Company: QTIWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001844505-25-000083
Chunk: 78

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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 Breast Scanners in the second quarter of 2025 as compared with four scanners sold in the second quarter of 2024 due to the minimum order quantities (“MOQs”) in accordance with the amended NXC Distribution Agreement, which was executed during the fourth quarter of 2024.

Cost of Revenue

Cost of revenue increased by $992,853 to $1,832,337 for the three months ended June 30, 2025 from $839,484 for the three months ended June 30, 2024. The increase in cost of revenue was primarily attributable to the sale of eight QT Breast Scanners in the second quarter of 2025 as compared with four scanners sold in the second quarter of 2024. Gross margin slightly declined in the three months ended June 30, 2025, as compared to the same period in 2024, due to variability in the weighted average costs of inventory.

Operating Expenses

Research and Development Expenses

Research and development expenses decreased by $24,388 to $900,694 for the three months ended June 30, 2025 from $925,082 for the three months ended June 30, 2024. The decrease in research and development expenses was primarily attributable to a decrease in patents amortization expense of $43,669.

Selling, General and Administrative Expenses

Selling, general and administrative expenses decreased by $200,179 to $1,969,362 for the three months ended June 30, 2025 from $2,169,541 for the three months ended June 30, 2024. This change was primarily attributable to decreases in  professional and outside services costs of $198,188 and insurance cost of $145,857 and an increase in allocation expenses of $420,310 from selling, general and administrative expenses to cost of revenue, which was partially offset by increases in employee compensation cost of $400,290, and general business expenses of $146,088.

35

Other income (expense), net

Other income (expense), net increased by $196,892 to income of $9,498 for the three months ended June 30, 2025 from an expense of $187,394 for the three months ended June 30, 2024. This increase was primarily due to a modification adjustment of $200,513 related to the decrease in exercise price of our private placement warrants and working capital note warrants during the three months ended June 2024.

Change in fair value of warrant liability

Change