Financial Performance - Scanner sales revenue for Q3 2024 was $0.9 million, with a gross margin of 65%[1] - Total commercial revenue for Q3 2024 was $1.0 million, down from $1.7 million in Q2 2024 and less than $0.1 million in Q3 2023[7] - Net loss for Q3 2024 was $3.6 million, compared to a net loss of $1.4 million in Q3 2023[7] - Non-GAAP Adjusted EBITDA for Q3 2024 was $(2.2) million, compared to $(0.6) million in Q3 2023[7] - Operating cash used in Q3 2024 was $1.9 million, compared to $0.4 million in Q3 2023[7] - Net loss for the nine months ended September 30, 2024, was $9,166,000, compared to a net loss of $4,589,000 for the same period in 2023, indicating a 99.5% increase in losses[19] Financing Activities - The company completed a $2.56 million PIPE financing, executed by Board members, at a 10% premium to the prior five-day average trading price[4] - The principal balance of the convertible note was reduced to $8.6 million after a payment of approximately $1.5 million[3] - Proceeds from long-term debt, net of issuance costs, amounted to $10,525,000 during the nine months ended September 30, 2024[19] Assets and Liabilities - Total current assets increased to $5,778,000 as of September 30, 2024, compared to $4,819,000 on December 31, 2023, representing a 19.9% increase[18] - Total liabilities rose to $16,612,000 as of September 30, 2024, up from $12,018,000 at the end of 2023, reflecting a 38.2% increase[18] - Cash and restricted cash and cash equivalents at the end of the period were $1,564,000, a significant increase from $54,000 at the end of the previous year[19] - The company reported a decrease in inventory to $3,182,000 as of September 30, 2024, down from $4,418,000, marking a 28.0% reduction[18] Strategic Initiatives - The company signed a third-year renewal of its five-year research grant from the NIH/NCI during Q3 2024[9] - The company plans to maintain revenue pace in Q4 2024 with expected higher gross margins due to inventory cost adjustments[11] - The company anticipates future growth in product sales and projected revenues related to the QT Imaging Breast Acoustic CT™ Scanner[20] - QT Imaging's strategy focuses on improving global health outcomes through innovative body imaging systems using low-frequency sound waves[31] Internal Controls - The company has identified material weaknesses in internal controls over financial reporting, which may impact future financial results[20] Definitions - Adjusted EBITDA is defined as EBITDA further adjusted for stock-based compensation and changes in fair value of liabilities, providing insight into the company's financial performance[25]
QT Imaging(QTI) - 2024 Q3 - Quarterly Results