Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 33

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 33
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ing in equal quarterly installments over two years starting from the grant date.
The options expire ten years from the grant date. Options were granted as follows:

  Grantee  Grant Date  Vesting Start Date  Options Granted   Chief Executive Officer of XTI Aerospace, Inc.  9/4/2025  9/4/2025   2,621,100   Chief Financial Officer of XTI Aerospace, Inc.  9/4/2025  9/4/2025   1,512,200   Chief Executive Officer of the XTI Aerospace, Inc. Real-Time Location System Division  9/4/2025  9/4/2025   78,000   Chief Operating Officer of XTI Aerospace, Inc.  9/4/2025  9/4/2025   1,613,000   Chief Strategy Officer of XTI Aerospace, Inc.  9/4/2025  9/4/2025   1,512,200   Total Granted         7,336,500  

The measurement of fair value of options is determined
utilizing a Black-Scholes model considering all relevant assumptions current at the date of issuance. The following assumptions were
used in estimating the fair values of options awarded during the nine months ended September 30, 2025:

    Fair
    value of common stock
    $1.50 - $2.00
  
    Exercise
    price
    $1.50 - $2.00
  
    Expected
    term
    5.47 years
  
    Volatility
    98.91% - 99.42%
  
    Risk-free
    interest rate
    3.62% - 3.71%
  
    Dividend
    yield
    	—	%

22

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Stock-based Compensation Expense

The Company accounts
for options granted to employees by measuring the cost of services received in exchange for the award of equity instruments based upon
the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as an expense over the period
during which the recipient is required to provide services in exchange for