Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 39

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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    Grant Date Fair Value March Offering  
    Grant Date Fair Value June Offering  
    Total 
  
    Common stock 
    $765  
    $6,231  
    $6,996 
  
    Pre-funded Warrants 
    $2,957,949  
    $5,092,738  
    $8,050,687 
  
    Representative’s Warrants 
    $115,000  
    $572,000  
    $687,000 
  
    Common Warrants 
    $2,395,000  
    $13,334,000  
    $15,729,000 
  
    Total Fair Value of Warrants Issued 
    $5,467,949  
    $18,998,738  
    $24,446,687 

Given that the aggregate gross proceeds of approximately $20.0 million
from the March Offering (approximately $4.0 million) and the 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 $3.0 million and $4.5 million
for the three and six months ended June 30, 2025, respectively, which is reported in “warrant issuance expense” on the Company’s
condensed consolidated statements of operations. In addition, an aggregate of $0.8 million and $1.3 million of underwriting discounts
and commissions and other expenses relating to the March Offering and June Offering were allocated, based on the fair value at the time
of issuance, to the warrant instruments for the three and six months ended June 30, 2025, respectively, which is reported in “warrant
issuance expense” on the Company’s condensed consolidated statements of operations.

25

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Warrants Exercised

During the six months ended June 30, 2025, 2,176,000
Pre-funded Warrants from the March Offering were exercised at an exercise price per share of $0.001, resulting in the issuance of 2,176,000
shares of common stock and cash proceeds to the Company of $2,176.  During the six months ended June 30, 2025, 2,769