Company: QTIWW
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0001844505-25-000083
Chunk: 136

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 2
Chunk 136
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,362 for the three months ended June 30, 2025 from $2,169,541 for the three months ended June 30, 2024. This change was primarily attributable to decreases in  professional and outside services costs of $198,188 and insurance cost of $145,857 and an increase in allocation expenses of $420,310 from selling, general and administrative expenses to cost of revenue, which was partially offset by increases in employee compensation cost of $400,290, and general business expenses of $146,088.

35

Other income (expense), net

Other income (expense), net increased by $196,892 to income of $9,498 for the three months ended June 30, 2025 from an expense of $187,394 for the three months ended June 30, 2024. This increase was primarily due to a modification adjustment of $200,513 related to the decrease in exercise price of our private placement warrants and working capital note warrants during the three months ended June 2024.

Change in fair value of warrant liability

Change in fair value of warrant liability decreased by $3,010,292 to an expense of $2,796,350 during the three months ended June 30, 2025 from income of $213,942 during the three months ended June 30, 2024. The change in fair value of warrants during the second quarter of 2025 was primarily attributable to increases in the market value of the Lynrock Lake Warrant and Yorkville Warrant, which were issued in the first quarter of 2025 and subsequently revalued on June 11, 2025 upon modification.

Change in fair value of derivative liability

Change in the fair value of derivative liability decreased by $1,729,700 to $0 during the three months ended June 30, 2025 from $1,729,700 during the three months ended June 30, 2024. The change in fair value of derivatives during the first quarter of 2024 was primarily driven by the decline in the value of our common stock. The derivative liability was extinguished on February 26, 2025 as a result of the Termination Agreement with Yorkville.

Change in fair value of earnout liability

Change in the fair value of earnout liability decreased by $100,000 to $210,000 during the three months ended June 30, 2025 from $310,000 during the three months ended June 30, 202