Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 139

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 139
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 assumptions which involve inherent uncertainties and generally require significant judgment. As a result, if factors or expected
outcomes change and significantly different assumptions or estimates are used, the Company’s stock-based compensation could be
materially different.

Net Loss Per Share 

Net loss per share attributable to common stockholders
is computed using the two-class method required for multiple classes of common stock and participating securities. The Company’s
participating securities included the Company’s convertible preferred stock and preferred stock. Neither the holders of convertible
preferred stock, preferred stock nor the holders of the Company’s common stock warrants have a contractual obligation to share
in losses.

Basic net loss per share attributable to common
stockholders is calculated by dividing the net loss, as adjusted for any dividends on the preferred stock for the period, attributable
to common stockholders by the weighted-average number of shares of common stock outstanding during the period, adjusted for outstanding
shares that are subject to repurchase or outstanding shares that are contingently returnable by the holder. Contingently issuable shares,
including shares that are issuable for little or no cash consideration, are considered outstanding common shares and included in net
loss per share as of the date that all necessary conditions have been satisfied. Such shares include outstanding penny warrants and shares
that were issuable to Xeriant Inc. (“Xeriant”) related to the joint venture arrangement that expired on May 31, 2023.

13

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Diluted net loss per share is computed by giving
effect to all potentially dilutive securities outstanding for the period using the treasury stock method or the if-converted method based
on the nature of such securities. For periods in which the Company reports net losses, diluted net loss per common share attributable
to common stockholders is the same as basic net loss per common share attributable to common stockholders, because potentially dilutive
common shares are not assumed to have been issued if their effect is anti-dilutive.

Foreign Currency 

The functional currency for the Company’s
subsidiaries is determined based on the primary economic environment in which the subsidiary operates. The Company translates the assets
and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars using exchange rates in effect at the end of
each period. Revenues and expenses for these subsidiaries are translated using rates that approximate those in effect during the period