Company: QTIWW
Filing Date: 2025-11-12
Form Type: 10-Q
Source: 0001628280-25-051332
Chunk: 181

Company: QT IMAGING HOLDINGS, INC.
Filing Date: 2025-11-12
Form: 10-Q
Item: Part I, Item 2
Chunk 181
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Other expense, net

Other expense, net increased by $8,579,184 to $8,770,514 for the nine months ended September 30, 2025 from $191,330 for the nine months ended September 30, 2024. The increase was primarily due to the extinguishment loss of $2,033,666 for the Yorkville Note and Cable Car Note, $6,640,384 in noncash expense incurred at issuance of the Lynrock Lake Term Loan, and $90,000 Extension Fee for the Cable Car Note during the nine months ended September 30, 2025, which was partially offset by the modification expense of $200,513 related to the decrease in exercise price of our private placement warrants and working capital note warrants in the nine months ended September 30, 2024.

Change in fair value of warrant liability

Change in fair value of warrant liability decreased by $3,780,746 to an expense of $3,581,122 during the nine months ended September 30, 2025 from income of $199,624 during the nine months ended September 30, 2024. The change in fair value of warrants during the 2025 period 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 $4,698,700 to $101,300 during the nine months ended September 30, 2025 from $4,800,000 during the nine months ended September 30, 2024. The change in fair value of derivatives during the 2025 period was primarily driven by the decline in the value of our common stock period in the 2024 period. The derivative liability was extinguished during the first quarter of 2025 as a result of the extinguishment of the loan with Yorkville.

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Change in fair value of earnout liability

Change in the fair value of earnout liability decreased by $5,040,000 to an expense of $2,070,000 during the nine months ended September 30, 2025 from income of $2,970,000 during the nine months ended September 30, 2024. The change in the fair value of earnout liability during the first nine months of 2025