Company: QTIWW
Filing Date: 2025-01-31
Form Type: S-1/A
Source: 0001628280-25-003316
Chunk: 362

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-01-31
Form: S-1/A
Chunk 362
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As of December 31, 2023, based on the Company’s recent history of losses and its forecasted losses, management believes on the more-likely-than-not basis that a full valuation allowance is required. Accordingly, the Company provided a full valuation allowance on its federal and state deferred tax assets. During the years ended December 31, 2023, and 2022, the valuation allowance increased by $ 1,080,617and $ 1,846,087. As of December 31, 2023, the Company had federal and state net operating loss (“NOL”) carryforwards of $ 10,700,000and $ 12,448,000respectively. The federal NOL will not expire and the state NOL will begin to expire in 2040.

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is a follows as of December 31:

|                                                 |     |   |   2023 |     |   |   2022 |
|:------------------------------------------------|:----|:--|-------:|:----|:--|-------:|
| Balance as the beginning of the year            |     | $ | 49,255 |     | $ |      — |
| Increases related to prior year tax positions   |     |   |      — |     |   | 47,882 |
| Increases related to current year tax positions |     |   |      — |     |   |  1,373 |
| Balance as the end of the year                  |     | $ | 49,255 |     | $ | 49,255 |

The unrecognized tax benefits for the year ended December 31, 2023, if recognized, would not affect the effective income tax rate due to the valuation allowance that currently offsets the deferred tax assets. It is reasonably possible that the unrecognized tax benefits balance will change within twelve months by a range of zeroto $ 49,255due to the Company’s intent to file a tax accounting method change.

The Company files income tax returns in the federal and California state jurisdictions. The Company’s tax years for 2020 and forward are subject to examination by the federal and California tax authorities.

#### 13.

#### Related Party Transactions
Convertible Notes Payable

In July 2020, the Company issued three convertible notes to three of its stockholders for advances up to $ 3,500,000in principal (the “2020 Notes”)