Nano-X Imaging Ltd. — financial distress indicators
Financial-health summary
Nano-X Imaging Ltd.'s reported numbers place it in the 'Weak' financial-health band (distress score 67/100). The main indicators are losses in each of the last 3 years, operations consume cash and share price down >80% from 52-week high. Independently, the Ohlson accounting model puts its 1-year failure probability at 93% and the market-implied (Merton) default probability is 11.3%. In its favour: cash on hand covers all debt (net-cash balance sheet).
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Price is -88% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
O-score 2.55 → model probability 93%.
Ohlson (1980) logit model of 1-year corporate failure; O > 0 (p > 50%) is the original failure cut-off.
Cash covers ~13 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Last price $0.57.
Below the $1 minimum-bid listing standard (Nasdaq Rule 5550(a)(2) / NYSE 802.01C); sustained breach leads to delisting and loss of capital-market access.
Merton distance-to-default 1.21 σ → PD 11.3%.
Investment-grade issuers typically have 1-year PD well below 1%.
0 severe and 1 moderate distress-related headlines in the last 6 months.
Headlines are corroborating evidence only; they are weighted lightly and never drive a flag alone.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- Cash on hand covers all debt (net-cash balance sheet).
- Strong current ratio (3.96).
- Revenue still growing (+15% YoY).
📰 Recent news scan
- restructurNano-X Imaging (NNOX) Q2 2026 Earnings Call TranscriptYahoo Finance · 2026-09-10
- Nanox's Integrated Imaging Ecosystem: Expanding Access to 3D Imaging and DiagnosticsYahoo Finance · 2026-09-28
- Nano-X (NNOX) Imaging Slashes Costs As Cash Clock Keeps TickingYahoo Finance · 2026-09-12
- Nano-X Imaging (NNOX) Signs Nanox.ARC Distribution Agreement for Costa RicaYahoo Finance · 2026-09-11
- Nanox Expands Latin American Presence with Nanox.ARC Distribution Agreement in Costa RicaYahoo Finance · 2026-09-10
- Nano X Imaging Ltd (NNOX) (Q2 2026) Earnings Call Highlights: Revenue Surges 37% Amid Strategic ...Yahoo Finance · 2026-09-09
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Nano-X Imaging Ltd.'s financial-health indicators show?
As of 2026-10-08, Nano-X Imaging Ltd.'s public financial data places it in the 'Weak' band with a distress score of 67/100, driven by losses in each of the last 3 years, operations consume cash and share price down >80% from 52-week high. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Nano-X Imaging Ltd.'s financial distress score?
67/100 ('Weak'). Ohlson O-score 2.55 (model 1-year failure probability 93%). Merton distance-to-default 1.21 σ (model default probability 11.3%).
What works in Nano-X Imaging Ltd.'s favour?
Cash on hand covers all debt (net-cash balance sheet). Strong current ratio (3.96). Revenue still growing (+15% YoY).
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Healthcare & MedTech companies with distress indicators
- Adagio Medical Holdings, Inc. (ADGM)Very weak 100/100
- DataMEDS AI, Inc. (MEDS)Very weak 100/100
- OneMedNet Corporation (ONMD)Very weak 100/100
- Profusa, Inc. (PFSA)Very weak 100/100
- Picard Medical, Inc. (PMI)Very weak 100/100
- Synergy CHC Corp. (SNYR)Very weak 100/100
All Healthcare & MedTech companies with distress indicators →
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.