Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 299

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 299
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 $18.3 million from the January Offering. The January Offering was made pursuant to the Current Shelf Registration
Statement, the base prospectus included therein, and a prospectus supplement dated January 7, 2025. As part of its compensation for acting
as placement agent for the January Offering, we issued ThinkEquity LLC and its designees Placement Agent Warrants to purchase 72,727 shares
of common stock, which were immediately exercisable upon issuance, have an exercise price of $17.1875 per share and expire on the five-year
anniversary of the commencement of sales of the securities issued in the January Offering.

Settlement Agreement

On March 27, 2025 (the “Effective
Date”), XTI Aerospace, Inc. (the “Company”) entered into a settlement agreement with 3AM Investments LLC (an entity
controlled by Nadir Ali (“Ali”), the Company’s former Chief Executive Officer and a former director of the Company)
(“3AM”), Grafiti Group LLC (“Grafiti Group”) and Ali (the “Settlement Agreement”). The terms of the
Settlement Agreement include:

Preferred Stock Redemption.
The Company and 3AM entered into that certain securities purchase agreement dated as of March 12, 2024 (the “Series 9 Purchase Agreement”),
pursuant to which 3AM acquired 1,500 shares of the Company’s Series 9 Preferred Stock, of which 1,164.12 shares of Series 9 Preferred
Stock were issued and outstanding as of March 27, 2025 (the “Outstanding Preferred Stock”). Pursuant to the Settlement Agreement,
on the Effective Date, the Company delivered the aggregate amount of $1,251,651.26 (the “Series 9 Redemption Amount”)
by wire transfer of immediately available funds to an account designated in writing by Ali, for the redemption of the Outstanding Preferred
Stock. Following Ali’s receipt of the Series 9 Redemption Amount, Ali no longer held any shares of Series 9 Preferred Stock. As
of the date of this report, there are no shares of Series 9 Preferred Stock issued and outstanding.

Termination of Ali Consulting
Agreement. The Settlement Agreement provides that effective as of the Effective Date, that certain Consulting Agreement, dated
March 12, 2024 by and between the Company and Ali (the “Ali Consulting Agreement”) is terminated, and in lieu of the $2,775,000
(the