Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 184

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 184
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 $13,334,000  
    $14,445,000  
    $30,174,000 
  
    Total Fair Value of Warrants Issued 
    $5,467,949  
    $18,998,738  
    $18,245,075  
    $42,711,762 

Given that the aggregate gross proceeds of approximately
$20.0 million from the March Offering (approximately $4.0 million) and June Offering (approximately $16.0 million) was less than the total
fair value of the warrants issued, the Company recorded a loss on excess fair value at issuance of approximately $4.5 million for the
nine months ended September 30, 2025, which is reported in “warrant issuance expense” on the Company’s condensed consolidated
statements of operations. Given that the gross proceeds of $20.0 million from the September Offering exceeded the total fair value of
the warrants issued, the Company did not record a loss during the three months ended September 30, 2025.

In addition, an aggregate of $0.8 million and
$2.1 million of underwriting discounts and commissions and other expenses relating to the March Offering, June Offering and September
Offering were allocated, based on the fair value at the time of issuance, to the warrant instruments for the three and nine months ended
September 30, 2025, respectively, which is reported in “warrant issuance expense” on the Company’s condensed consolidated
statements of operations.

26

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Warrants Exercised

During the nine months ended September 30, 2025,
2,176,000 Pre-funded Warrants from the March Offering were exercised at an exercise price per share of $0.001, resulting in the issuance
of 2,176,000 shares of common stock and cash proceeds to the Company of $2,176. During the nine months ended September 30, 2025,
2,884,500 Common Warrants from the March Offering were exercised at an exercise price per share of $1.36, resulting in the issuance of
2,884,500 shares of common stock and cash proceeds to the Company of approximately $3.9 million. As of September 30, 2025, there
were no Pre-funded