Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 136

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 136
---
 balance of
the Note.

The
Company’s obligations under the Note, the additional secured promissory note issued by the Company to the Holder on May 24, 2024
(as described below) and the other transaction documents are secured by (i) a pledge of all of the stock the Company owns in Legacy XTI
and (ii) those assets owned by Legacy XTI constituting Collateral (as defined in a security agreement by and between Legacy XTI and the
Holder). Additionally, Legacy XTI provided a guarantee of the Company’s obligations to the Holder under the Note, the additional
secured promissory note and the other transaction documents.

Promissory
Note - May 24, 2024

Pursuant
to the terms of the Purchase Agreement, on May 24, 2024, the Company issued and sold to Streeterville Capital, LLC an additional secured
promissory note in the initial principal amount of $1.3 million, which carries an original issue discount of $0.3 million.
The terms of this additional note are identical to the terms of the May 1, 2024 note, as described above. In exchange for the promissory
note, the Holder paid an aggregate purchase price of $1.0 million.

On March 31, 2025, the Company repaid the May
1, 2024 and May 24, 2024 promissory notes in full which relieved the Company from all obligations. As a result of the repayments, Streeterville
released its security interest in the stock the Company owns in Legacy XTI and the assets owned by Legacy XTI.

F-25

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

SBA
Loan

On
June 3, 2020, Legacy XTI entered into a promissory note with the U.S. Small Business Administration (SBA). The note accrues interest
at a rate of 3.75% per annum and is paid monthly. The aggregate principal amount is due on the maturity date of June 3, 2050.

Note 10
- Common Stock

Capital
Raises

At-the-Market
(ATM) Offering Program

The Company was able, from time to time, to sell
shares of