Company: QTIWW
Filing Date: 2025-11-03
Form Type: S-1
Source: 0001628280-25-048373
Chunk: 448

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-11-03
Form: S-1
Chunk 448
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 and Note Issuance

On February 29, 2024, the Company and QT Imaging entered into a Note Purchase Agreement (“ Cable Car NPA ”) with Funicular Funds, LP (“ Cable Car ”), pursuant to which Cable Car agreed to advance $1,500,000 to the Company upon the closing of the Business Combination (the “ Loan ”), as was evidenced by a promissory note that may be convertible in certain circumstances into shares of Company Common Stock at a conversion price of $6.00 per share (the “ Cable Car Note ”), dated March 4, 2024, by and between the Company and Cable Car. The Cable Car Note does not bear interest, and is due and payable 13 months after issuance, unless the time for payment is accelerated as a result of an event of default. As full compensation to Cable Car for the loan to the Company in lieu of any simple or in-kind interest on the Cable Car Note, QT Imaging issued to Cable Car that number of shares of QT Imaging which at the completion of the Business Combination would be converted in accordance with the terms of the Business Combination Agreement into 60,000 shares of Company Common Stock. QT Imaging, and its wholly owned subsidiary, QT Ultrasound Labs, Inc., at the Closing also provided a guaranty (the “ Cable Car Guaranty ”), whereby each of them unconditionally guaranteed, as primary obligor and not merely as surety, the prompt and complete payment and performance when due, whether by demand, acceleration or otherwise, of the obligations of the Company under the Cable Car Note in the currency in which and as such obligations are to be paid or performed. Furthermore, the Company and the parties to the Cable Car Guaranty (the “ Grantors ”) granted a security interest in certain of their assets, which among other things, do not include their intellectual property assets, pursuant to the terms of a Security Agreement, dated March 4, 2024, by and between the Grantors and Cable Car (the “ Security Agreement ”, and together with the Cable Car NPA, the Cable Car Note and the Cable Car Guaranty, the “ Cable Car Note Documents ”).

On January 9, 2025, the Company entered into an amendment (the “ Cable Car Amendment ”) with Cable Car to amend certain terms of Cable Car Note, including a reduction of the conversion price for the Cable Car Note to $1.752 per share. Further, the Cable Car Amendment provides that the