Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 363

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 363
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 of Series 9 Preferred
Stock. The Company analyzed the exchange of the principal and interest as an extinguishment and compared the net carrying value of the
debt being extinguished to the reacquisition price (shares of preferred stock being issued). The Company notes that the net carrying
value of the debt was the fair value of the preferred stock (reacquisition price). As such, no gain or loss was recognized upon debt
extinguishment. Following such exchange and the extinguishment of the December 2022 Note, the December 2022 Note is deemed paid in
full, automatically canceled, and will not be reissued.

Securities
Purchase Agreement

On
March 12, 2024, Legacy Inpixon entered into a securities purchase agreement (the “Securities Purchase Agreement”) with 3AM
Investments, LLC (“3AM”), an entity controlled by Legacy Inpixon’s former director and former Chief Executive Officer,
Nadir Ali (such entity, the “Purchaser”). Pursuant to the Securities Purchase Agreement, the Purchaser purchased 1,500 shares
of Series 9 Preferred Stock for a total purchase price of approximately $1.5 million, based on a purchase price of $1,000 per
share of Series 9 Preferred Stock. The Company agreed that the Purchaser will be deemed a “Required Holder” as defined in
the Certificate of Designation as long as the Purchaser holds any shares of Series 9 Preferred Stock.

The
Securities Purchase Agreement sets forth certain restrictions on the Company’s use of the proceeds from the sale of the Series
9 Preferred Stock pursuant thereto, including that the proceeds must be used in connection with the redemption of the Series 9 Preferred
Stock pursuant to the Certificate of Designation or working capital purposes, and may not, without the consent of the required holders
of Series 9 Preferred Stock, be used for, among other things, (i) the redemption of any XTIA common stock or common stock equivalents,
(ii) the settlement of any outstanding litigation, or (iii) for the repayment of debt for borrowed money to any officer or director,
or Merger-transaction related bonuses to any employee or vendor except for such non-merger transaction related bonuses as may be payable
to participants pursuant to the Company’s existing employee bonus plan.

In
connection with the issuance of the Preferred Stock, the direct and incremental expenses incurred were immaterial.

F-29

XTI