Company: QTIWW
Filing Date: 2025-03-31
Form Type: 10-K
Source: 0001844505-25-000038
Chunk: 286

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-03-31
Form: 10-K
Item: Item 8
Chunk 286
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 significant to the fair value of the assets or liabilities.

F-21

The following table presents information about the Company’s assets and liabilities that are measured at fair value on a recurring basis as of December 31, 2024 and 2023, and indicates the fair value hierarchy of the valuation inputs the Company utilized to determine such fair value:Description:LevelDecember 31, 2024December 31, 2023Assets:Certificate of deposit2$20,000 $20,000 Liabilities:Warrant liability2$22,234 $— Earnout liability3$440,000 $— Derivative liability3$303,300 $— Warrant LiabilityThe Company has determined that the warrants that were a constituent part of (i) the private placement units that were issued in a private placement sale by GigCapital5 prior to the Merger (“Private Placement Warrants”) and (ii) the private placement units that were issued upon conversion of working capital notes issued by GigCapital5 prior to the Merger, which conversion occurred concurrent with the Merger (“Working Capital Note Warrants”) are subject to treatment as a liability, as the transfer of the warrants to anyone other than the purchasers or their permitted transferees would result in these warrants having substantially the same terms as the warrants included in the public units that were issued by GigCapital5 prior to the Merger (“Public Warrants”). The Company determined that the fair value of each Private Placement Warrant and the Working Capital Note Warrants approximates the fair value of a Public Warrant. Accordingly, the Private Placement Warrants and Working Capital Note Warrants are valued upon observable data and have been classified as Level 2 financial instruments. As of December 31, 2024, a total of 889,364 Private Placement Warrants and Working Capital Note Warrants were outstanding at an approximate fair value of $0.025 per warrant. See Note 11. The activity for the fair value of the warrant liability during the year ended December 31, 2024 was as follows:Warrant LiabilityBeginning balance, January 1, 2024$— Net liabilities assumed from GigCapital58,894 Increase due to warrant modification200,513 Change in fair value(187,173)Ending balance, December 31, 2024$22,234 The effect of the modification of the Private Placement Warrants and the Working Capital Note Warrants as further described in Note 11 was included within other