QT Imaging Holdings, Inc. (formerly GigCapital5, Inc.) reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company, which focuses on medical imaging technology, particularly the QT Breast Scanner, experienced a substantial increase in revenue, with total revenue for the three months reaching $955,970, a remarkable rise from $24,657 in the same period of 2023. For the nine months ended September 30, 2024, revenue surged to $4,032,168, compared to $35,404 in the prior year. This growth is attributed to the sale of two QT Breast Scanners during the quarter, a notable increase from no sales in the previous year.

Despite the revenue growth, QT Imaging reported a net loss of $3,619,494 for the third quarter of 2024, up from a loss of $1,375,939 in the same quarter of 2023. For the nine-month period, the net loss was $9,166,958, compared to $4,588,900 in the previous year. The increase in losses is primarily due to rising operating expenses, which totaled $2,932,491 for the third quarter, a 136% increase from $1,243,953 in the same quarter of 2023. Total operating expenses for the nine months reached $12,365,871, up from $4,156,093 in the prior year.

Research and development expenses also saw a significant rise, totaling $925,214 for the third quarter, compared to $311,829 in the same period of 2023. This increase reflects the company's ongoing investment in the development of its imaging technologies. Selling, general, and administrative expenses increased to $2,007,277 for the third quarter, driven by higher employee compensation, insurance, and IT costs.

As of September 30, 2024, QT Imaging's accumulated deficit stood at $32,122,605, up from $17,770,145 at the end of 2023. The company reported cash and restricted cash of $1,564,169, a significant increase from $184,686 at the end of the previous year, primarily due to financing activities, including a $10,525,000 net proceeds from long-term debt issuance.

Strategically, the company completed a merger with GigCapital5 on March 4, 2024, which was accounted for as a reverse recapitalization. Following the merger, QT Imaging entered into a Standby Equity Purchase Agreement (SEPA) with Yorkville, allowing for the potential issuance of up to $50 million in common stock. The company has also engaged in a private placement transaction expected to close by November 29, 2024, raising approximately $2,560,000.

Overall, while QT Imaging has made strides in revenue generation, it continues to face challenges in profitability and operational expenses as it seeks to establish its market presence and expand its product offerings.