Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 153

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 153
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.5 million of stock-based compensation
expense for the year ended December 31, 2024, (iii) one-sixth or 378 unvested warrant shares lapsed on March 12, 2024, and (iv) one-third
or 757 warrant shares will vest upon the acceptance of delivery and final purchase of the first TriFan 600 airplane by Mesa pursuant
to the Aircraft Purchase Agreement. On March 12, 2024 and per a warrant exercise letter agreement, all vested warrants shares were net
exercised into shares of Legacy XTI common stock immediately prior to the XTI Merger closing time, which resulted in the issuance of 1,135 shares
of the Company’s common stock.

To
induce warrant holders to exercise warrant shares, Legacy XTI entered into exercise letter agreements with several warrant holders in
February 2024 at reduced exercise prices from the original warrant agreements. The net impact of these warrant inducements to the condensed
consolidated statement of operations was not material. In total, 423 warrant shares (adjusted for the merger exchange) were net
exercised into shares of Legacy XTI common stock immediately prior to the XTI Merger closing time, which resulted in the issuance of
423 shares of the Company’s common stock.

During
the second quarter of 2024, an additional 82 warrant shares originally issued by Legacy XTI were exercised into 82 shares of
the Company’s common stock at an exercise price of $30.00.

Warrant
Exchanges

On
April 30, 2024 and May 1, 2024, the Company entered into warrant exchange agreements with the holders of certain of our then outstanding
warrants (the “Existing Warrants”) initially issued on May 17, 2023. Pursuant to the terms of the agreements, on May 2, 2024,
the Company issued to the warrant holders, who held an aggregate of 3,675 warrant shares, a ratio of 0.70 shares of common stock
for each Existing Warrant, for an aggregate of 2,573 shares of common stock valued at approximately $1.6 million, in exchange
for the Existing Warrants. As the Existing Warrants were liability classified, the exchange resulted in the liability being (i) remeasured
at the warrant redemption value of approximately $1.6 million resulting in a fair value loss