Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 64

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 64
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 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 so issuable upon such exercise and, on the shareholder approval date, the Company will issue
such shares to such holder.

37

Item 2. Management’s
Discussion and Analysis of Financial Condition and Results of Operations

You should read the following
discussion of our financial condition and results of operations in conjunction with the condensed consolidated financial statements and
the related notes included elsewhere in this Form 10-Q and with the audited consolidated financial statements included in our Annual
Report on Form 10-K for the year ended December 31, 2024, as filed with the SEC. In addition to our historical condensed consolidated
financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our
actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or contribute
to these differences include those discussed below and elsewhere in this Form 10-Q, particularly in Part II, Item 1A, “Risk Factors.”

Overview of Our Business

We are primarily an aircraft
development company focused on the design and commercialization of vertical takeoff and landing (“VTOL”) aircraft. We also
provide real-time location systems (“RTLS”) for industrial applications and, through our wholly-owned subsidiary, XTI Drones,
LLC, offer drone distribution and technology solutions via our recent acquisitions of Drone Nerds, LLC and Anzu Robotics, LLC (see “Recent
Events”).

Headquartered in Englewood,
Colorado, the Company is developing a VTOL airplane that is designed to take off and land like a helicopter and cruise like a fixed-wing
business airplane. We believe our initial configuration,