Company: QTIWW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001628280-25-051332
Chunk: 94

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 94
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,700 to $101,300 during the nine months ended September 30, 2025 from $4,800,000 during the nine months ended September 30, 2024. The change in fair value of derivatives during the 2025 period was primarily driven by the decline in the value of our common stock period in the 2024 period. The derivative liability was extinguished during the first quarter of 2025 as a result of the extinguishment of the loan with Yorkville.

42

Change in fair value of earnout liability

Change in the fair value of earnout liability decreased by $5,040,000 to an expense of $2,070,000 during the nine months ended September 30, 2025 from income of $2,970,000 during the nine months ended September 30, 2024. The change in the fair value of earnout liability during the first nine months of 2025 was primarily driven by changes to the probability of outcome related to our revenue assumptions.  

Interest expense, net

Interest expense, net decreased by $1,514,301 to $1,635,014 for the nine months ended September 30, 2025 from $3,149,315 for the nine months ended September 30, 2024. The decrease is primarily driven by the extinguishment of the Yorkville Note and the Cable Car loan in February 2025, resulting in decreases in interest expense and amortization of the debt discount of $1,959,944 for the Yorkville Note, $198,060 for the Cable Car loan in the 2025 period, a decrease in $221,857 interest from the private secured convertible bridge financing extinguished in 2024, partially offset by an increase in interest expense and amortization of the debt discount of $943,073 for the Lynrock Lake Term Loan.

Liquidity and Capital Resources

Sources of Liquidity

Liquidity describes our ability to meet financial obligations which arise during the normal course of business. To date, we have financed our operations primarily through the sale of equity securities, issuances of convertible notes and other debt, and grants from the U.S. government. We expect to derive future liquidity primarily through our revenues with customers and sale of equity securities. Our current liquidity position consists of cash on hand and certificates of deposit.

Since our inception, we have incurred significant operating losses and negative cash flows. As of September 30, 2025 and December 31, 2024,