Company: XTIA
Filing Date: 2025-01-10
Form Type: 8-K
Source: 0001213900-25-002385
Chunk: 2

Company: XTI Aerospace, Inc.
Filing Date: 2025-01-10
Form: 8-K
Item: Item 1.01
Chunk 2
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 the representations and warranties may change
after the date of the Agreement, which subsequent information may or may not be fully reflected in public disclosures.

In accordance with the terms
of the Certificate of Designations of Preferences and Rights of the Company’s Series 9 Preferred Stock (“ Certificate of Designations”),
the Company obtained a written consent, effective as of January 7, 2025 (the “ Series 9 Offering Consent”), from 3AM Investments
LLC (an entity controlled by Nadir Ali, the Company’s former Chief Executive Officer and a former director of the Company) (“3AM”),
which is the Required Holder (as defined in the Certificate of Designations) of the Series 9 Preferred Stock, pursuant to which such Required
Holder consented to the issuance of securities in the Offering in consideration for the Company’s agreement to pay 20% of the gross
proceeds from this offering, which is equal to approximately $4 million (the “ Payment Amount”), which payment shall be processed
within five business days following the closing of the Offering, (a) first, to those certain employees and other service providers, including
Nadir Ali, Wendy Loundermon (the Company’s former Chief Financial Officer and a former director of the Company) and Soumya Das (the
Company’s Chief Executive Officer of its Real Time Location System Division and a current director of the Company) (the “ Bonus
Plan Recipients”), entitled to bonuses payable pursuant to that certain Transaction Bonus Plan, adopted on July 24, 2023, as amended
from time to time (“ Bonus Plan Payments”); and (b) second, to the extent the Bonus Plan Payments have been fully satisfied,
any remaining portion of the Payment Amount shall be applied to the redemption of outstanding shares of the Series 9 Preferred Stock.

This Current Report on Form
8-K shall not constitute an offer to sell or the solicitation of an offer to buy securities, nor shall there be any sale of securities
in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state or other jurisdiction.

The foregoing descriptions
of the Agreement, the Placement Agent Warrants and the Lock-Up Agreements are not complete and are qualified in their entirety by references
to the full text of the Agreement, the form of Placement Agent Warrant and the form of Lock-Up Agreement, which are filed as exhibits
to this report and are incorporated by reference herein.