Company: QTIWW
Filing Date: 2025-01-31
Form Type: S-1/A
Source: 0001628280-25-003316
Chunk: 164

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-01-31
Form: S-1/A
Chunk 164
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 30, 2024.

Change in fair value of derivative liability

Change in the fair value of derivative liability was $87,200 during the three months ended September 30, 2024. The change in fair value of derivatives was primarily driven by the decline in the value of our common stock during the three months ended September 30, 2024.

Change in fair value of earnout liability

Change in the fair value of earnout liability was $50,000 during the three months ended September 30, 2024. The earnout liability relates to the contingent consideration for the Merger Earnout Consideration Shares pursuant to the Business Combination Agreement dated December 8, 2022, as amended in September of 2023. We did not have an earnout liability during the three months ended September 30, 2023.

Interest expense, net

Interest expense, net increased by $1,322,462 to $1,455,306 for the three months ended September 30, 2024 from $132,844 for the three months ended September 30, 2023. This change is primarily driven by an increase in the amortization of debt discount of $1,203,363 for the Pre-Paid Advance and the Cable Car Note and interest expense of $149,676 for the Pre-Paid Advance.

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Comparison of the nine months ended September 30, 2024 and 2023

|                                              |     | Nine Months Ended 
     September 30, |             |     |      |            |     | Change |            |     |      |      |      |
|:---------------------------------------------|:----|------------------:|------------:|:----|-----:|-----------:|:----|:-------|-----------:|:----|:-----|-----:|:-----|
|                                              |     |              2024 |             |     | 2023 |            |     | $      |            |     | %    |      |      |
| Revenue                                      |     |                 $ |   4,032,168 |     |    $ |     35,404 |     | $      |  3,996,764 |     | N.M. |      |      |
| Cost of revenue                              |     |                   |   1,792,234 |     |      |     73,497 |     |        |  1,718,737 |