Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 35

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 35
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 stock-based compensation expense and credited to additional paid-in capital.

The assumptions used
in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and
the application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based
compensation expense could be materially different for future awards.

The Company incurred the following stock-based
compensation charges for the periods indicated below (in thousands):

    For the Three Months Ended June 30,  
    For the Six Months Ended June 30, 

    2025  
    2024  
    2025  
    2024 
  
    Employee and consultant
    stock options1 
    $478  
    $(59) 
    $933  
    $84 
  
    Vesting of previously unvested
    warrants2 
     —  
     —  
     —  
     496 
  
    Professional fees2 
     244  
     —  
     244  
     5,153 
  
    Total 
    $722  
    $(59) 
    $1,177  
    $5,733 

1Amount included in general and administrative expenses on the condensed consolidated statements of operations.

2Amount included in merger-related transaction costs on the condensed consolidated statements of operations for the three and six months ended June 30, 2024.  Amount included in general and administrative expenses on the condensed consolidated statements of operations for the three and six months ended June 30, 2025.

As of June 30, 2025, the total unrecognized compensation expense related
to unvested awards was approximately $4.4 million, which the Company expects to recognize over an estimated weighted average period of
1.76 years.

23

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 12 - Warrants

The following table summarizes the activity of
warrants outstanding:

    Number of 
    Warrants 
  
    Beginning balance as of January 1, 2025 
     1,128 
  
    Granted 
     19,219,937 
  
    Exercised 
     (7,071,600)
  
    Expired 
     — 
  
    Exchanged 
     — 
  
    Ending balance as