Company: QTIWW
Filing Date: 2025-11-03
Form Type: S-1
Source: 0001628280-25-048373
Chunk: 116

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-11-03
Form: S-1
Chunk 116
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 subject to anti-dilution adjustments to the exercise price and the number of shares which may be purchased upon exercise of the Lynrock Lake Warrant in the event that the Company issues shares of Common Stock (or derivative securities) at a price that is either less than the $1.20 exercise price or the fair market value of a share of Common Stock from the immediately prior trading day. As of September 30, 2025, the Lynrock Lake Warrant to purchase 20,333,623 shares of Common Stock was outstanding. The Lynrock Lake Warrant was initially classified as a warrant liability.

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On June 11, 2025, the Lynrock Lake Warrant was amended to update the provisions that would trigger cash settlement such that, when such events occur, the holders of the warrant receive the same form of consideration as the underlying stockholders. According to ASC 815-40, Derivatives and Hedging: Contracts in an Entities Own Equity , equity classification is permitted for an instrument that requires net-cash settlement if the holders of the contract’s underlying shares receive the same form of consideration in transactions outside the company’s control. Consequently, upon modification, the Lynrock Lake Warrant was revalued and then reclassified to additional paid-in capital on the condensed consolidated balance sheets.

Trading on the OTCQB Venture Market tier is volatile and sporadic, which could depress the market price of our Common Stock and make it difficult for our stockholders to resell their shares of our Common Stock.

Our Common Stock is now quoted on the OTC Markets OTCQB Venture Market tier. Trading in securities quoted on the OTC Markets is often thin and characterized by wide fluctuations in trading prices, due to many factors, some of which may have little to do with our operations or business prospects. This volatility could depress the market price of our Common Stock for reasons unrelated to operating performance. Moreover, the OTC Markets is not a stock exchange, and trading of securities on the OTC Markets is often more sporadic than the trading of securities listed on a quotation system like The Nasdaq Global Market, where our Common Stock has been listed since the Business Combination. These factors may result in investors having difficulty reselling any shares of our Common Stock.

Our Common Stock is quoted on the OTCQB Venture Market tier, which may have an unfavorable impact on our stock price and liquidity.

Our Common Stock is quoted on the OTCQB Venture Market tier. The OTCQB Venture Market tier