QT Imaging Announces Second Quarter 2024 Financial Results
QT Imaging Holdings (NASDAQ: QTI) reported financial results for Q2 2024:
- Generated $1.7 million in scanner sales revenue with a 51% gross margin
- Net loss of $1.2 million, including $2.1 million non-cash income from fair value changes
- Non-GAAP Adjusted EBITDA of $(2.1) million
Key developments:
- Signed U.S. exclusive distribution agreement with NXC Imaging
- Partnered with University of Oklahoma and OU Health Stephenson Cancer Center
- Delivered four Breast Acoustic CT scanners, expanding to five commercial locations
- Published study showing accurate visualization of breast tissue using QT technology
Outlook: Expects similar revenue pace in H2 2024 with higher gross margins
QT Imaging Holdings (NASDAQ: QTI) ha riportato i risultati finanziari per il secondo trimestre del 2024:
- Ha generato 1,7 milioni di dollari in ricavi dalla vendita di scanner con un margine lordo del 51%
- Ha registrato una perdita netta di 1,2 milioni di dollari, inclusi 2,1 milioni di dollari di entrate non monetarie derivanti da variazioni di valore equo
- EBITDA rettificato non-GAAP di $(2,1) milioni
Sviluppi chiave:
- Firmato un accordo di distribuzione esclusiva negli Stati Uniti con NXC Imaging
- Collaborato con l'Università dell'Oklahoma e il Centro oncologico Stephenson dell'OU Health
- Consegnati quattro scanner CT acustici per il seno, espandendosi a cinque sedi commerciali
- Pubblicato uno studio che mostra una visualizzazione accurata del tessuto mammario utilizzando la tecnologia QT
Prospettive: Si prevede un andamento dei ricavi simile nel secondo semestre del 2024 con margini lordi più elevati
QT Imaging Holdings (NASDAQ: QTI) informó los resultados financieros del segundo trimestre de 2024:
- Generó 1,7 millones de dólares en ingresos por ventas de escáneres con un margen bruto del 51%
- Pérdida neta de 1,2 millones de dólares, incluidos 2,1 millones de dólares de ingresos no monetarios por cambios en el valor razonable
- EBITDA ajustado no-GAAP de $(2,1) millones
Desarrollos clave:
- Firma de un acuerdo de distribución exclusivo en EE. UU. con NXC Imaging
- Asociación con la Universidad de Oklahoma y el Centro Oncológico Stephenson de OU Health
- Entregados cuatro escáneres CT acústicos de mama, expandiéndose a cinco ubicaciones comerciales
- Estudio publicado que muestra visualización precisa del tejido mamario utilizando tecnología QT
Perspectivas: Se espera un ritmo de ingresos similar en la segunda mitad de 2024 con márgenes brutos más altos
QT Imaging Holdings (NASDAQ: QTI)는 2024년 2분기 재무 결과를 발표했습니다:
- 170만 달러의 스캐너 판매 수익을 기록했으며 51%의 총 마진을 달성했습니다.
- 비현금 수익 210만 달러를 포함하여 120만 달러의 순손실을 기록했습니다.
- 비GAAP 조정 EBITDA는 $(210만 달러)입니다.
주요 개발:
- NXC Imaging와 미국 독점 유통 계약을 체결했습니다.
- 오클라호마 대학교 및 OU Health Stephenson 암 센터와 파트너십을 맺었습니다.
- 네 대의 유방 음파 CT 스캐너를 제공하며 다섯 개의 상업적 위치로 확대했습니다.
- QT 기술을 사용한 유방 조직의 정밀한 시각화를 보여주는 연구를 발표했습니다.
전망: 2024년 하반기에도 유사한 수익 속도를 기대하며, 더 높은 총 마진을 예상합니다.
QT Imaging Holdings (NASDAQ: QTI) a annoncé les résultats financiers du deuxième trimestre 2024 :
- A généré 1,7 million de dollars de revenus provenant des ventes de scanners avec une marge brute de 51%
- Perte nette de 1,2 million de dollars, y compris 2,1 millions de dollars de revenus non monétaires dus aux variations de valeur juste
- EBITDA ajusté non-GAAP de $(2,1) millions
Développements clés :
- Signature d'un accord de distribution exclusif aux États-Unis avec NXC Imaging
- Partenariat avec l'Université de l'Oklahoma et le Centre de cancérologie Stephenson de l'OU Health
- Livraison de quatre scanners CT acoustiques pour le sein, s'étendant à cinq sites commerciaux
- Étude publiée montrant une visualisation précise des tissus mammaires utilisant la technologie QT
Perspectives : S'attend à un rythme de revenus similaire au second semestre 2024 avec des marges brutes plus élevées
QT Imaging Holdings (NASDAQ: QTI) berichtete über die finanziellen Ergebnisse für das zweite Quartal 2024:
- Erzielte 1,7 Millionen Dollar an Umsatz aus Scannerverkäufen mit einer Bruttomarge von 51%
- Nettoverlust von 1,2 Millionen Dollar, einschließlich 2,1 Millionen Dollar an nicht monetären Einnahmen aus Veränderungen des Fair Value
- Non-GAAP bereinigtes EBITDA von $(2,1) Millionen
Wichtige Entwicklungen:
- Unterzeichnete exklusive Vertriebsvereinbarung in den USA mit NXC Imaging
- Partnerschaft mit der University of Oklahoma und dem OU Health Stephenson Cancer Center
- Lieferung von vier Brust-Akustik-CT-Scannern, Erweiterung auf fünf kommerzielle Standorte
- Veröffentlichtes Study zeigt präzise Visualisierung von Brustgewebe mit QT-Technologie
Aussichten: Erwartet ein ähnliches Umsatztempo im 2. Halbjahr 2024 mit höheren Bruttomargen
- Generated $1.7 million in scanner sales revenue with 51% gross margin in Q2 2024
- Signed U.S. exclusive distribution agreement with NXC Imaging
- Partnered with University of Oklahoma and OU Health Stephenson Cancer Center
- Delivered four Breast Acoustic CT scanners, expanding to five commercial locations
- Published study showing accurate visualization of breast tissue using QT technology
- Expects higher gross margins in H2 2024
- Net loss of $1.2 million in Q2 2024
- Non-GAAP Adjusted EBITDA of $(2.1) million in Q2 2024
- Net cash used in operating activities increased to $1.0 million in Q2 2024 from $0.5 million in Q2 2023
Insights
QT Imaging's Q2 2024 results show promising growth but also highlight ongoing challenges. Revenue increased to
The company's net loss of
While revenue growth is positive, QT Imaging needs to focus on scaling operations and improving cost efficiency to move towards profitability. The recent distribution agreement with NXC Imaging and partnerships with medical institutions could support future growth, but investors should monitor the company's cash burn and path to profitability closely.
QT Imaging's technology demonstrates promising advancements in breast imaging. The study published in Tomography Journal highlights the ability of their low-frequency 3D-transmitted ultrasound tomography to differentiate breast tissue types and accurately measure glandular and ductal volumes. This capability is particularly significant for dense breast tissue, where conventional imaging methods often struggle.
The partnership with the University of Oklahoma and OU Health Stephenson Cancer Center is a strategic move. It allows for further validation of QT Imaging's technology in clinical research, particularly in assessing volumetric breast density without radiation exposure. This could potentially lead to improved cancer detection and treatment precision.
However, while the technology shows promise, it's important to note that widespread adoption and clinical validation are still ongoing. The company's focus on expanding beyond traditional hospital settings to direct-to-provider approaches could accelerate market penetration, but regulatory approvals and clinical acceptance will be key factors to monitor.
QT Imaging's market strategy shows promise but faces challenges. The company's exclusive U.S. distribution agreement with NXC Imaging could significantly boost market reach and sales. However, the flexibility retained by QT Imaging to sell directly and globally without NXC's consent might complicate the partnership dynamics.
The company's focus on expanding beyond traditional hospital settings to direct-to-provider approaches is innovative and could tap into new market segments. Partnerships with prestigious institutions like the University of Oklahoma and OU Health Stephenson Cancer Center lend credibility and could accelerate adoption in academic and research settings.
However, the medical imaging market is highly competitive and regulated. QT Imaging's success will depend on its ability to demonstrate clear clinical benefits and cost-effectiveness compared to established technologies. The company's projection of maintaining the same revenue pace in the second half of 2024 suggests cautious growth expectations. Investors should closely monitor market acceptance, regulatory progress and the company's ability to scale production to meet potential demand.
Generated Scanner Sales Revenue of
The Company Continues to Make Progress in the Engineering and Clinical Feasibility Study with its Strategic Partner
Signed a
Announced Partnership with the University of
“QT Imaging's team completed the first full quarter in the life of our young public company. We continued to deliver against our plan for the engineering and clinical feasibility study to solidify the intended partnership for large scale manufacturing. Additionally, we shipped four Breast Acoustic CTTM scanners throughout the quarter, three of them via partnership with our strategic distribution partner, increasing the number of commercial locations offering QT Imaging technology in the
“Additionally, we are very proud to report on our partnership with the University of
Financial Highlights
-
Commercial revenue was
$1.7 million $1.4 million $0.1 million -
Gross margin of
51% in the second quarter of 2024, compared to56% margin in the first quarter of 2024 and an insignificant margin in the second quarter of 2023. The decrease in margin in the second quarter of 2024 compared to the first quarter of 2024 was attributable to variability in the weighted average cost related to the Company's existing inventory. The increase in margin in 2024 was due to the sale and delivery of four QT Breast Acoustic CTTM scanners during the second quarter of 2024, compared to no deliveries in the second quarter of 2023. -
Net loss of
$1.2 million $2.1 million $0.2 million $1.3 million $0.2 million $0.2 million -
Non-GAAP Adjusted EBITDA* of
$(2.1) million $(0.7) million -
Net cash used in operating activities during the second quarter of 2024 was
$1.0 million $0.5 million
New Developments
-
On May 8, 2024, the Company announced a partnership with the Vincere Cancer Center, in
Scottsdale, Arizona , together with its strategic distribution partner. The Vincere Cancer Center is a top cancer center in theU.S. Founded by Dr. Vershalee Shukla and Dr. Pablo Prichard. The Vincere Center focuses on cancer prevention, early detection, and specializes in radiation therapy, surgery, and chemotherapy. The two doctors employ innovative technology to mitigate against over-diagnoses while ensuring cancer is not missed. They are both long-standing supporters of QT Imaging and its innovative technology. -
On May 14, 2024, the Company delivered a QT Breast Acoustic CT ScannerTM to the Center of New Medicine in
Irvine, California , with its strategic distribution partner. The Center for New Medicine is one of the largest integrative medical clinics inNorth America , providing a personalized approach to health care including cancer prevention, its early detection, and internal medicine. With the incorporation of QT Imaging’s innovative technology, the Center for New Medicine will expand their innovative services in women’s and breast health. - On May 19, 2024, the paper “Breast Glandular and Ductal Volume Changes during the Menstrual Cycle: A Study in 48 Breasts Using Ultralow-Frequency Transmitted Ultrasound Tomography/Volography” was published in Tomography Journal. The study showed for the first time that low-frequency 3D-transmitted ultrasound tomography can differentiate breast tissue types using tissue properties, accurately measure glandular and ductal volumes in vivo, and measure variation over time. The highly accurate visualization of the ductal and glandular tissue even in dense breasts using QT Imaging's technology is important, as such visualization can be challenging using conventional breast imaging technologies, as mammography or handheld ultrasound.
-
On June 18, 2024, the Company entered into a Distribution Agreement with NXC Imaging, Inc. (NXC), as disclosed in the Company's Form 8-K (Link). Under the Distribution Agreement, NXC is appointed as the exclusive reseller to market, advertise, and resell QT Breast Acoustic CTTM Scanners in the
U.S. andU.S. territories. NXC will purchase for the purpose of reselling, leasing or renting the same directly to its customers, but is not obligated to purchase any particular quantity of scanners from the Company. The Company has reserved the right to sell directly to customers as an exception. Furthermore, the Company may, in its sole discretion, sell the QT Breast Acoustic CTTM Scanners to any other person or entity anywhere in the world without notice to NXC or NXC’s prior consent. NXC is also allowed to assign sales agents for the purpose of scanners' sales. NXC’s purchases will be in accordance with an agreed upon product pricing schedule (subject to change upon 60 days’ prior written notice by the Company), provided that neither NXC nor its assigned sales agents may mark-up the cost of the QT Breast Acoustic CTTM Scanner more than twenty percent (20% ) unless otherwise mutually agreed to between NXC and the Company. Each order will include information reasonably requested by the Company and is subject to the Company’s acceptance, after which it becomes an approved order (“Approved Order”). Any such Approved Orders are non-cancellable and not subject to rescheduling after acceptance by the Company. The Company will invoice NXC for QT Breast Acoustic CTTM Scanner fifty percent (50% ) upon receipt of the applicable Approved Order, and fifty percent (50% ) upon shipment of the QT Breast Acoustic CTTM Scanner, which are due within fifteen days after NXC receives each invoice from the Company. -
On June 20, 2024, the Company delivered a QT Breast Acoustic CTTM Scanner to University of
Oklahoma , which is home to the National Cancer Institute (NCI) designated the OU Health Stephenson Cancer Center (SCC), and the National Institutes of Health Center of Biomedical Research Excellence (COBRE), Oklahoma Center of Medical Imaging for Translational Cancer Research. Innovative imaging modalities like QT Imaging’s Breast Acoustic CT™ technology, with its quantitative imaging predictive markers, will be used to provide an objective measure or index that can reduce subjectivity and improve consistency for medical image diagnosis. QT Imaging’s technology will be incorporated in the clinical research to validate its strengths, such as its ability to image frequently for disease progression as well as to be able to assess volumetric breast density without exposing the patient to radiation. -
On June 27, 2024, the Company delivered a QT Breast Acoustic CTTM Scanner to PerfeQTion Imaging Center in
Haverford, Pennsylvania , with its strategic distribution partner. PerfeQTion Imaging Center offers screening and diagnostic exams, as well as monitoring. QT Imaging’s Breast Acoustic CT™ System, provides a safe, painless, and accurate alternative for breast imaging. The QT Imaging technology is expanding the medical imaging market opportunities beyond hospitals and imaging centers by supporting direct‑to‑provider approaches to enable the ability to lower health care costs and increase access via personal medical imaging.
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 plans to deliver its revenue at the same pace in the second half of 2024 as during the first half of the year, with an expected higher gross margin due to the weighted average cost of existing inventory.
Summary of Results for the Three and Six Months Ended |
||||||||||||||||
June 30, 2024 and 2023 |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
Three Months Ended June 30, |
|
Six Months Ended
|
|||||||||||||
$ thousands (except share and per share amounts) |
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Revenue |
$ |
1,714 |
|
$ |
3 |
|
$ |
3,076 |
|
$ |
11 |
|
||||
Cost of revenue |
|
839 |
|
|
3 |
|
|
1,442 |
|
|
50 |
|
||||
Gross profit (loss) |
|
875 |
|
|
— |
|
|
1,634 |
|
|
(39 |
) |
||||
Operating expenses: |
|
|
|
|
||||||||||||
Research and development |
|
925 |
|
|
349 |
|
|
1,567 |
|
|
771 |
|
||||
Selling, general and administrative |
|
2,170 |
|
|
849 |
|
|
7,866 |
|
|
2,141 |
|
||||
Loss from operations |
|
(2,220 |
) |
|
(1,198 |
) |
|
(7,799 |
) |
|
(2,951 |
) |
||||
Interest expense, net |
|
(1,095 |
) |
|
(132 |
) |
|
(1,694 |
) |
|
(262 |
) |
||||
Other expense, net |
|
(187 |
) |
|
— |
|
|
(208 |
) |
|
— |
|
||||
Change in fair value of warrant liability |
|
214 |
|
|
— |
|
|
191 |
|
|
— |
|
||||
Change in fair value of derivative liability |
|
1,729 |
|
|
— |
|
|
4,713 |
|
|
— |
|
||||
Change in fair value of earnout liability |
|
310 |
|
|
— |
|
|
(750 |
) |
|
— |
|
||||
Net loss |
$ |
(1,249 |
) |
$ |
(1,330 |
) |
$ |
(5,547 |
) |
$ |
(3,213 |
) |
||||
Less: deemed dividend related to the modification of equity classified warrants |
|
(5,186 |
) |
|
— |
|
|
(5,186 |
) |
|
— |
|
||||
Net loss attributable to common stockholders |
$ |
(6,435 |
) |
$ |
(1,330 |
) |
$ |
(10,733 |
) |
$ |
(3,213 |
) |
||||
|
|
|
|
|
||||||||||||
Basic and diluted net loss per share |
$ |
(0.30 |
) |
$ |
(0.14 |
) |
$ |
(0.62 |
) |
$ |
(0.34 |
) |
||||
|
|
|
|
|
||||||||||||
Weighted average shares outstanding |
|
21,440,447 |
|
|
9,540,533 |
|
|
17,333,000 |
|
|
9,528,880 |
|
||||
EBITDA* and Adjusted EBITDA* for the Three and Six Months Ended |
||||||||||||||||
June 30, 2024 and 2023 |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||||
$ thousands |
2024 |
|
2023 |
|
2024 |
|
2023 |
|||||||||
Net loss |
$ |
(1,249 |
) |
|
$ |
(1,330 |
) |
|
$ |
(5,547 |
) |
|
$ |
(3,213 |
) |
|
Interest expense, net |
|
1,095 |
|
|
|
132 |
|
|
|
1,694 |
|
|
|
262 |
|
|
Depreciation and amortization |
|
86 |
|
|
|
116 |
|
|
|
185 |
|
|
|
233 |
|
|
EBITDA |
|
(68 |
) |
|
|
(1,082 |
) |
|
|
(3,668 |
) |
|
|
(2,718 |
) |
|
Adjustments: |
|
|
|
|
|
|
|
|||||||||
Stock-based compensation |
|
— |
|
|
|
208 |
|
|
|
39 |
|
|
|
417 |
|
|
Warrant modification expense |
|
201 |
|
|
|
— |
|
|
|
201 |
|
|
|
— |
|
|
Change in fair value of warrants(1) |
|
(214 |
) |
|
|
— |
|
|
|
(191 |
) |
|
|
— |
|
|
Change in fair value of derivatives(2) |
|
(1,729 |
) |
|
|
— |
|
|
|
(4,713 |
) |
|
|
— |
|
|
Change in fair value of earnout liability(3) |
|
(310 |
) |
|
|
— |
|
|
|
750 |
|
|
|
— |
|
|
Transaction expenses(4) |
|
— |
|
|
|
206 |
|
|
|
4,301 |
|
|
|
562 |
|
|
Adjusted EBITDA |
$ |
(2,120 |
) |
|
$ |
(668 |
) |
|
$ |
(3,281 |
) |
|
$ |
(1,739 |
) |
|
(1) |
The decrease in fair value of warrant liability during the three and six months ended June 30, 2024 relates to the liability classified private placement warrants to reflect the decrease of the publicly traded price per warrant. Additional expense related to the modification of these warrants was recorded as other expense in the condensed consolidated statements of operations during the three and six months ended June 30, 2024. |
|
(2) |
The decrease in fair value of derivative liability during the three and six months ended June 30, 2024 related to the Yorkville Pre-paid Advance, which contained features that were bifurcated as 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 and June 30, 2024 for financial reporting purposes. The change in derivative liability was recorded as other income in the condensed consolidated statements of operations during the three and six months ended June 30, 2024. |
|
(3) |
The 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 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 and June 30, 2024. The net change in fair value of the earnout liability was recognized as other expense in the condensed consolidated statements of operations during the three and six months ended June 30, 2024, respectively. |
|
(4) |
The Company incurred transaction expenses related to the Merger with GigCapital5, Inc,, which closed on March 4, 2024. These transaction expenses included a |
*Refer to the “Non-GAAP Financial Measures” section in this press release. |
| Condensed Consolidated Balance Sheets as of | ||||||||
June 30, 2024 and December 31, 2023 |
||||||||
(Unaudited) |
||||||||
$ in thousands |
June 30,
|
|
December 31,
|
|||||
Assets |
|
|
|
|||||
Current assets: |
|
|
|
|||||
Cash |
$ |
4,581 |
|
|
$ |
165 |
|
|
Restricted cash and cash equivalents |
|
20 |
|
|
|
20 |
|
|
Accounts receivable, net |
|
669 |
|
|
|
1 |
|
|
Inventory |
|
3,355 |
|
|
|
4,418 |
|
|
Prepaid expenses and other current assets |
|
869 |
|
|
|
215 |
|
|
Total current assets |
|
9,494 |
|
|
|
4,819 |
|
|
Non-current assets: |
|
|
|
|||||
Property and equipment, net |
|
142 |
|
|
|
491 |
|
|
Intangible assets, net |
|
— |
|
|
|
90 |
|
|
Operating lease right-of-use assets |
|
1,105 |
|
|
|
1,267 |
|
|
Other assets |
|
39 |
|
|
|
39 |
|
|
Total assets |
$ |
10,780 |
|
|
$ |
6,706 |
|
|
|
|
|
|
|||||
Liabilities and Stockholders' Deficit |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Accounts payable |
$ |
549 |
|
|
$ |
1,356 |
|
|
Accrued expenses and other current liabilities |
|
4,192 |
|
|
|
370 |
|
|
Related party notes payable |
|
5,409 |
|
|
|
705 |
|
|
Current maturities of long-term debt |
|
4,294 |
|
|
|
4,199 |
|
|
Derivative liability |
|
408 |
|
|
|
— |
|
|
Deferred revenue |
|
32 |
|
|
|
347 |
|
|
Operating lease liabilities |
|
383 |
|
|
|
361 |
|
|
Total current liabilities |
|
15,267 |
|
|
|
7,338 |
|
|
Non-current liabilities: |
|
|
|
|||||
Long-term debt |
|
37 |
|
|
|
96 |
|
|
Related party notes payable |
|
— |
|
|
|
3,144 |
|
|
Operating lease liabilities |
|
867 |
|
|
|
1,063 |
|
|
Warrant liability |
|
18 |
|
|
|
— |
|
|
Earnout liability |
|
750 |
|
|
|
— |
|
|
Other liabilities |
|
— |
|
|
|
377 |
|
|
Total liabilities |
|
16,939 |
|
|
|
12,018 |
|
|
|
|
|
|
|||||
Stockholders’ deficit: |
|
|
|
|||||
Common stock |
|
2 |
|
|
|
1 |
|
|
Additional paid-in capital |
|
22,342 |
|
|
|
12,457 |
|
|
Accumulated deficit |
|
(28,503 |
) |
|
|
(17,770 |
) |
|
Total stockholders’ deficit |
|
(6,159 |
) |
|
|
(5,312 |
) |
|
Total liabilities and stockholders’ deficit |
$ |
10,780 |
|
|
$ |
6,706 |
|
|
Condensed Consolidated Statements of Cash Flows for the Six Months Ended |
||||||||
June 30, 2024 and 2023 |
||||||||
(Unaudited) |
||||||||
|
Six Months Ended June 30, |
|||||||
$ in thousands |
2024 |
|
2023 |
|||||
Cash flows from operating activities: |
|
|
|
|||||
Net loss |
$ |
(5,547 |
) |
|
$ |
(3,213 |
) |
|
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|||||
Depreciation and amortization expense |
|
185 |
|
|
|
233 |
|
|
Stock-based compensation |
|
39 |
|
|
|
417 |
|
|
Warrant modification expense |
|
201 |
|
|
|
— |
|
|
Provision for credit losses |
|
1 |
|
|
|
— |
|
|
Fair value of common stock issued in exchange for services and in connection with non-redemption agreements |
|
3,718 |
|
|
|
— |
|
|
Loss on issuance of common stock in connection with a subscription agreement |
|
206 |
|
|
|
— |
|
|
Non-cash interest |
|
1,201 |
|
|
|
22 |
|
|
Non-cash operating lease expense |
|
(12 |
) |
|
|
(4 |
) |
|
Change in fair value of warrant liability |
|
(191 |
) |
|
|
— |
|
|
Change in fair value of derivative liability |
|
(4,713 |
) |
|
|
— |
|
|
Change in fair value of earnout liability |
|
750 |
|
|
|
— |
|
|
Changes in assets and liabilities: |
|
|
|
|||||
Increase in accounts receivable |
|
(669 |
) |
|
|
— |
|
|
Decrease in inventory |
|
1,353 |
|
|
|
54 |
|
|
Increase in prepaid expenses and other current assets |
|
(554 |
) |
|
|
(41 |
) |
|
Decrease in other assets |
|
— |
|
|
|
10 |
|
|
Increase (decrease) in accounts payable |
|
(2,281 |
) |
|
|
786 |
|
|
Increase (decrease) in accrued liabilities and other current liabilities |
|
52 |
|
|
|
(24 |
) |
|
Decrease in deferred revenue |
|
(316 |
) |
|
|
— |
|
|
Increase (decrease) in other liabilities |
|
(378 |
) |
|
|
239 |
|
|
Net cash used in operating activities |
|
(6,955 |
) |
|
|
(1,521 |
) |
|
|
|
|
|
|||||
Cash flows from investing activities: |
|
|
|
|||||
Purchases of property and equipment |
|
(27 |
) |
|
|
(1 |
) |
|
Net cash used in investing activities |
|
(27 |
) |
|
|
(1 |
) |
|
|
|
|
|
|||||
Cash flows from financing activities: |
|
|
|
|||||
Proceeds of sale of common stock and warrants, net of issuance costs |
|
— |
|
|
|
1,017 |
|
|
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 |
|
(65 |
) |
|
|
(64 |
) |
|
Repayment of bridge loans |
|
(800 |
) |
|
|
— |
|
|
Proceeds from related party payable |
|
— |
|
|
|
350 |
|
|
Proceeds from the Merger, net of transaction costs |
|
1,238 |
|
|
|
— |
|
|
Net cash provided by financing activities |
|
11,398 |
|
|
|
1,303 |
|
|
Net increase (decrease) in cash and restricted cash and cash equivalents |
|
4,416 |
|
|
|
(219 |
) |
|
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 |
$ |
4,601 |
|
|
$ |
256 |
|
|
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 (including large scale) 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; our ability to pay our debt obligations as they come due; 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 change in fair value of the derivative, earnout and warrant liabilities, 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 condensed consolidated 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 income (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 income (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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240808190805/en/
For media inquiries, please contact:
Stas Budagov
Chief Financial Officer
Stas.Budagov@qtimaging.com
Source: QT Imaging Holdings, Inc.
FAQ
What was QT Imaging's (QTI) revenue for Q2 2024?
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How many Breast Acoustic CT scanners did QT Imaging (QTI) ship in Q2 2024?
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