Debunking Citron Research’s negative Nano-X Imaging (NNOX) report

Citron Research recently wrote a report on Nano-X Imaging (NNOX) a few days ago that made it fall 60% and created a buying opportunity. I will debunk most of their report in a moment but first, let’s give you a background on this company.

Nano-X Imaging engages in the development of medical imaging systems. Its product Nanox System consists of hardware Nanox.ARC and software Nanox.CLOUD that provides image repository; radiologist matching; online and offline diagnostics review and annotation; connectivity to diagnostic assistive artificial intelligence systems; billing; and reporting. The company was founded by Ran Poliakine and Hitoshi Masuya on December 20, 2018 and is headquartered in Neve Ilan, Israel.

Debunking the Nano-X Imaging (NNOX) report

“As a matter of fact, we have not even seen the product and have only seen a mockup drawing of what this machine is supposed to look like.”


Live Nanox.ARC demo Base hardware with no form factor plastics. Raw scan demonstration (no filtering, no image processing, no collimation).” This was taken 7 months ago, I’m sure they’ve made even bigger strides since, and this is the BEFORE picture, imagine after filtering, image processing, and collimation. This tech is game changing.

The citron report author has a habit of releasing false or misleading information. They said similar things about Shopify (SHOP), Tesla (TSLA), Wayfair (W), Peloton (PTON) and countless other disruptors. It looks like there is a petition against his repeatedly deliberate false and misleading reports, and he has been sued and convicted by regulators and governments.

Citron said there were no comparison images when they were right in the prospectus, WHICH THEY CLEARLY READ AND QUOTED FROM IN THEIR REPORT. Also, look who posted this publicly available scan.

Here’s his comments on the company:

Next, Citron says they spent only 6-13M in R&D but CONVENIENTLY leave out that the tech was developed by SONY who spent $1.1 BILLION on development and it was then acquired by NNOX who developed it for the x-ray, ctscan applications for an additional 8 years.

Furthermore, Citron says that their filing of a 510k means their product is not novel, which is entirely misleading. Their particular submission per the wording of the 510k rule is that they are saying that the device has not been changed or modified to the extent that its safety or effectiveness has been compromised. Nanox is not saying that the product is the same as other products, but that it was not changed in such a way to make it a fundamentally new product that would require a lengthy approval process!

NANOX’s filing for FDA clearance was submitted and finally accepted by the Third Party Program of FDA. They don’t accept the filing if they don’t satisfy the requirements they demanded. The approvals are announced EVERY 5TH DAY OF THE MONTH for the approvals during the previous month according to the FDA 501K rule. Also see the status of patents granted and SEC filing regarding the final submission to the FDA of the required data posted in the top of this thread (trying to minimize links for Reddit). Application made as early as 2013.

Citron also posted a photo of what they call NNOX’s “R&D” lab. The photo they used is actually a manufacturing clean room for the MeMs X-ray chip at the University of Tokyo.

Nano-X Imaging (NNOX) catalysts and targets

Motley Fool did an interview with the NNOX CEO today in response to the short report and plan to release the video at 5pm today according to Brian Feroldi’s Twitter. The interviewer has a position in NNOX.

Wy Capital of Seeking Alpha will also be doing a report debunking Citron’s entire report and releasing it this week:

The latest update on this is that the article is written and just awaiting approval from SA.

Nano-X Imaging itself will be coming out with a rebuttal after running it by PR, legal, their clients and partners, etc. They started unlocking several videos to the public that debunk the report.

The company is presenting at Oppenheimer’s Virtual Fall Healthcare Life Sciences & MedTech Summit, which goes from Sept 21-23. Their particular presentation is scheduled for Tuesday, September 22nd at 9:10am ET.

FDA approval expected in Q1. That said, there is a small possibility that FDA approval will come on the 5th of any of the coming months. Again ” The approvals are announced EVERY 5TH DAY OF THE MONTH for the approvals during the previous month according to the FDA 501K rule”

The stock is down 60%. It was at $66. The next day, citron and friends took short positions and drove the low float stock down. The day after that, the released their short report first thing in the morning. It is low float and there is a huge short interest.

It is currently at $28. Cantor, Jeffries, and Oppenheimer all provided targets in the $60s-$70s. There should be a major squeeze. My own target is a double to a triple in the next 2-3 weeks. 10x if you have balls of steel and hold till FDA approval.

Jay Lorrence
Jay Lorrence

Investor of 12 years and Managing Editor of Money Midnight, a news outlet focused on highly profitable investment ideas and bold underground research.

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