Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 208

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 208
---
 financing of approximately $23.1 million, after deducting the placement agent fees and other expenses
payable by the Company of approximately $1.9 million.

The Series 10 Preferred carries a 12% cumulative
dividend, payable quarterly in cash, common stock, or in kind through accretion to stated value; provided that the payment of the dividend
in common stock is subject to the receipt of shareholder approval. The right to such preferential dividend expires on the two-year anniversary
of the original issuance date of the Series 10 Preferred. Each share will be convertible into common stock at a conversion price of $1.492
per share, subject to adjustment as set forth in the Series 10 Preferred certificate of designation (the “Certificate of Designation”),
upon receipt of shareholder approval, at which time all shares will automatically convert. Conversions are subject to a beneficial ownership
limitation of 4.99% (or 9.99% at holder election). If conversion would exceed such limit, the Company may, at the election of the holder,
issue pre-funded warrants in lieu of conversion shares or such shares will be held by the Company in abeyance for the benefit of such
holder. The Series 10 Preferred includes a Fundamental Transaction clause providing that holders receive equivalent consideration on the
same basis as common shareholders. The Series 10 Preferred has no redemption rights and may be settled only through equity conversion.
The Series 10 Preferred has no voting rights, except as required by law and for certain customary protective provisions set forth in the
Certificate of Designation.

ThinkEquity acted as the Company’s placement
agent in connection with the Series 10 Preferred financing. As compensation, the Company paid ThinkEquity $1,750,000 of placement agent
fees, reimbursed ThinkEquity for $175,000 of actual out-of-pocket offering expenses, and issued ThinkEquity and its designees warrants
to purchase an aggregate of 837,801 shares of common stock at an exercise price of $1.492 per share, equal to the Series 10 Preferred
conversion price. The warrants were immediately exercisable upon closing and expire five years from the date of issuance. The Company’s
obligation to issue shares upon exercise of the warrants is subject to its receipt of shareholder approval. If a holder exercises its
warrants prior to the date that shareholder approval is obtained, such holder will receive the right to receive on the shareholder approval
date the number of shares of common stock