Why Are Nano-X Imaging (NNOX) Shares Plunging Today? - Nano X Imaging (NASDAQ:NNOX)

Nano-X Imaging NNOX reported a first-quarter net loss of $12.7 million wider than $7.4 million reported a year ago. It clocked an adjusted net loss of $7.1 million, or EPS loss of ($0.15) better than the consensus of ($0.25) loss. In the prior-year period, Nano-X recorded an EPS loss of ($0.09).
R&D expenses increased slightly to $2.7 million Y/Y from $2.4 million last year due to higher development costs related to the Nano-X System.
Nano-X received FDA clearance for its single-source Nano-X Cart X-Ray System in April. It viewed this achievement as a key milestone on its path to win a more important FDA clearance for its multisource device, which is the system that the company hopes to commercialize broadly.
Nano-X had previously announced that it expected to ship 1,000 multisource units by the first quarter of 2022. However, the company stated it doesn't expect to ship 1,000 multisource units within its original timeline.
The company has experienced delays with its third-party supplier of the high-power ceramic tube, a core component of its innovative X-ray devices. The pandemic worsened these delays.
Nano-X expects that it would deliver 15,000 systems by the end of 2024.
Due to supply chain issues, the company is now working with two alternative suppliers. The company is still optimistic that it will ship 1,000 multisource units during 2022 and possibly more.
Achieving the goal is still contingent on receiving FDA clearance and similar authorizations from other countries' regulatory agencies for the multisource device.
Nano-X ended the first quarter with cash equivalents of $219.3 million.
CEO Ran Poliakine also said that Nano-X is "making solid progress" on transferring technology to its Korean subsidiary to produce the silicon MEMs chip key to its X-ray devices. A new factory in South Korea is also being built.
Muddy Waters Research said via Twitter: "Reminder: $NNOX CEO Poliakine executed a $44.5 mm stock sale only 5 weeks before announcing Q2 2022 shipment target won't be met. This is only part of the stock he's taken off the table."
Price Action: NNOX shares are down 16.9% at $21.7 during the market trading hours on the last check Tuesday.

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