Imaging vendor faces delisting from the Nasdaq due to low stock price

An imaging vendor that rang the Nasdaq opening bell in April now faces potential delisting from the stock exchange due to the low value of its stock price. 

QT Imaging first started trading its shares in March following a long-delayed merger deal and related lawsuit. However, the Novato, California-based maker of medical technology—including the QT Imaging Breast Acoustic CT Scanner—has seen its value slide ever since. Its stock price has plummeted nearly 95%, to about $0.60 as of late Wednesday. 

In a recent filing with the Securities and Exchange Commission, QT Imaging warned of its possible impending removal from the exchange. That’s because its stock price had remained under $1 for 30 consecutive days, and the value of its listed securities had fallen below $50 million as of May. 

On Sept. 4, QT Imaging received further notice that its market value had fallen below $15 million for 31 consecutive business days. It now has until March 3 to regain compliance. 

“The company intends to monitor its [market value of publicly held securities] between now and the compliance date and may, if appropriate, consider available options to regain compliance with the MVPHS requirement,” QT Imaging said in the filing. “However, there can be no assurance that the company will be able to regain or maintain compliance with Nasdaq listing criteria,” it added later. 

QT Imaging also announced in March that its CEO was stepping down, replaced by Raluca Dinu, PhD, MBA, managing partner of GigCapital Global, which executed the merger deal. She will serve as acting CEO for one year up until March, when QT will reevaluate its strategic position. 

In its second quarter earnings call in August, QT Imaging said it had generated scanner sales revenue of $1.7 million with a 51% gross margin. However, the company reported a net loss of $1.2 million and adjusted earnings of -$2.1 million versus -$700,000 during the same period in 2023. 

“2024 is a transitional year as the company stabilizes the business and focuses on commercialization anchored in strategic business partnerships,” QT Imaging said in August. 

In an analysis published Sept. 10, InvestingPro said QT has been “quickly burning through cash,” with analysts predicting a sales decline in 2024. Additionally, the company has not been profitable for the past 12 months, as its stock price has slid since earlier this year. 

“These factors could be crucial for investors considering the company's ability to regain compliance with Nasdaq's listing standards,” the analysis noted.  

In other recent news, QT Imaging also announced the expansion of locations offering its Breast Acoustic CT Scanner in August, and another partnership in Pennsylvania in July.