Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 63

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 63
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 and Anzu
Robotics will be indirect, wholly-owned subsidiaries of the Company.

 The Company incurred fees of approximately $1.2
million owed to ThinkEquity LLC as compensation for advisory services in connection with the Acquisition.

Issuance of Series 10 Convertible Preferred Stock

On November 10, 2025, the Company entered into
a Securities Purchase Agreement with Unusual Machines, Inc. pursuant to which the Company issued Unusual Machines, Inc. 25,000 shares
of Series 10 Convertible Preferred Stock, par value $0.001 per share (the “Series 10 Preferred”), at a stated value of $1,000
per share, for aggregate gross proceeds of $25.0 million in a private placement that closed on November 12, 2025. The Company received
net proceeds from the Series 10 financing of approximately $23.1 million, after deducting the placement agent fees and other expenses
payable by the Company of approximately $1.9 million.

The Series 10 Preferred carries a 12% cumulative
dividend, payable quarterly in cash, common stock, or in kind through accretion to stated value; provided that the payment of the dividend
in common stock is subject to the receipt of shareholder approval. The right to such preferential dividend expires on the two-year anniversary
of the original issuance date of the Series 10 Preferred. Each share will be convertible into common stock at a conversion price of $1.492
per share, subject to adjustment as set forth in the Series 10 Preferred certificate of designation (the “Certificate of Designation”),
upon receipt of shareholder approval, at which time all shares will automatically convert. Conversions are subject to a beneficial ownership
limitation of 4.99% (or 9.99% at holder election). If conversion would exceed such limit, the Company may, at the election of the holder,
issue pre-funded warrants in lieu of conversion shares or such shares will be held by the Company in abeyance for the benefit of such
holder. The Series 10 Preferred includes a Fundamental Transaction clause providing that holders receive equivalent consideration on the
same basis as common shareholders. The Series 10 Preferred has no redemption rights and may be settled only through equity conversion.
The Series 10 Preferred has no voting rights, except as required by law and for certain customary protective provisions set forth in the
Certificate of Designation.

ThinkEquity acted as the Company’s placement
agent in connection