Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 101

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 101
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 revolving credit facility contains customary covenants, including a prohibition
against a change of control without the lender’s prior written approval. The consummation of the Drone Nerds and Anzu Robotics acquisitions
resulted in a change of control under the revolving credit facility, and the lender’s written approval was not obtained prior to
the acquisitions, which constitutes an event of default under the revolving credit facility. We are currently in discussions with the
lender to obtain a waiver of such event of default or an amendment to the revolving credit facility. In the absence of such a waiver or
an amendment, the lender has the right to declare all outstanding obligations under the revolving credit facility immediately due and
payable, cancel the facility, cease making advances under the facility, and proceed against the collateral securing the indebtedness under
the facility. As of November 11, 2025, Drone Nerds and Anzu Robotics had outstanding borrowings under the revolving credit facility of
approximately $9.2 million. There can be no assurance that the lender will agree to such a waiver or an amendment or that we will have
sufficient resources available to satisfy all of the obligations under the revolving credit facility if no waiver or amendment is obtained.

We may be unable to repay the Notes issued
in connection with the Acquisitions.

In connection with the Acquisitions,
XTI Drone Holdings issued (i) the Drone Nerds seller a promissory note in the original principal amount of $10,976,284.58 (the “DN
Note”) and (ii) the Anzu Robotics seller a promissory note in the original principal amount of $954,459.53 (the “AR Note”).
The principal of and interest on each Note will be payable as follows: (i) no later than November 30, 2025 (the “First Required
Payment Date”), the outstanding principal amount of each Note will be repaid in an amount equal to $3,680,000 with respect to the
DN Note and $320,000 with respect to the AR Note, together with all accrued and unpaid interest on each Note as of the First Required
Payment Date, (ii) no later than March 31, 2026 (the “Second Required Payment Date”), the outstanding principal amount of
each Note will be repaid in an amount equal to $1,840,000 with respect to the DN Note and $160,000 with respect to the AR Note, together
with all accrued and unpaid interest on