Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 38

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 38
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Offering was determined utilizing a Black-Scholes model considering all relevant assumptions current at the date of issuance (i.e., share
price of $1.09, exercise price of $1.36, term of five years, volatility of 103%, risk-free rate of 4%, and expected dividend rate of
0%).

25

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

The measurement of fair value of the Representative’s
Warrants issued in connection with the June Offering was determined utilizing a Black-Scholes model considering all relevant assumptions
current at the date of issuance (i.e., share price of $1.66, exercise price of $2.1875, term of five years, volatility of 106%, risk-free
rate of 3.8%, and expected dividend rate of 0%). The measurement of fair value of the Common Warrants issued in connection with the June
Offering was determined utilizing a Black-Scholes model considering all relevant assumptions current at the date of issuance (i.e., share
price of $1.66, exercise price of $2.00, term of five years, volatility of 106%, risk-free rate of 3.8%, and expected dividend rate of
0%).

The measurement of fair value of the Placement
Agent Warrants and Common Warrants issued in connection with the September Offering was determined utilizing a Black-Scholes model considering
all relevant assumptions current at the date of issuance (i.e., share price of $1.51, exercise price of $2.00, term of five years, volatility
of 109%, risk-free rate of 3.6%, and expected dividend rate of 0%).

The March Offering, June Offering and September
Offering proceeds were allocated to each of the warrants and the common stock based on their relative fair value. The grant date fair
value of the warrants and shares of common stock on March 31, 2025 (March Offering), June 26, 2025 (June Offering) and September 15, 2025
(September Offering) is summarized below in the aggregate and is reflected as temporary equity (“Mezzanine Equity”) for the
Representative’s Warrants and Placement Agent Warrants, a warrant liability for the Common Warrants and Pre-funded Warrants, and
within additional paid-in capital for the common stock as of September 30, 202