Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 154

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 154
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 at exercise prices at a minimum of 100% of the estimated fair market value of the underlying common stock at date of
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 June 30, 2025 was 74,105,687. As of June 30, 2025, 47,504 of stock options were granted to employees, directors and
consultants of the Company and 72,906,959 options were available for future grant under the 2018 Plan.

22

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   —                  Exercised   —                  Expired   —                  Forfeited   (1,015)                 Ending balance as of June 30, 2025   50,170   $344.12    9.0   $—                          Options vested and exercisable as of June 30, 2025   19,116   $510.12    8.8   $—  

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