Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 69

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 69
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 Series 10 Preferred Stock for an aggregate subscription amount of $25,000,000 (the “Subscription
Amount”), pursuant to a private placement that closed on November 12, 2025 (the “PIPE Offering”). The Company received
net proceeds from the PIPE Offering of approximately $23.1 million, after deducting the placement agent fees and other expenses payable
by the Company of approximately $1.9 million.

The Company filed a certificate
of designation (the “Certificate of Designation”) on November 10, 2025, with the Secretary of State of the State of Nevada
designating the rights, preferences and limitations of the shares of the Series 10 Preferred Stock. The Series 10 Preferred Stock has
a stated value of $1,000 per share (the “Stated Value”), and is initially convertible at a conversion price of $1.492 per
share, subject to adjustment pursuant to the Certificate of Designation.

On November 10, 2025, prior
to the closing of the PIPE Offering, Unusual Machines advanced to the Company $10,500,000 (the “Advance”), which was automatically
applied to the Subscription Amount at the closing of the PIPE Offering. The Company used the Advance to satisfy certain obligations under
Drone Nerds’ and Anzu Robotics’ $25.0 million secured line of credit established pursuant to and evidenced by that certain
Loan Agreement, dated July 10, 2025, by and among Drone Nerds Inc, Anzu Robotics, LLC and Banesco USA (the “Banesco Loan Agreement”),
and the other Loan Documents (as defined in the Banesco Loan Agreement).

The issuance of shares of
common stock upon conversion of, or as a dividend on, the Series 10 Preferred Stock is subject to the Company’s receipt of its shareholders’
approval of the removal of the limitations on conversion set forth in the Certificate of Designation of the Series 10 Preferred Stock,
in compliance with Nasdaq Listing Rule 5635 (the “Shareholder Approval”, and the date the Shareholder Approval is obtained,
the “Shareholder Approval Date”). Pursuant to the PIPE Purchase Agreement, the Company agreed to hold an annual or special
meeting of shareholders no later than January 31, 2026 (the “Shareholder Meeting Deadline”), for the purpose of obtaining
such Shareholder Approval. If Shareholder Approval is not obtained on or prior to the Shareholder Meeting Deadline, the Company is required
to