Company: XTIA
Filing Date: 2025-06-03
Form Type: DRS
Source: 0001213900-25-050156
Chunk: 32

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-03
Form: DRS
Chunk 32
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 available under our 2018 Employee Stock Incentive Plan;                                    |

| ● | 1 share of common stock issuable upon the conversion of 1 outstanding share of Series 4 Convertible Preferred Stock, at a conversion 
 price of $418,500,000 per share; and                                                                                                 |

| ● | 1 share of common stock issuable upon conversion of 126 outstanding shares of Series 5 Convertible Preferred Stock, at a conversion 
 price of $280,968,750 per share.                                                                                                    |

<div align='center'>17

DILUTION</div>

If you invest in our common
stock in this Offering, your investment will be immediately and substantially diluted to the extent of the difference between the public
offering price per share of our common stock and the pro forma net tangible book value per share of our common stock after giving effect
to the Offering.

Our net tangible book value
as of March 31, 2025 was approximately $0.3 million or $0.07 per share. Net tangible book value per share represents our total tangible
assets less total liabilities, divided by the number of shares of our common stock outstanding.

Our pro forma net tangible
book value as of March 31, 2025, was approximately $2.8 million, or $0.40 per share after taking into account the pro forma adjustments
described in “Capitalization.”

Pro forma as adjusted net
tangible book value dilution per share of common stock to new investors represents the difference between the amount per share of common
stock in the Offering and the pro forma as adjusted net tangible book value per share of common stock immediately after completion of
the Offering. After giving further effect to the sale of our common stock in the Offering at an assumed public offering price of $1.95
per share (and assuming no sale of Pre-funded Warrants), and after deducting the estimated underwriting discounts and commissions and
estimated offering expenses payable by us, our pro forma as adjusted net tangible book value as of March 31, 2025, would have been $11.6
million, or $0.97 per share. This represents an immediate increase in pro forma as adjusted net tangible book value of $0.57 per share
of common stock to existing stockholders and an immediate dilution in net tangible book value of $0.98 per share of common stock to investors
of the Offering, as illustrated in the following table, based on shares outstanding as of March