Company: QTIWW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001844505-25-000038
Chunk: 239

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 7
Chunk 239
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 or upon a Trigger Event, which following the effectiveness of the registration statement on Form S-1 that we filed to register the shares to be issued pursuant to the SEPA occurs when the daily VWAP is less than the Floor Price (as such term is defined in the Yorkville Note) for five consecutive trading days, which prior to     October 31, 2024, was $0.8768 per share. As previously disclosed in a Current Report on Form 8-K with the SEC on September 13, 2024, a Trigger Event occurred on September 11, 2024, following which on September 13, 2024, we made a payment to Yorkville on the Yorkville Note of $1,521,581 which included $1,145,407 as repayment of principal. See Yorkville Pre-Paid Advance below for a further discussion of the effect of this Trigger Event and an amendment to the documents pertaining to the Yorkville Note. On November 12, 2024, the Company executed a securities purchase agreement with related parties for the issuance of shares of common stock plus warrants for the purchase of common stock as a Private Investment in Public Equity (the “PIPE”) with an aggregate purchase price of $2.56 million, the closing of which occurred on November 22, 2024. On December 11, 2024, the Company and NXC entered into the Amended Distribution Agreement (which we further amended on March 28, 2025), which provides the Company with MOQs that could result in cash inflows of up to $18.0 million in 2025 and $27.0 million in 2026. On February 26, 2025, the Company entered into the Credit Agreement that provides the Lynrock Lake Term Loan with Lynrock Lake for a term loan in the aggregate principal amount of $10.1 million and repaid the secured Cable Car Note, and fully settled its obligations under the Yorkville Note and terminated the Yorkville SEPA by paying $3.0 million in cash and issuing a 5-year warrant for 15 million shares. Net of these payments, the Company had $5.4 million of net proceeds for working capital purposes.  Management believes that the cash received for the Lynrock Lake Term Loan and additional revenue anticipated from MOQs per the Amended Distribution Agreement will be sufficient to fund the Company’s current operating plan for at least the next 12 months.

Our future capital requirements will depend on