Q3 2025 QT Imaging Holdings Inc Earnings Call

Greetings. Welcome to the QT Imaging Holdings Q3 2025 earnings conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation.

If anyone wants to require operator assistance during the conference, please press star 1 on your telephone keypad.

Please note this conference is being recorded. I will now return the conference over to your host, Steve Kilmer, Investor Relations. Steve, you may begin.

Thank you, operator, and good afternoon, everyone. Yesterday, QT Imaging released financial results for the third quarter ended September 30, 2025. A copy of the press release is available on our website. Before we start, I would like to point out that management will make statements during this conference call that include forward-looking statements, within the meaning of the federal securities laws, which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Any statements made during this call that are not statements of historical facts should be deemed to be forward-looking statements.

Such statements relate to all known and unknown risks, uncertainties, and other factors that may cause actual results, performance, or achievements to be materially different from those implied by such statements. Therefore, these statements should not be read as guarantees of future performance or results.

All four looking statements are based on QT Imaging's current beliefs as well as assumptions made by information currently available to QT Imaging. These statements relate to, among other things, the QT Imaging breast to Q6, C2 scanner, including its commercialization, manufacturing, and further development.

Evolution of TC Imaging into a Scalable Imaging Platform.

The QT Imaging Cloud platform and SAS model, performance of software enhancements, new product development and introduction, product sales growth, and projected revenues due to the imaging industry, and future events.

For a list of descriptions of the risks and uncertainties associated with the company's business, please see this filing with the Securities and Exchange Commission. QT Imaging disclaims any obligations, except as required by law, to update or revise any financial or operational projections, regulatory outlook, or other forward-looking statements, whether because of new information, future events, or otherwise.

Any forward-looking statements made on this conference call speak only as of the date of this conference call.

With that said, I will now turn the call over to Luca.

Thank you, Steve. Good afternoon, everyone, and welcome.

On behalf of.

And everyone at QT Imaging. I would like to thank you for your interest in our company. For those who are shareholders, we appreciate your support. This earnings call marks an important moment for QT Imaging as we continue to build a new category in breast imaging.

Safe volumetric wave based 3D imaging that delivers MRI light information in the clinic and patient friendly system. Our focus is execution, reliability and Commercial expansion in markets where access to Advanced Imaging Health, historically, been limited medical imaging has come a long way since the moment will Henry and getting accidentally noticed, his wife's hand glowing on a fluorescent screen in 1895 that part quite literally. Launched the X-ray era, and opened the new window in the human body. Over the decades, innovators keep pushing that window. Wider x-ray evolved into CT scans, giving us the first 3 dimensional. Look, inside the body, then would you sound the right using sound waves to create real-time moving pictures, that transform of threats and everyday Diagnostics nuclear medicine added? The ability to see function, not just structure revealing how organs actually work.

And finally, MRI changed everything, harnessing magnetic fields and radio waves to deliver extraordinary detail, especially for soft tissue like the brain and the breast. Each leap brings most medicine from shadows to clarity, from static snapshots to rich, dense images. It's a century-long story of constant reinvention, and we are now entering the next chapter where imaging becomes quantitative, intelligent, and truly patient-centric.

So, what do CT and MRI actually do? And how do they work?

At the highest level, and without diving into the math, both technologies operate on the same basic principle. You send a beam of energy through the body from many directions, measure how those signals change as they pass through, and use a reconstruction algorithm to reassemble those measurements into cross-sectional images.

For CT, the energy sources are X-rays.

They pass through the body along multiple paths and provide excellent structural detail.

But because X-rays are ionizing, repeated scans contribute to cumulative radiation exposure.

Am I right? It takes a very different approach instead of X-rays. It uses powerful magnetic fields and radio frequency pulses to collect measurements from multiple angles, rather than absorbing or attenuating radiation. Tissues respond to the magnetic field with a distinct signal pattern.

Results are then reconstructed into images, with far superior soft tissue contrast compared to C.

How does exposing the patient to ionizing radiation affect their health?

Everyone has likely seen the difference. MRI is the gold standard for soft tissue imaging; one city is unmatched for bone. And for contrasting hand studies that demand space, what cut the image in brings to the table is the same reconstruction principle: many beams, many angles, but powered by wave technology with a frequency close to the spoken word—audible frequency rather than radiation or magnitude. Think of three advantages this wave technology delivers.

1 image quality comparable to MRI.

Just as MRI provides better detail than CT, our wave-based imaging technology produces MRI-labeled clarity when it comes to soft tissue contrast.

This is a major leap forward without the cost and complexity of MRI.

Number 2.

Zero toxicity. Our waves are as safe as traditional ultrasound. As I said earlier, their frequency is close to the audible frequency.

Unlike existing ultrasound technology, where a probe is placed on the skin and only echoes of reflected energy are analyzed, our waves actually travel through the tissue, allowing for 3D volumetric reconstruction, similar to an MRI.

3 2 independent sources of information.

Critical parameters include the speed at which waves travel through different tissues, as various tissues alter the speed differently. This dual information dramatically enhances our ability to distinguish structures and detect abnormalities.

Additionally, QT Imaging Reflection Configuration is used for high-resolution depiction of tissue interfaces.

Ducts.

Upper ligament lesion boundaries, as well as improved lesion visualization. As cancers have irregular, heterogeneous, reflective signatures for both transmission and reflection paths, we collect automation data.

Each data set QT Imaging collects—transmission, reflection, and attenuation—is unique and rich in biomarkers, which will allow us to move from subjective imaging interpretation to objective data. We can measure. The QT Imaging team will focus on generating the clinical validation of the data sets and associated biomarkers. When I think through...

1 data quality.

MRI is today's gold standard in medical imaging. Our technology delivers MRI-class detail, quantitative high resolution, and radiation-free imaging. Number 2, Physicians.

MRI systems are remarkable but extremely limited by infrastructure. MRI systems are extraordinarily difficult and expensive for hospitals to support. They require superconducting magnets cooled to nearly absolute zero with scarce, high-cost liquid helium.

Specialized our shielding rooms, reinforced floors, and dedicated high capacity power and HVAC infrastructures. Annual service contracts routinely range from $120,000 to $250,000 per unit, which would include repairs, software upgrades, and downtime, adding significantly more.

Installation of replacement often demands major building modifications that can cost hundreds of thousands of dollars and disrupt clinical operations for weeks. MRI throughput is limited. Staffing requires highly trained technologists, and many patients cannot tolerate or safely undergo MRI exams.

Together, these factors make MRI one of the most operationally burdensome and cost-intensive imaging modalities in the healthcare system. For many women, health centers offering MRI simply aren't accessible. Our system removes all these barriers and enhances patient experience.

MRI voice breath compression as it happened in mamography, but experience is still difficult, navigating Magna, safety rules laying face down entering a narrow tunnel. Enduring loud noise and claustrophobic conditions.

Anyone who has had an MRI knows it's far from pleasant. Our system eliminates the stressors and delivers high-quality imaging in a calm, comfortable environment without the need for a contrast IV. So what need are we addressing? There are several.

Mammography is essential, but for women who face threats, it isn't enough. Globally, more than 40% of women have been threatened, a population in which mammography alone is insufficient for reliable detection due to mapping effects. Existing supplemental imaging options, MRI and handheld ultrasound, have gaps in access, workflow efficiency, reproducibility, and cost.

QT, Imaging, fills an important Gap, it offers, MRI comparable information without the logistical constraints of MRI and avoid the variability and limitation of handheld. Ultrasound importantly, if this can can help visualize calcium, something MRI does not adding a clinically meaningful dimension for screening and risk assessment in the future, for clinicians managing, large screening population, or a high risk cohort, it provides a scalable consistent Imaging pathway that can be adopted in outpatient and community.

Settings. And here's the important ones: MRI does not directly image breast tissue. Because breast tissue is mostly fat, MRI requires IV contrast to visualize cancers indirectly by highlighting abnormal blood vessel patterns. This would cut imaging technology, allowing you to see the cancerous tissue itself without IV contrast and without radiation.

What the image suggests in the form of reader study, directly comparing the scan with standard breast imaging, our results show equivalent and, in some cases, higher diagnostic performance. In one multi-reader, multi-cast study of more than 100 breasts, the readers' mean ROC AUC was 10% higher with QD scan than with full-field digital mammography ROC AUC, which is the FDA standard metric for evaluating diagnostic imaging performance. Of course, the strength of these results is in a second multi-reader study comparing QD scan to digital breast tomosynthesis. The mean ROC AUC was 0.75 for QD scan and 0.70 for DBT, showing a trend towards higher performance for QD scan.

Taken together, the studies confirmed that the QT scan performs on par with, and in some aspects exceeds, the 2-day standard for breast imaging while providing a non-ionizing, operator-independent solution that can be scaled across community and outpatient settings.

We also conducted a clinical study comparing QT, scan directly with MRI together. With doctors are not as group in Sunnybrook Cancer Center in Toronto, Canada in patients, receiving new Advan chemotherapy across the data set, lesion measurements, show strong concordance, between the 2 modalities. This is also a QD scan exceptional, image quality and indicate close agreement in quantitative assessment and overall the final

It is confirmed that CUTIE delivers volumetric accuracy comparable to MRI without contrast injection, addressing the logistical challenges associated with MRI.

We have an ongoing QT scan versus summarized study with Dr. Christine Lee and Mayo Clinic in Rochester. We will report the results in our future calls, Beyond Detection QTs. Volumetric consistency and quantitative parameters create opportunities for future imaging biomarkers, longitudinal monitoring, and integration with cloud-based AI tools. The development will enable risk-stratified care response monitoring and better utilization of advanced imaging across health systems. Security imaging biomarkers elevate breast imaging from simple detection to diagnostic and prognostic precision.

By applying quantitative thresholds, we enable earlier identification of malignancy and provide robust tools for monitoring therapy response, including predicting pathological complete response and new arguments for treatment.

These quantitative biomarkers also opened the door to personalized medicine by linking imaging signatures with geometric and histopathological data.

To summarize. This is the promise of QT, Imaging MRI quality data, ultrasound level, safety dramatically, improved accessibility and the far better patient and provider experience all delivered through a Next Generation. Safe wave based Imaging platform rich in biomarkers. We have our work cut for us but we are very excited to move in forward.

Let's discuss briefly QT Imaging, the imaging step technology, due to the imaging system using two independent signals: transmission of speed of sound and reflection. That's amplitude data. And mathematically reconstructing a volumetric data set using proprietary algorithms, this dual data path approach effectively creates a non-ionizing form of tomographic imaging that has.

In dense tissue, where mammography and handheld ultrasounds face challenges.

Inherent limitations; additionally, we collect generation data from both transmission and reception paths.

The system produces 3D volumes of data that allow radiologists to evaluate lesions, architectural distortion, and tissue patterns across coronal, sagittal, and axial planes.

Because the patient lies prone and the breast is surrounded by a stable water-based medium, the reproducibility is high and operator variability is reduced compared to traditional handheld methods.

For patients, the procedure is quite non-intrusive, requiring compression; for clinicians, the scanner of voice infrastructure mitigates the burden of MRI: no cryogens, no dedicated room, no shielding, and no specialized electrical build-out. All this translates to a significant cost of ownership reduction, positioning QT as an accessible solution for supplemental imaging, particularly in markets where MRI access is constrained or cost-prohibitive. This brings me to the commercial story behind QT Imaging and why it is compelling from an investment perspective.

Only have accomplished today. Was it here to any endorsement or recommendation from RSNA or other radiology societies and without CMS Medicare reimbursement? We have laid the foundation with both hands tied behind our back.

As an imaging company, our business model has three core components. First, we sell high-quality capital equipment, much like companies in radiation oncology or advanced imaging. Second, we have a consumable component that creates an attractive razor-razor blade dynamic. Third, we are building our SaaS platform throughout 2026, creating a long-term high-margin software revenue stream to advance biomarkers and cloud-based imaging services. In our humble view, this is supported by early interest from sophisticated technology investors. This combination not only delivers meaningful value to patients and clinicians but also creates a strong, diversified revenue engine.

We will report back as we have a firm offering of our cloud-sized platform and we tested it with our customers.

With that in mind, let's move into the financials, beginning with our partnership with NXE Imaging.

Oh, United States. Our commercial model is anchored by our partnership with NXT Imaging, an owned subsidiary of Cano Medical Systems, USA, and one of the most established distributors in the radiology equipment market.

Through this partnership, QT Imaging gains immediate national reach, established relationships with breast imaging centers, and professional sales and service coverage that would take years and significant capital to replicate internally.

This channel event approach enables Imaging to maintain a lean operating structure while accessing market adoption. NXT Imaging benefits from offering a differentiated product like ours, with a broad clinical need and a large population of potential users.

Beauty Imaging is present agreement with NXE Imaging, stated commitments involve deliveries of a minimum of 40 scanners for $18 million in revenue in 2025, and deliveries of a minimum of 60 scanners for $27 million in revenue for 2026. As we scale commercially, we are taking a disciplined approach to risk management and revenue expansion. We added a senior executive focused on direct strategic sales. This role gives us immediate access to high-value institutional customers at the highest executive and decision-making levels for leveraging our staff biomarker platform while ensuring and delivering additional levels of value to the relationship. They matter most and allow us to pursue opportunities that fall outside and exceed our footprint.

A diversifies our commercial engines, strengthens our pipeline visibility, and provides redundancy at the phase where execution speed is critical. We announced yesterday that this is such a great milestone. Our new Chief Commercial Officer joined our team strategy as a seasoned executive with three decades of progressive leadership in radiology, oncology, and molecular imaging strategy, constituting the imaging for the company. Strategic partner can medical assistance USA, where he most recently served as Executive Senior Vice President and Chief Sales and Marketing Officer.

Strategy: it will drive commercial scale-up subscriptions of high, strategic value customers and clinical partnerships for QT Imaging.

Outside the United States, our strategy is to build around scalable regional templates aligned with our global regulatory strategy.

The Saudi Arabia program, called Medical, announced a few months back, serves as a model to secure regulatory approval aligned with national health priorities, develop multi-step deployment programs, and build long-term service and training capacity via the distribution channel.

The same framework will guide the extension into additional regions as circulatory. Milestones are achieved.

The commercial partnership with Golf Medical provides for a minimum order quantity of 5 QTs, scanners per quarter, starting in the first quarter of 2026. Through the end of 2028, for a total, a minimum of 60 scanners and revenue of more than $33 million. This dual path model USA channel leverages paired structured international deployment, creating diversified revenue streams and accelerating global penetration.

PE Mark certification approval is anticipated by the end of 2026.

These two milestones will significantly expand QT Imaging's global reach and commercial potential.

Manufacturing and operational readiness are core priorities for the company. We predominantly build those scanners in California at a lower volume together with our contract manufacturing partner, Karen Medical Systems in Japan. We plan to expand our United States operations to support our future growth. Over the past few quarters, we have focused on our United States-based suppliers; the largest majority of our suppliers are from the United States. We help debug the technical issues at the presence of our sites, improve forecasting, and tighten oversight.

We also hired the VP of Manufacturing, Mario Garcia, who drives our vendor supply relationships and stabilizes our build processes. With these changes in place, our supply chain is steady, lead times are controlled and predictable, and we are ready to support current and future shipments.

Before I turn the call over to Jay to provide a brief summary of our 2025 third quarter financial results, I would like to share how pleased I am that Jay Jennings joined us as our Chief Financial Officer.

Day brings the public company experience, strong financial disciplines, and an immediate strengthening of our budgeting, forecasting, and operational rigor. His leadership is already elevating our execution as we prepare for the next phase of growth.

Today, please walk us through the Q3 financials. Thank you, Aloha and good afternoon, everyone. Q3 was a strong quarter for Cutie Imaging demonstrating, the strength of our current scanner business. And our focus on execution. During Q3 2025, we ship 9 scanners to nxc Imaging compared to 2 scanners during Q3 2024 and a recorded revenue of 4.2 million in Q3 2025 compared to 956,000 in Q3 2024.

In addition, we shipped another 5 scans to NXC Imaging in October, bringing our total to 28 scanners shifted to 2025. We are preparing to ship the remaining 12 systems in Q4 2025, for a total of 40 systems shipped in 2025.

Cost of revenue was $2.4 million in Q3 2025 compared to $3.5 million in Q3 2024, resulting in a gross margin of 43% compared to 63% in Q3 2024.

The decrease in the gross margin was due to variability in the weighted average costs of inventory. We've also shipped a scanner to a manufacturing partner with lower margin. Despite the growth in our revenue in 2025, we continued to take a disciplined approach to managing our operating expenses. Research and development expenses were $939,000 in Q3 2025, representing 22% of our Q3 2025 revenue, compared to $925,000 in Q3 2024. Going forward, we expect that our research and development expenses will be at the same percentage of revenue in the first half of 2026 as we build and deploy our Cloud SaaS platform and run clinical trials that are necessary to generate biomarker data.

And redesign the QT breast scanner to reduce the bill of materials and other costs to manufacture as committed. During our recent fundraising, selling general and administrative expenses were $2.5 million in Q3 2025, representing 60% of Q3 2025 revenue, compared to $2 million in Q3 2024. This increase, which was a result of the required expansion of our corporate infrastructure and targeted commercial investment, was primarily attributable to increases in professional and outside services expenses, employee compensation expenses, and other general business expenses.

Partially offset by decreases in insurance expense and an increase in the allocation of expenses from STNA to cost of revenue.

General and administrative functions, which accounted for $2.1 million of the SG&A expenses in Q3 2025, represented 51% of revenue and are forecasted to decrease as a percent of revenue in 2026, with a target of under 20%.

Our operating loss was $1.7 million in Q3 2025, decreasing from $2.3 million in Q3 2024.

5 was $4.6 million or -47 cents per share on a basic and fully diluted basis compared to $3.6 million or -51 cents per share in Q3 2024. EBITDA was -$4 million in Q3 2025 compared to -$2.1 million in Q3 2024.

Excluding stock-based compensation and other non-cash expenses, such as the change in fair value of earnout liability adjusted, EBITDA was negative $1.4 million in Q3 2025 compared to negative $2.2 million in Q3 2024. Moving to the balance sheet, as of September 30, 2025, we had cash and restricted cash and cash equivalents of $1.7 million compared to $1.2 million as of December 31, 2024.

The increase in the cash balance was a result of $6.4 million of cash flows from financing activities during the 9 months ended September 30, 2025, which includes $15 million of borrowing from Lynrock Lake, $1 million used to repurchase the Yorkville warranty, and $4.7 million used to repay the Yorkville and Cable Card debt.

Partially offset by $5.9 million of net cash used in operating activities, which decreased compared to $8.8 million of cash used in operating activities during the 9 months ended September 30, 2024, as part of our reported recent events in October. We significantly strengthened our balance sheet through an oversubscribed $18.2 million private placement financing, which included anchoring from Scio Capital and participation from other institutional and existing company investors. In addition, we repaid the $5 million tranche B loan from Lynrock Lake that we used to repurchase the Yorkville warrant during Q3. As a result, our cash, restricted cash, and cash equivalents were $12.4 million as of November 10.

Accounts receivable was $3.2 million as of September 30, 2025, which will be collected during the first week of November.

As of September 30, 2025, we had $15.1 million of long-term debt with Ling Rock Lake, which included the $5 million Tranche B loan that was repaid in October, as well as $3.9 million of related party notes payable, substantially. All of our debt is not due until March 2027. That's it for my summary of our third quarter 2025 results. Please see our Form 10-Q filed earlier today for further details regarding the results. I'll now turn the call over to Raluca. Thank you, Jay.

If we look forward to 2025, we reaffirm our forecasts of 40 scanners, with sales driven solely by United States channel activity in 2026. We plan to ship 80 scanners, comprising 60 scanners to be sold in the United States and 20 scanners to be sold in Saudi Arabia, for a total revenue of about $39 million. Our long-term trajectory for 2026 and beyond includes further expansion of the QT scanners' installed base, our cloud platform, and advancing quantitative imaging capabilities that can be supported by micro-development, AI analysis, and risk-certified imaging pathways. To conclude our call, QT Imaging is building a new category in breast imaging—MRI-class volumetric imaging delivered in a patient-friendly, accessible, and scalable format.

Imaging is built on the simple but profound beliefs.

We are here to care for the woman, not only for the organ. Honoring her comfort, her experience, and her health was technology designed around her.

The technology is validated. The clinical need is clear, and the commercial structure is now in place with strengthening operations and focused execution. We are well, positioned for the next phase of growth. Thank you so much for your time and continued support. We will now open the call for questions.

Operator.

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And please hold while we pull for questions.

Jeffrey, your line is live.

Hello Luca and Sherry, thanks for taking our questions.

I have a few. I'll start with the, um, the commercial activity. So, as I understand it, NXT is leading the commercial activities domestically. Then, maybe you could talk about whether you are supplementing that at all. And then talk about your commercial activities or your assets. I assume that you're managing all of those, oh, us. And then also I want to know about training and service—whose task is that? Not Jeff. Thank you so much for joining. Uh, thank you so much for asking the question.

NXT, uh, Imaging is our exclusive for distributor for, uh, United States sales. Um, and we do work very well with them. Um, we as, as I said, during the call, we have hired, uh, also a, uh, Chief, um, commercial officer, Mr. Sat misra has joined us as of yesterday.

Dr. Jet will be responsible for strategic sales and uh, in the United States. Um, and uh, globally to where where NXT Imaging, uh, basically does not have the reach, for example, um, academic institutions, or um, very high, very high-end, um uh hospitals. We're trying to help and we're trying to um, supplement the activities of NXT uh Imaging.

Uh, globally. Uh, we do have in place the, um, distribution agreement of with the call for medical as you know, and, uh, we will start shipping. Hopefully by the end of q1, if not by the, uh, beginning of Q2 as we receive our sfda approval. Okay, got it. Um, can you, uh, give us an update on timeing of the, uh, the Upper State? I know the the, uh, the split already occurred a couple weeks ago, but I'm curious about the opportunity status. Now, good point, thank you so much for bringing this up. Um, as of Friday this week we would have provided all uh, the data that's needed for um that was requested by uh by NASDAQ

Um, we definitely um, hope that we will be uh, back on NASDAQ before the end of the year if not earlier than that.

Can you give us a little caller on the coding? That's in place in the US as I understand it. Thus far, a fair amount of placements are, um, or cash currently. But talk to us about the, uh, the Medicare C code and also count 3 codes and where we stand in the US. Sure.

Sure, sure. Great question, thank you so much. Um, so just as, as, um, as we, uh, discussed in the past, um, today, the, uh, code that can be used for, uh, 2D Imaging is an unlisted, ultrasound code. We have submitted our application to, uh, CMS for, um, new tech ABC category, C, code, Medicare code.

Um, a few months back, and, um, we are waiting for feedback. Uh, hopefully by January 2026, we get our Category C, uh, code.

Uh November 3rd. Uh we we have also submitted our application for a category 3, uh code, which uh, we hope to receive by January 2027.

Okay, so the Cathy code could become effective on January 26th, with Category 3 implemented a year later.

Category, C code will get replaced by Category 3 code when it becomes available. You're absolutely right.

Okay, got it. Could you um, discuss a little bit about you mentioned?

A CE Mark in late '26 or by the end of '26. Why, why couldn't you receive that earlier?

A good good question. Uh, just so we will submit the application, uh, hopefully by January February next year. It's quite, uh, it's quite a lot that we have to do for that. Uh, usually it takes 9 to 12 months, to get to get the approval. Hopefully, we can, uh, we can get that before, um, before Q4 next year but, uh, to to the best of our, um, knowledge and understanding. Um, we should be expecting that, before the end of 2026, we'll keep you updated. No, no doubt.

Hood 4.4. I didn't get a clear proforma debt number today.

Yes. 12.4. Uh, is our current cash balance.

And it did.

Uh, the debt.

Is, uh, it's currently at 20.3 million including a crude interest.

Got it. Okay. And then, I think I had 1 more. Can you remind us where are, um, where are the? Where is the equipment being manufactured today?

As far as final assembly, will that be manufactured someplace differently throughout the coming year?

Quick question. Thank you, Jeff. Um, today we are manufacturing most of our scanners in California, uh, but uh, our partnership with our contact manufacturing, uh, partner Canon Medical Systems in in Japan. Um, is is also, um, working. We have received the first 3 Scanners from from Japan, um, to for the final testing. Um, that was that was done in California, majority of the manufacturing happens in uh, in California at this point in time. And we do plan to expand our manufacturing capabilities in, in California to make sure that we support the, um, increased number of scanners for next year. Okay, perfect. Thanks for taking your questions. Thank you so much. I appreciate it. Thank you.

Thank.

You, thank you. And the next question will be from Ben Hur from Lake Street Capital been. Your line is live.

Just just curious on the the utilization you're seeing as these new scanners getting installed and uh, uh, these clinics ramp up. Is that something that looks fairly similar from 1 Clinic to another or do they vary quite a bit? How long does it kind of take to get, uh, you know, a steady run rate any anything you can share on, kind of the utilization front? And how that ramps?

Been um what a pleasure to have you with us. Thank you so much for uh for being with us. And thank you so much for the question.

Um, so Ben, it it varies from um, 1.

Region to another. There's some some Echo. Hopefully, you can hear me. Uh, it. It does vary from uh, 1 region to another. It takes few months up until we see a steady flow of patients coming in. Um, some uh, some centers report uh, 12 to 14, patients a day, other centers report, um, 8 to 10 patients a day. Uh, this is, uh, this is this is what we uh, we see today.

A couple of months, as they get ramped up, they kind of steady state, you know, 8, 10, 12, or 14.

Got it exactly. Yep.

Perfect. And then on the the the your visibility into nxt's, you know, install pipeline, anything, you can share on that front. Um, and then also well, let's leave it there. And then I'll, I'll follow up. So, um, very good question. They, they do. Um, they do a great job covering, uh, United States. They also have hired um, additional Distributors to better, put the feet on on the on the street and um make sure that the scanners get into customers hands.

Um, and on our end, uh, then we have, um, um, hired the strategy to help out with the direct sales too. So we, uh, all together as a team, um, move fast. The most important, most important for this company is the speed. Uh, we need clinical data. We need to make sure that the sales are, um, are happening fast and, and, uh, efficient. So, um, what we will help from, from our end too, and on the direct sales, how does that get handled? Uh, sure. How does that show up on the income statement? Is it, do you get full gross margin and then something comes out of, you know, sales and marketing? Or how does that work? Mechanically? So, um, first of all,

Agreement to the next C Imaging allows us to, to, uh, to do direct sales too. And we're obviously we'll do it in, uh, in total, um, sync with, uh, with our distribution partner, we will cover the uh, areas where, uh, we are complementary. We're not going to to go for the same accounts, obviously will help.

The every scanner we sell from from the direct sales of QT, Imaging comes out of the minimum order, quantity of uh of an X8. And um um otherwise we'll uh, we'll make sure that the pricing and everything else gets um uh gets gets uh to to be um, in sync with the, with the next C, then, okay? Got it that that's helpful.

With Canon, I think if I heard you correctly, the the first 1 that went out there was at a bit lower margin. Um, how how quickly that kind of wrap wrap up to, you know the level that you think it can go to in terms of, you know, gross margin wherever that winds up with that.

Uh, very good question. So, um, then we, while most of our um, parts are from the United States, we get, uh, obviously tariffs because of manufacturing in Japan.

So that's that's why the the lower um, the lower uh, um, gross margin that we're making on, on the scanners. So we're trying to balance our needs to, to hold the gross margin and deliver as, as we promised um, versus the ramp up, uh, that that's happening right now with, um, uh, Canon Japan. It it remains to be seen, uh, we, we will have plan B in place. So, I will make sure that the scanners get shipped from California. Uh, in case that, uh, this the tariffs will linger for so much longer. Okay, that that makes sense. And then lastly, for me, just just, I know you've provided a bit of color on on kind of some of the software stuff and, uh, the, the, the SAS platform, any more color, you can share their

So um then first of all we will start connecting. Um everyone all of our clinical sites and um our commercial Partners via um the pipeline basically that intelerad or until share uh will will provide. We we work collaboratively and uh first uh, we will put together, we will put in place the connectivity to the centers and to the clinical sites

Uh, once once that is in place, um, we will definitely assess the, um, the pricing of the SAS platform. We're trying to put in place, and we'll report back for, for the next few months. Uh, we want to make sure that everybody is connected and we can deliver the next, uh, Next Generation next version of the software and we start collecting, uh, the uh, the data to be able to, to, um, offer the biomarkers in the future.

First, well, congrats on the progress, and thanks for taking the questions.

Oh no. Thank you so much. Thank you for joining us, Turbine. We appreciate it.

Thank you. That does conclude our Q&A session for today. I will now hand the call back to Raluca Do for closing remarks.

Thank you very much to all of you for participating in our call. Thank you for your support, and we look forward to updating you during our next call. Happy holidays, and all the best. Thank you very much.