Financial Performance - The company has incurred a net loss of $19,694,921 and an accumulated deficit of $51,635,448 as of September 30, 2025[169]. - Revenue increased by $3,236,131 to $4,192,101 for the three months ended September 30, 2025, compared to $955,970 for the same period in 2024, primarily due to the sale of nine QT Breast Scanners in Q3 2025 versus two in Q3 2024[194]. - Cost of revenue rose to $2,389,428 in Q3 2025 from $350,667 in Q3 2024, reflecting an increase of 581%[193]. - Gross profit for the three months ended September 30, 2025, was $1,802,673, up 198% from $605,303 in the same period of 2024[193]. - Revenue increased by $6,617,762 to $10,649,930 for the nine months ended September 30, 2025, representing a 164% increase compared to the same period in 2024[205]. - Cost of revenue increased by $3,416,084 to $5,208,318 for the nine months ended September 30, 2025, a 191% increase from the prior year[206]. - Gross profit for the nine months ended September 30, 2025, was $5,441,612, up 143% from $2,239,934 in 2024[204]. - Loss from operations improved by 29% to $(1,652,079) in Q3 2025, compared to $(2,327,188) in Q3 2024[193]. - Interest expense decreased by 61% to $(564,725) in Q3 2025 from $(1,455,306) in Q3 2024[193]. - Interest expense, net decreased by $1,514,301 to $1,635,014 for the nine months ended September 30, 2025, a 48% decrease from the prior year[213]. Agreements and Partnerships - The company entered into a Distribution Agreement with Gulf Medical Co. for exclusive rights to market QT Breast Scanners in Saudi Arabia for an initial term of three years[168]. - The NXC Distribution Agreement allows NXC to market and resell QT Breast Scanners in the U.S. and U.S. territories[165]. - The Gulf Medical Distribution Agreement could result in cash inflows of $11.2 million to $12.3 million in 2026 if minimum purchase requirements are met[217]. - The company expects cash inflows of up to $18.0 million in 2025 and $27.0 million in 2026 from the amended distribution agreement with NXC[216]. - The Canon Manufacturing Agreement with Canon Medical Systems, Inc. appoints CMSC as the exclusive manufacturer of QT Breast Scanners through December 31, 2026[166]. Expenses and Financial Obligations - The company expects to incur additional recurring administrative expenses associated with being a publicly traded company[170]. - Selling, general and administrative expenses rose by 25% to $2,515,994 in Q3 2025, compared to $2,007,277 in Q3 2024[193]. - Total operating expenses increased by 18% to $3,454,752 in Q3 2025 from $2,932,491 in Q3 2024[193]. - Research and development expenses increased slightly by 1% to $938,758 in Q3 2025 from $925,214 in Q3 2024[193]. - Research and development expenses increased by $198,862 to $2,691,704 for the nine months ended September 30, 2025, an 8% increase year-over-year[207]. - The company anticipates that cash received from various private placements will be sufficient to fund its operating plan for at least the next 12 months[220]. - Future funding requirements will depend on factors such as debt repayment, manufacturing expansion, and regulatory progress[242]. - The company plans to raise additional capital through equity issuance, borrowings, and strategic alliances, with potential dilution of stockholder interests[243]. - The company is subject to risks that could impact its ability to secure financing and continue operations[247]. Capital and Financing Activities - The company entered into a credit agreement for a senior secured term loan of $10,100,000 at an interest rate of 10.0% per annum, maturing on March 31, 2027[174]. - The company issued 2,232,243 shares of common stock at a purchase price of $4.50 per share during the October 2025 Private Placement, generating approximately $18,180,655 in gross proceeds[183]. - The company recorded a loss of $6,640,384 upon issuance of the Lynrock Lake Term Loan, including debt issuance costs[228]. - The outstanding amount of the Lynrock Lake Term Loan as of September 30, 2025, was $5,272,879, net of unamortized debt discount[228]. - The company repaid the Tranche B loan of $5.0 million on October 6, 2025, plus accrued interest and a 6% premium[230]. - As of September 30, 2025, the outstanding amount of the 2020 Notes was $3,190,112, with accrued interest of $679,215[232]. - During the nine months ended September 30, 2025, net cash provided by financing activities was $6,447,686, mainly from $15,000,000 in long-term debt issuance[239]. - For the nine months ended September 30, 2024, net cash provided by financing activities was $10,220,475, primarily due to $10,525,000 from long-term debt issuance and $1,238,530 from a business combination[240]. Operational Insights - The company aims to create disruptive technological innovations to improve medical imaging and healthcare quality[167]. - The company has modified the Fixed Price for conversion of the Yorkville Note to $1.752 per share for a portion of the outstanding balance[171]. - The company has no off-balance sheet arrangements during the periods presented[248]. - The company leases its operating facilities in Novato, California, under a non-cancelable lease through May 31, 2027[249]. - Net cash used in operating activities was $5,857,572 for the nine months ended September 30, 2025, a decrease from $8,806,402 for the same period in 2024[234]. - Net cash used in investing activities increased to $46,818 for the nine months ended September 30, 2025, compared to $34,590 for the same period in 2024, primarily for property and equipment purchases[238]. - Other expense, net increased by $8,579,184 to $8,770,514 for the nine months ended September 30, 2025, primarily due to extinguishment losses and noncash expenses[209]. - The company has a minimum purchase requirement with GMC that may be reduced if the company cannot deliver sufficient quantities of approved products[218].
GigCapital5(GIA) - 2025 Q3 - Quarterly Report