Company: QTIWW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001628280-25-051332
Chunk: 91

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 1
Chunk 91
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 increase in the market value of the public and private warrants in the 2025 period.

Change in fair value of derivative liability

Change in the fair value of derivative liability decreased by $87,200 to $0 during the three months ended September 30, 2025 from income of $87,200 during the three months ended September 30, 2024. The derivative liability was extinguished on February 26, 2025 as a result of the extinguishment of the loan with Yorkville.

Change in fair value of earnout liability

Change in the fair value of earnout liability decreased by $2,280,000 to an expense of $2,230,000 during the three months ended September 30, 2025 from income of $50,000 during the three months ended September 30, 2024. The change in the fair value of earnout liability during the 2025 period was driven by the changes to the probability of outcome related to our revenue assumptions.  

Interest expense, net

Interest expense, net decreased by $890,581 to $564,725 for the three months ended September 30, 2025 from $1,455,306 for the three months ended September 30, 2024. This decrease was primarily driven by decreases in interest expense and amortization of the debt discount of $1,301,603 for the Yorkville Note, which was extinguished in February 2025, partially offset by the interest expense and amortization of debt discount of $521,243 for the Lynrock Lake Term Loan.

Comparison of the nine months ended September 30, 2025 and 2024

For Nine Months Ended September 30,Change 20252024$% Revenue$10,649,930 $4,032,168 $6,617,762 164 %Cost of revenue5,208,318 1,792,234 3,416,084 191 %Gross profit5,441,612 2,239,934 3,201,678 143 %Operating expenses:Research and development2,691,704 2,492,842 198,862 8 %Selling, general and administrative6,486,697 9,873,029 (3,386,332)(34)%Total operating expenses9,178,401 12,365,871 (3,187,470)(26)%Loss from operations(3,736,789)(