Company: QTIWW
Filing Date: 2025-01-31
Form Type: S-1/A
Source: 0001628280-25-003316
Chunk: 135

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-01-31
Form: S-1/A
Chunk 135
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 its wholly owned subsidiary, QTI Merger Sub, Inc., entered into a Business Combination Agreement with QT Imaging. Following the approval at the annual meeting of the stockholders of GigCapital5 held on February 20, 2024, and pursuant to and in accordance with the terms of the Business Combination Agreement, QTI Merger Sub, Inc. merged with and into QT Imaging with QT Imaging surviving the Merger. Upon the consummation of the Merger, GigCapital5 changed its name to QT Imaging Holdings, Inc.

Subject to and in accordance with the terms of the Business Combination Agreement and customary adjustments, at the effective time of the Merger, each share of QT Imaging capital stock issued and outstanding immediately prior to the effective time of the Merger (including shares issued upon the exercise or conversion of QT Imaging Options, QT Imaging Warrants and QT Imaging Convertible Notes (as each such term is defined in the Business Combination Agreement) but excluding each share of QT Imaging Common Stock (as such term is defined in the Business Combination Agreement) held in the treasury of QT Imaging which was cancelled without any conversion of such shares of QT Imaging Common Stock held in the treasury and dissenting shares) was automatically cancelled and converted into (A) a number of shares of the Company’s Common Stock equal to the Exchange Ratio of the quotient of (i) the Aggregate Closing Merger Consideration (as such term is defined in the Business Combination Agreement) divided by (ii) the QT Imaging Fully Diluted Capital Stock (as such term is defined in the Business Combination Agreement) and (B) the contingent right to receive a portion of additional shares of the Company’s Common Stock based on the performance of the Company if certain requirements are achieved in accordance with the terms of the Business Combination Agreement, if, as and when payable.

#### Accounting for the Transactions
The business combination is accounted for as a reverse recapitalization in accordance with GAAP. Under this method of accounting, GigCapital5 will be treated as the “acquired” company for financial reporting purposes. This determination was primarily based on QT Imaging’s operations comprising substantially all of the ongoing operations of the post-combination company, QT Imaging’s senior management comprising substantially all of the senior management of the post-combination company and the existence of a majority voting interest in the post-combination company. Accordingly, for accounting purposes, the business combination is treated as the equivalent of QT Imaging issuing stock for the net assets of GigCapital5, accompanied by a recapitalization. The net