Company: QTIWW
Filing Date: 2025-01-31
Form Type: S-1/A
Source: 0001628280-25-003316
Chunk: 408

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-01-31
Form: S-1/A
Chunk 408
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 a total of 5,091shares of common stock which 3,540shares are exercisable at a price of $ 12.40per share and 1,551shares are exercisable at a price of $ 11.67per share. The fair value of the warrants, along with financing fees, were recorded as debt issuance costs and presented in the condensed consolidated balance sheets as a deduction from the carrying amount of the Note. On March 4, 2024, these warrants were terminated in accordance with the Business Combination Agreement.

The Note was convertible, at the Company’s option, before the Note matured upon the closing of a single transaction or a series of transactions with a minimum of $ 15,000,000of cash proceeds raised in the aggregate. If elected, the conversion price is 90% of the price per share in the qualified financing. Management assessed whether the embedded features in the Note should have been bifurcated from the debt host and concluded that none of the features required to be accounted for separately from the debt instrument.

In November 2023 and in connection with the Fourth Amendment and issuance of the senior secured convertible promissory note to US Capital as part of the Securities Purchase Agreement as described below (the “US Capital Note”), the outstanding loan balances of the Note of $ 2,495,000with accrued interest of $ 635,854were considered extinguished. In November 2023, the Company recorded $ 376,086as a loss on extinguishment in other income (expense), net in the condensed consolidated statements of operations and comprehensive loss, and includes a commission paid of $ 20,000, remaining unamortized debt issuance costs on the Note of $ 32,828and the fair value of warrants to purchase 16,320shares of common stock of $ 156,505.

As of December 31, 2023, the total Note and US Capital Note balance was $ 3,294,659net of unamortized debt issuance costs of $ 36,194, and accrued interest of $ 50,037. Interest expense, including amortization of debt issuance costs, for the three and nine months ended September 30, 2024 was $ 0 and $ 88,692, respectively. Interest expense, including amortization of debt issuance costs, for the three and nine months ended September 30, 2023 was $ 86,238and $ 256,253, respectively.

On March 4,