Company: QTIWW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001844505-25-000038
Chunk: 308

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 308
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 the Business Combination Agreement. The following table summarizes information regarding activity in the QT Imaging Plan and the 2024 Incentive Plan during the year ended December 31, 2024: Number of OptionsWeighted-Average Exercise PriceWeighted-AverageRemainingContractualLife (years)Outstanding, January 1, 20241,249,809$24.80 6.9Granted under the 2024 Incentive Plan2,299,000$0.72 Cancelled(92,128)$3.60 Terminated pursuant to Business Combination Agreement(1,237,681)$24.83 Outstanding, December 31, 20242,219,000$0.72 9.5Exercisable as of December 31, 2024—$— — Vested and expected to vest as of December 31, 20242,219,000$0.72 9.5During the year ended December 31, 2024, a total of 2,299,000 options were granted to employees and nonemployees with a weighted-average grant date fair value of $0.46 per share. There were no options granted during year ended December 31, 2023. The determination of the fair value of options granted during the year ended December 31, 2024 is computed using the Black-Scholes option pricing model with the following weighted-average assumptions:Stock price per share$0.72 Expected option term (years)5.7Expected volatility67.9 %Risk-free rate of return4.3 %Expected annual dividend yield— %Option pricing models require the input of various subjective assumptions, including the option’s expected life and the price volatility of the underlying stock. The expected stock price volatility is based on the analysis of volatilities of the Company’s selected public peer group over a period commensurate with the expected term of the options. The expected term of employee options represents the weighted-average period the options are expected to remain outstanding and was derived using the simplified method for awards that qualify for its “plain-vanilla” options. All awards that are outstanding are qualified for “plain-vanilla” options. The risk-free interest rate is based on the U.S. Treasury interest rates whose term in consistent with the expected life of the stock options. No dividend yield is included as the Company has not issued any dividends and do not anticipate issuing any dividends in the future.

F-35

The following