Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 142

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 142
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 on April 30, 2024. Each share of Series 9 Preferred
Stock has a stated face value of $1,050 (“Stated Value”) and do not have any voting rights. Preferred stock is recorded
on the accompanying consolidated balance sheet at its redemption value which is the carrying value of the redeemable preferred stock.

Each
share of Series 9 Preferred Stock will accrue a rate of return on the Stated Value in the amount of 10% per year, compounded annually
to the extent not paid, and pro rata for any fractional year periods (the “Preferred Return”). The Preferred Return will
accrue on each share of Series 9 Preferred Stock from the date of issuance and will be payable on a quarterly basis, either in cash or
through the issuance of an additional number of shares of Series 9 Preferred Stock equal to (i) the Preferred Return then accrued and
unpaid, divided by (ii) the Stated Value, at the Company’s discretion. The Preferred Stock holders will also receive a quarterly
dividend at 2% per quarter, beginning on the one-year anniversary of the issuance date and for all periods following the two-year anniversary
of the issuance date of a share of Series 9 Stock, the dividend shall be 3% per quarter.

The
Company may elect, in the sole discretion of the Board, to redeem all or any portion of the Series 9 Stock then issued and outstanding
from all of the Series 9 Holders by paying to the applicable Series 9 Holders an amount in cash equal to the liquidation amount as defined
in the preferred stock agreement.

Exchange
Agreement

On March 12, 2024, Inpixon and Streeterville Capital, LLC (the “Note
Holder” or “Streeterville”), the holder of an outstanding promissory note issued on December 30, 2022 (as amended, the
“December 2022 Note”), entered into an Exchange Agreement, pursuant to which the Note Holder exchanged the remaining balance
of principal and accrued interest under the December 2022 Note in the aggregate amount of approximately $9.8 million for 9,802 shares
of Series 9 Preferred Stock (the “Preferred Stock”), based on an exchange price of $1,000 per share of Series 9 Preferred
Stock. The Company analyzed the exchange of the principal and interest as an extinguishment and compared