Company: QTIWW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001628280-25-051332
Chunk: 178

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 178
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 and Development Expenses

Research and development expenses were flat compared to the prior year.

Selling, General and Administrative Expenses

Selling, general and administrative expenses increased by $508,717 to $2,515,994 for the three months ended September 30, 2025 from $2,007,277 for the three months ended September 30, 2024. This change was primarily attributable to increases in professional and outside services expenses of $394,905, employee compensation expenses of $558,989, and general business expenses of $184,962, which were partially offset by decreases in insurance expense of $144,600 and an increase in allocation expenses of $498,456 from selling, general and administrative expenses to cost of revenue.

Other income (expense), net

40

Other income (expense), net decreased by $47,554 to expense of $30,559 for the three months ended September 30, 2025 from an income of $16,995 for the three months ended September 30, 2024. This decrease was primarily due to an adjustment of $46,387 in extinguishment loss due to the modification of the related party loan.

Change in fair value of warrant liability

Change in fair value of warrant liability changed by $88,848 to an expense of $80,043 during the three months ended September 30, 2025 from income of $8,805 during the three months ended September 30, 2024. The change in fair value of warrants during the third quarter of 2025 was primarily attributable to an increase in the market value of the public and private warrants in the 2025 period.

Change in fair value of derivative liability

Change in the fair value of derivative liability decreased by $87,200 to $0 during the three months ended September 30, 2025 from income of $87,200 during the three months ended September 30, 2024. The derivative liability was extinguished on February 26, 2025 as a result of the extinguishment of the loan with Yorkville.

Change in fair value of earnout liability

Change in the fair value of earnout liability decreased by $2,280,000 to an expense of $2,230,000 during the three months ended September 30, 2025 from income of $50,000 during the three months ended September 30, 2024. The change in the fair value of earnout liability during the 2025 period was driven by the changes