Company: QTIWW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001628280-25-051332
Chunk: 41

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 41
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 pricing information on an ongoing basis.Level 2: Observable inputs other than Level 1 inputs. Examples of Level 2 inputs include quoted prices in active markets for similar assets or liabilities and quoted prices for identical assets or liabilities in markets that are not active.Level 3: Unobservable inputs which are supported by little or no market activity and which are significant to the fair value of the assets or liabilities.The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:Description:LevelSeptember 30, 2025December 31, 2024Assets:       Certificate of deposit2$20,000 $20,000 Liabilities:Warrant Liability2$105,834 $22,234 Earnout liability3$2,510,000 $440,000 Derivative liability3$— $303,300 Warrant LiabilityThe Company has determined that the warrants that were a constituent part of (i) the private placement units that were issued in a private placement sale by GigCapital5 prior to the Merger and (ii) the private placement units that were issued upon conversion of working capital notes issued by GigCapital5 prior to the Merger, which conversion occurred concurrent with the Merger (“Private Warrants”) are subject to treatment as a liability, as the transfer of the warrants to anyone other than the purchasers or their permitted transferees would result in these warrants having substantially the same terms as the warrants included in the public units that were issued by GigCapital5 prior to the Merger (“Public Warrants”). The Company determined that the fair value of each Private Warrants approximates the fair value of a Public Warrant. Accordingly, the Private Warrants are valued upon observable data and have been classified as Level 2 financial instruments. As of September 30, 2025 and  December 31, 2024, a total of 889,364 Private Warrants to purchase 296,445 shares of common stock were outstanding at an approximate fair value of $0.119 and $0.025 per warrant, respectively. See Note 10, Stockholders’ Deficit. The activity for the fair value of the warrant liability during the three and nine months ended September 30, 2025 were as follows:Private WarrantsBeginning balance,