Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 78

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 78
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 outstanding, including a 115% prepayment penalty, in respect of two secured promissory notes issued by the Company
to Streeterville Capital, LLC on May 1, 2024 and May 24, 2024.

The Pre-funded Warrants were immediately exercisable upon issuance,
have an exercise price of $0.001 per share and may be exercised at any time until all of the Pre-funded Warrants are exercised in full.
The Common Warrants were immediately exercisable upon issuance, have an exercise price of $1.36 per share, and expire on the fifth anniversary
of the date of issuance. As a result of our failure to timely file a Current Report on Form 8-K, upon the filing of this Annual Report
on Form 10-K, we became ineligible to file new short form registration statements on Form S-3 or to use the Current Shelf Registration
Statement. Therefore, we agreed to file a subsequent registration statement covering the issuance of the shares issuable upon exercise
of the Pre-funded Warrants and the Common Warrants within the timeframes set forth in such warrants. As of April 11, 2025, 1,126,000 Pre-funded
Warrants remained outstanding and unexercised.

40

As part of its compensation
for serving as representative in connection with the March Offering, we issued ThinkEquity and its designees Representative Warrants to
purchase up to 147,060 shares of common stock. The Representative Warrants were immediately exercisable upon issuance, have an exercise
price of $1.70 per share and expire on the five-year anniversary of the commencement of sales of the securities issued in the March Offering.

January 2025 Registered Direct Offering

On January 7, 2025, we entered
into a placement agency agreement with ThinkEquity, as placement agent, pursuant to which we 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 on January 10, 2025, following the effectiveness of the 1-for-250 reverse
stock split of our outstanding common stock on the same date, which was a condition to the closing of the January Offering. We received
net proceeds of approximately $18.3 million from the January Offering. The January Offering was made pursuant to the Current Shelf Registration
Statement,