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 thousand, compared to a loss of $1,330 thousand for the same period in 2023, representing a 6% improvement[12] - Adjusted EBITDA for the six months ended June 30, 2024, was $(3,281) thousand, compared to $(1,739) thousand for the same period in 2023, indicating a decline of 88%[12] - 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] - The company reported a net cash used in operating activities of $(6,955) thousand for the six months ended June 30, 2024, compared to $(1,521) thousand for the same period in 2023[17] Assets and Liabilities - Total current assets increased to $9,494 thousand as of June 30, 2024, up from $4,819 thousand at December 31, 2023, reflecting a 97% growth[15] - Cash and restricted cash and cash equivalents at the end of the period were $4,601 thousand, compared to $256 thousand at the end of the same period in 2023, marking a significant increase of 1,800%[17] - Total liabilities rose to $16,939 thousand as of June 30, 2024, compared to $12,018 thousand at December 31, 2023, representing a 41% increase[15] Business Developments - 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 partnership was signed with the University of Oklahoma and OU Health Stephenson Cancer Center to enhance cancer detection and treatment precision[1][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 product sales growth and projected revenues[18] Research and Development - Research and development expenses for Q2 2024 were $0.9 million, up from $0.3 million in Q2 2023[10] Future Outlook - The company plans to maintain revenue growth in the second half of 2024, expecting higher gross margins due to inventory cost stabilization[8] - The company anticipates future developments may change its assessments and outlook, emphasizing the uncertainty of projected financial information[18] Non-GAAP Measures - QT Imaging reported that EBITDA is defined as loss before interest expense, income tax expense, depreciation, and amortization[23] - Adjusted EBITDA is further adjusted 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 certain GAAP components[25] - Management uses EBITDA and Adjusted EBITDA as non-GAAP performance measures, which are reconciled to net loss in accompanying tables[25] - There are material limitations associated with the use of non-GAAP financial measures, as they exclude significant expenses and income required by GAAP[24] - The company does not consider non-GAAP measures in isolation or as alternatives to GAAP measures[24] Company Mission - QT Imaging is focused on the research, development, and commercialization of innovative body imaging systems using low frequency sound waves[27] - The company emphasizes that medical imaging should be safe, affordable, accessible, and centered on the patient's experience[27] - QT Imaging aims to improve global health outcomes through its innovative imaging technology[27]
QT Imaging(QTI) - 2024 Q2 - Quarterly Results