Company: QTIWW
Filing Date: 2025-12-29
Form Type: S-1/A
Source: 0001628280-25-058960
Chunk: 412

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-12-29
Form: S-1/A
Chunk 412
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 stock) at a conversion rate for such consideration commensurate with the Conversion Price. Provision made pursuant to the preceding sentence shall be in a form and substance satisfactory to the Required Holders.

The initial fair value of the above Derivatives was calculated using a Monte Carlo simulation. The simulation used significant inputs, including volatility of Company's equity that was derived based on a comparable peer group of publicly traded companies and the Company’s stock price on the valuation date.

The total value of the Derivatives reflected the combined value of the monthly payment premium, reduction to that premium by the payment discount, and the value of the conversion right. The values of the failure to timely convert and corporate event features were deemed to be de minimis.

The Company and Yorkville entered into that certain Termination Agreement, dated February 26, 2025 (the “Termination Agreement”), pursuant to which the parties acknowledged the termination of the SEPA and the Yorkville Note, effective as 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, 2025 |      |     |   | December 31, 2024 |      |
|:---------------------------|:----|:--|------------------:|-----:|:----|:--|------------------:|-----:|
| Fair value of common stock |     | $ |              1.23 |      |     | $ |              1.47 |      |
| Term in years              |     |   |                   | 1.11 |     |   |                   | 1.26 |
| Volatility                 |     |   |             125.0 |    % |     |   |             120.0 |    % |
| Risk-free rate             |     |   |               4.1 |    % |     |   |               4.2 |    % |
| Debt discount              |     |   |              30.0 |    % |     |   |              30.0