QT Imaging (QTI) Q2 2026 Earnings Call Transcript

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DATE

Wednesday, Aug. 12, 2026 at 4:30 p.m. ET

CALL PARTICIPANTS

• Chief Executive Officer - Raluca Dinu
• Chief Financial Officer - Jay W. Jennings

TAKEAWAYS

• Revenue -- $7.4 million for the second quarter, representing a 103% increase year over year for QT Imaging Holdings, Inc. (NASDAQ:QTI) driven by higher scanner shipments.
• Scanner Shipments -- 15 units in the second quarter, an increase from eight scanners shipped in the prior-year period.
• First-Half Revenue -- $14 million for the first six months of 2026, representing a 116% increase compared with the same period last year.
• First-Half Shipments -- 28 units for the six months ended June 30, 2026, compared with 14 scanners shipped in the prior-year period.
• Fiscal 2026 Guidance -- approximately $39 million in revenue, which would be more than double the $18.9 million in revenue reported in 2025.
• Gross Margin -- 41% for the second quarter, reflecting a higher weighted average cost of inventory sold for U.S. sales compared with 50% in the prior-year period.
• Operating Expenses -- $4.9 million for the quarter, an increase from $2.9 million last year due to higher employee compensation, professional service costs, and marketing expenses.
• Operating Loss -- $1.9 million for the second quarter, compared with an operating loss of $1.0 million in the prior-year period.
• Net Loss -- $11.1 million for the second quarter, which included an $8.3 million non-cash loss associated with debt extinguishment and modification.
• Net Loss Per Share -- $0.75 for the second quarter, compared with a loss of $0.42 per share in the prior-year period.
• Non-GAAP Adjusted EBITDA -- negative $1.2 million for the quarter, compared with negative $0.8 million in the second quarter of 2025.
• Public Offering -- $10 million in gross proceeds generated through an underwritten public offering completed during the second quarter.
• Debt Maturity -- extended by two years to March 31, 2029, through an amendment to the senior secured term loan with Lynrock Lake.
• Debt Interest Rate -- increased from 10% to 12% per annum as part of the amended senior secured term loan agreement.
• Accounts Receivable -- $7.4 million as of June 30, 2026, which management reported was collected in early August 2026.
• Cash Balance -- $14.2 million as of August 7, 2026, including restricted cash, representing an increase from $11.0 million as of June 30, 2026.
• Facility Expansion -- 22,000-square-foot facility in Petaluma, California, which provides more than a 2.5-fold increase in operational space compared with previous headquarters.
• Operational Cost Reduction -- 55% reduction in lease cost per square foot for the new Petaluma facility compared with the Novato location.
• Patient Volume -- more than 12,000 women imaged with the company's technology to date, providing a growing body of real-world clinical experience.
• Measurement Variability -- less than 1% in a multi-site study evaluating the repeatability of quantitative speed of sound measurements across scanners.
• H2 Shipment Plan -- 15 scanners in the third quarter and 17 scanners in the fourth quarter of 2026 to meet reaffirmed revenue targets.
• Historical Revenue Growth -- revenue increased from zero in 2023 to $4.9 million in 2024 and $18.9 million in 2025 as the commercial business scaled.
• Capital Expenditures -- $191,000 during the first half of 2026, primarily for property and equipment related to facility expansion.
• Reverse Stock Split -- 3-for-1 ratio completed in October 2025, with all prior-period per-share figures adjusted for comparability.

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RISKS

• Dinu stated, "While geopolitical developments have impacted commercial activity in parts of the Gulf Region, we are beginning to see encouraging signs of renewed customer engagement," noting the influence of external factors on international sales timelines.
• Jennings stated, "We anticipate it [operating expenses] going up a little bit with the higher of the sales team as well as shifting of some of the clinical studies expenses from the first half of the year into the second half of the year," indicating higher near-term spending.

SUMMARY

Management reported that QT Imaging Holdings, Inc. is executing a transition toward a quantitative breast imaging platform that integrates hardware, software, and cloud infrastructure. The company expanded its global regulatory footprint with clearances in Israel and Saudi Arabia while increasing its domestic commercial infrastructure through direct sales hires. The company is also scaling its manufacturing capacity by relocating to a larger facility to support its reaffirmed 2026 revenue guidance.

• The American Medical Association approved a dedicated Category III CPT reimbursement code for the company's imaging modality, which becomes effective Jan. 1, 2027.
• The company completed its first routine FDA inspection with zero Form 483 observations, which management indicated reflects the strength of its quality management system and manufacturing processes.
• A prospective feasibility study at Mayo Clinic reported agreement between the company's scan and MRI in identifying all suspicious lesions, with a second study of more than 100 patients expected to begin in the coming months.
• CEO Dinu stated that the first breast acoustic CT scanner in Israel will be placed at Rambam Healthcare Campus to support a clinical study in women with hereditary risk for breast cancer.
• The company expanded its U.S. commercial organization with the appointment of Jason Dyer as Vice President, Regional Sales East, and Dave Reinhart as Vice President, Regional Sales West.
• Software version 4.5.0 improved the spatial resolution of reflection imaging, providing radiologists with greater image detail while maintaining efficient clinical processing times.

INDUSTRY GLOSSARY

• AMAR: Authorization of Medical Accessory Registration, the regulatory clearance required to commercialize medical devices in Israel.
• BI-RADS: Breast Imaging-Reporting and Data System, a standardized scoring system used by radiologists to communicate the results of breast imaging.
• Category III CPT Code: A set of temporary codes for emerging technology, services, and procedures used by the American Medical Association to track utilization.
• CPT Code: Current Procedural Terminology code, a standardized medical code used to report medical, surgical, and diagnostic procedures for reimbursement.
• PACS: Picture Archiving and Communication System, a medical imaging technology used for storing and digitally transmitting electronic images and reports.
• SFDA: Saudi Food and Drug Authority, the regulatory body responsible for medical device and food safety in Saudi Arabia.
• Speed of Sound: A quantitative measurement of ultrasound waves used to provide objective information about breast tissue density and structure.

Full Conference Call Transcript

Operator: Welcome to the QT Imaging Second Quarter 26 Financial Results Conference Call. All participants will be in listen only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to your host, Bruce Voss. With us on the call today are Dr. Raluca Dinu, Chief Executive Officer and Jay Jennings, Chief Financial Officer. I want to remind listeners that comments made during this call by management will include forward looking statements within the meaning of federal securities laws.

Any statements that are not statements of historical facts should be deemed to be forward looking statements. Such statements involve 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. All forward looking statements are based on QT Imaging's current beliefs, as well as assumptions made by and information currently available to QT imaging.

And relate to, among other things, QT imaging breast acoustic CT scanner including its product commercialization and manufacturing, the evolution of QT imaging into a scalable imaging platform, a QTI cloud platform and SaaS model, performance of software enhancements, new product development and introduction, and product sales growth and projected revenues. For a list and description of the risks and uncertainties associated with the company's business, please see its filings with the Securities and Exchange Commission. Furthermore, the content of this call contains information that is accurate only as of the date of this live broadcast, 08/12/2026. QT Imaging disclaims because of new information, future events, or otherwise. Mhmm.

And now I would like to turn the call over to Doctor. Raluca Dinu. Raluca?

Raluca Dinu: Thank you, Bruce, and good afternoon, everyone. Thank you for spending time with us and for your interest in QT Imaging. The second quarter was another strong period of execution for QT Imaging as we continued to scale our commercial business and build the foundation for broader adoption of breast acoustic CT imaging technology. Our mission is to transform breast health by giving women and physicians a better approach to breast imaging. Today's pathway still has important limitations. Mammography can be less effective in dense breasts and requires compression. MRI can be costly and burdensome. And conventional ultrasound remains highly operator dependent.

CT imaging was built to address these challenges with a differentiated 3-dimensional imaging platform that is radiation free compression free and quantitative. Our vision extends beyond delivering a better imaging experience. We are building a platform designed to provide objective reproducible information that can support more personalized breast health management and overtime enable quantitative biomarkers and AI driven applications. During the quarter, we shipped 15 breast acoustic CT scanners in line with our United States shipment plan and generated revenue of 7.4 million an increase of 103% compared to the second quarter of 25.

For the first 6 months of 2026, we shipped 28 scanners and generated $14 million in revenue, compared to 14 scanners and $6.5 million in revenue during the same period last year. To put that growth in perspective, Imaging generated no revenue in 2023, $4.9 million in revenue in 2024, and $18.9 million in 2025. With our 2026 revenue guidance of approximately $39 million we believe this trajectory demonstrates the continued scaling of our commercial business and the growing adoption of breast acoustic CT imaging modality. Most importantly, more than 12 thousand women have now been imaged using breast acoustic CT scans today. For us that milestone is about more than the growth of our installed base.

It represents a growing body of real world clinical experience with our technology and progress toward our ultimate objective. Expanding the access to a more patient centered quantitative approach to risk imaging. As we enter the second half of the year, our focus is increasingly on translating this foundation into broader adoption. Let me start with our United States commercial strategy. In the United States, we continue to strengthen the commercial infrastructure needed to support our next phase of growth.

Under the leadership of our Chief Commercial Officer, Satrajit Misra, we expanded our United States commercial organization with the appointment of Jason Dyer, our Vice President Regional Southeast and Dave Reinhart as Vice President Regional Sales This expanded team strengthens our ability to engage directly with breast imaging centers, clinicians, and enterprise health systems, while continuing to leverage our exclusive distribution partnership with NXT Imaging, a subsidiary of Canon Medical Systems, United States. By combining established distribution infrastructure with expanded direct commercial and business development capabilities, we are building a scalable commercial model designed to deepen customer engagement, accelerate clinical adoption and installed base growth, and support sustainable long term revenue growth and margin expansion.

Internationally, we continue to expand our commercial infrastructure through experienced regional partners. With established market presence, local relationships and deep knowledge of their healthcare systems. Our distribution partnerships with Gulf Medical in Saudi Arabia and Al Nadi Medical in United Arab Emirates Together with our sales agent partnership, For Frieha in Pakistan, provide a capital efficient model for extending our commercial reach and supporting local market development. This partner led approach enabled QT Imaging to leverage established sales and service infrastructure, while building the foundation for broader international adoption of breast CT imaging modality.

While geopolitical developments have impacted commercial activity in parts of the Gulf Region, we are beginning to see encouraging signs of renewed customer engagement, supported by our regulatory authorization and distributor partnerships. On the regulatory front, we continue to expand our international commercial foundation. We received clearance from the Saudi Food and Drug Authority SFDA, for the QTI Breast Acoustic CT scanner. Enabling us to market and sell our technology in Saudi Arabia. More recently, we received AMAR authorization from the Ministry of Health in Israel enabling commercialization of the breast acoustic CT scanner in the market.

Together with our existing authorization in The United Arab Emirates, these milestones further extend our regulatory foundation across the Middle East, and expand the market in which we can commercialize breast acoustic CT platform. The first breast acoustic CT scanner in Israel is going to Rambam Healthcare Campus. To support a planned clinical study in women with hereditary risk for breast cancer. This study provides an important opportunity to evaluate our radiation free compression free quantitative imaging technology in a high risk population where longitudinal imaging is particularly important and to generate additional evidence supporting its potential role in personalized breast health management. During the quarter, we also strengthened our balance sheet through a $10 million underwritten public offering.

In addition, we amended our senior secured term loan with Lynrock Lake extending the maturity date by 2 years. Together, these actions provide additional financial flexibility as we continue to execute our commercial, clinical and strategic initiatives. During the first half of this year, we secured 2 FDA clearances that expanded the capabilities of the breast acoustic CT system including an enhanced scanner configuration that improves posterior breast imaging and software functionality supporting volumetric measurements for lesion doubling time assessment. These enhancements reinforce QT imaging strategy of continuously expanding the platform through innovation in both hardware and software.

A critical milestone during the first half of the year was the American Medical Association's approval of a dedicated Category III CPT reimbursement code for our imaging modality. The code was released on July 1st and becomes effective January 1, 2027. It provides a standardized mechanism for reporting utilization tracking and data collection and importantly creates the framework to build the clinical and health economic evidence that can support future coverage decisions. We continue to strengthen the clinical expertise supporting the adoption of the Breast Acoustic CT platform. Our Clinical Advisory Board includes leaders across breast imaging, breast surgery and clinical practice. Including Dr. Mary Yamashita of USC Keck School of Medicine, Dr.

Barry Roseman, an MD Anderson trained surgical oncologist and breast surgeon and Dr. George Telinger, Mayo Clinic trained radiologist and early adopter of our imaging modality in his imaging center. Their complementary expertise is helping us strengthen education, clinical implementation and reader training, as we support broader clinical adoption. Additionally, we announced results from a multi site study evaluating the repeatability and reproducibility of quantitative measurement generated by the breast acoustic CT platform. The results demonstrated less than 1% variability in speed of sound measurements across scanners under the study conditions. This level of consistency is important because quantitative imaging biomarkers might be reproducible across systems, locations and operators to reliably measure changes in breast tissue over time.

We believe that these results reinforce the potential of our imaging platform to provide objective reproducible quantitative information for longitudinal breast health management, and precision breast care. As reported previously, Mayo Clinic conducted a prospective feasibility study evaluating QT scan in the supplemental imaging setting. The study reported breast level agreement between QT scan and MRI, and the identification by QT scan of all lesions considered suspicious on MRI. This pilot findings support the rationale for a second study involving more than 100 patients, which is expected to begin in the coming months. We are also advancing a prospective clinical study with Dr. Barry Roseman to evaluate the breast acoustic CT technology in the diagnostic breast imaging pathway.

This study will compare QT scan with established breast imaging modalities and where available pathology with the goal of generating real world clinical evidence supporting the diagnostic performance and broader adoption of our technology. At Sunnybrook, an ongoing 100 patient clinical studies evaluating QTD scan versus MRI and under our NIH contract, clinical work is evaluating advanced quantitative ultrasound findings in relation to treatment response in women receiving neoadjuvant chemotherapy. Together these programs are building complementary body of evidence across diagnostic performance, high risk populations quantitative reproducibility and treatment response, monitoring, supporting our broader objective of establishing the Breast Acoustic CT imaging modality as a clinically validated quantitative breast imaging platform.

Innovation remains an important area of focus during the quarter. Software version 4.5.0 improved the spatial resolution of Breast Acoustic CT reflection imaging, providing radiologists with greater image detail and clear visualization of breast anatomy and tissue structures while maintaining processing time designed to support an efficient clinical workflow. Our collaboration with Olea Medical was focused during the quarter on productization of the Imaging-Olea Viewer as an advanced modality imaging solution for breast acoustic CT platform. The viewer is being developed to provide physicians with an integrated environment for image visualization, correlation with other imaging modalities, quantitative assessment and longitudinal patient evaluation. While supporting more efficient clinical workflows.

In parallel, collaboration with Intellirad provides the secure cloud and PACS infrastructure supporting image management, clinical and research connectivity. And enterprise deployment of QT imaging precision pathway. Building on this infrastructure, we continue to advance the QTI precision pathway. Cloud platform to support secure image management, clinical collaboration, quantitative analysis, software development, and future AI enabled application. Our strategy is to build a platform that combines diverse scanner with software and cloud based capabilities to enhance the value of each system across the installed base. In July, we announced the successful completion of our first routine FDA inspection since the inception of the company with zero Form FDA 483 observations.

The inspector provided positive feedback regarding the organization of our quality management system. And the responsiveness of our team. We believe this exceptional outcome reflects the quality culture we are building and the strength of the systems and processes supporting the manufacturing and commercialization of our technology. During the quarter, we entered into an agreement to relocate our headquarters and manufacturing operations into a new 22 thousand-square-foot facility in Petaluma, California. As reported previously, the new facility will provide more than 2.5x our current operational space while reducing the lease cost per square foot by approximately 55%. Put another way, we are more than doubling our real estate foot footprint at a comparable cost.

This investment expands our manufacturing capacity, improves operating efficiency and provide the infrastructure needed to support future commercial growth. Presenting our scientific leadership is an ongoing priority. We recently appointed Dr. Julia Albright as our Chief Science Officer. Julia brings more than 3 decades of leadership experience across medical imaging healthcare technology, artificial intelligence, and enterprise software. In her role, she is helping align our scientific strategy, product innovation, engineering and clinical programs as we advance the QT imaging. Platform. Collectively, these achievements demonstrate we are building the commercial, clinical, regulatory and operational foundation needed to support broader adoption of Breast Acoustic CT platform.

As we look toward 2027, our focus is increasingly on accelerating adoption, expanding our installed base and leveraging the commercial infrastructure we are building today to support sustainable growth and margin expansion. At the same time, as we mentioned previously, our vision extends beyond the Breast Acoustic CT scanner itself. We are building a quantitative breast imaging platform that brings together advanced hardware, software, cloud infrastructure and over time quantitative biomarkers and AI enabled clinical applications. We believe this platform has the potential to increase the value of our growing installed base while providing physicians with objective reproducible information to support more personalized breast health management. And now I will turn the call over to our CFO, Jay W.

Jennings to review our financial results. Jay?

Jay W. Jennings: Thank you, Raluca, and good afternoon, everybody. Revenue for the second quarter of 26 was $7.4 million an increase of 103% compared with $3.7 million for the second quarter of 25. The increase was primarily attributable to the shipment of 15 breast acoustic CT scanners in the 26 quarter compared with 8 in the prior year quarter. Gross margin was 41% for the second quarter of 26 compared with 50% for the second quarter of 25. The gross margin for the second quarter of 26 was in line with our projections for sales in The United States. The higher prior year gross margin reflected a lower weighted average cost of inventory sold.

Total operating expenses for the second quarter of 26 were $4.9 million compared with $2.9 million a year ago. With the increase reflecting higher employee compensation and benefits professional service costs and marketing expenses. Operating loss for the second quarter of 26 was $1.9 million compared with an operating loss of $1 million for the second quarter of 25 and $2.3 million for the first quarter of 26. The net loss for the second quarter of 26 was $11.1 million compared with a net loss of $4 million for the second quarter of 25.

The second quarter 26 net loss included an $8.3 million non-cash loss on debt extinguishment and modification associated with the amendment of our senior secured term loan with Lynrock Lake. Accounts receivable was $7.4 million as of June 30, 2026 primarily from the shipment of 15 scanners during June 2026. Compared to $5.8 million as of December 31, 2025 primarily from the shipment of 12 scanners during December 2025. The accounts receivable is $7.4 million was paid during the beginning of August 2026. Accordingly, as of August 7, 2026, cash and restricted cash totaled approximately $14.2 million compared with approximately $11 million as of June 30, 2026.

Please see our Form 10 Q filed earlier today for further regarding our second quarter and first half financial results. During the quarter, we amended our credit agreement with Lynrock Lake extending the maturity date of the $10.1 million senior secured term loan by 2 years from March 31, 2027 to March 31, 2029. And increasing the interest rate from 10% per annum to 12% per annum. Now turning to 2026 financial guidance. We are affirming our expectation for revenue of approximately $39 million for the year more than double 2025 revenue. This guidance is based on the expected shipment of scanners under distributor minimum order quantities as well as expected contributions from our direct sales efforts.

And now I will turn the call back to Raluca.

Raluca Dinu: Thank you, Jay. As we look ahead, we believe QT imaging is entering an important next phase. We have demonstrated commercial growth, expanded our United States and international infrastructure strengthened our clinical and regulatory foundation and continue to advance the QTI imaging platform. Our priorities for the remainder of 2026 are clear. 1. Accelerate commercial adoption and installed base growth 2. Strengthening our clinical and scientific evidence. 3, expand global market access. 4, advance our quantitative imaging platform and 5. to continue scaling the business with operational discipline. We believe execution across these priorities positions us well as we move towards 2027 and continue building QT Imaging into a leading quantitative breast imaging company.

Thank you for your interest in QT Imaging and for your continued support. With that, we are ready to take questions. Operator?

Operator: We will now begin the question-and-answer session. [Operator Instructions]. If at any time your question has been addressed and you would like to withdraw the question. Our first question comes from Jeffrey Cohen with Ladenburg Thalmann. Please go ahead.

Jeffrey Cohen: Good afternoon, Raluca and Jay. Hope you are doing well. We have got a few questions. So I guess, firstly, you did mention Pakistan at the beginning of the call. Could you bring us up to speed on what is going on there?

Raluca Dinu: Hi, Jeffrey. Thank you so much for joining the call. Great to hear you. So we do have a sales agent agreement in Pakistan with a woman led company that is called Re:Invent. And we do have a few systems and they will hopefully go in the next few months towards that geography. FDA clearance is appropriate for Pakistan so we do not need an additional regulatory clearance. But that is the plan, Jeffrey. Thank you so much for asking.

Jeffrey Cohen: Okay. Got it. And then could you talk about U. S. And the back half of the year and commercial activity as well as your few commercial ads internally and how that may work domestically with QTI as well as with NXC in the US?

Raluca Dinu: Absolutely. So we are executing against our plan for shipments in The United States. So we shipped this quarter 15 scanners, and we do plan to ship another 15 scanners and 17 respectively, from Q3 and Q4 in United States. Obviously, through very strong partnership with NXC Imaging. We did move on as we discussed last quarter, Jeffrey, with us starting to strengthen our direct sales team. We do see progress with our direct sales team selling into at least 2 segments, definitely imaging centers and hospitals. It is more of a solution sales technical sale, clinical sale in those segments.

Thus, we have brought in the 2 very experienced sales VPs to cover the East Coast and the West Coast. We are not going to continue to hire up until we get our feet on the ground and the 2 sales managers start selling and growing the business in The United States. We do plan to have our direct sales taking on the responsibility in 2027 and ahead. Obviously, the support from NXT and other distribution partners as they move into 2027. Did I answer your question?

Jeffrey Cohen: Yeah. Perfect. Couple more if I may. Cadence on back half placements for this year, would you expect a ramp through Q3 and Q4? Or would you expect them to be fairly even?

Operator: Jeffrey, I had a hard time hearing beginning of your question.

Raluca Dinu: Could you please repeat?

Jeffrey Cohen: Back half placements for the back half of the year are Q3 versus Q4, would you expect a gradual increase through the next 2 quarters or even?

Raluca Dinu: No, no. We do expect an increase in the placements in Q3 and Q4, and our team will help NXC team through that.

Jeffrey Cohen: Got it. Okay. 1 for Jay, if I may, Jay. Back half OpEx, is that $5 million number going to be fairly flat for the second half of the year per quarter.

Jay W. Jennings: Yes. We anticipate it going up a little bit with the higher of the sales team as well as shifting of some of the clinical studies expenses from the first half of the year into the second half of the year.

Jeffrey Cohen: Got it. Okay. And then lastly, Raluca, you mentioned QT versus MRI, 100-patient study. Is that a new study? And what do you expect to derive from that as far as coding or reimbursement down the road?

Raluca Dinu: So yes, it is a new study at Mayo, and we were looking towards we were looking out at the results as the following. 1, to make sure that all the findings from MRI are discovered by QT. And 2, to reduce the number of biopsies So reducing the BI-RADS 4 findings to BI-RADS 3. If the woman is a BI-RADS 3 category, there is no need for her to get the biopsy. So that is the goal for that study. All this data would be recorded under the Category III CPT code reimbursement code starting on 01/01/2027.

Jeffrey Cohen: Okay. So you would not expect any additional or add on codes to the Category III starting in January.

Raluca Dinu: Not for now. Not for now. We have to start recording all the data against our code. Jeffrey, before we can improve or add to the reimbursement strategy.

Jeffrey Cohen: Okay. And then lastly for us, the facility in Temecula, have you 100% completely moved to that facility or you are still operating the 2?

Raluca Dinu: In Petaluma? No, we are operating out of the 2. Very good question. We are operating out of the 2. We got the key for the facility this week. It will take us about a month a month and a half to be moved completely there. We do plan to finish just the production in our Novato facility. So we do not bother the shipments for Q3 and then to have our shipments for Q4 out of Petaluma facility.

Jeffrey Cohen: Perfect. That does it for us. Thanks for taking the questions.

Raluca Dinu: No, thank you so much. I appreciate it.

Operator: Thank you very much, Our next question comes from Benjamin Haynor with Lake Street Capital Markets. Please go ahead.

Benjamin Haynor: Good afternoon, Raluca and Jay. Thanks for taking the questions.

Raluca Dinu: Hi, Benjamin. Thank you so much for being in our call. Thank you so much for listening to us.

Benjamin Haynor: No. No problem. First off, just kind of following up on the direct salesforce. It sounds, if I am hearing you correctly, that you will, excuse me, begin to add some additional folks as sales materialize beyond from the gentlemen that you recently hired. Am I hearing you correctly there?

Raluca Dinu: And then I know you provided quite a bit of detail. On who the targets are, but is there anything else worth sharing on kind of the direct sales strategy? So, Benjamin, thanks for asking. So we have now 3 very senior sales guys. that have joined the team. We got ourselves set up in Salesforce. We have leads, and we got ourselves operational from the back end of sales, organizing sales. These guys are extremely experienced and they will start bringing in opportunities through 2026. I do not foresee any additions to the team in 2026 for 2 reasons. Number 1, we are trying to keep track of our operational costs, obviously.

And the second 1, the request the strategic direction for the team was to collect enough information about the 2 market segments that these direct sales guys will address the imaging centers and obviously, still selling into the functional medicine space. We absolutely respect that segment too. But to get all the data points and know exactly what we need to hire in 2027 if we so decide.

Benjamin Haynor: Okay. Got it. that is helpful. And then congrats on the Israeli clearance. Just wondering what the commercialization strategy is there. I mean, is that something where you do yourself? Do you sign a distribution agreement? And then the study that you have planned there, sounds like high risk. Longitudinal data, any more, how many women, how long, on the data, what that would be? Great to hear.

Raluca Dinu: Absolutely. So, Benjamin, yes, we are extremely pleased with the fact that Rambam Hospital has accepted our offer for clinical study. We are going to focus exactly as you said on high risk women and longitudinal study, but also on trying to understand the standard of care in Israel and what else can be added with our technology within their standard of care. So these are the 2 dimensions for the clinical study. But to answer your question, we are exploring a relationship with the distributor in Israel. We would like to go through that, and we will report back in the next call. The plan is to have a partnership with a distributor in Israel.

Benjamin Haynor: Okay. Got it. And then on I guess any more countries in the works beyond, you know, Israel, Pakistan, Pakistan, you mentioned the call on the existing kind of Gulf states.

Raluca Dinu: So, Benjamin, we are trying to stay away from the missiles and the conflict there? We are looking into Bahrain and Qatar. These are the 2 additional countries for us to seek, regulatory approval. And, certainly now we are focused on building the business in Saudi Arabia, UAE and Israel. But that is the next 2, Qatar and Bahrain. And then we will focus on CE Mark and MDR for next year.

Benjamin Haynor: Okay. Got it. And then just I do not know if there is any more you can share or anything you can share on the utilization on the installs that you are seeing is still kind of sticking to the same kind of level and any movement there? What can you tell us?

Raluca Dinu: So we do see a slow -- I mean, slow -- move. it is never as fast as we want it, Benjamin, of implementation of the scanners or getting the scanners all the way to the customer. This is why Satrajit and his 2 hires will focus on helping NXC. NXC is making progress. On having the scanners at the customers. But we do feel that even for the functional medicine space, we need to help. And for the next, sorry, 5 months, we will focus on helping NXC having all those scanners at the customers.

Benjamin Haynor: Okay. Excellent. Well, thank you so much for taking the questions, and congrats on all the progress.

Raluca Dinu: I appreciate it. Thank you so much, and thank you for taking, taking the time to be with us.

Operator: This concludes our question and answer session. I would like to turn the conference back over to Dr. Raluca Dinu for closing remarks.

Raluca Dinu: Thank you very much. I want to thank everyone for joining us today and for your continuing interest in QT Imaging. We are energized by our progress and remain focused on disciplined execution during the second half of the year. We look forward to discussing our continued progress during our next conference call when we report third quarter results. Until then, have a nice evening. Thank you so much.

Operator: The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

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