Company: QTIWW
Filing Date: 2025-01-16
Form Type: S-1
Source: 0001628280-25-001723
Chunk: 345

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-01-16
Form: S-1
Chunk 345
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 assessed whether the embedded features in the 2020 Notes should have been bifurcated from the debt host and concluded that none of the features were required to be accounted for separately from the debt instruments.

In November 2023, $ 200,000of the 2020 Notes plus accrued interest of $ 33,644was converted through a negotiated induced conversion to 100,000shares of common stock, which resulted in an induced conversion expense of $ 168,356to other expenses in the consolidated statements of operations and comprehensive loss. The induced conversion expense represented the fair value of the common stock issued upon conversion in excess of the common stock issuable under the original terms of the 2020 Notes. As of December 31, 2023 and 2022, the outstanding amount of the 2020 Notes was $ 3,143,725and $ 3,343,725and accrued interest of $ 377,772and $ 230,627, respectively. Interest expense for the years ended December 31, 2023 and 2022 was $ 180,789and $ 137,709, respectively.

Working Capital Loans

On May 3, 2023, the Company issued a promissory note (the “Working Capital Note”) to a shareholder for a principal amount of $ 250,000. The Working Capital Note was subsequently amended and restated six times on June 12, 2023 to add an additional principal amount of $ 100,000, August 15, 2023 to add an additional principal amount of $ 75,000, August 29, 2023 to add an additional principal amount of $ 100,000, September 12, 2023 to add an additional principal amount of $ 75,000, September 15, 2023 to add an additional principal amount of $ 50,000, and October 26, 2023 to add an additional principal amount of $ 55,000, for an aggregate principal amount outstanding as of December 31, 2023 under the Working Capital Note of $ 705,000. The Working Capital Note was issued to provide the Company with additional working capital during the period prior to consummation of the Business Combination Agreement with GigCapital5. The Working Capital Note is interest-free and matures on the earlier of (i) the date on which the Company consummates the Business Combination with GigCapital5; (ii) the date the Company winds up; or (