Company: XTIA
Filing Date: 2025-06-03
Form Type: DRS
Source: 0001213900-25-050156
Chunk: 10

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-03
Form: DRS
Chunk 10
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 pre-funded
warrant, together with one common warrant, was $1.359. Each share of common stock, or a pre-funded warrant in lieu thereof, was sold together
with one common warrant. The March 2025 Offering closed on March 31, 2025, resulting in net proceeds to the Company, after deducting commissions
and expenses, of approximately $3.4 million. The Company used approximately $2.7 million of the net proceeds from the March 2025 Offering
to repay in full all amounts outstanding, including a 115% prepayment penalty, in respect of two secured promissory notes issued by the
Company to Streeterville Capital, LLC (“Streeterville”) on May 1, 2024 and May 24, 2024.

The pre-funded warrants were
immediately exercisable upon issuance, have an exercise price of $0.001 per share and may be exercised at any time until all of the pre-funded
warrants are exercised in full. The common warrants were immediately exercisable upon issuance, have an exercise price of $1.36 per share,
and expire on the fifth anniversary of the date of issuance.

As part of its compensation
for serving as representative in connection with the March 2025 Offering, we issued ThinkEquity representative warrants to purchase up
to 147,060 shares of common stock. The representative warrants were immediately exercisable upon issuance, have an exercise price of $1.70
per share and expire on March 28, 2030.

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Settlement Agreement On March 27, 2025, the Company entered into a settlement agreement with 3AM Investments LLC, an entity controlled by Nadir Ali (“Ali”), the Company’s former Chief Executive Officer and a former director of the Company (“3AM”), Grafiti Group LLC (“Grafiti Group”) and Ali (the “Settlement Agreement”). As a result of the Settlement Agreement, among other things, that certain Consulting Agreement, dated March 12, 2024 by and between the Company and Ali (the “Ali Consulting Agreement”) was terminated, the Company made certain payments to Ali and other former executives of the Company, and the Company has an outstanding advisory fee obligation to Ali of $1.5 million (the “Deferred Amount”), which is due in $500,000 installments on June 30, 2025, September 30, 2025 and December 31, 2025