Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 157

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 157
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7.31, exercise price of $17.1875, term of five years, volatility of 98%, risk-free rate of 4.6%, and expected dividend rate of 0%).
The proceeds of the January Offering were allocated to each of the warrants and the common stock based on their relative fair value.

24

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The grant date fair value of the warrants and
shares of common stock on January 10, 2025 is summarized below and is reflected as temporary equity for the warrants and within additional
paid-in capital for the common stock as of June 30, 2025.

    Instrument 
    Grant Date
    Fair Value 
  
    Common stock 
    $19,663,008 
  
    Placement Agent Warrants 
    $337,000 

March 2025 and June
2025 Public Offerings

As part of the March Offering and June Offering
(refer to Note 9), the Company issued pre-funded warrants (the “Pre-funded Warrants”) to purchase up to an aggregate of 5,087,800
shares of common stock, and common warrants (the “Common Warrants”) to purchase up to an aggregate of 13,455,200 shares of
common stock.

Each Pre-funded Warrant was immediately exercisable
upon issuance, has an exercise price of $0.001 per share and may be exercised at any time until all of the Pre-funded Warrants are exercised
in full. Each Common Warrant was immediately exercisable upon issuance and expires on the fifth anniversary of the date of issuance.
The Common Warrants issued in connection with the March Offering have an exercise price of $1.36. The Common Warrants issued in connection
with the June Offering have an exercise price of $2.00.

Upon closing of the March Offering and the June
Offering, the Company issued ThinkEquity, as partial compensation, warrants (the “Representative’s Warrants”) to purchase
up to 147,060 and 457,150 shares of common stock, respectively. The Representative’s Warrants issued in connection with the March
Offering have an exercise price of $1.70 per share. The Representative’s Warrants issued in connection with the June Offering have
an exercise price of $2.1875 per share. The Representative’s Warrants are exercisable, in whole