Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 151

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 151
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 sold together with one
Common Warrant.

The Company also granted ThinkEquity a 45-day
option to purchase, at the public offering price, less the underwriting discounts and commissions, up to 1,371,000 additional shares of
Common Stock (and/or Pre-funded Warrants in lieu thereof) and/or up to 1,371,000 additional Common Warrants or any combination thereof,
to cover any over-allotments. ThinkEquity partially exercised this option on June 25, 2025 for 1,371,000 additional Common Warrants.

The June Offering closed on June 26, 2025. The
net proceeds to the Company from the sale of the Shares and the Warrants were approximately $14.7 million, after deducting the underwriting
discounts and commissions and other expenses payable by the Company of approximately $1.3 million.

Allocation of Net Proceeds

The aggregate net proceeds from the January Offering,
the March Offering, and the June Offering were approximately $36.4 million. For reporting purposes, the Company allocated approximately
$17.4 million of net proceeds to the sales of common stock and approximately $19.0 million of net proceeds to the issuance of warrants.
The net proceeds were allocated to each of the warrants and the common stock based on their relative fair value as of the date of issuance.

Other Share Issuances

On May 13, 2025, the Company entered into an
advisory agreement with a third-party advisor, pursuant to which the Company issued 125,000 shares of restricted common stock, subject
to certain registration rights, to the advisor in consideration for financial advisory services agreed to be rendered to the Company
pursuant to the advisory agreement. As a result of the share issuance, the Company recognized approximately $0.2 million in share-based
compensation expense, which is included in general and administrative expenses on the condensed consolidated statements of operations,
for the three and six months ended June 30, 2025.

20

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 10 - Preferred Stock

The Company is authorized to issue up to 5,000,000
shares of preferred stock with a par value of $0.001 per share with rights, preferences, privileges and restrictions as to be determined
by the Company’s Board of Directors.

Series 9 Preferred Stock Red