Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 134

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 134
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 as of
March 31, 2025.

    Instrument
     
    Grant Date 
Fair Value

    Common stock
     
    $
    302,672

    Pre-funded Warrants
     
    $
    2,957,949

    Representative’s Warrants
     
    $
    115,000

    Common Warrants
     
    $
    2,395,000

Given that the gross proceeds received of $3,997,856
from the March Offering was less than the total fair value of the warrants issued, the Company recorded a loss on excess fair value of
$1,470,093 at issuance, which is reported in “warrant issuance expense” on the Company’s condensed consolidated statements
of operations for the three months ended March 31, 2025.

Warrants Exercised

As of March 31, 2025, 300,000 Pre-funded Warrants were exercised at
an exercise price per share of $0.001, resulting in the issuance of 300,000 shares of common stock.  

Note 14 - Segments

The Company’s Chief Executive Officer, acting
as the Chief Operating Decision Maker (“CODM”), regularly reviews and manages certain areas of its businesses, resulting in
the Company identifying two reportable segments: Industrial IoT and Commercial Aviation. The Company manages and reports its operating
results through these two reportable segments. This allows the Company to enhance its customer focus and better align its business models,
resources, and cost structure to the specific current and future growth drivers of each business, while providing increased transparency
to the Company’s shareholders.

The commercial aviation segment is currently in
the pre-revenue development stage and its primary activity is the development of the TriFan 600 airplane. The Industrial IoT segment generates
revenue primarily from the sale of real-time location system solutions for the industrial sector and its customers are primarily located
in Germany and the U.S. As it relates to the Industrial IoT segment, the results disclosed in the table below only reflect activity following
the XTI Merger closing through the March 31, 2025 reporting date.

Information on each of our reportable segments
and reconciliation to consolidated loss from operations is presented in the table below. We have assigned certain previously reported
expenses to each segment to conform to the way we internally manage and monitor our business. Unallocated operating expenses include
costs that are not specific to a particular segment but are general to the group