Troubled radiology vendor’s stock delisted from the Nasdaq
A troubled radiology vendor’s stock has been removed from the Nasdaq, due to the low value of its shares.
QT Imaging hinted at the forthcoming action last fall, with its value plunging 95%, to about $0.60 as of mid-September. The Novato, California-based maker of medical technology—including the QT Imaging Breast Acoustic CT Scanner—completed the process Jan. 28, according to a filing with the Securities and Exchange Commission.
“The company does not expect the [Nasdaq Hearing Panel’s] determination to have any impact on its day-to-day operations,” QT Imaging said in the regulatory filing.
QT first started trading in March following a long-delayed merger deal and related lawsuit, and it celebrated by ringing the Nasdaq bell in April. With nearly $18 million in support from the National Institutes of Health, along with money from private investors, QTI has developed body imaging technology based on low frequency transmitted sound. It uses a “one of a kind” novel sound back-scatter design and inverse-scattering reconstruction to create images. The company’s QT Imaging Breast Acoustic CT scanner is cleared by the FDA as an adjunct to mammography and eliminates the need for breast compression, officials noted.
Leaders previously touted a $151 million equity value, but QT Imaging has failed to live up to that promise. The company recorded a net loss of $3.6 million in the third quarter of 2024 versus a $1.4 million net loss the same period in 2023. Earnings before interest taxes, depreciation and amortization were -$2.2 million compared to $0.6 million the previous year. QT Imaging has quickly burned through cash and failed to turn a profit for over a year.
The Nasdaq notified the company in November that it was commencing proceedings to delist its stock. Market value of QT’s listed securities had fallen below the minimum $50 million required for continued listing. QT Imaging attempted to appeal but received a rejection Jan. 24.
Leaders including CEO Raluca Dinu, PhD, MBA, and four board members invested $1 million in the company in November in the hopes of keeping it afloat, while a creditor agreed to cancel a promissory note worth $1.56 million. Meanwhile, QT on Jan. 13 announced amendments to credit agreements and forecasted $18 million in revenue in 2025 (Q3’s total was $1 million, including $900,000 in scanner sales).
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.