Company: QTIWW
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001844505-25-000053
Chunk: 39

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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 2025 and as of March 31, 2025 were as follows:February 26, 2025March 31, 2025Fair value of common stock$0.40 $0.45 Exercise price$0.40 $0.40 Expected warrant term (years)10.0 9.9 Expected volatility51.6 %41.0 %Risk-free rate of return4.3 %4.2 %Expected annual dividend yield— %— %The activity for the fair value of the Lynrock Lake Warrant during the three months ended March 31, 2025 was as follows:Lynrock Lake WarrantBeginning balance, January 1, 2025$— Fair value at issuance16,496,084Change in fair value606,186 Ending balance, March 31, 2025$17,102,270 On February 26, 2025, the Company issued to Yorkville a warrant to purchase 15,000,000 shares of common stock at an exercise price of $0.40 per share pursuant to a Warrant to Purchase Common Stock (the “Yorkville Warrant”) to fully settle and discharge the Company’s obligations under the Yorkville Note and extinguish the Yorkville Note as having been fully performed. The Yorkville Warrant is exercisable until February 26, 2030. Yorkville may cashless exercise the Yorkville Warrant. The Yorkville Warrant is also subject to adjustments in the event that the Company’s common stock undergoes a split, reverse-split or similar event. Furthermore, the Yorkville Warrant has provided the holder with piggyback registration rights. The Company determined the fair value of the Yorkville Warrant using the Black-Scholes Model.Significant assumptions used in the valuation of the fair value of the Yorkville Warrant as of issuance on February 26, 2025 and as of March 31, 2025 were as follows:

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February 26, 2025March 31, 2025Fair value of common stock$0.40 $0.45 Exercise price$0.40 $0.40 Expected warrant term (years)5.0 4.9 Expected volatility51.6 %41.0 %Risk-free rate of return4.1 %4.0 %Expected annual dividend yield— %— %The activity for the fair value