Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 575

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 575
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 2023, an existing convertible note
entered into on December 31, 2021 by and between the Company and a member of the Company’s board of directors was replaced by a
new convertible note with a principal balance of approximately $1.1 million and interest rate of 4%. On March 12, 2024, approximately
$0.9 million of the note’s outstanding balance was converted into shares of the Company’s common stock. The Company repaid
the remaining balance of the note on April 1, 2024. See Note 10 for more information.

Convertible
Note - 2021

During 2021, the Company entered into convertible
notes with a syndicate of investors. The notes had a combined principal amount of $2.5 million and accrued interest at a rate of 4.0%
per annum. As discussed in Note 10, pursuant to the terms of voluntary note conversion letter agreements, approximately $2.5 million
of the note’s outstanding principal balance and accrued interest were converted into shares of Legacy XTI common stock immediately
prior to the closing of the XTI Merger, which converted into shares of the Company’s common stock at the closing of the XTI Merger
on March 12, 2024. A repayment obligation remained after the XTI Merger closing with respect to approximately $0.05 million in principal,
which was repaid during the second quarter of 2024, and $0.25 million in accrued interest which remained outstanding as of December
31, 2024.

Promissory
Note - May 1, 2024

On
May 1, 2024 (the “Closing Date”), the Company entered into a note purchase agreement (the “Purchase Agreement”)
with Streeterville Capital, LLC (the “Holder”), pursuant to which the Company issued and sold to the Holder a secured promissory
note (the “Note”) in an initial principal amount of approximately $1.4 million, which is payable on or before the date
that is 12 months from the issuance date. The Purchase Agreement provides that, subject to the mutual consent of the Company
and the Holder, the Holder would purchase an additional secured promissory note on the date that is 30 days from the Closing
Date and another secured promissory note on the date that is 60 days from the Closing Date. The initial principal amount of
the Note