Company: QTIWW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001844505-25-000038
Chunk: 290

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 290
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 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.Significant assumptions used in the valuation of the fair value of the derivative liability as of issuance on March 4, 2024 and as of December 31, 2024 were as follows:March 4, 2024December 31, 2024Fair value of common stock$3.53 $0.49 Term in years1.251.26Volatility130.0 %120.0 %Risk-free rate4.9 %4.2 %Debt discount30.0 %30.0 %

F-24

The activity for the fair value of the derivative liability during the year ended December 31, 2024 was as follows:Derivative LiabilityBeginning balance, January 1, 2024$— Fair value at issuance5,120,900 Change in fair value(4,817,600)Ending balance, December 31, 2024$303,300 

4.Inventory

Inventory consisted of the following as of December 31, 2024 and 2023:December 31, 2024December 31, 2023Raw materials$2,551,947 $2,529,364 Work in process278,869 1,627,802 Finished Goods309,903 261,031 Total$3,140,719 $4,418,197 

5.Property and Equipment, Net

Property and equipment, net consisted of the following as of December 31, 2024 and 2023:Useful LifeDecember 31, 2024December 31, 2023Scanners5 Years$1,904,491 $3,309,957 Computer and lab equipment3-5 Years1,424,513 1,359,491 Leasehold improvementsVarious421,266 421,266 Software3 Years50,374 40,599 Furniture and fixtures7 Years82,336 82,336