Showing posts with label convicted. Show all posts
Showing posts with label convicted. Show all posts

April 28, 2021

The curious case of Nanox.Arc's development

Last week @Ehlyz on Yahoo linked to a webpage of the engineering firm Ziv-Av and wrote:

If you are still worried this company is fraud and there is no end product to sell, take a look at who is building their CT scanner, Ziv-Av, who is also a vendor for Mazor Robotics and other medical companies.

Sure enough, the engineering firm Ziv-Av claims that the Nanox.Arc device was developed by Ziv-Av's engineers, not by Nanox (Nanox supposedly only contributed a proposed x-ray source).

According to the webpage, published sometime in 2020 prior to Nanox IPO, Nanox.Arc is a revolutionary x-ray device that could do anything the current technology could, but it is smaller, more mobile, and at least 1/100 as affordable.  The device was developed in record time - just 3 months, from scratch and for peanuts (Nanox shows in its prospectus on page 9 less than $3 million in research and development expenses for the entire 2019).  It was this working prototype that supposedly led to the equity raise and Foxconn "endorsement" in January 2020.

The problem is that that the device shown on the webpage (Nanox.Arc version 1.0, according to Nanox tech webpage) is completely fake.  It cannot take any x-ray images because it does not have any x-ray tubes and any x-ray detectors.  It only has a battery and blue LED lights - no need for the special cooling system that Ziv-Av claims to have developed.   

Ziv-Av's claim that this was a "working" prototype also contradicts the draft registration statement that Nanox did not have a working prototype prior to February 2020 (that is, the equity raise in January 2020 must have occurred without a working prototype):

We have not produced a working prototype of the Nanox.Arc (page 9) 

Moreover, if the working prototype looked like what Ziv-Av is showing, then the device in the demo to Foxconn in December 2019 shown below must have used a non-working prototype - that is, the demo was fake.

device demoed to Foxconn, December 2019

Here is the list of all the false and weird claims by Ziv-Av on that webpage:

1.  Ziv-Av develops revolutionary and affordable CT scanner for Nanox

Nope, even if the device were not fake, it cannot be used as a CT scanner due to limited number of projections (a CT scan uses hundreds of projections at different angles per arc/rotation).  It is affordable only because it is completely fake. 

2.  Nanox is a medical imaging company which has developed a revolutionary CT device that is mobile, substantially smaller and extremely cheaper than the existing devices. 

Nanox now denies that its proposed concept device is a CT device, and says it is a tomosynthesis device (unable to generate axial slices).  The device is cheap only because it is fake - the main cost of a real device would be in the detector.

3.  Nanox’s CT technology is based on digital X-ray production using a MEMS component instead of conventional flame lamps enabling cost reduction by orders of magnitude. 

There is no such thing as digital x-ray production - the proposed Nanox x-ray source generates x-rays the same way as a regular $100 hot-cathode x-ray tube - by smashing a bunch of electrons into a metal target.  And the cost of a Nanox tube will always be higher than a regular x-ray tube of the same performance, as any non-defective chip will cost more to make than a filament (a piece of wire).  It is also apparent that Ziv-Av believes x-rays are generated by conventional flame lamps - not clear whether burning kerosene or lamp oil.


conventional x-ray tube per Ziv-Av ( image source: https://www.freeimages.com/photo/the-oil-lamp-3-1535516 )

4.  The device supports scans such as CT, mammography, fluoroscopy and angiography.

Nanox now denies the CT and mammography "support" (CT-like imagining with 11 sources is now a simulation only).  Fluoroscopy and angiography are still on the table for the concept device, but they would be extremely limited, as its device lacks the positional flexibility of modern low-cost C-arm devices.

5.  Ziv-Av engineers revolutionized the medical imaging system 

Nope - the medical imaging system is still the same.

6.  Nanox approached Ziv-Av for the design of the revolutionary digital X-ray machine and its prototype within a stringent timeline of three months.

This may actually be true.  But the only revolutionary thing was the complete fakeness of the device. 

7.  Among many other design features, Ziv-Av designed the arch of the scanner which scans the patient’s body from different angles. 

Oh, so the Arc idea came from Ziv-Av rather than Nanox...

8.  The arch is designed to work with a very high voltage of 70,000V which creates immense heat. 

The statement that 70kV is associated with immense heat shows that Ziv-Av engineers do not understand basic physics and engineering.  An x-ray tube that operates at 1mA generates less heat than a 100W lightbulb.  Also, 70kV tube voltage is too low for a general x-ray device (it could be ok for extremities). 

this lightbulb generates immense heat per Ziv-Av (image source: https://www.freeimages.com/photo/light-bulb-1531205 ) 

9.  Ziv-Av managed the heat dissipation by designing a cooling system

The cooling system in the device is fake and not needed, as there is no x-ray source.  Subsequent proposed device iterations by Nanox show that the proposed "cooling system" is just a CNC-cut metal slab - a simple, and not very effective, heat sink.

 


10.  Along with the arch of this amazing machine, Ziv-Av also provided the design of the machine’s table, mechanics, electricity, electronics and motion control system .

Wow - so the only thing that Nanox has developed was the proposed x-ray source, and everything else (fake, of course) came from Ziv-Av? 

11.  Through its specialists, Ziv-Av achieved a significant cost-reduction – realizing Nanox’ vision of affordability to all.

True.  A fake device without an x-ray source or a detector or even a high-voltage generator would be cheap and affordable, indeed.  And, as a plus, it does not even require radiation shielding.  The only downside - it can generate no images.

12.  Ziv-Av excels in cost-effective prototype production.  Ziv-Av’s multidisciplinary engineers provided a turnkey solution from design to production of this innovative machine. 

It is innovative and cost-effective, as it is completely fake - a rarity!

12.  All the production, assembly & integration and tests were performed in Ziv-Av’s well-equipped workshop. 

No doubt.  Again, Nanox only contributed a proposed (fake) x-ray source.  

13.  The demonstrations of this perfectly working prototype helped Nanox raise $26 million within three months from many investors including ‘Foxconn-the IT industry giant’

By perfectly working, Ziv-Av means it can light up in blue using the built-in LEDs and a 12V battery, of course.

14.  From scratch to a revolutionary, cost-effective design as well as a working prototype – Ziv-Av accomplished all in just 3 months.

Nice.

What the webpage does not say is that the engineering firm's owner, Mr. Ziv-Av, at some point a chief scientist of the Israeli Ministry of Transportation, was convicted of securities fraud and then claimed that he did not know what he was doing.

Update:  Apparently, a Nanox promoter also tweeted about Ziv-Av last week, transforming CT or computed tomography into "3d tomo" (tomo simply means slice in greek), falsely claiming that a single (non-axial) slice meant CT-like capability, and insisting 70kV or less is not a problem for chest:

Chest/lung, musculoskeletal including skull likely on this 510(k) w/ enhanced 3D, slices, plus 2D x-ray. Cheap device. Will expand market.

Yeah, will expand the market with a completely fake device.

Update December 20, 2021:  Minor spelling correction.  

December 29, 2020

The testimony at RSNA 2020 that disappeared


This testimony was removed after briefly appearing in a longer video on Nanox' RSNA 2020 virtual booth on November 29, 2020 (days ahead of the live presentation). Per Nanox prospectus:
In addition, we signed an agreement with a President of SK Telecom, Dr. Ilung Kim, dated December 16, 2019, for the provision of consulting services to us. Under the agreement, we granted Dr. Kim options to purchase 1,206,290 of our ordinary shares at an exercise price of $2.21 per ordinary share. 301,572 of the options vested as of the grant date and the remaining 904,718 options will vest in equal monthly installments over a period of three years from the vesting commencement date. In case of an initial public offering or certain other events, all unvested options will fully accelerate immediately prior to the closing of the initial public offering. The vested options are exercisable until the earlier of (a) the second anniversary of termination of the engagement between us and Dr. Kim or (b) the tenth anniversary from the date of grant.

So why did it disappear?  High-cost of tubes, not ready for mass production, anything else?

Update March 30,2021:  

Well, turns out Dr. Kim was a marketing SVP and GM of Samsung Memory from 1999 to 2008, according to a recent press release announcing his joining MCE's advisory board.  Turns out, a Dr. Kim, vice president of marketing for the memory division at Samsung, agreed to plead guilty to a single count of price fixing in 2007. Dr. Kim was later sentenced to pay a fine of $250,000 and to "a period of incarceration of fourteen months."  And who claims to be working as a Marketing Managers for MCE?  Eli Reifman, the convicted felon.  Both Lydia Edwards, who is President, USA at Nanox, and Bruce Edwards, who is Nanox’s VP of Business Development used to work with Mr. Reifman.  

And one more thing:  He was on the list of Nanox representatives at the November 2020 Berenberg "CEO" conference.  

Thanks to Steve @ Yahoo and MuddyWaters' report for the hints.

Update March 31, 2021:  The draft registration statement filed on January 14, 2021 had the date of Dr. Kim agreement as October 28, 2019.  Apparently, Nanox had forgotten that the agreement with Dr. Kim had been modified on December 16, 2019 to allow for full vesting of the options prior to the IPO...

Update August 1, 2021:  Dr. Kim, a convicted felon who swindled SK Telecom into investing in Nanox and therefore received the most generous consulting fee from Nanox, has "left" SK Telecom two months ago, and joined Nano-X Korea Ltd. full-time in July ("Responsible for Korean Fab Operation, X ray Tube R & D and AP area sales and marketing", per his linkedin profile).  I first learned it from a June 30 MCE "article", which refers to him as a "former President SK Telecom."  The promotional piece appears authored by Eli Reifman, a convicted felon who claims to be Marketing Manager at MCE.  Reifman may still have an email address at Nanox (according to an email verification service), and may be affiliated with A-Labs (A-Labs supposedly denies it), which provided "consulting services" in connection "with various transactions, such as a private placement [and] ... initial public offering."  For example, A-Labs touted nine months ago the Monolith, the "world's first full-screen smartphone designed by Eli Reifman, founder of Emblaze Ltd. in 2001 with R&D initiated in 2004 which is 3 years before Apple's steve jobs introduced the first iPhone in 2007." 

Here is an August 2020 Israeli article explaining (google translate):

The Emblaze consulting firm cuts millions of dollars in coupons in Nanox and INX offerings

Eli Reifman is not officially affiliated with A-Labs, one of the biggest beneficiaries in the Nanox IPO • The company is owned by Doron Cohen, former vice president of technology company Emblaze, along with Roni Lieberman, who briefly served as VP of product at Emblaze

Gali Weinreb 23.08.2020

Eli Reifman.  Affair that began with his conviction in 2011 / Photo: Tamar Mitzpi, Globes  

A-Labs, which served as a consultant for the Nanox IPO , is one of the biggest beneficiaries of the move. As recently revealed in "Globes", this is a company founded by the graduates of the technology company Emblaze by Eli Reifman , and according to market estimates, Reifman is significantly involved in it. A-Labs itself admittedly denied that Reifman was officially associated with her, but the company's CEO and founder, Doron Cohen, noted that Reifman is a friend and sometimes advises him in a friendly manner.

Under the consulting agreement between the companies, A-Labs received a 2.5% success fee from the issue amount - approximately $ 4 million, an additional payment of $ 1 million due to the issue itself, and another 160,457 options at an exercise price of $ 16 (compared to $ 18 per issue), equivalent to At the time of the IPO, another $ 300,000. A-Labs advises in a similar format to other Israeli companies, and it was recently announced that it is expected to pocket millions of additional dollars from the issuance of the crypto company INX in the USA ( see separate article ).

Reifman is not officially affiliated with A-Labs. The company is owned by Doron Cohen, formerly vice president of the technology company Emblaze, together with Roni Lieberman, who briefly served as VP of product at Emblaze. Its vice president of operations, Raviv Pablo, also previously worked at Emblaze. 

Clues to the fact that Reifman is involved in the company can be found, for example, in the fact that Scratch Alter, who was defined in the court document as "Reifman's relative" in the matter of providing a guarantee for him, is the head of the life sciences department in the company. In addition, the company's offices are located in Kadima, where Reifman also lives.

Recent issues involving A-Labs have included issues of Israeli companies in Canada: Zoomd, which provides website search engine technology, and Else, which has developed a vegan baby food compound.

Eli Reifman is the founder of the technology company Emblaze, which has developed technology in the field of digital video. In the past, Reifman was considered a "child prodigy" in Israeli high-tech, however, he became involved in crime and accumulated debts in the gray market.

In 2011, Reifman was convicted of forgery and fraud and sentenced to four years in prison and compensation to the complainants against him. Following an appeal he filed, the Supreme Court dismissed his appeal and he went to jail, from which he was finally released a year and a half before the end of his full sentence.

Reifman founded Emblaze in 1994. The company was issued in London in 1996, and its value rose from $ 160 million at the time of the IPO to about $ 8 billion at its peak. Reifman sold tens of millions of dollars worth of shares in the company, and became one of the most prominent high-tech rich in the economy before the dot.com bubble burst.