Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 183

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 183
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 of 3.8%, and expected dividend rate of 0%). The measurement of fair value of the Common Warrants issued in connection with the June
Offering was determined utilizing a Black-Scholes model considering all relevant assumptions current at the date of issuance (i.e., share
price of $1.66, exercise price of $2.00, term of five years, volatility of 106%, risk-free rate of 3.8%, and expected dividend rate of
0%).

The measurement of fair value of the Placement
Agent Warrants and Common Warrants issued in connection with the September Offering was determined utilizing a Black-Scholes model considering
all relevant assumptions current at the date of issuance (i.e., share price of $1.51, exercise price of $2.00, term of five years, volatility
of 109%, risk-free rate of 3.6%, and expected dividend rate of 0%).

The March Offering, June Offering and September
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), June 26, 2025 (June Offering) and September 15, 2025
(September Offering) is summarized below in the aggregate and is reflected as temporary equity (“Mezzanine Equity”) for the
Representative’s Warrants and Placement Agent Warrants, a warrant liability for the Common Warrants and Pre-funded Warrants, and
within additional paid-in capital for the common stock as of September 30, 2025.

    Instrument 
    Grant Date Fair Value March
    Offering  
    Grant Date Fair Value June
    Offering  
    Grant Date Fair Value September
    Offering  
    Total 
  
    Common stock 
    $765  
    $6,231  
     10,575  
    $17,571 

    Warrants: 

    Pre-funded Warrants 
    $2,957,949  
    $5,092,738  
    $3,078,075  
    $11,128,762 
  
    Representative’s Warrants and Placement Agent Warrants 
    $115,000  
    $572,000  
    $722,000  
    $1,409,000 
  
    Common Warrants 
    $2,395,000