Qt Imaging Holdings, Inc. Liquidation Value

QT Imaging Holdings, Inc. (QTI) is a development-stage medical device company with a single reportable segment, reporting a period ending December 31, 2025. Under a liquidation lens, equity recovery is deeply negative. MFFAIS reports a cash liquidation value of negative $7.8M and a liquid liquidation value of negative $2.0M, with the operating liquidation value marginally positive at $3.0M — the latter driven by the recent buildup in accounts receivable and inventory that would not survive a distressed windup at face value.

Asset-side recovery: Cash of $10.4M recovers at par ($10.4M). AR of $5.8M applies a 90-95% haircut yielding approximately $5.2-5.5M. Inventory of $5.0M (predominantly raw materials at $4.4M, WIP $0.6M, finished goods $23K) recovers at 60% or roughly $3.0M — the raw material and WIP mix is unfavorable for liquidation since these components have minimal standalone market value absent the ongoing manufacturing program. PP&E net of $318K recovers at 50-70%, yielding under $0.2M. The operating ROU asset of $573K is recoverable only to the extent the lease can be subleased (the company already subleases a portion to a related practice at ~$68K/year), but the remaining lease liability of $657K stays at face. Intangibles and deferred tax assets receive zero recovery. Total adjusted asset recovery is in the range of $19-20M.

Liability-side stays at face: Total liabilities of $16.6M consist of current liabilities of $7.9M (AP $3.6M, accrued liabilities $3.8M, current operating lease $0.5M, current deferred revenue $7K, litigation reserve $1.9M) and non-current liabilities of $8.7M (LTD $10.1M primary term loan to Lynrock Lake with maturity extended to October 2027, related-party notes $3.9M — the 2022 Klock Note and Working Capital Note also extended to October 2027, offset by unamortized debt issuance costs $9.4M reducing carrying value; the non-current operating lease $0.2M, and other non-current liabilities $1.6M). Note that debt face values must be used at par in liquidation: the Lynrock Lake term loan principal is approximately $10.1M plus the related-party Klock notes aggregate principal of approximately $3.3M (2022 Klock Note $2.6M plus Working Capital Note $0.7M as originally issued), giving combined face debt well in excess of carrying values net of issuance costs.

Accumulated deficit of $53.0M reflects $21.1M net loss in FY2025 alone — an acceleration from prior periods driven by $6.6M induced conversion expense on debt, $3.6M warrant FV adjustment, $2.6M net interest expense, and $2.1M loss on debt extinguishment. The company generated $18.9M in revenue in FY2025 but still burned $9.0M in operating cash. The October 2025 PIPE ($18.2M gross) and subsequent January 2026 PIPE provided a temporary cash injection, but the cost structure and liability profile leave equity recovery negative under any reasonable liquidation scenario. The filing discusses manufacturing commitments with Canon Medical Systems and production obligations tied to the Canon Manufacturing Agreement but does not separately tag production commitment amounts in XBRL, limiting quantification here.