business. And we strongly believe that the retail business, the business partners and our facility would actually enable us to be there. Ron, would you like to add anything?

Yes, let me fine-tune it. What we have said in the past, that the AI business will be break-even on a quarterly break-even sometimes during 2026. We didn't specify any quarter.

We do emphasize the growth of the AI division by the expansion of their B2B2C models enter into new geographics and of course with the acquisition of VASO which expands their operations and the potential for growth and achieving the quarterly break even on the quarterly run rate and while we also have said that we expect that sometimes during 2027 we may be break even in the ARC division. All in total it will bring us sometime in 2027 we may be recuing on a wide company range.

Just to be more accurate.

Thank you, Jack. Hopefully you enjoyed America's conference. Yeah. Thank you.

So first of all, I would start with a second comment. Most of what we say, we are based on not most, but I would say major part, we are based on pre-order and the and the outcome of what we are doing right now, including those three elements, the business partners, the retail, which is a major part, and the sales force that we currently have, not to mention the new acquisition.

Second, I would say that it will start slowly from Q1 and ramp up over the quarters and achieve the number at the fourth quarter. If I have to say something about mathematics, I would say that probably the line will be kind of an exponential one and not a linear.

Just to add for your question, we do see some more activities. I'm going to refer to the IBCO, just what we said in the last question for Jeffrey. Don't forget that the current census and your estimates are based without the best acquisition. So when you add the VESA acquisitions, you have to account for the $4 million in revenues that approximately that VASO have.

So other than this, the growth may come probably organic.

Approximately.

Yes, approximately.

the answer is if you look at the numbers that we gave as guidance the numbers are not based on a major quantum lead growth on the teloradiology we hope that it will grow but based on the indication that we gave it's based on the existing plus-minus numbers. All the growth will come from the other business that we have, namely the ARC business and the deployment of the ARC X and especially, hopefully, the elimination of the adjunct device of the FDA and the other business that we said and the AI business that we're talking. I think that OEM also will grow slowly and we will see a major growth from 2027, based on the indication that we currently have from our existing customers and potential customers of the OEM business.

See you there. Thank you very much.