QT IMAGING HOLDINGS, INC. (QTI)·Q3 2024 Earnings Summary

Executive Summary

• Q3 2024 commercial revenue was $1.0M, including $0.9M from scanner sales; reported revenue was $0.956M. Gross margin expanded to 63% (vs. 51% in Q2 2024), while net loss widened to $(3.6)M driven by $1.5M of convertible note interest expense .
• Execution milestones: completed engineering and clinical feasibility with a strategic partner; shipped two Breast Acoustic CT scanners; renewed the NIH/NCI five‑year research grant for the third year .
• Balance sheet and financing: amended the $10M Yorkville convertible note (maturity extended to March 31, 2026; monthly payments of $500K + interest start Feb 15, 2025) and insiders committed to a $2.56M PIPE at a 10% premium; quarter‑end cash was $1.544M .
• Listing risk: Nasdaq initiated delisting proceedings due to market value non‑compliance; the company will appeal (hearing stays suspension pending panel decision) .
• Near‑term stock reaction catalysts: commercialization progress (additional Q4 shipments, strategic partner agreement pursuit) versus listing outcome and liquidity runway from insider PIPE financing .

What Went Well and What Went Wrong

What Went Well

• “QT Imaging's team successfully completed the engineering and clinical feasibility study with our strategic partner and shipped two QT Breast Acoustic CT Scanners… The third‑year renewal of our five‑year research grant from the NIH/NCI was signed during the quarter.” — Dr. Raluca Dinu, CEO .
• Gross margin improved to 63% in Q3, up from 51% in Q2, supported by inventory cost mix dynamics and deliveries in the quarter .
• Insiders provided a $2.56M PIPE at a 10% premium, including cancellation of a $1.56M note and $1.0M in new cash, signaling governance alignment and access to bridge capital .

What Went Wrong

• Sequential revenue decline (Q3 commercial revenue $1.0M vs. $1.7M in Q2) due to delayed orders for two scanners expected to ship in Q4, underscoring execution timing risk .
• Net loss widened to $(3.619)M, reflecting $1.455M of convertible note interest expense; operating expenses increased on commercialization and R&D spend .
• Nasdaq delisting proceedings initiated; the appeal introduces uncertainty around listing venue, liquidity and potential cost (e.g., $20,000 hearing fee), which can depress trading dynamics if unsuccessful .

Financial Results

Sequential comparison (oldest → newest)

Year-over-year comparison (Q3)

Segment/KPI breakdown

Notes: Q3 2024 revenue includes scanner sales; remaining commercial revenue reflects other components. KPI availability is limited to disclosures in Q3 filings and press release .

Guidance Changes

Earnings Call Themes & Trends

Note: No Q3 2024 earnings call transcript was filed; themes reflect press release and 8‑K disclosures .

Management Commentary

• “Successfully completed the engineering and clinical feasibility study with our strategic partner and shipped two QT Breast Acoustic CT Scanners… The third-year renewal of our five-year research grant from the NIH/NCI was signed during the quarter.” — Dr. Raluca Dinu, CEO .
• “The PIPE was done in a premium price of 10% to the last 5 days VWAP… purchase price includes the surrender of a $1.56 million promissory note for cancellation… and $1 million in new cash proceeds to the Company.” — Company press release .
• Outlook: “The Company plans to deliver its revenue at the same pace in the fourth quarter of 2024… with an expected higher gross margin due to the weighted average cost of existing inventory.” — Company press release .

Q&A Highlights

• No Q3 2024 earnings call transcript was filed; no Q&A disclosure is available in the document set reviewed .

Estimates Context

• Wall Street consensus estimates (S&P Global) for Q3 2024 EPS, revenue and EBITDA were unavailable due to missing Capital IQ mapping for QTI; comparisons to consensus cannot be made. Values retrieved from S&P Global were unavailable.

Key Takeaways for Investors

• Commercialization is progressing (feasibility completion, shipments), but revenue cadence is choppy; two delayed Q3 orders are expected to ship in Q4, making Q4 execution a near‑term catalyst .
• Gross margin improvement to 63% and expected further improvement in Q4 reflects favorable inventory cost mix; monitor sustainability as volumes scale .
• Liquidity remains tight (cash $1.544M at quarter‑end), but insider PIPE ($2.56M at premium) plus Yorkville amendments (payment relief, maturity extension) support near‑term runway; monthly $500K + interest payments starting Feb 2025 are a headwind .
• Convertible note dynamics (floor price reduction, partial conversion, interest burden) and potential dilution warrant careful attention to capital structure outcomes .
• Nasdaq delisting proceedings and appeal introduce venue/liquidity uncertainty; outcome may influence investor base and share liquidity near‑term .
• With limited public coverage and no available S&P Global consensus, the stock may trade on company‑specific milestones (Q4 shipments, partner agreements, listing decision); execution on commercialization and cash management is critical .
• Medium‑term thesis hinges on converting feasibility into scaled deployments and expanding the installed base while stabilizing revenue and margin trajectory; grant support and leadership additions (CSO appointment) bolster R&D momentum .

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