Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 213

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 213
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 to equitable adjustments for stock splits, stock dividends, reclassifications and similar transactions
affecting the Company’s common stock. In addition, on the date that is 15 months after November 10, 2025, all outstanding Class
B Units will automatically be exchanged for shares of the Company’s common stock on a one-for-one basis, subject to the foregoing
adjustments. The Drone Nerds and Anzu Robotics sellers entered into lock-up agreements pursuant to which they agreed not to, without the
Company’s prior consent, sell, transfer or dispose of any shares of common stock until November 10, 2026. Following the exchange
of all outstanding Class B Units into shares of common stock, XTI Drones, LLC will own 100% of the membership interests of XTI Drones
Holdings, and Drone Nerds and Anzu Robotics will be indirect, wholly-owned subsidiaries of the Company.

The Company incurred fees
of approximately $1.2 million owed to ThinkEquity LLC as compensation for advisory services in connection with the transactions contemplated
by the purchase agreements.

39

Private Placement Investment by Unusual Machines

On November 10, 2025, the
Company entered into a Securities Purchase Agreement (the “PIPE Purchase Agreement”) with Unusual Machines, Inc., a Nevada
corporation (“Unusual Machines”), pursuant to which the Company sold Unusual Machines 25,000 shares of the Company’s
newly designated Series 10 Convertible Preferred Stock, par value $0.001 per share (the “Series 10 Preferred Stock”), at a
subscription amount of $1,000 per share of Series 10 Preferred Stock for an aggregate subscription amount of $25,000,000 (the “Subscription
Amount”), pursuant to a private placement that closed on November 12, 2025 (the “PIPE Offering”). The Company received
net proceeds from the PIPE Offering of approximately $23.1 million, after deducting the placement agent fees and other expenses payable
by the Company of approximately $1.9 million.

The Company filed a certificate
of designation (the “Certificate of Designation”) on November 10, 2025, with the Secretary of State of the State of Nevada
designating the rights, preferences and limitations of the shares of the Series 10 Preferred Stock. The Series 10 Preferred Stock has
a stated value of $1,000 per share (the “Stated Value”), and is initially convertible at a conversion price of $