Company: QTIWW
Filing Date: 2025-11-03
Form Type: S-1
Source: 0001628280-25-048373
Chunk: 409

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-11-03
Form: S-1
Chunk 409
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. As such, on the effective date of the Termination Agreement, the derivative liability was deemed to be extinguished. The Company recorded the change in fair value of the derivative liability within the condensed consolidated statements of operations and comprehensive loss as of the date immediately prior to the effective date of the Termination Agreement.

Significant assumptions used in the valuation of the fair value of the derivative liability as of December 31, 2024 and February 26, 2025 were as follows:

|                            |     |   | December 31, 2024 |      |     |   | February 26, 2025 |      |
|:---------------------------|:----|:--|------------------:|-----:|:----|:--|------------------:|-----:|
| Fair value of common stock |     | $ |              1.47 |      |     | $ |              1.23 |      |
| Term in years              |     |   |                   | 1.26 |     |   |                   | 1.11 |
| Volatility                 |     |   |             120.0 |    % |     |   |             125.0 |    % |
| Risk-free rate             |     |   |               4.2 |    % |     |   |               4.1 |    % |
| Debt discount              |     |   |              30.0 |    % |     |   |              30.0 |    % |

The activity for the fair value of the derivative liability during the six months ended June 30, 2025 was as follows:

|                                                  |     | Derivative Liability |         |          |
|:-------------------------------------------------|:----|:---------------------|--------:|---------:|
| Beginning balance, January 1, 2025               |     | $                    | 303,300 |          |
| Extinguishment upon Termination Agreement        |     |                      |         | -202,000 |
| Change in fair value                             |     |                      |         | -101,300 |
| Ending balance, March 31, 2025 and June 30, 2025 |     | $                    |       — |          |

The extinguishment of the derivative liability of $ 0and $ 202,000was recorded in other income (expense), net within the condensed consolidated statements of operations and comprehensive loss during the three and six months ended June 30,