Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 71

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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 Preferred
Stock or underlying shares of common stock or (ii) the date on which the shares of common stock underlying the Series 10 Preferred Stock
may be sold without restriction, including volume or manner-of-sale restrictions, pursuant to Rule 144.

From the date of the PIPE
Purchase Agreement until the later of the date that is 5 days from the date (a) Shareholder Approval is obtained and (b) the date that
the registration statement covering the resale of all of the shares of common stock underlying the Series 10 Preferred Stock has been
declared effective by the SEC, the Company agreed to not enter into any transaction for the sale of any of its equity securities or securities
convertible into its equity securities unless the price per share of common stock or per unit price (or conversion price or exercise price,
as applicable) is equal to or greater than $2.50, subject to certain customary exempt issuance exceptions.

ThinkEquity acted as the Company’s
placement agent in connection with the PIPE Offering. As compensation, the Company paid ThinkEquity $1,750,000 of placement agent fees,
reimbursed ThinkEquity for $175,000 of actual out-of-pocket offering expenses, and issued ThinkEquity and its designees warrants to purchase
an aggregate of 837,801 shares of common stock, which were exercisable commencing November 12, 2025, expire November 12, 2030 and have
an exercise price of $1.492 per share. The Company’s obligation to issue shares upon exercise of the warrants is subject to the
Company’s receipt of Shareholder Approval.

40

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