Company: QTIWW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001628280-25-051332
Chunk: 48

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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 of February 26, 2025. 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:February 26, 2025December 31, 2024Fair value of common stock$1.23 $1.47 Term in years1.111.26Volatility125.0 %120.0 %Risk-free rate4.1 %4.2 %Debt discount30.0 %30.0 %The activity for the fair value of the derivative liability during the nine months ended September 30, 2025 was as follows:Derivative LiabilityBeginning balance, January 1, 2025$303,300 Extinguishment upon Termination Agreement(202,000)Change in fair value(101,300)Ending balance, March 31, 2025, June 30, 2025 and September 2025$— 

The extinguishment of the derivative liability of $0 and $202,000 was recorded in other income (expense), net within the condensed consolidated statements of operations and comprehensive loss during the three and nine months ended September 30, 2025, respectively. 

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4.    Inventory

Inventory consisted of the following as of September 30, 2025 and December 31, 2024:September 30, 2025December 31, 2024Raw materials$4,488,530 $2,551,947 Work in process731,912 278,869 Finished goods21,786 309,903 Total$5,242,228 $3,140,719 

5.    Property and Equipment, Net

Property and equipment, net consisted of the following as of September 30, 2025 and December 31, 2024: Useful LifeSeptember 30, 2025December 31, 2024Scanners5 Years$1,904,491 $1,904,491 Computer and lab equipment3-5 Years1,471,331 1,