Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 61

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 61
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arrant Exercises

Subsequent to September 30, 2025, 1,925,000 Pre-funded Warrants from
the September Offering were exercised at an exercise price per share of $0.001, resulting in the issuance of 1,925,000 shares of common
stock. As of the date of this report, there are no Pre-Funded Warrants from the September Offering remaining.

36

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Valkyrie Investment and the Vanguard Platform

On October 27, 2025, the Company and Valkyrie
Sciences Holdings LLC (“Valkyrie”), a company developing enterprise solutions via the integration of artificial intelligence
and advanced materials, announced the Vanguard Platform, an intelligent technology system for the next generation of VTOL aircraft. The
Vanguard Platform will apply Valkyrie’s experience with graphene and composite materials, battery technology, and smart systems
architecture to the Company’s TriFan 600 program. In connection with this collaboration, on October 21, 2025, the Company made a
$2 million strategic investment in Valkyrie through the purchase of a convertible promissory note (the “Valkyrie Note”) with
an initial principal amount of $2 million issued by Valkyrie. Valkyrie and its affiliate Valkyrie Andromeda Corporation (together with
Valkyrie, the “Borrower”) are jointly and severally liable under the Valkyrie Note. Interest accrues on the outstanding principal
amount at the lesser of 10% per annum or the maximum rate permissible by law. The outstanding principal amount, together with any accrued
but unpaid interest, is due and payable on December 31, 2026 (the “Maturity Date”). After a Qualified Financing (as defined
in the Valkyrie Note) and if the Company does not elect to convert the Valkyrie Note, the Company may, prior to the Maturity Date, elect
to require the Borrower to pay the remaining balance of the Valkyrie Note within 60 days after the delivery of the election notice to
Valkyrie.

Acquisitions of Drone Nerds and Anzu Robotics

 On November 10, 2025, XTI Drones Holdings, LLC
(“XTI Drones Holdings”), a subsidiary of the Company’s wholly-owned subsidiary, X