Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 595

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 595
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 Following the consummation of
the warrant exchange, the Assumed Warrants were cancelled and no further shares are issuable pursuant to the Assumed Warrants agreement.

On
June 12, 2024 and June 13, 2024, the Company entered into warrant exchange agreements with the holders (the “Warrant Holders”)
of 1,965 existing warrants of the Company (the “Existing Warrants”) initially issued on December 19, 2023, which were
exercisable for an aggregate of 1,965 shares of our common stock. Pursuant to the terms of the agreements, on June 13, 2024, the
Company issued to the Warrant Holders 1.50 shares of Common Stock for each Existing Warrant, for an aggregate of 2,935 shares
of common stock, in exchange for the Existing Warrants. Following the consummation of the Warrant Exchange, the Existing Warrants
were cancelled and no further shares are issuable pursuant to the Existing Warrants agreements. The incremental increase in fair value
of the Existing Warrants of approximately $0.3 million as a result of the exchange was recorded as a return of capital, which reduces
the additional paid-in capital on the consolidated balance sheets as of December 31, 2024, and is shown as a reconciling item on the
consolidated statements of operations from Net Loss to Net Loss Attributable to Common Stockholders.

2023
Warrant Activity

On
May 9, 2023 and in conjunction with the Convertible Note - 2017 (Note 9), Legacy XTI cancelled 224 warrants previously issued
to the noteholder with an exercise price of $4,201.22 and issued 343 new warrants with an exercise price of $4,201.22. The warrants are
exercisable upon the date of grant through the contractual term of 5 years. Using the Black-Scholes model, Legacy XTI determined the
grant-date fair value of the warrants was approximately $1.1 million, which was recorded as a debt discount and additional paid-in-capital
on the consolidated balance sheet as of December 31, 2023.

Note 14
- Reverse Stock Splits

The
Company effected a reverse stock split of its outstanding common stock at a ratio of 1-for-250 effective as of January 10, 2025. The
reverse stock split