Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 208

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 2
Chunk 208
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the
“Common Warrants”) to purchase up to 2,941,200 shares of common stock. The combined public offering price for each Share,
together with one Common Warrant, was $1.36. The combined public offering price for each Pre-funded Warrant, together with one Common
Warrant, was $1.359. Each Share, or a Pre-funded Warrant in lieu thereof, was sold together with one Common Warrant. The March Offering
closed on March 31, 2025, resulting in net proceeds to the Company, after deducting commissions and expenses, of approximately $3.4 million.
The Company used approximately $2.7 million of the net proceeds from the March Offering to repay in full all amounts 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.

Settlement Agreement

On March 27, 2025, the Company
entered into the Settlement Agreement with 3AM, Grafiti Group and Nadir Ali (“Ali”). As a result of the Settlement Agreement,
that certain Consulting Agreement, dated March 12, 2024 by and between the Company and Ali (the “Ali Consulting Agreement”)
was terminated, and the Company has an outstanding advisory fee obligation to Ali of $1.5 million (the “Deferred Amount”)
as of the date of this report, which is due in $500,000 installments on June 30, 2025, September 30, 2025, and December 31, 2025. Upon
payment of the Deferred Amount in accordance with the terms of the Settlement Agreement, the Ali Advisory Fees shall be deemed to be satisfied
in full and no further amounts shall be payable by the Company to Ali or his affiliated parties pursuant to the Ali Consulting Agreement.

Share Repurchase Program

On March 18, 2025, the Company
issued a press release announcing that its board of directors authorized a share repurchase program to acquire up to $5 million of the
Company’s common stock. The Company may purchase common stock by way of open market transactions, through privately negotiated transactions,
or by other means including through the use of trading plans intended to qualify under Rule 10b-18 under the Exchange Act, in accordance
with applicable securities laws and other restrictions. The timing, total value of stock repurchases,