Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 39

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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5.

    Instrument 
    Grant Date Fair Value March
    Offering  
    Grant Date Fair Value June
    Offering  
    Grant Date Fair Value September
    Offering  
    Total 
  
    Common stock 
    $765  
    $6,231  
     10,575  
    $17,571 

    Warrants: 

    Pre-funded Warrants 
    $2,957,949  
    $5,092,738  
    $3,078,075  
    $11,128,762 
  
    Representative’s Warrants and Placement Agent Warrants 
    $115,000  
    $572,000  
    $722,000  
    $1,409,000 
  
    Common Warrants 
    $2,395,000  
    $13,334,000  
    $14,445,000  
    $30,174,000 
  
    Total Fair Value of Warrants Issued 
    $5,467,949  
    $18,998,738  
    $18,245,075  
    $42,711,762 

Given that the aggregate gross proceeds of approximately
$20.0 million from the March Offering (approximately $4.0 million) and June Offering (approximately $16.0 million) was less than the total
fair value of the warrants issued, the Company recorded a loss on excess fair value at issuance of approximately $4.5 million for the
nine months ended September 30, 2025, which is reported in “warrant issuance expense” on the Company’s condensed consolidated
statements of operations. Given that the gross proceeds of $20.0 million from the September Offering exceeded the total fair value of
the warrants issued, the Company did not record a loss during the three months ended September 30, 2025.

In addition, an aggregate of $0.8 million and
$2.1 million of underwriting discounts and commissions and other expenses relating to the March Offering, June Offering and September
Offering were allocated, based on the fair value at the time of issuance, to the warrant instruments for the three and nine months ended
September 30, 2025, respectively, which is reported in “warrant issuance expense” on the Company’s condensed consolidated
statements of operations.

26

XTI AEROSPACE, INC. AND SUBSIDIARIES