v3.26.1
Segments of Operations
 6 Months Ended
Jun. 30, 2026
Segments of Operations [Abstract]  
SEGMENTS OF OPERATIONS

NOTE 7 – SEGMENTS OF OPERATIONS

 

The Company’s chief operating decision maker is the Company’s Chief Executive Officer (the “CODM”), who makes resource allocation decisions and assesses performance based on financial information prepared on a consolidated basis, accompanied by disaggregated information about revenues, gross profit (loss) and operating loss by the three identified reportable segments.

 

The CODM uses gross profit (loss) and operating loss for each segment predominantly in the annual budget and forecasting process. The CODM considers budget-to-actual variances on a quarterly basis for all measures when making decisions about the allocation of operating and capital resources to each segment.

 

The Company reports segment information based on the “management” approach. The management approach designates the internal reporting used by management for making decisions and assessing performance as the source of the Company’s reportable operating segments. The Company manages its business primarily on a service basis. The Company’s reportable segments consist of the Nanox.ARC division, the radiology services division and the AI and software solutions division. Each one is managed separately to better align with the Company’s customers and distribution partners and the unique market dynamics of each segment. Operating loss for each segment includes revenues from third parties, related cost of revenues and operating expenses directly attributable to the segment. The Company does not include intercompany transfers between segments for management reporting.

 

Nanox health IT Inc.’s operational results are included in the AI and software solutions segment.

 

The accounting policies of the various segments are the same as those described in Note 2, “Summary of Significant Accounting Policies” in the Annual Report.

 

    Six months ended June 30, 2026  
    Nanox.
ARC		     Radiology
Services		     AI and Software
Solutions		     Total  
Revenues     329       6,055       (*) 2,083       8,467  
Cost of revenues     3,713       4,785       5,536       14,034  
Cost of revenues – Impairment of intangible assets     -       -       40,695       40,695  
Segment gross profit (loss)     (3,384 )     1,270       (44,148 )     (46,262 )
Research and development, net     7,253       64       2,188       9,505  
Sales and Marketing     3,175       265       624       4,064  
General and administrative     9,037       919       728       10,684  
Other segment items (**)     (507 )     -       27       (480 )
Segment operating profit (loss)     (22,342 )     22       (47,715 )     (70,035 )
Financial income (expense), net                             308  
Loss before taxes on income                             (69,727 )
                                 
Depreciation expense     576       4       49       629  
Amortization expense    

-

       990       4,019       5,009  
Stock based compensation     1,310       302       98       1,710  
                                 
Total Assets     67,551       19,174       4,460       91,185  
Expenditures for segment’s assets     2,761       -       -       2,761  

 

(*) Including $1,844 thousand related to Nanox Health IT Inc.

 

(**)

Nanox.ARC - loss from disposal of property and equipment, rent income and remeasurement of a settlement with a shareholder.

 

AI and Software Solutions - change in the fair value of earn out liability obligation.

 

    Six months ended June 30, 2025  
    Nanox.
ARC		     Radiology
Services		     AI and
Software
Solutions		     Total  
Revenues     254       5,328       273       5,855  
Cost of revenues     3,570       4,402       4,172       12,144  
Segment gross profit (loss)     (3,316 )     926       (3,899 )     (6,289 )
Research and development, net     7,546       65       2,201       9,812  
Sales and Marketing     1,885       208       85       2,178  
General and administrative     8,522       1,606       137       10,265  
Other segment items (*)     37       -       -       37  
Segment operating loss     (21,306 )     (953 )     (6,322 )     (28,581 )
Financial income (expense), net                             616  
Loss before taxes on income                             (27,965 )
                                 
Depreciation expense     530       4       52       586  
Amortization expense     -       1,314       3,992       5,306  
Stock based compensation     1,817       370       90       2,277  
                                 
Total Assets     111,972       18,774       53,486       184,232  
Expenditures for segment’s assets     1,569       10       -       1,579  

 

(*) Nanox.ARC – loss from disposal of property and equipment and rent income.

 

    Three months ended June 30, 2026  
    Nanox.
ARC		     Radiology
Services		     AI and Software
Solutions		     Total  
Revenues     162       2,950       (*) 1,044       4,156  
Cost of revenues     1,948       2,077       3,110       7,135  
Cost of revenues – Impairment of intangible assets     -       -       40,695       40,695  
Segment gross profit (loss)     (1,786 )     873       (42,761 )     (43,674 )
Research and development, net     3,565       28       1,114       4,707  
Sales and Marketing     1,445       56       399       1,900  
General and administrative     4,563       458       423       5,444  
Other segment items (**)     (247 )     -       (1 )     (248 )
Segment operating profit (loss)     (11,112 )     331       (44,696 )     (55,477 )
Financial income (expense), net                             (61 )
Loss before taxes on income                             (55,538 )
                                 
Depreciation expense     286       3       25       314  
Amortization expense     -       495       2,009       2,505  
Stock based compensation     664       157       48       869  

 

(*) Including $934 thousand related to Nanox Health IT Inc.

 

(**)

Nanox.ARC – loss from disposal of property and equipment, rent income and remeasurement of a settlement with a shareholder.

 

AI and Software Solutions - change in the fair value of earn out liability obligation.

 

    Three months ended June 30, 2025  
    Nanox.
ARC		     Radiology
Services		     AI and Software
Solutions		     Total  
Revenues     221       2,723       96       3,040  
Cost of revenues     1,961       2,242       2,077       6,280  
Segment gross profit (loss)     (1,740 )     481       (1,981 )     (3,240 )
Research and development, net     3,759       36       1,039       4,834  
Sales and Marketing     1,066       110       63       1,239  
General and administrative     4,322       734       71       5,127  
Other segment items (*)     51       -       -       51  
Segment operating loss     (10,938 )     (399 )     (3,154 )     (14,491 )
Financial income (expense), net                             (149 )
Loss before taxes on income                             (14,640 )
                                 
Depreciation expense     270       2       27       299  
Amortization expense     -       657       1,996       2,653  
Stock based compensation     882       186       43       1,111  

 

(*)

Nanox.ARC – loss from disposal of property and equipment and rent income.

 

As of June 30, 2026 and December 31, 2025, no individual customer exceeded 10% of the Company’s accounts receivables.