Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 32

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 32
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grant. For any individual possessing more than 10% of the total outstanding common stock of the Company, the exercise price per share
for incentive stock options is a minimum 110% of the estimated fair value of the underlying common stock on the grant date. Options granted
under the 2018 Plan vest over periods ranging from immediately to four years and are exercisable over periods up to ten years from the
grant date.

The aggregate number of shares that may be awarded
under the 2018 Plan as of September 30, 2025 was 77,105,687. As of September 30, 2025, 10,714,289 stock options were granted to
employees, directors and consultants of the Company and 62,240,174 options were available for future grant under the 2018 Plan.

21

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

See below for a summary of the stock options granted under the 2011,
2017 and 2018 plans:

     Number of Shares   Weighted Average Exercise Price   Weighted Average Remaining Contractual Life (Years)   Aggregate Intrinsic Value  (In millions)   Beginning balance as of January 1, 2025   51,185   $455.00    9.3   $—   Granted   10,668,256    1.95             Exercised   —                  Expired   —                  Forfeited   (2,485)   2,476.56             Ending balance as of September 30, 2025   10,716,956   $3.54    9.9   $—                          Options vested and exercisable as of September 30, 2025   3,654,641   $4.63    9.9   $—  

The compensation committee of the Board approved awards of options
to certain Company executives under the 2018 Plan. Each option has an exercise price of $2.00 per share. The options vested 1/3rd
on the grant date with the remaining 2/3rd vest