Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 567

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 567
---
,302 
  
    Fair value of debt
    assumed 
     114 
  
    Total
    consideration 
    $25,605 

The
Company determined the estimated fair value of common stock included in consideration to be calculated based on Legacy Inpixon’s
common stock outstanding of 2,075,743 multiplied by the price of Legacy Inpixon’s common stock on March 12, 2024 of $5.27 (which
reflects the 1 to 100 reverse stock split which became effective before the closing of the XTI Merger). The Company utilized Legacy Inpixon’s
common stock price in determining fair value as it is more reliably measurable than the value of Legacy XTI’s (accounting acquirer)
equity interests given it is not a publicly traded entity.

The
aggregate fair value of warrants was approximately $3.3 million was included in the total equity consideration. A portion of this total
represents 918,689 warrants outstanding by the Company with a fair value of $1.00 per warrant, which is the warrant’s redemption
value. The warrant fair value was determined to be the redemption value as the warrants include protective covenants for the Company
which prevent the holder from exercising the warrants. The remainder of this total represents 491,310 warrants with a fair value of $4.75
per warrant which was determined by using level 3 inputs and utilizing a Black-Scholes valuation. Significant inputs related to these
warrants are as follows:

    Fair value
    of common stock   
    $5.27 
  
    Exercise price   
    $5.13 
  
    Expected term 
     4.76 years 
  
    Volatility   
     146%
  
    Risk-free interest rate
      
     4.2%
  
    Dividend yield   
     —%

F-19

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

The
fair value of preferred stock of approximately $11.3 million included in the total equity consideration represents 11,302 shares of a
new series of Preferred Stock that was issued and outstanding by the Company upon the consummation of the XTI Merger at a stated value
and fair value of $1,000 per share.

The
following