Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 36

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 36
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 all relevant assumptions current at the date of issuance (i.e., share price
of $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 September 30, 2025.

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

March 2025, June
2025 and September 2025 Public Offerings

As part of the March Offering, June Offering
and September Offering (refer to Note 9), the Company issued pre-funded warrants (the “Pre-funded Warrants”) to purchase
up to an aggregate of 7,012,800 shares of common stock, and common warrants (the “Common Warrants”) to purchase up to an
aggregate of 25,955,200 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 and the September Offering have an exercise price of $2.00.

Upon closing of the March Offering and 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
and June Offering have an exercise price of $1.70 and $2.1875 per share, respectively. Upon closing of