Company: QTIWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001844505-25-000083
Chunk: 61

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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 Incentive Plan. The following table summarizes information regarding activity in the 2024 Equity Incentive Plan during the six months ended June 30, 2025: Number of OptionsWeighted-Average Exercise PriceWeighted-AverageRemainingContractualLife (years)Outstanding, January 1, 2025 (1)1,955,000$0.75 9.5Granted under the 2024 Incentive Plan1,566,000$0.67 Cancelled(200,001)$0.75 Outstanding, June 30, 20253,320,999 $0.71 9.1Exercisable as of June 30, 20251,002,070 $0.73 8.3Vested and expected to vest as of June 30, 20253,320,999 $0.71 9.1(1) The options outstanding as of December 31, 2024 were revised by 264,000 from the amount previously reported on the Annual Report on Form 10-K for the year ended December 31, 2024. The effect on stock-based compensation was immaterial. Options to purchase 1,566,000 shares of common stock were granted during the three and six months ended June 30, 2025 at a weighted-average fair value of $0.43 per share. No options were granted during the three and six months ended June 30, 2024.  The determination of the fair value of options granted during the three and six months ended June 30, 2025 is computed using the Black-Scholes option pricing model with the following weighted-average assumptions:Stock price per share$0.67 Expected option term (years)5.5Expected volatility71.2 %Risk-free rate of return4.0 %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