Company: QTIWW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001628280-25-051332
Chunk: 90

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 90
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 Scanners in the third quarter of 2025 as compared with two scanners sold in the third 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 $2,038,761 to $2,389,428 for the three months ended September 30, 2025 from $350,667 for the three months ended September 30, 2024. The increase in cost of revenue was primarily attributable to the sale of nine QT Breast Scanners in the third quarter of 2025 as compared with two scanners sold in the third quarter of 2024. Gross margin decreased in the three months ended September 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 were flat compared to the prior year.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by $508,717 to $2,515,994 for the three months ended September 30, 2025 from $2,007,277 for the three months ended September 30, 2024. This change was primarily attributable to increases in professional and outside services expenses of $394,905, employee compensation expenses of $558,989, and general business expenses of $184,962, which were partially offset by decreases in insurance expense of $144,600 and an increase in allocation expenses of $498,456 from selling, general and administrative expenses to cost of revenue.

Other income (expense), net

40

Other income (expense), net decreased by $47,554 to expense of $30,559 for the three months ended September 30, 2025 from an income of $16,995 for the three months ended September 30, 2024. This decrease was primarily due to an adjustment of $46,387 in extinguishment loss due to the modification of the related party loan.

Change in fair value of warrant liability

Change in fair value of warrant liability changed by $88,848 to an expense of $80,043 during the three months ended September 30, 2025 from income of $8,805 during the three months ended September 30, 2024. The change in fair value of warrants during the third quarter of 2025 was primarily attributable to an