Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 149

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 149
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 secured promissory notes issued by the Company to Streeterville on May 1, 2024 and May 24, 2024. As a result of the repayments,
Streeterville released its security interest in the stock the Company owns in Legacy XTI and the assets owned by Legacy XTI. Due to the
repayment of the promissory notes occurring before the maturity date, the Company incurred a loss on extinguishment of debt of approximately
$0.4 million, which is reported within other (expense) income on the condensed consolidated statements of operations.

19

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 9 - Common Stock

Capital Raises

At-the-Market (ATM) Offering Program

The Company was able, from time to time, to sell
shares of the Company’s common stock under its “at-the-market” offering program (the “ATM”) through Maxim
Group LLC (“Maxim”), as the Company’s exclusive sales agent, up to a maximum offering amount of approximately $83.3
million, pursuant to that certain Equity Distribution Agreement, dated as of July 22, 2022, by and between the Company and Maxim, as
amended from time to time (the “Equity Distribution Agreement”). The term of the Equity Distribution Agreement expired on
December 31, 2024. Maxim was entitled to compensation at a fixed commission rate of 3.0% of the gross sales price per share sold, excluding
Maxim’s costs and out-of-pocket expenses incurred in connection with its services, including the fees and out-of-pocket expenses
of its legal counsel.

The Company sold 169,299 shares of common stock
under the Equity Distribution Agreement at per share price of $10.00, resulting in net proceeds to the Company of approximately $1.7
million. This sale originated on December 31, 2024 and closed in early January 2025.

January 2025 Public Offering

On January 7, 2025, the Company entered into a
placement agency agreement with ThinkEquity LLC (“ThinkEquity”), pursuant to which the Company agreed to issue and sell directly
to various investors, in a best efforts public offering (the “January Offering”), an aggregate of 1,454,546 shares of common
stock at an offering price of $13.75 per share. The January Offering closed