Executive Summary

Q1 2025 commercial revenue was $2.80M, up sharply year over year and sequentially, with gross margin expanding to 65%; EPS was $(0.40) driven by debt extinguishment and issuance costs related to the Lynrock Lake term loan .
Guidance was maintained: management reiterated 2025 revenue of $18M (40 scanners) and 2026 revenue of $27M (60 scanners), aligned with MOQs in the NXC Imaging distribution agreement .
Balance sheet actions: closed $10.1M Lynrock Lake term loan (10% interest, maturing 3/31/2027), repaid Yorkville and Cable Car convertible notes; company also announced PIPE investments totaling ~$0.7M in Q2 timing for working capital .
Near-term stock reaction catalysts: execution against MOQs (six scanners shipped in Q1), margin expansion, manufacturing agreement with Canon Medical (scaling production), and OTCQB uplift following Nasdaq delisting proceedings .

What Went Well and What Went Wrong

Revenue inflection and margin expansion: shipped six scanners, delivering $2.80M revenue (scanner sales $2.70M) and 65% gross margin; year-over-year margin +900 bps, sequential +1,800 bps; “We’re well-positioned to build on this momentum throughout the year” — CEO Dr. Raluca Dinu .
Strategic scaling: entered a contract manufacturing agreement with Canon Medical Systems Corporation, retaining Novato manufacturing capability .
Balance sheet strengthening: closed $10.1M Lynrock Lake term loan; extinguished Yorkville and Cable Car notes; had $5.4M net for working capital post repayments .

Heavy non-GAAP and financing-driven charges: net loss widened to $(11.14)M, including $6.64M debt issuance expense, $2.03M debt extinguishment, and $0.69M interest expense .
Cash burn and working capital build: net cash used in operating activities was $(3.54)M; accounts receivable rose to $2.78M vs $0.07M at Dec 31—reflecting shipments and collections timing .
Listing headwinds: Nasdaq delisting proceedings led to OTCQB trading (QTIH); while uplift achieved in March, relisting depends on meeting initial listing standards .

Metric	Q1 2024	Q4 2024	Q1 2025
Revenue ($USD Millions)	$1.362	$0.847	$2.798
Gross Margin (%)	56%	47%	65%
Loss from Operations ($USD Millions)	$(5.579)	$(2.051)	$(1.042)
Net Loss ($USD Millions)	$(0.629)	$(3.489)	$(11.136)
EPS (Basic & Diluted, $USD)	$(0.05)	$(0.15)	$(0.40)
Cash Used in Operating Activities ($USD Millions)	$(5.976)	$(1.200)	$(3.537)

Segment/revenue breakdown (Q1 2025):

Revenue Component	Q1 2025
Total Revenue ($USD Millions)	$2.798
Scanner Sales ($USD Millions)	$2.700
Other Revenue (Computed) ($USD Millions)	$0.098

KPIs and operating metrics:

KPI	Q1 2024	Q4 2024	Q1 2025
Scanner Shipments (Units)	3	2	6
Gross Profit ($USD Millions)	$0.760	$0.400	$1.812
Avg Revenue per Scanner (Computed, $USD Millions)	$0.454	$0.424	$0.450
Accounts Receivable ($USD Millions)	—	$0.067 (Dec 31, 2024)	$2.782 (Mar 31, 2025)
Inventory ($USD Millions)	—	$3.141 (Dec 31, 2024)	$2.872 (Mar 31, 2025)
Cash and Restricted Cash ($USD Millions)	—	$1.192 (Dec 31, 2024)	$3.008 (Mar 31, 2025)
Weighted Avg Shares Outstanding (Millions)	13.226	23.744	27.516

Notes:

Avg revenue per scanner computed using total revenue/shipments; Q1 2025 scanner revenue and shipments specifically disclosed, while other periods use total revenue and disclosed shipment counts .
Year-over-year and sequential margin increases were primarily due to variability in weighted average cost of existing inventory .

Metric	Period	Previous Guidance	Current Guidance	Change
Revenue	FY 2025	$18M (40 scanners per MOQs)	$18M (40 scanners per MOQs)	Maintained
Revenue	FY 2026	$27M (60 scanners per MOQs)	$27M (60 scanners per MOQs)	Maintained
Shipments	FY 2025	40 scanners	40 scanners	Maintained
Shipments	FY 2026	60 scanners	60 scanners	Maintained

No explicit guidance provided for margins, OpEx, OI&E, tax rate, or dividends in Q1 materials .

No Q1 2025 earnings call transcript was found; themes are drawn from press releases and 8-Ks [SearchDocuments: no results].

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q1 2025)	Trend
Distribution & MOQs	NXC Imaging agreement amended; MOQs set for 2025/2026	Six scanners shipped to NXC Imaging on Mar 31; execution against MOQs	Improving execution
Manufacturing Scale	Canon Manufacturing Agreement signed Mar 28	Entered contract manufacturing with Canon; retained Novato manufacturing	Scaling capacity
Financing & Balance Sheet	Lynrock Lake term loan announced; plan to extinguish notes	$10.1M term loan closed; Yorkville/Cable Car repaid; $5.4M net for working capital	Strengthened liquidity
Margin Drivers	Q3 2024 margin 63% vs Q4 47%, driven by inventory cost variability	Q1 2025 margin 65%, attributed to weighted average cost variability	Margins stabilizing higher
Listing/Trading Status	Nasdaq delisting proceedings; moved to OTCQB	OTCQB uplift confirmed; future Nasdaq relisting contingent on meeting standards	Neutral to improving
R&D/Grants	NIH/NCI grant renewal (Oct 29, 2024)	No new Q1 disclosures beyond operational execution	Stable
Controls & Risk Language	Material weakness identified in forward-looking statements	Continued risk language including material weakness reference	Ongoing remediation

“We had a strong start to 2025, shipping six Breast Acoustic CT scanners and generating $2.8 million in revenue with a 65% gross margin... entered into a contract manufacturing agreement with Canon Medical Systems Corporation—a key milestone in scaling our production capabilities. We’re well-positioned to build on this momentum throughout the year.” — Dr. Raluca Dinu, CEO .
“Within just one year... strong, reliable distribution and manufacturing partners... confident in our ability to deliver on our financial targets for 2025 and 2026.” — Q4/FY 2024 press release (context for Q1 trajectory) .

No Q1 2025 earnings call transcript available; no Q&A disclosures to report [SearchDocuments: no results].

S&P Global Wall Street consensus for Q1 2025 EPS and revenue was unavailable for QTIH at this time; therefore, estimate comparisons are not presented [GetEstimates: empty for Q1 2025].

Execution improved: six scanners shipped and revenue inflected to $2.80M; sustained margin expansion to 65% underscores pricing and cost discipline amid inventory cost variability .
Non-operating charges dominated P&L: $(11.14)M net loss driven by $6.64M debt issuance and $2.03M extinguishment costs; monitor normalization in subsequent quarters as these items fade .
Liquidity actions reduce near-term refinancing risk: $10.1M term loan closed, convertible notes repaid, and PIPEs support working capital; watch interest burden (10% compounded quarterly) and cash burn trajectory .
Capacity and distribution aligned for guidance: Canon manufacturing and NXC MOQs support 2025/2026 shipment targets; execution against quarterly MOQs will be a key stock narrative driver .
Working capital dynamics: AR scaled with shipments ($2.78M), inventory declined sequentially; focus on receivables collection and channel sell-through to sustain cash flow .
Listing status: OTCQB uplift achieved; potential future Nasdaq relisting could be a credibility catalyst if initial listing standards are met .
With S&P Global consensus unavailable, the next print’s narrative will be driven by operational milestones (shipments, margins, cash burn), rather than beat/miss optics; traders should watch for intra-quarter shipment disclosures and margin mix updates [GetEstimates: empty].