Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 577

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 577
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31, 2024 AND 2023

SBA
Loan

On
June 3, 2020, Legacy XTI entered into a promissory note with the U.S. Small Business Administration (SBA). The note accrues interest
at a rate of 3.75% per annum and is paid monthly. The aggregate principal amount is due on the maturity date of June 3, 2050.

Note 10
- 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,
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.

During the year ended December 31, 2024, the Company
sold 998,447 shares of common stock under the Equity Distribution Agreement at per share prices between approximately $10.02 and $337.36,
resulting in net proceeds to the Company of approximately $22.2 million.

F-26

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

Note
Conversion

Immediately prior to the effective time of the
XTI Merger on March 12, 2024, certain convertible notes (collectively classified as “convertible notes, at fair value”) with
an aggregate principal and interest balance of $16.8 million were converted into Legacy XTI shares, which converted into an aggregate
of 3,005 shares of the Company’s common stock at the effective time of the XTI Merger. Immediately prior to the conversion,
the convertible notes, at fair value were marked to