QT Imaging Holdings Announces Clearing of All Its Short-Term Liabilities and Forecasts Solid Revenue Growth

Rhea-AI Summary

QT Imaging Holdings (NASDAQ:QTI), a medical device company, announces the elimination of its short-term liabilities and forecasts robust revenue growth for 2025 and 2026. The company has amended its convertible promissory notes with YA II PN, and Funicular Funds, LP, extending the maturity date to March 31, 2026, with no payments due until then. QT Imaging projects revenue of $18M in 2025 and $27M in 2026, a significant increase from 2024. The company aims to deliver a minimum of 40 scanners in 2025 and 60 scanners in 2026, totaling $45M in revenue over the two years. Further details are available in the SEC Form 8-K filed on January 10, 2025.

Positive

• Clearing of all short-term liabilities.
• Revenue forecast of $18M in 2025 and $27M in 2026.
• Amendments to promissory notes with no payments due until March 31, 2026.
• Planned delivery of a minimum of 40 scanners in 2025 and 60 scanners in 2026.

Negative

• Outstanding principal balance and annual interest of 6% are due by March 31, 2026.

Insights

Financial Analyst

The debt restructuring and revenue forecast announcement represents a pivotal financial transformation for QTI. The renegotiated terms of both convertible notes effectively clear the company's immediate debt obligations until March 2026, creating vital operational breathing room. The 6% annual interest rate is notably favorable in the current high-rate environment.

The projected revenue trajectory is particularly compelling - targeting $18M in 2025 and $27M in 2026, with a concrete operational plan to deliver 40 scanners in 2025 and 60 scanners in 2026. This represents a 50% year-over-year unit growth rate. The implied average revenue per scanner of approximately $450,000 aligns with industry pricing standards for advanced medical imaging equipment.

The debt restructuring eliminates near-term cash flow pressure, allowing QTI to focus capital on scaling production and sales. Think of it as refinancing a mortgage with a balloon payment - all obligations are pushed to 2026, giving the company important time to execute its growth strategy. For a medical device company with $10M market cap, securing this financial flexibility while maintaining relatively low interest costs is a significant achievement that could accelerate market penetration.

Medical Device Industry Analyst

The operational target of delivering 100 medical imaging scanners over two years signals QTI's transition from development to commercial scale. For context, the medical imaging market has high barriers to entry and achieving consistent production of 3-5 units monthly requires robust quality control systems and supply chain management. The planned 50% production increase from 2025 to 2026 is ambitious but achievable with proper infrastructure investment.

The sequential rollout strategy - 40 units followed by 60 units - suggests a measured approach to scaling, allowing for optimization of production processes and service capabilities. This is important in the medical device sector where reliability and support infrastructure are as important as the technology itself. The revenue guidance implies strong market acceptance and a solid order pipeline, which is remarkable for an emerging player in a field dominated by established manufacturers.

NOVATO, Calif.--(BUSINESS WIRE)-- QT Imaging Holdings, Inc. (NASDAQ:QTI) (the “Company”), a medical device company engaged in research, development, and commercialization of innovative body imaging systems, is pleased to announce strengthening of its financials, by clearing its short-term liabilities and by forecasting solid revenue growth in 2025 and 2026.

The Company announced amendments to both its convertible promissory note with YA II PN, Ltd. (the “YA Investor,” and such promissory note, the “YA Note”) and to its convertible promissory note with Funicular Funds, LP (the “Cable Car Investor,” and such promissory note, the “Cable Car Note”), each of which was entered into on January 9, 2025. With the amendments of YA Note and Cable Car Note, both notes are maturing on March 31, 2026, by which date the outstanding principal balance and the annual interest of 6% are due. No payments whatsoever are to be made by the Company till that date. Comprehensive details of both agreements are included in the Form 8-K filed by the Company with the SEC on January 10, 2025.

Additionally, the Company forecasts revenue of $18M in 2025 and $27M in 2026, a significant increase from 2024 revenue.

“On behalf of the QTI leadership team and Board of Directors, I would like to thank the YA Investor and Cable Car Investor teams for their partnership and trust, as the execution of these amendments gives the QTI team the runway to successfully execute on our quarterly plan to deliver a minimum of 40 scanners in 2025, and 60 scanners in 2026, for a total of $45M in revenue for both years,” said Dr. Raluca Dinu, Chief Executive Officer.

About QT Imaging Holding, Inc.

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.

Breast Acoustic CT™ is a trademark of an affiliate of QT Imaging Holdings, Inc.

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 Securities Exchange Act of 1934, as amended. Such statements contain words such as “will,” and “expect,” or the negative thereof or comparable terminology, and include (without limitation) statements regarding future payments by QT Imaging Holdings under the YA Note and the Cable Car Note, plans for QT Imaging Holdings, new product development and introduction, and product sales growth and projected revenues. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statement. These risks include, but are not limited to: research results from the use of the Breast Acoustic CT™ Scanner, the ability of QT Imaging Holdings to sell and deploy the 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. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of QT Imaging Holding’s (and its predecessor, GigCapital5, Inc.) filings with the SEC, and in its other current and periodic reports filed or furnished from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on information available to QT Imaging Holdings as of the date hereof, and QT Imaging Holdings assumes no obligation to update any forward-looking statement.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250113427567/en/

For media inquiries, please contact:

Stas Budagov

Chief Financial Officer

Stas.Budagov@qtimaging.com

Source: QT Imaging Holdings, Inc.

FAQ

What does the QTI buyback mean for shareholders?

QT Imaging Holdings has cleared its short-term liabilities, potentially increasing shareholder value by improving financial stability.

How much revenue is QTI forecasting for 2025?

QT Imaging Holdings forecasts $18M in revenue for 2025.

What is the revenue forecast for QTI in 2026?

QT Imaging Holdings projects $27M in revenue for 2026.

When are the amended promissory notes for QTI due?

The amended promissory notes are due by March 31, 2026.

How many scanners does QTI plan to deliver in 2025?

QT Imaging Holdings plans to deliver a minimum of 40 scanners in 2025.

What is the total projected revenue for QTI from scanner deliveries in 2025 and 2026?

QT Imaging Holdings projects a total of $45M in revenue from scanner deliveries over 2025 and 2026.