Legacy XTI adopted the 2017 Employee and Consultant Stock Ownership Plan, which was assumed by the Company in connection with the XTI Merger. The plan permits grants of stock options and other equity awards to employees, directors and consultants. As of June 30, 2026, no shares remain available for future issuance under the 2017 Plan.

The Company’s 2018 Equity Incentive Plan, as amended and restated in August 2025, authorizes the grant of incentive stock options, nonqualified stock options, restricted stock, RSUs and other equity-based awards to employees, officers, directors and consultants. The 2018 Plan permits the Board to delegate limited grant authority to designated officers. Options generally vest over periods ranging from immediate to four years and have contractual terms of up to ten years.

As of June 30, 2026, there are no unvested Restricted Stock or Restricted Stock Units outstanding under the 2018 Plan.

The aggregate number of shares that may be awarded under the 2018 Plan as of June 30, 2026 was 80,105,687. As of June 30, 2026, 59,965,772 shares of common stock were available for future grant under the 2018 Plan, of which 57,209,296 shares are registered.


	Number of Options	Weighted Average Exercise Price		Weighted Average Remaining Life (Years)	Aggregate Intrinsic Value (in millions)
Outstanding at January 1, 2026	15,941,550	$	2.80	9.8	$	—
Granted	5,017,127	$	1.79
Forfeitures	(817,221)	$	10.20
Exercises	(37,500)	$	2.00
Outstanding at June 30, 2026	20,103,956	$	2.25	9.2	$	3.4
Exercisable at June 30, 2026	10,703,597	$	2.45	9.0	$	1.7

The following assumptions were used in estimating the fair values of options awarded during the six months ended June 30, 2026:



Fair value of common stock			$1.43 - $2.35
Exercise price			$1.43 - $2.35
Expected term			5 – 7 years
Volatility			134.52% - 153.30%
Risk-free interest rate			3.51% - 4.43%
Dividend yield			—%

Stock-based compensation charges for the periods indicated below (in thousands) are as follows:


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Research and development	$	—	$	147	$	205	$	294
Sales and marketing	83		—		465		—
General and administrative	3,691		520		7,779		785
Total	$	3,774	$	667	$	8,449	$	1,079

As of June 30, 2026, the total unrecognized compensation expense related to unvested awards was approximately $13.9 million, which the Company expects to recognize over an estimated weighted average period of 1.0 years.