Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 149

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 149
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TI Aerospace, Inc. Real-Time Location System Division  6/12/2024  6/12/2024   3,900   Chief Strategy Officer of XTI Aerospace, Inc.  9/19/2024  8/1/2024   4,688   Chief Legal Officer of XTI Aerospace, Inc.  10/28/2024  10/28/2024   4,688   Total Granted         31,089  

The
following assumptions were used in estimating the fair values of options awarded during the year ended December 31, 2024:

     For
                                            the Year Ended
                                            December 31, 2024 
  
    Fair value of common stock 
     $10.75 - $118.25 
  
    Exercise price 
     $10.75 - $118.25 
  
    Expected term 
     6 years 
  
    Volatility 
     95.06% -103.3% 
  
    Risk-free interest rate 
     3.51% - 4.43% 
  
    Dividend yield 
     —%

During
the year ended December 31, 2023, Legacy XTI granted 1,089 stock options to members of its management team, which vest based on the
achievement of certain performance-based conditions as outlined in the option award agreements. The exercise price of the stock options
granted to the management team was $4,677.36.

The
following assumptions were used in estimating the fair values of options awarded during the year ended December 31, 2023:

     For the Year Ended December 31, 2023   Fair value of common stock  $4,677.36   Exercise price  $4,677.36   Expected term   5 years   Volatility   74.10%  Risk-free interest rate   3.54%  Dividend yield   —% 

Stock
Option Exercises

To induce option holders to exercise stock options ahead of the XTI
Merger so to assist the Company in qualifying for a listing on the Nasdaq Capital Market, Legacy XTI entered into exercise letter agreements
with several option holders in February 2024 at reduced exercise prices from the original option agreements. The net impact of these option
inducements to the condensed consolidated