Nano-X Imaging Ltd. (NNOX): PESTLE Analysis [Nov-2025 Updated]

You're assessing Nano-X Imaging Ltd. (NNOX) and wondering if their cold-cathode X-ray technology is a game-changer or just a great idea with regulatory headwinds. The core value proposition-accessible, pay-per-scan imaging-is defintely compelling, aiming to capture a piece of the projected 5.4% growth in US healthcare spending for 2025. But, as a seasoned analyst, I see the immediate risks: the Political and Legal factors around FDA clearance and global data privacy are just as critical as the Technological breakthrough. This PESTLE breakdown shows you exactly how macro forces are shaping the path for those 1,500 Nanox.ARC units NNOX needs to get into the field.

Nano-X Imaging Ltd. (NNOX) - PESTLE Analysis: Political factors

You are an Israeli-based medical technology company, so the political landscape directly influences your R&D pipeline, manufacturing costs, and, most critically, your revenue stream through government-controlled healthcare systems. The political environment in late 2025 is a mix of supportive health policy trends and volatile trade risks.

Honestly, the biggest near-term political risk is the US tariff environment, but the biggest long-term opportunity is the global government push for accessible diagnostics. You need to manage the cost of goods sold (COGS) while aggressively pursuing regulatory wins like removing the Nanox.ARC's adjunctive use limitation.

US-Israel bilateral relations influence R&D funding and trade agreements.

The strong, bipartisan US-Israel relationship provides a stable foundation for Nano-X Imaging Ltd.'s core research and development (R&D) operations in Israel. This political alignment is a significant competitive advantage, especially in securing conditional, non-dilutive funding for joint projects.

For example, the Israel-U.S. Binational Industrial Research and Development (BIRD) Foundation continues to fund high-tech collaborations. In September 2025, the BIRD Foundation approved $5.5 million in grants for five new US-Israel projects, leveraging a total combined investment of $14 million in areas including medical devices and AI healthcare. This mechanism offers a politically de-risked path for NNOX to partner with US academic and clinical institutions on new Nanox.AI features or next-generation hardware.

The stable political backing for technological cooperation helps mitigate the financial pressure from your current operating losses. Here's the quick math: Nano-X Imaging Ltd.'s GAAP net loss for Q3 2025 was $13.7 million, so access to non-equity government funding programs is defintely a strategic lifeline.

Global trade tariffs impact component sourcing and Nanox.ARC unit cost.

The resurgence of global trade protectionism in 2025 poses a direct threat to the Nanox.ARC's cost advantage. Your business model relies on a low-cost, high-volume imaging system, but new US tariffs on imported components are raising your COGS.

The US administration implemented a universal 10% tariff on a broad range of imports in early 2025. For medical devices, which rely on complex global supply chains for components like sensors, electronics, and specialty metals, this acts as a direct tax on your manufacturing inputs. If you source components from China, the combined tariff rate could be as high as 54% on certain items, including prior duties.

This tariff structure puts pressure on your ability to deploy the planned 100 Nanox.ARC units globally by the end of 2025 at a competitive price point. You must either absorb the cost, which hits your already negative gross margin (Q3 2025 GAAP gross loss was $2.9 million), or pass it on, which undermines the value proposition of a low-cost system.

Government health initiatives push for accessible, lower-cost diagnostic imaging.

Government policy globally is shifting toward 'democratizing access' to diagnostic imaging, which is a massive tailwind for Nano-X Imaging Ltd.'s strategy. Your Nanox.ARC system and Medical Scan as a Service (MSAS) model, which charges approximately $30 per scan, are perfectly aligned with this policy objective.

In the US, the Department of Justice (DOJ) finalized new Medical Diagnostic Equipment (MDE) Regulations under the Americans with Disabilities Act (ADA). This requires state and local government health facilities (like public hospitals and clinics) to procure accessible diagnostic equipment, including X-ray machines, by August 9, 2026. This regulation creates a mandatory market driver for new, compliant equipment, favoring systems that are easier to deploy in diverse, non-traditional care settings.

Shifting reimbursement codes in major markets like the US and EU.

Reimbursement policy is the gatekeeper to commercial success; without codes and adequate rates, your technology is just a costly novelty. In the US, the Centers for Medicare & Medicaid Services (CMS) is the primary political actor determining your revenue potential.

The Nanox.ARC, a tomosynthesis system, can currently be billed in the US using the existing CPT code 76100 (Radiologic examination, single plane body section). The Medicare national average payment for the physician component of this code was approximately $87.75 in 2024.

However, the broader political environment for US physician payments is challenging. The Calendar Year (CY) 2025 Medicare Physician Fee Schedule (MPFS) Final Rule set the 2025 Conversion Factor at $32.35, a decrease of approximately 2.8% from the prior year. This reduction puts downward pressure on all Medicare payments for imaging services, including those utilizing your system.

The most critical regulatory-political hurdle remains the FDA's 'adjunctive use' limitation on the Nanox.ARC, which prevents its use as a stand-alone diagnostic modality. Removing this limitation is a primary political and regulatory goal for the company, as it would significantly expand the system's reimbursable clinical applications and market potential.

In the EU, the Health Technology Assessment (HTA) Regulation officially entered into force on January 12, 2025. This new political framework streamlines the assessment process for high-risk medical devices, moving towards Joint Clinical Assessments across member states. This means that a positive assessment of the Nanox.ARC's clinical value could accelerate its market entry and reimbursement approval in multiple EU countries simultaneously, which is a major opportunity for global expansion.

The table below summarizes the key political/reimbursement metrics you need to watch:

Nano-X Imaging Ltd. (NNOX) - PESTLE Analysis: Economic factors

Global healthcare capital expenditure (CapEx) budgets remain tight, favoring Nano-X Imaging Ltd.'s pay-per-scan model.

You need to understand that the global economic environment is putting serious pressure on hospital and clinic balance sheets, which is a direct tailwind for Nano-X Imaging Ltd.'s usage-based model. Rising labor costs and inflation are straining budgets, making large, upfront capital purchases (CapEx) for traditional imaging equipment a hard sell right now.

The global medical cost trend is projected to remain high at an average rate of 10.4% in 2025, which forces providers to seek out operational expense (OpEx) solutions over CapEx. Nano-X Imaging Ltd.'s pay-per-scan approach-where the customer pays for the service, not the machine-removes that huge initial CapEx hurdle. It's a classic shift from ownership to subscription, and it defintely works in this tight-budget climate.

This financial pressure is accelerating the adoption of alternative payment models, like Value-Based Care (VBC), which reward outcomes over volume. NNOX's model aligns perfectly with this, offering a cost-effective path to expanded screening access, which is a key goal of VBC. Lower CapEx means faster deployment and wider market penetration for the Nanox.ARC system.

US healthcare spending growth is projected to be around 7.1% in 2025, boosting demand for cost-effective solutions.

While CapEx is tight, overall US healthcare spending is still growing significantly. Federal actuaries project that national health expenditures will increase by 7.1% in 2025, reaching a total of $5.6 trillion. This growth, which outpaces GDP expansion, highlights an enormous, growing market for healthcare services.

Here's the quick math: more spending overall but less willingness to spend on large, traditional capital equipment. The high growth rate in overall spending, driven by factors like an aging population and increased utilization, boosts the demand for imaging services, but the financial strain on providers means they need a cheaper way to meet that demand.

This creates a clear opportunity for Nano-X Imaging Ltd. to capture market share by offering a lower-cost, high-volume solution that capitalizes on the rising utilization without requiring the provider to commit to a massive, multi-million dollar purchase. The demand for imaging is there, but the budget for a traditional CT machine is not.

Inflation drives up deployment costs, impacting the projected profitability of the service model.

The flip side of the inflation coin is the rising cost of goods and services that impacts Nano-X Imaging Ltd.'s own cost structure, especially for its service-based model. Inflation isn't just a pricing problem; it's a margin killer for a company scaling hardware deployment.

Supply chain costs for the medical-surgical sector are projected to rise by approximately 2% between July 2025 and June 2026, due to higher raw material prices, freight, and tariffs. This directly increases the cost to manufacture and deploy each Nanox.ARC unit. For a company focused on high-volume, low-cost scanning, every basis point of cost increase matters.

What this estimate hides is the impact of specific tariffs, which are estimated to add hundreds of millions in additional costs for major MedTech players in 2025. Nano-X Imaging Ltd. must manage its supply chain tightly to prevent these costs from eroding the projected profitability of its pay-per-scan revenue model.

Currency volatility affects the cost of importing components and international service contracts.

As an Israeli company (headquartered in Petach Tikva) with global operations and a US-listed stock, Nano-X Imaging Ltd. faces significant foreign exchange risk. The company imports components (likely in USD or EUR) and enters into international service contracts (in various local currencies, including the Euro following its CE Mark certification).

Worsening international currency exchange rates exacerbate the cost of foreign currency-indexed maintenance fees for advanced technologies. This means a strengthening US Dollar (USD) against the Israeli Shekel (ILS) or the Euro (EUR) can make imported components more expensive, squeezing margins on the hardware side.

Conversely, a weakening of international currencies against the USD could reduce the real-dollar value of international service contract revenue. Nano-X Imaging Ltd. needs to implement a robust hedging strategy to mitigate the impact of this volatility on its financial results.

• Monitor USD/ILS and USD/EUR exchange rates closely.
• Finance: draft 13-week cash view by Friday, modeling 5% currency fluctuation impact.

Nano-X Imaging Ltd. (NNOX) - PESTLE Analysis: Social factors

Increasing global demand for accessible medical imaging, especially in underserved regions

You can't ignore the massive, growing need for basic diagnostic imaging, especially in parts of the world where a traditional multi-million-dollar Computed Tomography (CT) scanner is simply not feasible. This is the core social driver for Nano-X Imaging Ltd. (NNOX). The global medical imaging market is projected to be valued at approximately $46 billion in 2025, but the real growth story is in accessibility. Portable medical imaging devices, which are key to reaching remote and underserved populations, are expected to see the fastest growth, with a Compound Annual Growth Rate (CAGR) of around 10.3% from 2025 to 2032. Nano-X's mission to provide a lower-cost, digital X-ray source system, the Nanox.ARC, directly capitalizes on this social imperative, aiming to make preventive healthcare more accessible globally. The company is targeting the deployment of over 100 Nanox.ARC units globally by the end of 2025, a clear move to capture this demand.

The Asia-Pacific region, for instance, is projected to be the fastest-growing medical imaging market globally, with a robust projected CAGR of 10.8% between 2025 and 2032. This growth is fueled by a combination of rising chronic disease prevalence and significant investment in healthcare infrastructure, creating a massive opportunity for cost-effective, high-quality solutions like the Nanox System.

Public health focus on early detection drives adoption of screening technologies

Public health policy and social awareness are shifting heavily toward early disease detection, and that means more screening. This is a powerful tailwind for Nano-X. The market growth in medical imaging is fundamentally driven by the rising prevalence of chronic conditions like cancer and cardiovascular disease, alongside a greater emphasis on preventive care. When you can catch a disease earlier, patient outcomes improve, and overall healthcare costs can defintely drop. The Nanox.ARC's design as a tomosynthesis system-a lower-dose, multi-angle imaging device-is positioned perfectly for screening programs, which are often the first line of defense in preventive health. This focus is central to the company's stated mission.

Telemedicine and remote diagnostics adoption accelerates, favoring the Nanox.Cloud infrastructure

The shift to remote care is not slowing down; it's accelerating, and that's great for any cloud-based platform. The global telehealth market is projected to exceed $55 billion by the end of 2025. Within the broader digital transformation of healthcare, the Telemedicine & Telehealth segment held the largest market share of 28.45% in 2025. Nano-X's Nanox.Cloud is a critical piece of their ecosystem, providing the cloud-based infrastructure for image storage, billing, and AI diagnostics, and their Nanox.MARKETPLACE connects scans with remote radiologists (teleradiology). This cloud-first approach is highly favored by market trends, as Cloud-Based solutions are expected to grow at the fastest CAGR of 17.42% in the Digital Transformation in Healthcare Market in 2025. This segment is already a significant revenue stream for the company, generating $3.1 million in revenue from teleradiology services in Q3 2025.

Workforce shortages in radiology push for AI-assisted image analysis solutions

The radiologist shortage is a structural crisis, not a temporary blip, and it creates an immediate need for AI to help human analysts. In the U.S. alone, the shortage of radiologists is projected to reach up to 42,000 by 2033. This gap in the workforce is the single biggest driver for AI adoption in the imaging sector. In fact, radiology has been the fastest clinical area to adopt AI tools, accounting for roughly 75% of the nearly 1,000 AI/Machine Learning devices authorized by the FDA for healthcare.

Nano-X's AI solutions division (Nanox.AI) directly addresses this social and professional pain point. The market for AI & Analytics is expected to grow at the fastest CAGR of 18.24% in the Digital Transformation in Healthcare Market in 2025. The value proposition is clear: AI improves efficiency. For example, a generative AI tool recently showed an average 15.5% increase in radiograph efficiency, with some radiologists seeing gains up to 40%. This is a necessary tool to manage the overwhelming workload. The table below summarizes the key social factors driving Nano-X's integrated business model in 2025.

Here's the quick math: The need for more accessible, efficient, and remotely managed diagnostic imaging is pushing the market toward the exact model Nano-X Imaging is building. Your next step should be to track the utilization rates of those 100+ Nanox.ARC units deployed by year-end, as utilization is what will convert social demand into recurring revenue.

Nano-X Imaging Ltd. (NNOX) - PESTLE Analysis: Technological factors

Cold-cathode X-ray source technology is the core disruptive advantage over traditional hot-cathode systems.

The core of Nano-X Imaging Ltd.'s technological advantage is the proprietary cold-cathode X-ray source, a solid-state digital component that replaces the bulky, heat-intensive filament found in traditional hot-cathode X-ray tubes. This shift is defintely disruptive. Unlike the older tubes, which require significant power and time to heat up, the cold-cathode system uses a field emission array to generate electrons instantly and with far greater control.

This technology dramatically reduces the size, weight, and manufacturing cost of the imaging device, the Nanox.ARC, making it a viable solution for widespread deployment in underserved communities globally. The reduced power consumption also cuts down operating expenses, which is a major factor in the total cost of ownership (TCO) calculation for healthcare providers.

Here's the quick math on the impact: a traditional computed tomography (CT) scanner can cost over $1 million, plus significant infrastructure costs. The Nanox.ARC aims to deliver similar services at a fraction of that cost, potentially enabling a pay-per-scan model that fundamentally changes the capital expenditure (CapEx) structure for clinics.

Nanox.Cloud AI platform integrates imaging, analysis, and billing into a single ecosystem.

The Nanox.Cloud is the operational backbone, a sophisticated artificial intelligence (AI) platform that moves the value proposition beyond just hardware. It's not just a storage solution; it's an end-to-end ecosystem designed to connect the Nanox.ARC devices to radiologists and billing systems seamlessly.

This integration is key to the company's 'Screening as a Service' business model, ensuring high utilization and efficient workflow. The platform includes advanced AI tools for computer-aided detection (CAD) and analysis, which can flag potential issues for radiologist review, potentially speeding up diagnosis.

What this estimate hides is the complexity of global regulatory compliance for patient data (like HIPAA in the US), but the platform is designed with this in mind. The goal is to create a unified data stream from image acquisition to final reimbursement.

• Connects Nanox.ARC devices globally for remote operation.
• Provides AI-powered tools for image analysis and triage.
• Manages billing and payment processing for the pay-per-scan model.

Competition from established players like Siemens Healthineers and GE HealthCare in the low-cost imaging segment.

Nano-X Imaging Ltd. faces intense competition from industry giants who are not sitting still. Companies like Siemens Healthineers and GE HealthCare have massive installed bases, deep customer relationships, and significant research and development (R&D) budgets. While Nano-X Imaging Ltd. targets the low-cost, high-volume segment, the incumbents are also adapting.

These established players are leveraging their scale to offer more affordable, compact versions of their traditional systems, especially for emerging markets. For example, they are improving conventional X-ray and ultrasound systems to fill the same gap Nano-X Imaging Ltd. is targeting. Still, Nano-X Imaging Ltd.'s cold-cathode technology offers a unique cost profile that is difficult for them to match with their existing hot-cathode supply chains.

To be fair, the market for medical imaging is huge, so there's room for multiple players, but the competition for mindshare and contracts is fierce.

Continuous need for software updates and cybersecurity investment to protect cloud data.

As the Nanox.Cloud becomes central to operations, the company's exposure to technological risk increases, particularly around data security and software maintenance. Medical data is highly sensitive, making the platform a prime target for cyberattacks. Protecting this data requires continuous, substantial investment in cybersecurity infrastructure and protocols.

For example, a major breach could halt operations, incur massive regulatory fines, and destroy trust with healthcare partners. The cost of a single data breach in healthcare is among the highest across all industries. This means a significant portion of the company's R&D expenditure must be allocated to maintaining a secure and compliant cloud environment.

Also, the Nanox.Cloud is a living platform that requires frequent software updates to introduce new AI features, maintain compatibility with new operating systems, and patch security vulnerabilities. If onboarding takes 14+ days due to software glitches or security concerns, deployment momentum stalls. This continuous operational spending is a necessary trade-off for the flexibility of a cloud-based model.

Nano-X Imaging Ltd. (NNOX) - PESTLE Analysis: Legal factors

Ongoing need for FDA 510(k) clearances for new Nanox.ARC system configurations and AI features

The regulatory path for Nano-X Imaging Ltd. (NNOX) remains a primary legal and commercial hurdle. You've seen how quickly things can move, but also how much is still pending. The company successfully secured a major milestone in April 2025, receiving U.S. Food and Drug Administration (FDA) 510(k) clearance for the Nanox.ARC X multi-source digital tomosynthesis system for general use, including musculoskeletal, pulmonary, intra-abdominal, and paranasal applications. That clearance came in less than 30 days, which is defintely a win.

Still, the legal risk shifts to the future pipeline, particularly the AI-driven software. The company is actively developing AI modules designed to analyze routine CT scans for early disease detection. Clearance for the chest and full-body AI modules is expected in H1 2026. What this estimate hides is the potential for the FDA to request additional data, which could delay the commercial launch and revenue generation for a core part of the Nanox.CLOUD strategy. You need to watch that H1 2026 date closely.

Beyond the U.S., the company expanded its market access significantly in February 2025 by receiving the CE (Conformité Européenne) mark certification for the Nanox.ARC system, including the Nanox.CLOUD, allowing it to be marketed across the European Economic Area (EEA).

Intellectual Property (IP) litigation risks remain a factor in the highly competitive medical device space

While there are no current, public Intellectual Property (IP) infringement lawsuits against Nano-X Imaging Ltd. in 2025, the risk is inherent in a market where your core technology-the digital X-ray source-is designed to disrupt established players. The major legal exposure in the near-term has been securities-related, not IP, but it shows the cost of legal challenges.

The company resolved a significant legal overhang from prior years by settling a securities class action lawsuit for $8 million in a settlement finalized in February 2024. Also, in September 2023, the company and its former CEO settled charges with the U.S. Securities and Exchange Commission (SEC) for negligently misrepresenting the Nanox.ARC's manufacturing costs. The company paid a civil penalty of $650,000. That's a clear example of how quickly legal issues can hit the bottom line.

Here's the quick math on recent legal settlements:

Strict adherence to global data privacy laws like HIPAA in the US and GDPR in Europe for patient data

Operating a medical imaging and AI platform means you are constantly handling Protected Health Information (PHI), and that puts a massive compliance burden on the company. The Nanox.CLOUD platform must adhere strictly to the Health Insurance Portability and Accountability Act (HIPAA) in the U.S. and the General Data Protection Regulation (GDPR) in Europe.

The risk is escalating because the company is actively expanding its AI solutions business in the U.S. The acquisition of VasoHealthcare IT Inc. (VHC IT) in November 2025 is a strategic move to accelerate U.S. deployment, but it also increases the volume of PHI handled and the associated HIPAA compliance risk. The company has stated its commitment to compliance through:

• High-level imaging data encryption and anonymization.
• Three-factor authentication procedures.
• Intended submission of systems to independent external audits as required by the U.S. Department of Health and Human Services (HHS).

A single, major data breach could easily result in fines that dwarf the $800,000 total consideration for the VHC IT acquisition.

Compliance with medical device manufacturing and quality system regulations (QSR)

As a medical device manufacturer, Nano-X Imaging Ltd. is strictly governed by the FDA's Quality System Regulation (QSR), specifically 21 CFR Part 820. This regulation covers everything from design controls to corrective and preventive actions (CAPA). It's not just about getting the initial clearance; it's about maintaining a compliant system as you scale.

The company's strategy to scale production relies on a multiyear volume supply agreement with Fabrinet, a global electronics manufacturing services provider. This partnership is crucial for driving down manufacturing costs, but it also means the company must ensure its contract manufacturer adheres to all QSR standards. Any lapse in quality control at a partner facility is ultimately Nano-X Imaging Ltd.'s legal and regulatory liability. The FDA clearance for the Nanox.ARC X in April 2025 explicitly subjects the device to these ongoing requirements, including design controls (21 CFR 820.30) and nonconforming product procedures (21 CFR 820.90).

Finance: Track the QSR audit schedule and associated compliance costs for the Fabrinet partnership by year-end.

Nano-X Imaging Ltd. (NNOX) - PESTLE Analysis: Environmental factors

Here's the quick math: If NNOX can secure deployment contracts for 100 Nanox.ARC units by the end of 2025-which is their stated target-that's a massive step toward their goal of disrupting the market. What this estimate hides, though, is the time it takes to get each unit operational and generating revenue.

Next step: Finance: Track Q4 2025 deployment numbers and FDA clearance updates by the end of January.

Potential for reduced energy consumption with cold-cathode technology compared to older, high-power systems.

NNOX's core environmental advantage is its proprietary cold-cathode technology, which is a key differentiator from traditional X-ray systems. Conventional X-ray tubes use a thermionic filament that must be heated to over 2,000° Celsius to generate electrons, a process that is highly energy-intensive and inefficient. The Nanox.ARC's digital X-ray source, the Nanox.SOURCE, uses a silicon-based, nano-scale cold cathode that extracts electrons via a low-voltage electric field, eliminating the need for this high-heat, high-power process.

This design drastically reduces the system's overall power consumption. While precise, independently verified 2025 energy consumption figures for Nanox.ARC versus a comparable Computed Tomography (CT) system are not publicly available, the company's technology is inherently more energy-efficient because it removes the major energy sink of filament heating. Traditional tubes convert around 99% of the input energy into waste heat at the anode, requiring substantial cooling systems. The cold-cathode design allows for a smaller, lighter device, which is especially beneficial for mobile imaging units that run off chargeable batteries.

The environmental benefit is clear, even without a specific kilowatt-hour number:

• Eliminates high-power filament heating, a primary energy drain.
• Reduces the need for complex, energy-consuming cooling systems.
• Enables smaller, portable devices, reducing the environmental footprint of installation and transport.

Management of e-waste from the disposal of imaging units and cloud server hardware.

The company's business model, which combines the Nanox.ARC hardware with the Nanox.CLOUD software, shifts some of the environmental burden from the clinic to the cloud infrastructure. The Nanox.ARC is a smaller, more compact system than traditional X-ray units, which inherently reduces the volume of hardware that will eventually become e-waste.

However, the shift to a cloud-based model introduces a new environmental challenge: data center energy consumption and e-waste. NNOX has not yet published a detailed, 2025-specific e-waste management or take-back program for its Nanox.ARC units or its Nanox.CLOUD server hardware. This lack of a clear, published strategy is a near-term risk, especially as their deployment target of 100 units by the end of 2025 is met, and the installed base begins to grow significantly. The medical device industry faces increasing scrutiny over the disposal of complex electronics, and a proactive recycling program is defintely a necessary step.

Investor and public pressure for a clear Environmental, Social, and Governance (ESG) reporting framework.

In 2025, investor sentiment is heavily weighted toward companies with transparent and robust ESG credentials. Investors, including large asset managers like BlackRock, increasingly view strong ESG performance as a proxy for lower long-term risk and better operational resilience. While NNOX's core technology offers a compelling environmental narrative (energy efficiency, accessibility), the company has yet to publish a comprehensive, standalone ESG report or framework to quantify these benefits and address other factors like governance and social impact.

The absence of a formal 2025 ESG report creates a perception gap. While the technology is green, the corporate structure's commitment to sustainability is unquantified. This is a missed opportunity to attract capital from the growing pool of ESG-mandated funds. To mitigate this risk and capitalize on the opportunity, NNOX should prioritize the disclosure of key metrics, such as:

Supply chain scrutiny regarding the ethical sourcing of raw materials for device manufacturing.

The global trend in 2025 is for intensified supply chain scrutiny, moving beyond simple cost to include ethical sourcing, labor practices, and conflict mineral compliance. For NNOX, the high-tech, proprietary Nanox.SOURCE chip, which uses a silicon-based, nano-scale cold cathode, requires a complex supply chain for its raw materials.

As a medical device manufacturer, NNOX is expected to demonstrate due diligence in ensuring its raw materials-especially metals and minerals used in the device and the Nanox.TUBE-are not linked to conflict zones or unethical labor. Without a public-facing supply chain transparency report or a formal conflict mineral policy in 2025, the company is exposed to reputational risk. Investors and regulators are increasingly using real-time ESG scoring to vet suppliers, and NNOX needs to be prepared to provide auditable data on its sourcing practices to maintain access to key markets and capital.