Company: XTIA
Filing Date: 2025-04-18
Form Type: POS AM
Source: 0001213900-25-033058
Chunk: 12

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-18
Form: POS AM
Chunk 12
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 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 Original Registration
Statement and the January Prospectus. As part of its compensation for acting as placement agent for the January Offering, we issued ThinkEquity
LLC and its designees Placement Agent Warrants to purchase 72,727 shares of Common Stock, which were immediately exercisable upon issuance,
have an exercise price of $17.1875 per share and expire on the five-year anniversary of the commencement of sales of the securities issued
in the January Offering.

Settlement Agreement

On March 27, 2025 (the “Effective
Date”), XTI Aerospace, Inc. (the “Company”) entered into a settlement agreement with 3AM Investments LLC (an entity
controlled by Nadir Ali (“Ali”), the Company’s former Chief Executive Officer and a former director of the Company)
(“3AM”), Grafiti Group LLC (“Grafiti Group”) and Ali (the “Settlement Agreement”). The terms of the
Settlement Agreement include:

.
The Company and 3AM entered into that certain securities purchase agreement dated as of March 12, 2024 (the “Series
9 Purchase Agreement”), pursuant to which 3AM acquired 1,500 shares of the Company’s Series 9 Preferred Stock, of which 1,164.12
shares of Series 9 Preferred Stock were issued and outstanding as of March 27, 2025 (the “Outstanding Preferred Stock”). Pursuant
to the Settlement Agreement, on the Effective Date, the Company delivered the aggregate amount of $1,251,651.26 (the “Series 9 Redemption
Amount”) by wire transfer of immediately available funds to an account designated