Company: QTIWW
Filing Date: 2025-05-13
Form Type: 10-Q
Source: 0001844505-25-000053
Chunk: 132

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-05-13
Form: 10-Q
Item: Part I, Item 2
Chunk 132
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, net

Other expense, net increased by $8,728,522 to $8,749,453 for the three months ended March 31, 2025 from $20,931 for the three months ended March 31, 2024. This increase was primarily due to the extinguishment loss of $2,033,666 for the Yorkville Note and Cable Car Note, $6,640,384 of non-cash expense incurred at issuance of the Lynrock Lake Term Loan, and $90,000 from the Extension Fee for the Cable Car Note.

Change in fair value of warrant liability

Change in fair value of warrant liability decreased by $681,606 to $704,729 during the three months ended March 31, 2025 from $23,123 during the three months ended March 31, 2024. The change in fair value of warrants during the first quarter of 2025 was primarily attributable to the Lynrock Lake Warrant and Yorkville Warrant, which were issued in the first quarter of 2025.

Change in fair value of derivative liability

Change in the fair value of derivative liability decreased by $2,881,800 to $101,300 during the three months ended March 31, 2025 from $2,983,100 during the three months ended March 31, 2024. The change in fair value of derivatives during the first quarter of 2024 was primarily driven by the decline in the value of our common stock. The derivative liability was extinguished during the three months ended March 31, 2025 as a result of the Termination Agreement with Yorkville.

Change in fair value of earnout liability

Change in the fair value of earnout liability decreased by $2,660,000 to an expense of $50,000 during the three months ended March 31, 2025 from income of $2,610,000 during the three months ended March 31, 2024. The change in fair value of earnout liability during the first quarter of 2024 was primarily driven by the decline in the value of our common stock and changes to the probability of outcome related to a formal FDA clearance for a new indication for the use of our breast scanning systems and our open angle scanner.  

Interest expense, net

Interest expense, net increased by $92,428 to $691,387 for the three months ended March 31, 2025 from $598,959 for the three months ended March 31,