Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 159

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 159
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 rate of 3.8%, and expected dividend rate of 0%).

The March Offering and the June Offering proceeds
were allocated to each of the warrants and the common stock based on their relative fair value. The grant date fair value of the warrants
and shares of common stock on March 31, 2025 (March Offering) and June 26, 2025 (June Offering) is summarized below in the aggregate and
is reflected as temporary equity (“Mezzanine Equity”) for the Representative’s Warrants, a warrant liability for the
Common Warrants and Pre-funded Warrants, and within additional paid-in capital for the common stock as of June 30, 2025.

    Instrument 
    Grant Date Fair Value March Offering  
    Grant Date Fair Value June Offering  
    Total 
  
    Common stock 
    $765  
    $6,231  
    $6,996 
  
    Pre-funded Warrants 
    $2,957,949  
    $5,092,738  
    $8,050,687 
  
    Representative’s Warrants 
    $115,000  
    $572,000  
    $687,000 
  
    Common Warrants 
    $2,395,000  
    $13,334,000  
    $15,729,000 
  
    Total Fair Value of Warrants Issued 
    $5,467,949  
    $18,998,738  
    $24,446,687 

Given that the aggregate gross proceeds of approximately $20.0 million
from the March Offering (approximately $4.0 million) and the June Offering (approximately $16.0 million) was less than the total fair
value of the warrants issued, the Company recorded a loss on excess fair value at issuance of approximately $3.0 million and $4.5 million
for the three and six months ended June 30, 2025, respectively, which is reported in “warrant issuance expense” on the Company’s
condensed consolidated statements of operations. In addition, an aggregate of $0.8 million and $1.3 million of underwriting discounts
and commissions and other expenses relating to the March Offering and June Offering were allocated, based on the fair value at the time
of issuance, to the warrant instruments for the three and six months ended June 30, 2025, respectively, which is reported in “warrant