Nano-X adopting restructuring plan, to close S. Korea chip manufacturing line

the Company adopted a restructuring plan intended to better align its manufacturing cost structure with its long-term financial model, support its path toward improved gross margins, and align its manufacturing capabilities with current and anticipated business needs and the Company’s strategic priorities. As part of this plan and the Company’s broader cost reduction efforts, the Company is restructuring its manufacturing footprint to improve gross margins, reduce capital expenditures, and enhance operational efficiency. This includes transitioning away from certain manufacturing activities at its facility in South Korea, staring in the fourth quarter of 2025, and moving from a company-owned manufacturing model to a more fully outsourced approach. In connection with this transition, the Company expects to utilize its existing emitter inventory as it shifts to a more efficient outsourced production model that is better aligned with current and anticipated demand. As part of the restructuring, the Company will close its chip manufacturing line in South Korea, downsize its fabrication facilities, and transfer certain production activities to third-party international manufacturing partners, including the Swiss Center for Electronics and Microtechnology. Following these changes, the Company intends to focus its operations in South Korea on research and development and tube production activities that support the Nanox.ARC platform. The restructuring is expected to be substantially completed during fiscal year 2026. In connection with the restructuring, the Company expects to incur total restructuring and related charges of approximately $18.0 million, consisting primarily of costs related to the impairment of machinery and equipment associated with the Company’s chip manufacturing line.