Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 102

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 102
---
 each Note as of the Second Required Payment Date, (iii) no later than June 30, 2026 (the “Third
Required Payment Date”), the outstanding principal amount of each Note will be repaid in an amount equal to $1,380,000 with respect
to the DN Note and $120,000 with respect to the AR Note, together with all accrued and unpaid interest on each Note as of the Third Required
Payment Date, (iv) no later than September 30, 2026 (the “Fourth Required Payment Date”), the outstanding principal amount
of each Note will be repaid in an amount equal to $1,380,000 with respect to the DN Note and $120,000 with respect to the AR Note, together
with all accrued and unpaid interest on each Note as of the Fourth Required Payment Date, (v) the entire outstanding principal amount,
together with all accrued and unpaid interest, of each Note will be repaid on or prior to the one year anniversary of each Note (the “Due
Date”), and (vi) all outstanding accrued interest and the unpaid principal amount of each Note will be due and payable in full on
the earlier of (A) the Due Date, (B) 90 days following a capital raise (or the last capital raise, in connection with a series of transactions,
whether related or unrelated) where the Company or one or more of its affiliates raise, as a result of a single transaction or a series
of transactions occurring pursuant to one or more closings, in any case after the date of the Note, an aggregate amount of $40 million
or more, qualified by the limitation that not more than 20% of net proceeds from any single financing will be applied towards payment
of each Note, or (C) the date on which the Note becomes immediately due and payable as a result of the occurrence of an event of default
thereunder.

56

Interest will accrue on the
outstanding principal balance of each Note at an annual rate of 7.25%, computed based upon a 365-day year (the “Interest Rate”).
If interest is not paid as it becomes due, it will be added to the principal. Our failure to pay the principal and interest of each Note
when required will constitute an event of default under the Notes. Upon the occurrence of an event of default (except a Bankruptcy-Related
Event of Default), the lender may declare the entire unpaid balance of principal and accrued but unpaid interest