QTI

QT Imaging is a sub-$50M micro-cap medical-imaging deSPAC where the top line is genuinely inflecting — FY2025 revenue jumped +287.9% to $18.9M (from $4.88M in FY2024 and essentially zero in FY2023), and gross profit rose +225.2% to $8.58M at a respectable 45.4% gross margin. That is the entire bull case, and it is real: the product is selling. But every line below gross profit is a problem. The company still posted a -$4.44M operating loss and a -$21.1M net loss (net margin -111.4%), meaning ~$16.7M of the loss sits below the operating line in non-operating charges — a hallmark of post-SPAC warrant/derivative and financing costs that make the reported bottom line volatile and largely outside management's control. The -$53.0M accumulated deficit and -327.1% ROE confirm this is a company that has burned far more than it has ever earned.

The balance sheet is the disqualifier. Cash is $10.4M against -$8.96M of operating cash burn, so at the current run-rate there is roughly one year of runway before another raise is required. Long-term debt of $10.1M actually exceeds the cash balance, stockholders' equity is a thin $6.45M, and liabilities/equity sits at 2.57x. The 56.5% year-over-year drop in share count to just 12.0M signals a reverse split — typical of a stock fighting to hold an exchange listing — and with negative operating cash flow the near-certain next step is dilutive equity issuance at whatever price the market will bear. The filing reinforces the fragility: it leans on Emerging Growth Company exemptions (no Section 404(b) auditor attestation on internal controls), and its only facility is a non-cancelable Novato lease expiring May 31, 2027 'with no options or rights to extend.'