Company: QTIWW
Filing Date: 2025-01-16
Form Type: S-1
Source: 0001628280-25-001723
Chunk: 18

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-01-16
Form: S-1
Chunk 18
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 option shall have the right, but not the obligation, to redeem (“ Optional Redemption ”) early a portion or all amounts outstanding under the Yorkville Note; provided that (i) the Company provides Yorkville with no less than 10 trading days’ prior written notice (each, a “ Redemption Notice ”) of its desire to exercise an Optional Redemption and (ii) on the date the Redemption Notice is issued, the VWAP of the Common Stock is less than the Fixed Price. Each Redemption Notice shall be irrevocable and shall specify the outstanding balance of the Note to be redeemed and the Redemption Amount (the “ Redemption Amount ”). The Redemption Amount shall be equal to the outstanding principal balance being redeemed by the Company, plus the Redemption Premium (as defined below), plus all accrued and unpaid interest. After receipt of the Redemption Notice, Yorkville shall have 10 trading days to elect to convert all or any portion of the Yorkville Note. On the 11th trading day after the Redemption Notice, the Company shall deliver to Yorkville the Redemption Amount with respect to the principal amount redeemed after giving effect to conversions effected during the 10 trading day period. “ Redemption Premium ” means 7% of the principal amount being redeemed.

Under the terms of the Yorkville Note, a Trigger Event shall occur if (i) the daily VWAP is less than the Floor Price for five trading days during a period of seven consecutive trading days (a “ Floor Price Trigger ”), or (ii) the Company has issued in excess of 95% of the Common Stock available under the Exchange Cap (an “ Exchange Cap Trigger ”) (the last such day of each such occurrence, a “ Trigger Date ”). If, at any time six months after the issuance

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of the Yorkville Note, a Trigger Event occurs, then the Company under the Yorkville Note as originally issued was obligated to make monthly payments in an amount equal to the sum of (i) $1,500,000 of principal in the aggregate among all promissory notes issued to Yorkville (or the outstanding principal if less than such amount) (the “ Triggered Principal Amount ”), plus (ii) a payment premium of 5% in respect of such Triggered Principal Amount, and (iii) accrued and unpaid interest hereunder as of each payment date beginning on the 5th trading day after the Trigger Date and continuing on the same day of each successive calendar month to Yorkville pursuant to