QT Imaging Announces First Quarter 2024 Financial Results
QT Imaging Holdings, Inc. (NASDAQ: QTI) reported revenue of $1.4 million in Q1 2024, with a 56% gross margin. The company streamlined operations through a strategic sales partnership in the USA and completed a merger with GigCapital5. A blinded screening trial confirmed the efficacy of QTI technology. Financially, while revenue increased significantly, the net loss was $4.3 million, including non-cash income related to the merger. The company also announced key partnerships and leadership updates, aiming for continued growth in 2024.
Generated revenue of $1.4 million in Q1 2024 with a 56% gross margin.
Streamlined operations through a strategic sales partnership in the USA.
Completed a merger with GigCapital5.
Blinded screening trial confirmed the efficacy of QTI technology.
Key partnerships announced with academic institutions and medical centers.
New leadership appointments to drive continued growth.
Net loss of $4.3 million in Q1 2024, including non-cash income related to the merger.
Increase in transaction expenses impacting the financials.
Challenges in achieving profitability in the short term.
Insights
Observing QT Imaging's first quarter financial results, there are several pivotal points to consider. The generated revenue of $1.4 million stands out as a substantial improvement from the previous year's $0.1 million, indicating an uptick in market penetration and client acquisition. A gross margin of 56% is particularly noteworthy, as it not only represents a positive shift from the previous year's negative margin but also approaches the higher end of industry standards for medical device companies, which traditionally range between 50-70%.
The net loss of $4.3 million, despite being larger than the previous year's, is mitigated by the fact that it includes non-recurring expenses associated with the company's merger and the change in fair value of warrants and derivatives. This is a common occurrence for companies undergoing significant corporate restructuring. However, drawing attention to the Non-GAAP Adjusted EBITDA of -($1.2) million, we see only a slight deterioration from the -$1.1 million reported in the previous year, which suggests operational losses have not substantially increased when adjusted for one-time costs and non-cash items.
A retail investor should remain attentive to the company's ability to manage its operating expenses, which have increased significantly and its ongoing R&D investments as they proceed with strategic partnerships aimed at commercialization. The financial health in the coming quarters will be influenced by the company's execution of its commercial strategy and the market adoption of its QT Breast Scanner technology.
The strategic sales and distribution partnership mentioned is pivotal for QT Imaging's growth, as it indicates a direct channel to the U.S. market, the world's largest for medical devices. The partnership for large scale manufacturing is also a sign of the company's commitment to scale operations and meet anticipated demand.
Given the comparative study showing efficacy of QT Imaging technology on par with digital breast tomosynthesis, which is a current standard in breast imaging, this potentially positions the company in a strong competitive stance within the medical imaging sector. Not to be overlooked, the QT Imaging Breast Acoustic CT Scanner's lack of ionizing radiation or need for compression could be a significant differentiator in terms of patient comfort and safety, possibly increasing its adoption rate.
The report of increased operating expenses, while concerning, is indicative of the company's stage of growth and investment in sales and R&D necessary for product development and market entry. Investors would be wise to monitor the impact of these investments on operational efficiency and the company's ability to convert these expenses into sustained revenue growth.
The QT Breast Scanner's comparison to digital breast tomosynthesis (DBT) in screening efficacy is a critical achievement for QT Imaging. Being similarly effective as a standard technology for detecting breast lesions enhances the credibility and clinical value of QT's product. This level of efficacy, coupled with the noted advantages of no ionizing radiation or breast compression, may lead to increased clinician support and patient preference, which are key drivers in medical device adoption.
Furthermore, the ongoing collaboration with large institutions like the Sunnybrook Health Sciences Centre in Toronto and The University of Illinois, Urbana-Champaign, supported by NIH/NCI grants, lends further validation to the company's research and development endeavors. Such partnerships could result in enhancements to the QT Scanner's capabilities or evidence of its effectiveness in new applications, such as monitoring response to chemotherapy.
Investors considering the long-term potential of QT Imaging should assess the scalability of the technology in light of these research collaborations, the potential expansion into new clinical areas and the implications of the recent merger with GigCapital5 for the company's overall strategic direction.
Generated Scanner Sales Revenue of
Streamlined Business Model via Strategic Sales and Distribution Partnership in USA
Reported in Academic Radiology the Results of a Second Blinded Screening Trial That Found That QTI Technology Is Similarly Effective as Digital Breast Tomosynthesis (DBT) or 3D Mammography
Company Completed Merger with GigCapital5
QT Imaging delivers today the QT Imaging Breast Acoustic CT™ Scanner, the only true 3D imaging device, FDA cleared for use as a transmission and reflection low frequency soundwaves imaging system for a patient’s breast. There is no ionizing radiation or compression associated with mammography, or the contrast dyes injections required for breast MRI.
“The QT Imaging team has been on an incredible journey since its inception in 2012, starting with a shared mission to create disruptive innovation to expand access to medical imaging while ensuring superior patient experience and improving health outcomes. Moving forward, the team will address commercialization of our scanner in the
“We are thankful to our partners in the National Institutes of Health/National Cancer Institute who continue to support the research and development of QT Imaging technology today and since the Company’s inception. We will continue to carry on clinical studies with partners in academia and medical institutions and publish comparative data to show the advantages of QT Imaging’s breast scanning technology that gives women the choice they deserve to ensure their breast health over time.”
Financial Highlights
-
Commercial revenue was
$1.4 million $0.1 million -
Gross margin of
56% in the first quarter of 2024, compared to negative margin in the first quarter of 2023. The increase in margin was due to the sale and delivery of three QT Breast Scanners during the first quarter of 2024, compared to no deliveries in the first quarter of 2023. -
Net loss of
$4.3 million $1.9 million $0.1 million $4.3 million $1.9 million $0.2 million $0.4 million -
Non-GAAP Adjusted EBITDA* of
$(1.2) million $(1.1) million
New Developments
-
On February 6, 2024, the Company delivered a QT Breast Scanner under a unique collaboration with the Department of Radiation Oncology, and Radiation Treatment Program at the Sunnybrook Health Sciences Centre in
Toronto, Canada , one of the largest cancer centers inCanada , and The University ofIllinois ,Urbana -Champaign , Department of Electrical and Computer Engineering and Grainger College of Engineering. This collaboration is part of a five-year research grant from the National Institutes of Health/National Cancer Institute to develop an inexpensive, portable, safe, and repeatable imaging approach capable of accurate and early identification of response of breast cancer patients to neoadjuvant chemotherapy (NAC). - On March 4, 2024, the Company completed the business combination of QT Imaging, Inc. and GigCapital5, Inc. in accordance with the Business Combination Agreement dated December 8, 2022, as amended.
-
On March 7, 2024, the Company announced its first commercial sale of a QT Breast Scanner to True Health Center for Functional Medicine through its strategic sales and distribution partner, as disclosed in the Company's Form 8-K (Link), as the Company continue to focus our commercialization effort in the
U.S. -
On March 18, 2024, the Company delivered two QT Breast Scanners to its strategic partner, as disclosed in the Company's Form 8-K (Link), in accordance with the terms of a non-binding letter of intent pursuant to which four binding purchase orders were received in earlier for the purchase of two QT Breast Scanners, with
50% of the payment for the QT Breast Scanners having taken place at the date of placement of purchase orders and the remaining balance was received within 30 days of shipment in April 2024. - On March 28, 2024, the Company entered into a Feasibility Study Agreement (the “Feasibility Study Agreement”) with its strategic partner, as disclosed in the Company's Form 8-K (Link). The term of the Feasibility Study Agreement commenced on March 28, 2024 and will remain in force until the end of December 2024 or until the execution of a definitive agreement that supersedes the Feasibility Study Agreement, whichever comes earlier. In connection with the Feasibility Study Agreement, a strategic partner will initiate studies to evaluate the business, technical, and clinical values of the QT Breast Scanner including product quality validation, development and manufacturing studies, clinical evaluation, regulatory investigation, and market validation.
- As announced on April 17, 2024 in our press release, a study in Academic Radiology, online, in January 2024: "A Multireader Multicase (MRMC) Receiver Operating Characteristic (ROC) Study Evaluating Noninferiority of Quantitative Transmission (QT) Ultrasound to Digital Breast Tomosynthesis (DBT) on Detection and Recall of Breast Lesions – Academic Radiology" found that QT Imaging technology is similarly effective as digital breast tomosynthesis (DBT), also known as 3D mammography, in that the area under receiver operating characteristic curve (AUC) was statistically non-inferior for QT Imaging scan compared with DBT for the AUC difference margin of -0.05.
-
Leadership Updates:
- On March 12, 2024, the Board of Directors (the "Board") appointed Dr. Raluca Dinu, who is also a member of the Board, to be employed as the Company's Acting Chief Executive Officer. Dr. Dinu spent approximately 25 years in international executive positions within the Technology, Media, and Telecommunications industries working for privately held start-ups, middle-cap companies, and large enterprises. In these roles, Dr. Dinu has been instrumental in launching and accelerating entities, building teams, large-scale fund raising, developing key alliances and technology partnerships, M&A activities, business development, financial management, global operations and sales and marketing.
- Anastas (Stas) Budagov has served as the Chief Financial Officer of QT Imaging, Inc. since December 2023. On March 12, 2024, the Board ratified the prior appointment of Mr. Budagov as the Company's Chief Financial Officer of QT Imaging Holdings, Inc. following the merger with GigCapital5. Mr. Budagov will report to the Chief Executive Officer. Mr. Budagov brings over 10 years of finance and accounting leadership experience in medical device, life science, and biotech industries.
- The Company continued to attract top talent following the onboarding of Steve Choate as the Company's new Chief Operating Officer on April 8, 2024. Mr. Choate's extensive experience and expertise as a production operations leader will be key to fueling the Company's continued growth. Mr. Choate's will be focused on overseeing manufacturing activities, product development, and production releases.
- Following Dr. John Klock's resignation from his previous position as the Company's Chief Executive Officer, on April 5, 2024, the Company entered into a Services Agreement (the “Services Agreement”) with QT Imaging Center, which is owned and operated by Dr. Klock. Effective April 1, 2024, QT Imaging Center agreed to provide its services to the Company, including but not limited to providing healthcare services to patients, assisting with clinical trials and studies and assisting with drafting of institutional review board approved clinical protocols, assisting with the performance of research and development activities on behalf of the Company, providing comprehensive multi-day training on the operation of breast imaging technology for radiologist customers and other customer staff such as technicians, performing clinical validation of imaging software changes which may include recruiting patients, training, as well as other services as specified in the Services Agreement.
Outlook for the Balance of 2024
2024 is a transitional year as the Company stabilizes the business and focuses on commercialization anchored in strategic business partnerships. The Company will target to provide guidance for the rest of the year as part of the release of Q2'24 earnings.
Summary of Results for the Three Months Ended
March 31, 2024 and 2023
(Unaudited)
|
Three Months Ended
|
|||||
$ thousands (expect per share amounts) |
|
2024 |
|
|
2023 |
|
Revenues |
$ |
1,362 |
|
$ |
8 |
|
Cost of revenues |
|
602 |
|
|
47 |
|
Gross margin |
|
760 |
|
|
(39 |
) |
Operating expenses: |
|
|
||||
Selling, general and administrative |
|
5,696 |
|
|
1,292 |
|
Research and development |
|
643 |
|
|
422 |
|
Operating loss |
|
(5,579 |
) |
|
(1,753 |
) |
Interest expense |
|
(599 |
) |
|
(130 |
) |
Other expense |
|
(21 |
) |
|
— |
|
Net increase in fair value of warrant liability |
|
(23 |
) |
|
— |
|
Net decrease in fair value of derivatives |
|
2,983 |
|
|
— |
|
Net increase in earnout liability |
|
(1,060 |
) |
|
— |
|
Net loss |
|
(4,299 |
) |
|
(1,883 |
) |
|
|
|
||||
Basic and diluted net loss per share |
$ |
(0.33 |
) |
$ |
(0.20 |
) |
|
|
|
||||
Weighted average shares outstanding |
|
13,226 |
|
|
9,517 |
|
EBITDA* and Adjusted EBITDA* for the Three Months Ended
March 31, 2024 and 2023
(Unaudited)
|
Three Months Ended
|
||||||
$ thousands |
|
2024 |
|
|
|
2023 |
|
Net loss |
$ |
(4,299 |
) |
|
$ |
(1,883 |
) |
Interest expense |
|
599 |
|
|
|
130 |
|
Depreciation and amortization |
|
99 |
|
|
|
117 |
|
EBITDA |
|
(3,601 |
) |
|
|
(1,636 |
) |
Adjustments: |
|
|
|
||||
Equity-based compensation |
|
39 |
|
|
|
209 |
|
Net increase (decrease) in fair value of warrants(1) |
|
23 |
|
|
|
— |
|
Net increase (decrease) in fair value of derivatives(2) |
|
(2,983 |
) |
|
|
— |
|
Net increase (decrease) in fair value of earnout liability(3) |
|
1,060 |
|
|
|
— |
|
Transaction expenses(4) |
|
4,301 |
|
|
|
356 |
|
Adjusted EBITDA |
$ |
(1,161 |
) |
|
$ |
(1,071 |
) |
-
The increase in fair value of warrants during the three months ended March 31, 2024 relates to the liability classified private placement warrants to reflect the increase of publicly traded price per warrant from
$0.01 $0.03 6 - The decrease in fair value of derivatives during the three months ended March 31, 2024 related to the Yorkville Pre-paid Advance, which contained features that were bifurcated as a freestanding financial instruments and initially valued on March 4, 2024 upon consummation of the Merger. The derivative liability was subsequently revalued as of March 31, 2024 for financial reporting purposes. The favorable change in derivative liability was recorded as other income in the condensed consolidated statement of operations during the three months ended March 31, 2024.
- Earnout liability relates to the contingent consideration for the Merger Earnout Consideration Shares pursuant to the Business Combination Agreement dated December 8, 2022, as amended in September of 2023. The earnout liability was initially valued using the Monte Carlo Simulation method on March 4, 2024 and subsequently revalued using the same method as of March 31, 2024. The net increase in fair value of the earnout liability was recognized as other expense in the condensed consolidated statement of operations during the three months ended March 31, 2024.
-
The Company incurred transaction expenses related to the Merger with GigCapital5, Inc,, which closed on March 4, 2024. These transaction expenses included a
$3.7 million $0.4 million $0.2 million
Consolidated Balance Sheets as of
March 31, 2024 and December 31, 2023
(Unaudited)
$ in thousands |
March 31,
|
|
December 31,
|
||||
Assets |
|
|
|
||||
Current assets: |
|
|
|
||||
Cash and cash equivalents |
$ |
5,620 |
|
|
$ |
165 |
|
Restricted cash |
|
20 |
|
|
|
20 |
|
Accounts receivable, net |
|
482 |
|
|
|
1 |
|
Inventory |
|
4,116 |
|
|
|
4,418 |
|
Prepaid expenses and other current assets |
|
1,195 |
|
|
|
215 |
|
Total current assets |
|
11,433 |
|
|
|
4,819 |
|
Non-current assets: |
|
|
|
||||
Property and equipment, net |
|
154 |
|
|
|
491 |
|
Intangible assets, net |
|
44 |
|
|
|
90 |
|
Right-of-use assets |
|
1,187 |
|
|
|
1,267 |
|
Other non-current assets |
|
39 |
|
|
|
39 |
|
Total assets |
$ |
12,857 |
|
|
$ |
6,706 |
|
|
|
|
|
||||
Liabilities and stockholders deficit |
|
|
|
||||
Current liabilities: |
|
|
|
||||
Accounts payable |
$ |
712 |
|
|
$ |
1,356 |
|
Accrued expenses and other current liabilities |
|
2,813 |
|
|
|
370 |
|
Related party notes payable |
|
— |
|
|
|
705 |
|
Current maturities of long-term debt |
|
130 |
|
|
|
4,199 |
|
Deferred revenue |
|
344 |
|
|
|
347 |
|
Operating lease liabilities, current |
|
372 |
|
|
|
361 |
|
Total current liabilities |
|
4,371 |
|
|
|
7,338 |
|
Non-current liabilities: |
|
|
|
||||
Long-term debt, net |
|
3,331 |
|
|
|
96 |
|
Related party notes payable, long term |
|
5,409 |
|
|
|
3,144 |
|
Operating lease liabilities |
|
966 |
|
|
|
1,063 |
|
Warrant liability |
|
32 |
|
|
|
— |
|
Derivative liability |
|
2,138 |
|
|
|
— |
|
Earnout liability |
|
1,060 |
|
|
|
— |
|
Other non-current liabilities |
|
465 |
|
|
|
377 |
|
Total liabilities |
|
17,772 |
|
|
|
12,018 |
|
|
|
|
|
||||
Stockholders’ deficit: |
|
|
|
||||
Common stock |
|
2 |
|
|
|
1 |
|
Additional paid-in capital |
|
17,152 |
|
|
|
12,457 |
|
Accumulated deficit |
|
(22,069 |
) |
|
|
(17,770 |
) |
Total stockholders’ deficit |
|
(4,915 |
) |
|
|
(5,312 |
) |
Total liabilities and stockholders’ deficit |
$ |
12,857 |
|
|
$ |
6,706 |
|
Consolidated Statements of Cash Flows for the Three Months Ended
March 31, 2024 and 2023
(Unaudited)
|
Three Months Ended March 31, |
||||||
$ in thousands |
|
2024 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
||||
Net loss |
$ |
(4,299 |
) |
|
$ |
(1,883 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation and amortization expense |
|
99 |
|
|
|
117 |
|
Stock-based compensation to employees |
|
39 |
|
|
|
209 |
|
Provision for credit losses |
|
1 |
|
|
|
— |
|
Fair value of common stock issued in exchange for services and in connection with non-redemption agreements |
|
3,715 |
|
|
|
— |
|
Loss on issuance of common stock in connection with a subscription agreement |
|
206 |
|
|
|
— |
|
Non-cash interest |
|
299 |
|
|
|
11 |
|
Non-cash lease expense |
|
(5 |
) |
|
|
(2 |
) |
Increase in fair value of warrant liability |
|
23 |
|
|
|
— |
|
Decrease in fair value of derivative liability |
|
(2,983 |
) |
|
|
— |
|
Increase in fair value of earnout liability |
|
1,060 |
|
|
|
— |
|
Changes in assets and liabilities: |
|
|
|
||||
Increase in accounts receivable |
|
(482 |
) |
|
|
(6 |
) |
Decrease in inventory |
|
586 |
|
|
|
49 |
|
Increase in prepaid expenses and other current assets |
|
(880 |
) |
|
|
(35 |
) |
Decrease in other assets |
|
— |
|
|
|
5 |
|
(Decrease) increase in accounts payable |
|
(2,118 |
) |
|
|
392 |
|
(Decrease) increase in accrued liabilities |
|
(1,320 |
) |
|
|
31 |
|
Decrease in deferred revenue |
|
(4 |
) |
|
|
— |
|
Increase in other liabilities |
|
87 |
|
|
|
119 |
|
Net cash used in operating activities |
|
(5,976 |
) |
|
|
(993 |
) |
|
|
|
|
||||
Cash flows from financing activities: |
|
|
|
||||
Proceeds of sale of common stock and warrants, net of issuance costs |
|
— |
|
|
|
948 |
|
Proceeds from issuance of common stock pursuant to a subscription agreement |
|
500 |
|
|
|
— |
|
Proceeds from long-term debt, net of issuance costs |
|
10,525 |
|
|
|
— |
|
Repayment of long-term debt |
|
(32 |
) |
|
|
(32 |
) |
Repayment of bridge loans |
|
(800 |
) |
|
|
— |
|
Proceeds from the Merger, net of transaction costs |
|
1,238 |
|
|
|
— |
|
Net cash provided by financing activities |
|
11,431 |
|
|
|
916 |
|
Net increase (decrease) in cash and restricted cash and cash equivalents |
|
5,455 |
|
|
|
(77 |
) |
Cash and restricted cash and cash equivalents at the beginning of period |
|
185 |
|
|
|
475 |
|
Cash and restricted cash and cash equivalents at the end of the period |
$ |
5,640 |
|
|
$ |
398 |
|
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Exchange Act of 1934, as amended. Forward-looking statements generally are accompanied by words such as “believe,” “may,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “expect,” “should,” “would,” “plan,” “predict,” “potential,” “seem,” “seek,” “future,” “outlook,” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the QT Imaging Breast Acoustic CT™ Scanner, including its commercialization, manufacturing and further development, plans for QT Imaging, new product development and introduction, product sales growth and projected revenues, QT Imaging’s industry, future events, and other statements that are not historical facts. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These statements are based on various assumptions, whether or not identified herein, and on the current expectations of QT Imaging's management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on by you or any other investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond our control. These forward-looking statements are subject to a number of risks and uncertainties, including those relating to: the ability of the Company to sell and deploy the QT Imaging Breast Acoustic CT™ Scanner; the ability to extend product offerings into new areas or products; the ability to commercialize technology; unexpected occurrences that deter the full documentation and “bring to market” plan for products; trends and fluctuations in the industry; changes in demand and purchasing volume of customers; unpredictability of suppliers; the ability to attract and retain qualified personnel and the ability to move product sales to production levels; changes in domestic and foreign business, market, financial, political, and legal conditions; the uncertainty of projected financial information; delays caused by factors outside of our control; changes in our ability to successfully receive purchase orders and generate revenue under our existing contracts with partners and distributors; our ability to realize the benefits of the strategic partnerships; the identified material weakness in our internal controls over financial reporting (including the timeline to remediate the material weakness); the rollout of the business and the timing of expected business milestones; the effects of competition on our future business; our ability to obtain and access financing in the future; and those factors discussed in the Company’s reports and other documents filed with the SEC, including under the heading “Risk Factors.” If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. There may be additional risks that QT Imaging presently does not know or that QT Imaging currently believes are immaterial which could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect QT Imaging's expectations, plans or forecasts of future events and views as of the date of this release. QT Imaging anticipates that subsequent events and developments will cause QT Imaging's assessments to change. However, while QT Imaging may elect to update these forward-looking statements at some point in the future, QT Imaging specifically disclaims any obligation to do so. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Non-GAAP Financial Measures
The financial information and data contained in this press release is unaudited. Some of the financial information and data contained in this press release, such as EBITDA and Adjusted EBITDA, have not been prepared in accordance with generally accepted accounting principles in
The presentation of these financial measures is not intended to be considered in isolation or as a substitute for, or superior to, financial information prepared and presented in accordance with GAAP and should not be considered measures of QT Imaging's liquidity. Investors are cautioned that there are material limitations associated with the use of non-GAAP financial measures as an analytical tool. In particular, many of the adjustments to our GAAP financial measures reflect the exclusion of certain items, as defined in our non-GAAP definitions below, which are recurring and will be reflected in our financial results for the foreseeable future. In addition, these measures may be different from non-GAAP financial measures used by other companies, even where similarly titled, limiting their usefulness for comparison purposes and therefore should not be used to compare QT Imaging’s performance to that of other companies. We endeavor to compensate for the limitation of the non-GAAP financial measures presented by also providing the most directly comparable GAAP measures and descriptions of the reconciling items and adjustments to derive the non-GAAP financial measures.
We believe these non-GAAP financial measures provide investors and analysts with useful supplemental information about the financial performance of our business, enable comparison of financial results between periods where certain items may vary independent of business performance, and allow for greater transparency with respect to key measures used by management to operate and analyze our business over different periods of time.
EBITDA is defined as loss before interest expense, income tax expense, depreciation and amortization. Adjusted EBITDA is defined as EBITDA further adjusted for equity-based compensation, net increase (decrease) in fair value of derivative, earnout and warrant liabilities, capital market advisory fees, and transaction expenses. Similar excluded expenses may be incurred in future periods when calculating these measures. QT Imaging believes these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. QT Imaging believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating projected operating results and trends and in comparing QT Imaging’s financial measures with other similar companies, many of which present similar non-GAAP financial measures to investors.
Management does not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in the Company’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expense and income items are excluded or included in determining these non-GAAP financial measures.
Management uses EBITDA and Adjusted EBITDA as a non-GAAP performance measure which is defined in the accompanying tables and is reconciled to net loss, the most directly comparable GAAP measure, in the tables above. The Company does not reconcile forward-looking non-GAAP financial measures to the most directly comparable GAAP financial measure (or otherwise describe such forward-looking GAAP measure) because it is not able to forecast the most directly comparable measure calculated and presented in accordance with GAAP without unreasonable effort. Certain elements of the composition of the GAAP amounts are not predictable, making it impracticable for the Company to forecast. As a result, no guidance for the Company’s net (loss) income or reconciliation of the Company’s Adjusted EBITDA guidance is provided. For the same reasons, the Company is unable to assess the probable significance of the unavailable information, which could have a potentially significant impact on its future net (loss) income.
We present reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures in the tables above.
About QT Imaging
QT Imaging Holdings, Inc. is a public (NASDAQ: QTI) medical device company engaged in research, development, and commercialization of innovative body imaging systems using low frequency sound waves. QT Imaging Holdings, Inc. strives to improve global health outcomes. Its strategy is predicated upon the fact that medical imaging is critical to the detection, diagnosis, and treatment of disease and that it should be safe, affordable, accessible, and centered on the patient’s experience. For more information on QT Imaging Holdings, Inc., please visit the company’s website at www.qtimaging.com.
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For media inquiries, please contact:
Stas Budagov
Chief Financial Officer
Stas.Budagov@qtimaging.com
Source: QT Imaging Holdings, Inc.
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