What happened

Shares of Nano-X Imaging (NNOX -1.89%), also known as Nanox, popped off more gains on Monday after the medical imaging device company reported financial results for the first quarter of 2023. As of 3:40 p.m. ET, Nanox stock was up 11%.

So what

Nanox is a very early stage company. At this stage, it's less about the numbers and more about commentary from management. On May 1, Nanox stock started flying higher on news that the U.S. Food and Drug Administration (FDA) had cleared its device that's meant to disrupt the X-ray market. The stock has already more than tripled this month as a result. 

With Q1 results, Nanox's management gave updates about its business in Africa. It already had plans in place for its Nanox.ARC device in Ghana and Nigeria. But today, management says it now has an agreement in place in the Kingdom of Morocco as well.

For clarity, Nanox began working with local authorities in various countries where U.S. FDA clearance wasn't needed. The company's business model places machines for free and then generates revenue on a per-scan basis thereafter. According to management, its systems are already operational in Ghana and will soon be in Nigeria as well.

What was once a far-off vision for Nanox is becoming a more tangible reality for shareholders. That's apparently continuing to bolster investor confidence, and it's why this healthcare stock was up today.

Now what

Nanox has some immediate work to do. Now that it has FDA clearance in the U.S., it's establishing a demo center in Florida to start marketing it there. But first it needs an import license, which it's in the process of getting.

Nanox's management also has the big job ahead of building out its supply chain for mass production of its Nanox.ARC machines. 

However, Nanox did have one final encouraging note when it comes to production. The company's deal in Morocco is for 270 machines over three years. It can't start until it has all the necessary paperwork. However, management said it believes its production capacity could indeed get this many machines out there within three years, which is another reason for shareholders to get excited.