Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 131

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 131
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.0 million of stock-based compensation expense
included in the condensed consolidated statement of operations during the three months ended March 31, 2024.

Shares of Legacy XTI common stock were issued
to Chardan Capital Markets LLC as transaction compensation immediately prior to the XTI Merger closing time equal to 757 post merger shares
of Company common stock. As a result of this share issuance transaction, the Company recorded $1.0 million of stock-based compensation
expense included in the condensed consolidated statement of operations during the three months ended March 31, 2024.

Shares of Legacy XTI common stock were issued
to a non-executive officer as transaction compensation immediately prior to the XTI Merger closing time equal to 186 post merger shares
of Company common stock. As a result of this share issuance transaction, the Company recorded approximately $0.2 million of stock-based
compensation expense included in the condensed consolidated statement of operations during the three months ended March 31, 2024.

Note 13 - Warrants

The following table summarizes the activity of
warrants outstanding:

    Number of
Warrants 
  
    Beginning balance as of January 1, 2025 
     1,128 
  
    Granted 
     5,336,987 
  
    Exercised 
     (300,000)
  
    Expired 
     - 
  
    Exchanged 
     - 
  
    Ending balance as of March 31, 2025 
     5,038,115 

    Exercisable as of March 31, 2025 
     5,037,358 

The weighted average exercise price of warrants
outstanding as of March 31, 2025 was $5.65. The weighted average exercise price of exercisable warrants outstanding as of March 31, 2025
was $5.64.

26

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Warrants Granted

January 2025 Public
Offering

As part of its compensation for acting as placement agent for the January
Offering (refer to Note 10), the Company issued to the Placement Agent warrants (the “Placement Agent Warrants”) to purchase
72,727 shares of common stock. The Placement Agent Warrants are exercisable commencing January 10, 2025, expire January 8,