Company: XTIA
Filing Date: 2025-06-12
Form Type: S-1
Source: 0001213900-25-053928
Chunk: 32

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-12
Form: S-1
Chunk 32
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 of our common stock that may become available under our 2018 Employee Stock Incentive Plan;                                    |

| ● | 1 share of common stock issuable upon the conversion of 1 outstanding share of Series 4 Convertible Preferred Stock, at a conversion 
 price of $418,500,000 per share; and                                                                                                 |

| ● | 1 share of common stock issuable upon conversion of 126 outstanding shares of Series 5 Convertible Preferred Stock, at a conversion 
 price of $280,968,750 per share.                                                                                                    |

<div align='center'>17

DILUTION</div>

If you invest in our common
stock in this Offering, your investment will be immediately and substantially diluted to the extent of the difference between the public
offering price per share of our common stock and the pro forma net tangible book value per share of our common stock after giving effect
to the Offering.

Our net tangible book value
as of March 31, 2025 was approximately $0.3 million or $0.07 per share. Net tangible book value per share represents our total tangible
assets less total liabilities, divided by the number of shares of our common stock outstanding.

Our pro forma net tangible
book value as of March 31, 2025, was approximately $6.3 million, or $0.77 per share after taking into account the pro forma adjustments
described in “Capitalization.”

Pro forma as adjusted net tangible book value dilution per share of
common stock to new investors represents the difference between the amount per share of common stock in the Offering and the pro forma
as adjusted net tangible book value per share of common stock immediately after completion of the Offering. After giving further effect
to the sale of our common stock in the Offering at an assumed public offering price of $5.05 per share (and assuming no sale of Pre-funded
Warrants), and after deducting the estimated underwriting discounts and commissions and estimated offering expenses payable by us, our
pro forma as adjusted net tangible book value as of March 31, 2025, would have been $24.5 million, or $2.02 per share. This represents
an immediate increase in pro forma as adjusted net tangible book value of $1.25 per share of common stock to existing stockholders and
an immediate dilution in net tangible book value of $3.03 per share of common stock to investors of the Offering, as illustrated in the
following table, based