Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 579

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 579
---
 2022 
    $682  
    $600  
     742.22  
     808  
    $82  
    $464 
  
    Convertible
    Note 2023 
    $333  
    $300  
     742.22  
     404  
    $33  
    $207 
  
    Totals 
    $5,940  
    $5,552  
        
     7,484  
    $388  
    $6,732 

Note Inducement:
Convertible Note 2021 - Related Party

To
induce David Brody, a board member and founder of Legacy XTI, to convert his outstanding note balances into shares of Legacy XTI common
stock, Legacy XTI entered into a voluntary note conversion letter agreement with the note holder in February 2024. Per the letter agreement,
$0.9 million of the outstanding note balance was converted at a reduced conversion price of $865.45 into shares of Legacy XTI
common stock immediately prior to the XTI Merger closing time equal to 1,062 shares of the Company’s common stock, and the
Company assumed the obligation to pay the note holder $0.2 million of the note balance that was not converted into Legacy XTI shares.
This repayment obligation was subsequently paid in full on April 1, 2024. The Company accounted for this conversion as an inducement
and recognized an inducement charge of $1.0 million related to the fair value of the additional shares issued compared to the original
terms of the convertible note. As this note holder is a related party of the Company, the Company accounted for the conversion as a capital
transaction and therefore recorded the inducement charge within additional paid-in capital.

F-27

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

Stock
Issuances at or Immediately Prior to XTI Merger Closing

At
the closing of the XTI Merger, 8,303 shares of the Company’s common stock were issued to Legacy Inpixon’s preexisting
shareholders as consideration for the transaction.

Shares
of Legacy XTI common stock were issued to Xeriant immediately prior to the X