Financial Performance - Commercial revenue for Q2 2024 was $1.7 million, up from $1.4 million in Q1 2024 and significantly higher than less than $0.1 million in Q2 2023[3] - Gross margin in Q2 2024 was 51%, down from 56% in Q1 2024, attributed to variability in the weighted average cost of existing inventory[3][4] - Net loss for Q2 2024 was $1.2 million, compared to a net loss of $1.3 million in Q2 2023[4] - Non-GAAP Adjusted EBITDA for Q2 2024 was $(2.1) million, compared to $(0.7) million in Q2 2023[4] - Net loss for the three months ended June 30, 2024, was $1,249,000, compared to a loss of $1,330,000 for the same period in 2023, representing a decrease of 6.1%[12] - Adjusted EBITDA for the six months ended June 30, 2024, was $(3,281,000), compared to $(1,739,000) for the same period in 2023, indicating a decline of 88.5%[12] Cash Flow and Assets - The company reported a net cash usage of $1.0 million in operating activities during Q2 2024, compared to $0.5 million in Q2 2023[4] - Cash and restricted cash and cash equivalents at the end of the period were $4,601,000, up from $256,000 at the end of the previous year, marking a significant increase of 1,698.4%[17] - The company reported a net cash used in operating activities of $(6,955,000) for the six months ended June 30, 2024, compared to $(1,521,000) for the same period in 2023, indicating a worsening cash flow situation[17] - Total current assets increased to $9,494,000 as of June 30, 2024, from $4,819,000 as of December 31, 2023, reflecting a growth of 97.8%[15] - The company recorded a significant increase in accounts receivable of $669,000 during the six months ended June 30, 2024, indicating potential challenges in cash collection[17] Partnerships and Product Development - A partnership was signed with the University of Oklahoma and OU Health Stephenson Cancer Center to enhance cancer detection and treatment precision[1][2] - The company delivered four Breast Acoustic CT scanners in Q2 2024, increasing the number of commercial locations in the U.S. to five[2] - A distribution agreement was established with NXC Imaging, Inc. for exclusive resale of QT Breast Acoustic CT Scanners in the U.S.[5][7] - The company plans to commercialize the QT Imaging Breast Acoustic CT™ Scanner, with expectations for future product sales growth and revenue projections[18] Expenses and Liabilities - Research and development expenses for Q2 2024 were $925,000, compared to $349,000 in Q2 2023[10] - Total liabilities rose to $16,939,000 as of June 30, 2024, compared to $12,018,000 at the end of 2023, an increase of 41.1%[15] - The company incurred transaction expenses of $4,301,000 related to the merger with GigCapital5, Inc., which closed on March 4, 2024[12] Financial Definitions and Guidance - QT Imaging reported that EBITDA is defined as loss before interest expense, income tax expense, depreciation, and amortization[23] - Adjusted EBITDA further adjusts EBITDA for equity-based compensation, net change in fair value of derivative, earnout and warrant liabilities, and transaction expenses[23] - The company does not provide guidance for net income (loss) or reconciliation of Adjusted EBITDA guidance due to unpredictability of GAAP amounts[25] - Non-GAAP financial measures are used to provide supplemental information about financial performance and allow for comparison of results between periods[22] - Management uses non-GAAP measures to analyze financial and business trends, but acknowledges limitations in excluding significant expenses and income required by GAAP[24] - QT Imaging's financial measures may not be comparable to those of other companies due to different calculations of non-GAAP measures[21] - The financial information presented is unaudited and should be read in conjunction with GAAP measures[20] Company Vision and Strategy - QT Imaging is focused on the research, development, and commercialization of innovative body imaging systems using low frequency sound waves[27] - The company's strategy emphasizes that medical imaging should be safe, affordable, accessible, and centered on the patient's experience[27] - The company aims to improve global health outcomes through its innovative imaging technology[27]
GigCapital5(GIA) - 2024 Q2 - Quarterly Results