Q4 2023 Nano-X Imaging Ltd Earnings Call

Participants

Mike Cavanaugh; IR; Nano-X Imaging Ltd.

Erez Meltzer; CEO & Director; Nano-X Imaging Ltd.

Ran Daniel; CFO; Nano-X Imaging Ltd.

Ross Osborn; Analyst; Cantor Fitzgerald & Co.

Jeff Cohen; Analyst; Ladenburg Thalmann & Co. Inc.

Anthony Petrone; Analyst; Mizuho Americas

Presentation

Operator

Good day and thank you for standing by. Welcome to the Nanox fourth quarter 2023 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to Mike Cavanagh, Investor Relations. Please go ahead.

Mike Cavanaugh

Good morning and thank you for joining us today. Earlier today, Nanox Imaging Limited released financial results for the quarter ended December 31, 2023. The release is currently available on the Investors section of the company's website. Erez Meltzer, Chief Executive Officer; and Ran Daniel, Chief Financial Officer will host this morning's call.
Before we get started, I would like to remind everyone that management will be making statements during this call then include forward looking statements regarding company's financial results, research and development, manufacturing and commercialization activities, regulatory process operations 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 non-GAAP to GAAP measures is provided with our press release with the primary differences being non-GAAP net loss attributable to ordinary share, 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 would now like to turn the call over to Erez Meltzer.

Erez Meltzer

Thanks, Mike. As always thank you all for joining us today for our financial results call and corporate update. Before we get started, I would like to take a minute to acknowledge the passing of our founder Ran Poliakine back in January. We all owe him our gratitude, and I'm proud to lead our team as we seek to realize his vision of making medical imaging more accessible to improve early detection and treatment to help people achieve better health outcome.
My remarks will be a bit longer today than usual, and I will provide a lot of details on the various business aspect of Nanox. As we share our fourth quarter update and review our financial results, I'm extremely proud of the progress our team made over the course of 2023, highlighted by the exciting milestone of FDA clearing for the Nanox ARC system, a clear validation of our technology and mission and our first steps in the US commercialization.
On today's call, we will be focusing on our fourth quarter activities as well as some of our achievements in early 2024, a year, which I expect will be transformational for Nanox. We are now in the process of expanding our commercialization of the Nanox ARC system and are aiming for a steady increase in deployments as we raise awareness of the Nanox solution.
Nanox is dedicating to accelerating the implementation of our commercial infrastructure and future strategic plans in the US. Our mission is to provide health care practices with a game changing advantage through the Nanox ARC, an accessible cost effective solution that not only provides advanced diagnostic imaging capabilities, but also elevates overall patient care.
I'd like to start our call with an update on our US deployment activities. As we have disclosed in the past, we have already deployed the ARC at the first location in the US in New Jersey in the New York metropolitan area. Since then, we have launched across five states, marketing an advancement in our US deployment, which is going as planned.
As of today's call, ARC system have been installed at several medical imaging and diagnostic system centers in New Jersey, New York, Florida and Kansas, as well as the Georgia 626 Imaging Academy, which serves as a technical and training center, the Nanox ARC system begun to scan patients. Clinical operation of the ARC system will begin in other sites, spending certification from the corresponding state's regulatory bodies. As already indicated in our Investors' Day back in December, one of the purposes of these installations to validate our MSaaS assumptions.
Based on these initial deployments, it seems that the model is indeed validated, and we are scanning around seven scans per day as well as the indication for $30 per scan. As part of the establishment of our infrastructure, the Georgia Site at 626 Imaging Academy serves as a technical and training center for the tehnicians on the use of the system, and they have successfully completed our engineers training program at the Atlanta 626 MIS Woodstock training center.
We are in advanced negotiation with another installation, maintenance and service provider in order to expand our service coverage. This is prior to scale, as we increase our footprint across the United States. We continue to expand our US sales and technical teams. We are continuing to expand our professional team and have recruited additional personnel in the US. We aim to grow gradually as needed and are being judicious about our hires to ensure that additional expenditure generate a good return on the investment.
At the same time, we are extending our sales network as planned. As we ramp up the deployments, I can share that we have begun realizing revenue streams from ARC imaging scans at the US deployed sites that are utilizing the MSaaS model. I'd like to address one final aspect regarding our commercial operation in the US. As per our standard procedures, Nanox has submitted certification request to expand the placement of Nanox ARC units to the various states across the country. I'm eager to keep you updated on the progress of these future installations.
Turning now to our deployment efforts in the rest of the world outside of the key US market. As we disclosed in our last call, we are generating revenue from hardware deployments in Africa and has three installation as of the end of March. As previously mentioned, we have had a unit installed at the University of Ghana Medical Center Limited, UGMC and which has received local regulatory clearance. I can now share that we have signed a Ghana multi-site agreement, which was done as part of our multi-site trial in Ghana.
We are conducting the trial aiming to generate continuous data and clinical evidence on the Nanox ARC. I will describe this trial in a bit more detail later in my remarks. We have also made progress in expanding the Nanox footprint in Latin America. one recent agreement is with the Peru based medical equipment distributor, which has partnered with us to distribute Nanox Connect in that country.
The partner has a strong presence in Peru with good reach into the key local health system in hospitals. And our cloud-based Connect solution should be complementary product for the product offering as this partner is already actively marketing other health care solutions, which enable remote patient exams by [dilution].
I can also update you that our distributor in Mexico is seeking to import license for the Nanox ARC and preparing for the first installation, partner has also received an import license for the Nanox Connect, and we have shipped the first two systems. Similar to the ARC, the distributor has applied to obtain the required registration to sell this solution, and we also anticipate the Connect will also continue generating revenues in 2024.
As a side comment, I will say that is very gratifying to see that the ARC and connect to be marketed together as we have envisioned this complementary imaging solution from the very beginning. I'd like to provide an update on our hardware revenues, which Ron will review in more detail shortly. While we have began generating revenues through our AI solutions in Q3, Nanox begun to generate revenue outside of the US through the sales and deployment of its imaging systems.
Now I'd like to provide an update on Nanox AI business, which has had an increase of 250% in our client base compared to last quarter. We have an installed base of health system who use HealthCCS and AI powered solution to detect levels of coronary artery calcium approve an indicator of future cardiac events. We have digested our experience in the field with this and gathered feedback from users, specifically cardiologists and radiologists to upgrade the solution.
Revisiting one of the AI product partners, Corewell Health formerly Spectrum, which began using our population health solution in mid 2022 and is a large integrated health system. We have consistently received positive feedback from Corewell Health, which is fully integrated this into their standard of care. This has been a productive partnership, which has been extended for additional term.
Many of you are aware that the Nanox solutions are available on Nuance precision Imaging Network in Microsoft company, more than 12,000 health care facilities and 80% of the US radiologist will use Nuance power strived for geology reporting. I can share that InterMountain Health has signed on to deploy HealthCCS and was part of Nuance bundled.
The go-live process started, including training activities and integration of the solution into internal systems. Nanox also achieved another regulatory milestone last month. When we receive the 510(k) clearance by the US Food and Drug Administration FDA for HealthFLD, an artificial intelligence software that provides automated qualitative and quantitative analysis of liver attenuation from routine CT scans.
HealthFLD is intended to support clinicians in the detection of fatty liver correlated with hepatic steatosis, an early sign of metabolic dysfunction associated steatotic liver disease, MASLD, formerly referred to as non-alcoholic fatty liver disease.
HealthFLD is a new and valuable tool for doctors as it has traditionally been difficult to assess liver attenuation on contracts enhance Ken's, which make up a large proportion of CT scans. HealthFLD was designed to help clinicians in the assessment and the analysis of fatty liver in general population from routine CT scans.
We believe that AI innovative solution and specifically HealthFLD, may deliver substantial advantages to that biopharmaceutical industry to streamline the identification of candidates for clinical trials of much needed therapies for liver diseases, including MASLD. This regulatory decision solidifies our leadership as a developer of automated AI Software and Medical Devices.
We also announced last month, early findings from the AI enabled adopt study, which uses Nanox AI solution. HealthVCF the previous version of our current HealthOST solution. To review repeat CT scan have identified up to six times more patients with vertebral compression fracture that the national average at National Health Services, NHS hospitals in the UK.
The study is being conducted at various National Health Service or NHS sites, including the Oxford University's Hospitals. The adopt data shows that HealthVCS is clearly demonstrated the ability to identify vertebral compression fractures in a far more patients than previously possible with existing tools, enabling earlier intervention and potentially better patient outcomes.
Today, the Nanox AI algorithms has identified over 2,400 patients with previously unknown vertebral compression fractures, and those patients has been designated for follow up evaluation and treatment. As you can see, we have been very busy not only with these Nanox ARC system deployment, but also advancing the uptake of Nanox AI, which is an important component of the complete Nanox solution.
Turning now to our OEM initiatives. After executive partnerships, kickoff meetings, AdvanSix headquarters in Salt Lake City last year, the Company's technical teams are actively engaged in validating the tube design and advancing the road map towards production and exploring future development. Expanding on our OEM related activity, we have issued our first production purchase order for industrial imaging equipment manufacture and continue to work towards a multi-year Tube Supply Agreement to ensure an adequate future supply of tubes.
Additionally, our collaboration, with the US government agency exploring Nanox ARC technology for use in security application and progressing. After their acquisition of cubes and tubes for evaluation, we are advancing toward collaboration on a novel tube based on our meter. Finally, as a means of increasing awareness and allowing access to our core technologies, we have created Nanox demonstration kit. Containing a tube utilizing our meter, and we have recently received the necessary safety and regulation certifications for the kit, and we'll be delivering our first few to interested party in the coming weeks.
Regarding to mass production has recently announced due to the scale-up in commercialization we continue as planned with our callable operation with the system, a chip maker located in Switzerland. As I mentioned earlier in my comments about Ghana, Nanox is conducting multicenter clinical trial to enhance Nanox ARC with the goal of expanding its use with chest and other indications.
The trial is scheduled to begin patient recruitment shortly and Nanox ARC systems that are being used in these trials are already scanning patients. The system installed at [Bell from Hasbro] is ready for institutional review board IBR has approved the trial and we are finalizing the remaining states for integrating the into multi-site.
In Ghana, the IRB has been submitted and currently under review. Additionally, the Nanox ARC is being used to scan patients with abnormal lung conditions at [billings on]. One of the world's top academic medical center and an institution that has pioneered advancement in radiology. Equipment with new GMP is also key currently being used to scan patients.
Our pursuit of the CE Mark in Europe is advancing in partnership with our notified body. Specifically recently, we completed a five-day audit by the notified body as part of the certification process for the CE certificates, the ISO13485 plus medical device regulations, MDR certificates. During the inspection, hundreds of records procedures, proofs, reports and examples were presented, the MDR test was passed successfully. The ISO13485 test was passed with a great success and without any adverse findings.
Sometimes after an audit, the formal review process will begin, which includes examining aspects of the manufacturing process and although we expect our application process to proceed in a timely manner, I would note the regulatory bodies worldwide are still working through a backlog of applications which accumulated during the multiyear COVID pandemic and the adjustment for the new MDR regulation.
However, as I said, we are well along in the process, and we'll continue to prioritize the work with our partners necessary to complete the Myra tasks required to bring the CE certification process towards the finish line.
With that, I'd like now to turn the call over to Ran Daniel for a review of our financial results. Ran?

Ran Daniel

Thank you. We reported a GAAP net loss for the fourth quarter of 2023 of $10.2 million, which is the reported period compared with a net loss of $52.8 million in the fourth quarter of 2022, which is the comparable periods. The decrease was largely due to a good will impairment of $36.5 million and an accrual of $8 million in connection with the settlement of the class action which were recorded in the comparable period and a decrease of $4.4 million in the general and administrative expenses.
Revenue for the fourth quarter of 2023 was $2.4 million and gross loss was $1.7 million on a GAAP basis. Revenue for the comparable period was $2.1 million and gross loss was $1.8 million on a GAAP basis. Non-GAAP gross profit for that reported period was $0.9 million as compared to $0.8 million in the comparable period, which represents the gross profit margin of approximately 36% on a non-GAAP basis for the reported period as compared to 39% on a non-GAAP basis in the comparable period.
Revenue from the teleradiology services for the reported period was $2.3 million with a gross profit of $0.3 million on a GAAP basis as compared to revenue of $2.1 million, with a gross profit of $0.3 million on a GAAP basis in the comparable period, which represents a gross profit margin of approximately 14% on a GAAP basis for the reported period as compared to 13% on a GAAP basis in the comparable period.
Non-GAAP gross profit for the Company in the radiology services for the reported period was $0.9 million as compared to $0.8 million in the comparable period, which represents a gross profit margin of approximately 38% on a non-GAAP basis for the reported period as compared to 40% on a non-GAAP basis in the comparable period.
The decrease in the gross profit margin on a GAAP and non-GAAP basis is mainly due to an increase in the course of the company radiology due to the increase in the rebate and payment of incentive payments, which the company paid for the company cardiologists to engaging with is doing to overnight and we can ship.
During the reported period company generated revenues for the AI solutions into and out of $84,000 as compared to revenue of $53,000 in the reported period. During the first quarter of 2024 nano HealthCCS cardiac solution to a second idea in the US for an annual fee of $8,500 or during the first year of the engagement and an annual fee of $75,000 from the first anniversary of the engagement and after.
During the reported period, the Company generated revenue to the sales and deployment of imaging system, which amounted to $17,000 with a gross loss of $44,000 on a GAAP and non-GAAP basis. Those revenue streams from the deployment of our to the system in Africa.
Research and development expenses for the reported period were $6.8 million as compared to $7.1 million in the comparable period, a decrease of $0.3 million was mainly due to a decrease in the Company's development expenses.
Sales and marketing expenses for the reported period were $1.0 million compared to $1.5 million in the comparable periods. The decrease was mainly due to a decrease in expenses related to our sales and marketing activities.
General and administrative expenses for the reported period were $3.8 million as compared to $8.2 million in the comparable period. A decrease of $4.4 million was mainly due to a decrease in our legal expenses in the amount of $4.0 million, largely as a result of the finalization of the SEC investigation and the settlement of the class action, a decrease in share-based compensation in the amount of $0.2 million and a decrease in the cost of the directors and officers ability insurance premium in the amount of $0.4 million.
Other income of $2.7 million for the reported period as compared to an expense of $7.8 million for the comparable period. Other expenses in the comparable period included an accrual for the settlement in connection with the class action lawsuit against the Company in the amount of $8 million, which was the reversed by the amount of $3 million in the reported period since the Company and receive this amount from its DNO insurance carrier under the settlement agreement in connection with the class action lawsuit against the Company.
Turning to our balance sheet. As of December 31, 2023, we had cash, cash equivalents, restricted deposits and marketable securities of approximately $82.8 million, and we add $3.5 million laon from a bank. We ended the quarter with a property and equipment net of $42.3 million. As of December 31, 2023, with approximately 57.8 million shares outstanding as compared to 55.1 million shares outstanding as of December 31, 2022, the increase was mainly due to the sales of approximately 2.1 million shares and warrants to purchase up to 2.1 million shares in a registered direct offering in consideration of gross profit of $30 million and a net proceeds of approximately $27.1 million.
The issuance of approximately 255,000 ordinary shares to the former shareholders of US run under the amendment to the US stock purchase agreement.
With that, I will hand the call back over to Erez.

Erez Meltzer

Thank you all. Once again for joining our call today and your continued support of Nanox mission to make medical imaging more efficient, accessible and affordable worldwide. It has been two years since I stepped into the CEO role. And when I came to here, Nanox was in a very different place. In just this year, we achieved an important milestone of FDA clearance and are seeking to potentially expand the use case for ARC with the FDA.
We are also deep into the process of pursuing SeaMark designation in the European Union and have received local regulatory clearances in other countries like Ghana. We've also begun commercialization earnest and ARC systems are now deployed for the use by imaging center and hospital systems in Israel, three countries in Africa. And as of today's call, we know we have numerous deployed systems in the US.
Over these two years we have integrated our AI strategy across the Company. Our leading Nanox AI solution provides the ability to use AI to highlight and help identify patients with asymptomatic undetected chronic disease, initiating early diagnosis and presentation management.
In this year, we also achieved two FDA clearances, the substantial clinical validation of our AI solution. We understand this has been a long road, but our progress is tangible, and we are very excited for even more progress in 2024. Before I end the call, I have one last piece of news to share, and this is something many of you have been anticipating.
On Wednesday, April 10, we will demonstrate the use of the installed ARC system, a dynamic medical imaging in Union, New Jersey, beginning at 9.30 am, demonstration will be followed by a round table discussion. Please contact our Investor Relations partners at ICR, if you are interested in attending and note that space is limited.
With that, I thank you once again and bring our fourth quarter and full year 2023 investor call at close.

Operator

(Operator Instructions)

Erez Meltzer

Just before we dive into the Q&A session, I would like to mention that we have updated our website with interesting clinical pathologies is from the US commercial side and chest from our clinical sites. In the US sample, we notes enhanced visualization compared to traditional radiography, one example is cervical spine scan. Additionally, you can find the chest study from the balance on critical clinical trial and in the chest body while the X-ray only fatally show a lesion. This lesion was clearly visualized on the Nanox ARC images and in the CT scan of the patient schedule for biopsy. So take a look and feel free to see it as well.

Question and Answer Session

Operator

Ross Osborn, Cantor Fitzgerald.

Ross Osborn

Hi guys, congrats on the quarter. Thanks for taking the questions, and starting up with ARC, Would you discuss how many systems in the US are operational across five states deployed and during the fourth quarter and also provide us with how 2024 regards thus far in terms of placements and visibility into your pipeline or backlog of orders? Thank you.

Erez Meltzer

So Ross, we have already indicated that along the year, we will add more details so far. We have not informed exactly how many systems are. We just say that we have systems installed right now in five states, the one thing I would say is that we have already manufacture a few dozens of systems and we have the system is installed in the clinical facilities, as indicated.
Next, I would say that in the next meetings I will probably I mentioned and give your more numbers. The numbers that we gave so far are scans per day, the dollars per scan and a few dozen that were already being sold and the shift to the various locations.

Ran Daniel

And Ross, mind you that the difference between the amount or the number of installed systems to the ones that are operated commercially since the gap of time between due to the local or state registration requirement.

Ross Osborn

Understood. Maybe could you provide some color on what types of centers are adopting ARC on how utilization has trended thus far and the level of comfort with $30 per scan?

Erez Meltzer

Yes, we actually we can. So we have small and medium sized medical imaging centers right now, one of them is big and the other thing that we can indicate is that the -- where else do we have, I think most of them, if I actually screener all of them, all of them, these type of clinical areas The other one that we have is the in the Georgia sight of 626 and I would say, yeah, one, a few installment installations are in orthopedic care, clinical centers and -- Yeah, that's the numbers.

Ross Osborn

Got it. And then lastly for us, would you remind us of the economics on Connect given your agreements in Peru and Mexico in terms of whether that's going to be a capital sale or and MSaaS, and if it is MSaaS, how should we think about --

Ran Daniel

Most of them are MSaaS model in the same manner that to you know that we apply to the ARC and sometimes we do that capital model now with regards to the Connect. But as I said, most of them are MSaaS model.

Erez Meltzer

Ross, it depends also on the countries, in certain countries, especially in Africa, we make a decision to sell the system in a few of them we sell for our partial amount and then charge per scan, we have various models and the Connect.

Ross Osborn

Okay, got it. Thank you for taking my questions.

Operator

Jeff Cohen, Ladenburg Thalmann.

Jeff Cohen

Hi, hello, how are you? I did want to follow up on a couple rosters questions. Can you talk about Kenexa built in a little too for scale and give us a sense of Connect versus ARC and how you anticipate on both those platforms to play out both in the US and OUS?

Erez Meltzer

Okay. Right now, the Connect is being sold outside of the US once the Connect is going to get the FDA in the US, we're going to silicon the US as well. We have right now Connect in in them more than 10 countries right now. And a lot of them are Africa. Part of them are Latin America and in Israel. We first of all, the purpose of the Connect was to extend or expand the of the line of products that we have. And the beauty of what we sell in the Connect is that we sell it not only as a piece of equipment, but bundled in with AI system included in what we sell. So the system can analyze the the image itself.
In addition, we have systems that were sold in Morocco, for example, it was used in the earth quake, Craig, by the by the customer that the body there I was used is also an Israeli in various extreme situation when you can do a test in the field or screening in the field. And the idea behind them is two folds, the first one is that I will say that sometimes we get the Connect and later on, we get the ARC.
And second is the the the inclusion or the, the how do we build the AI system into these into the imaging itself. And in terms of the process of the Connect, it's the same process, s ometimes they get from the the registration just before the ARC, sometimes after the ARC. If you take the Connect examples in Africa in one or two countries, we have achieved with the connect, one of the countries, a few days that the number of scans per day were above 120. And these are examples that can enable us actually to penetrate some clinics before.
I will actually reemphasize the fact that the ad that's really gratifying to see that the ARC and Connect the fact that they are marketed together. As we envision from the very beginning, it's basically complementary and very beneficial for what we do. The fact that we are very flexible in terms of the of the business model and the the hybrid model, the MSaaS and the than the CapEx based. And so this actually has a lot of value for us as well.

Jeff Cohen

So I guess areas where you're saying, is that a bit on some of the clearances that you would anticipate a lot of sites to or maybe the majority showed strength of both types of deployments, Arch and Connect?

Erez Meltzer

I would not say majority because sometimes some country are our would like to use that Connect more than the ARC. But I would say that in Latin America and and in the US, it will be mainly ARC and the rest of the world's. We will see a lot of countries that will sell the Connect sometimes as preparation to get access medical imaging because that's the mission that we took upon ourselves. And we're trying to get it in various ways that as we as we do. But what we know a few countries that that at the beginning was with the Connect and then we were able to sign for the ARC.

Jeff Cohen

Got it. And could you clarify a previous comment on manufacturing was a 2000 systems manufacture?

Erez Meltzer

No, no, no. We said that we have that we have a few dozens of systems that were already manufactured. We are in the process of manufacturing a few dozens assume a few more dozens. And if you think about the long lead items than if you think about the availability of parts, this enabled us actually to cover the pace of the installation that we're doing right now. If you remember in the in the Investors Day, we said that you are going is very, very conservative approach. We don't -- we cannot do, we don't have a second chance to make her first impression, especially not in the US.
So we are installing the systems. We are analyzing the data we are adding can improve in the, um, the process of installation. We have short, we have been able to shorten the time that we install the systems we are getting we are negotiating right now, another service company that will have a better coverage for the US. We have we have gained a lot of sense access or the ability to control the systems. You also from remote. We are we are opening the call center that will enable us to serve best these units.
We are increasing exponentially the number of people that are in the sales and the service team. And we are continuing to expand our professional teams and the app and recruited the Shell personnel. And last but not least, is that we have to, of course, to work on the referrals and to ensure that people will be aware of the changes that we're doing in the standard of care. And we'll do is professionally.

Jeff Cohen

Lastly for us on any commentary on 2024 as far as first quarter sequential revenue changes, et cetera. T hank you.

Erez Meltzer

Yeah. So first of all, a part of the indications that I gave are where we are so far and so the number will be growing. We are focusing on generating more revenues, more installations and more scans in the current installation in the systems that we're going to install. And I believe that next quarter we'll be able to share more detailed update and as well as numbers of where we are and w hat's the process that we are heading as right now, we are making progress according to the plan and exactly according to the what was presented at the Investors Day. As you can imagine, we are right now the best experience. We are much more careful and conservative in what we say, what we indicate and we're trying to ensure that whatever we promise will be delivered.

Jeff Cohen

Super, thanks for taking our questions.

Operator

(Operator Instructions)
Anthony Petrone, Mizuho.

Anthony Petrone

Thanks, and congratulations on a strong start to a strong intellectually, a strong start to this year. Maybe, Erez, just on the utilization persistence for Nanox ARC, you mentioned $30 per scan and some of the early systems are doing seven scans per day. Just on how you expect that to scale and which areas are you seeing utilization? Is it more on orthopedic side? Are you seeing in chest x-ray? Just a little bit on where you're seeing the early use cases for Nanox ARC, and how you see that scaling over the 2024 and the nuance couple of follow-ups. Thanks.

Erez Meltzer

Okay. No disrespect to the others, but great question. First of all, I can say that the seven scans per day is is the best is actually the model that we built a nd it seems that from the early from the early installations, that's what we see. I would say, however, more than that, that we had in medical imaging centers, which are I would take and which are professionals. And there are people who really understand what we're doing. We had days with 15 scans per day.
So this is this is at the beginning, in terms of the dollars per scan, this is the $30 if you're remember compared to the $14 to $17 in the rest of the world. So US is about $30. And this is in line of the CPT code and the reimbursement that can be generated, which actually leaves a lot of room for us for the Center for the medical imaging center oceans and for the radiologist.
With respect to the -- So this is then these are the numbers that we see right there right now. And with respect to clinical indications, and I'd like to remind the following, okay, in the US, we have right now the MSK FDA, unlike the rest of the world that we do a lot in in in Israel, in Africa and other places we do we do chest, we do abdomal, we do a skull, we do from all other kind of indications. Our 2024 FDA submissions will include other indications, as stated in the comment that I made in the very beginning.
So based on, for example, billings on hospital in Israel, we do pulmonology cancer screening. And this actually part of the chest samples that we are taking. And we actually uploaded on our website, the these that these examples and also the cervical spine scan that we do. And I have to be very careful, you know, because of the regulation of because of the FDA and because of the whole the clinical in a clinical work that we do with other places. But right now, for us, it seems that we're going to have even more clinical indications as we move forward than originally anticipated. Even some of them were not part of the original plan.

Anthony Petrone

That's helpful. And I have a couple of follow-ups on AI solutions. Specifically, HealthCCS or coronary artery calcification at InterMountain, it's deployed there, and it looks like it's getting up and running now. How do you see that progressing in 2024? And when we think about earning Mountain, just in terms of the volume of patients they're seeing with coronary artery disease, you how many cases do you think will actually see being analyzed in CCS over the next few months? And how will it trend over the next few years a s this collaboration with InterMountain Health evolves? Thank you.

Erez Meltzer

Okay. So with AI, now I suggest that to read an article that our Chief Medical Officer wrote and another one that I wrote in the fours about the usage of AI. It seems that right now not only us, but other companies in the AI business has like engines with really high power. But right now they are because of the implementation and the deployment and the adoption by the -- by part of the especially the US health economy, it's not fast enough, which will be able to generate more revenues to each one of the institutions back. But people are afraid from this situation. By the way, I think that it is right for any almost any other business elsewhere.
But health adoption is slower than the ability to provide the services. With respect to the CCS, the calcium scoring, right now, the most of the experience that we have mostly from Spectrum of Corewell, which we gave the this indications and also from the UK. So if I talk about them, if I talk about the cardiac care solution, I would say that 60% of the patients in the study were undetected previously with there was a risk. And finally, they are with cardiovascular events from the Chester CDs that were not diagnosed.
And the other one, the other experience that we had with a lot of people that were diagnosed, one of them, by the way it was in the PV in the medium is balanced on Israel and in the UK, which was mainly for the year for the bones for the osteoporosis. But what you can see is that the -- I think, is that we published the the the results of the product and the other one in our website.
Yeah. Can you take a look at the website and the see the indication that we gave we gave there with them, the number of patients that were not detected were not and in detectors as with Cardiac diseases. And I think that this gives an indication of the ability to do the. The one that was mentioned with the with respect to the bone solution is with the Oxford University and may have -- this was published that has the there has and identify up to six times more patients were worth about compression fracture. Then that was indicated in the other CT scans that were there.
So I think that the AI and what we do is they're getting a lot of attention and we will provide the more we go into the future will provide as much as we can because this is under a lot of the privacy restrictions, but the more we can share with the public and the more the institution, including the by the way, InterMountain, which is relatively new, the more they give us to have the ability to share will definitely share with the public.

Anthony Petrone

Thank you again.

Operator

Thank you. This concludes today's conference call. Thank you for participating. You may now disconnect.