Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 31

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 31
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 Shares and the Warrants were approximately $14.7 million, after deducting the underwriting
discounts and commissions and other expenses payable by the Company of approximately $1.3 million.

Allocation of Net Proceeds

The aggregate net proceeds from the January Offering,
the March Offering, and the June Offering were approximately $36.4 million. For reporting purposes, the Company allocated approximately
$17.4 million of net proceeds to the sales of common stock and approximately $19.0 million of net proceeds to the issuance of warrants.
The net proceeds were allocated to each of the warrants and the common stock based on their relative fair value as of the date of issuance.

Other Share Issuances

On May 13, 2025, the Company entered into an
advisory agreement with a third-party advisor, pursuant to which the Company issued 125,000 shares of restricted common stock, subject
to certain registration rights, to the advisor in consideration for financial advisory services agreed to be rendered to the Company
pursuant to the advisory agreement. As a result of the share issuance, the Company recognized approximately $0.2 million in share-based
compensation expense, which is included in general and administrative expenses on the condensed consolidated statements of operations,
for the three and six months ended June 30, 2025.

20

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 10 - Preferred Stock

The Company is authorized to issue up to 5,000,000
shares of preferred stock with a par value of $0.001 per share with rights, preferences, privileges and restrictions as to be determined
by the Company’s Board of Directors.

Series 9 Preferred Stock Redemptions

On November 17, 2024, the Company entered into
a Consent, Waiver and Release Agreement (the “Consent Agreement”) with Streeterville and 3AM Investments, LLC (“3AM”),
an entity controlled by Nadir Ali, Legacy Inpixon’s former Chief Executive Officer and a former director of Legacy Inpixon, pursuant
to which Streeterville and 3AM authorized the Company to raise up to an additional $5,000,000 under the ATM (the “ATM Increase”)
in consideration for the Company’s agreement to pay, on a weekly basis, 20% of the proceeds it receives from sales under the ATM
in connection with the