Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 308

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 308
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 accrual
on the Stated Value of the Series 10 Preferred Stock or in cash, subject to, with respect to the issuance of shares of common stock, the
receipt of Shareholder Approval and the Beneficial Ownership Limitation (as defined in the Certificate of Designation). The rights to
Preferential Dividends expire automatically on the two-year anniversary of the original issuance date of the Series 10 Preferred Stock.

The Series 10 Preferred Stock
has no voting rights, except as required by law and for certain customary protective provisions set forth in the Certificate of Designation.
The Certificate of Designation also includes customary liquidation provisions. See Note 19 of the Notes to Condensed Consolidated Financial
Statements included in Part I, Item 1 of this report for a summary of the other material terms of the Series 10 Preferred Stock.

Pursuant to the PIPE Purchase
Agreement, the Company agreed to file a registration statement covering the resale of the shares of common stock underlying the Series
10 Preferred Stock within 90 days of the closing date of the PIPE Offering. The Company agreed to use commercially reasonable efforts
to cause such registration to become effective within 60 days (or 90 days if the SEC notifies the Company that it will “review”
the registration statement) following the initial filing of such registration statement and to keep such registration statement effective
at all times until the earlier of (i) the time that Unusual Machines, Inc. and its successors and assigns do not own any Series 10 Preferred
Stock or underlying shares of common stock or (ii) the date on which the shares of common stock underlying the Series 10 Preferred Stock
may be sold without restriction, including volume or manner-of-sale restrictions, pursuant to Rule 144.

From the date of the PIPE
Purchase Agreement until the later of the date that is 5 days from the date (a) Shareholder Approval is obtained and (b) the date that
the registration statement covering the resale of all of the shares of common stock underlying the Series 10 Preferred Stock has been
declared effective by the SEC, the Company agreed to not enter into any transaction for the sale of any of its equity securities or securities
convertible into its equity securities unless the price per share of common stock or per unit price (or conversion price or exercise price,
as applicable) is equal to or greater than $2.50, subject to certain customary exempt issuance exceptions.

ThinkEquity acted as the Company’s
placement agent in connection with