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Item 11 — Quantitative and Qualitative Disclosures About Market Risk
Nano-X Imaging Ltd. · 20-F · FY 2025 · Period ended Dec 31, 2025
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Disclosures About Market Risk
Interest Rate Risk
As of December 31, 2025,
we had cash equivalents consisting primarily of U.S. dollar bank money market accounts and deposits. Our primary exposure to market
risk is interest income sensitivity, which is affected by changes in the general level of U.S. interest rates. Consequently, changes
in market interest rates would not have a material impact on our financial position or results of operations.
As of December 31, 2025,
we had an outstanding short-term loan of $3.1 million that was provided to Nanox Korea and approximates its carrying value since it bears
interest at a rate close to the prevailing market rate.
Inflation-related Risks
We do not believe that the
rate of inflation in Israel has had a material impact on our business to date, however, our costs in Israel will increase if the inflation
rate in Israel exceeds the devaluation of the NIS against the U.S. dollar or if the timing of such devaluation lags behind inflation in
Israel. Similarly, our costs in Korea will increase if the inflation rate in Korea exceeds the devaluation of the KRW against the U.S.
dollar or if the timing of such devaluation lags behind inflation in Korea.
Foreign Currency Exchange Risk
The U.S. dollar is our functional
and reporting currency. However, a portion of our operating expenses, including personnel and facilities related expenses, are incurred
in NIS and KRW. As a result, our statements of operations and cash flows could be adversely affected in the future due to changes in foreign
exchange rates. If the NIS and KRW appreciate relative to the U.S. dollar, the dollar cost of our operations in Israel or Korea would
increase, respectively, and our dollar-denominated results of operations would be adversely affected. However, as we have cash and cash
equivalents denominated in U.S. dollars, we believe that changes in foreign currency exchange rates would not have a material impact on
our financial position or results of operations.