Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 206

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 206
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 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 Andromeda Corporation (together with
Valkyrie, the “Borrower”) are jointly and severally liable under the Valkyrie Note. Interest accrues on the outstanding principal
amount at the lesser of 10% per annum or the maximum rate permissible by law. The outstanding principal amount, together with any accrued
but unpaid interest, is due and payable on December 31, 2026 (the “Maturity Date”). After a Qualified Financing (as defined
in the Valkyrie Note) and if the Company does not elect to convert the Valkyrie Note, the Company may, prior to the Maturity Date, elect
to require the Borrower to pay the remaining balance of the Valkyrie Note within 60 days after the delivery of the election notice to
Valkyrie.

Acquisitions of Drone Nerds and Anzu Robotics

 On November 10, 2025, XTI Drones Holdings, LLC
(“XTI Drones Holdings”), a subsidiary of the Company’s wholly-owned subsidiary, XTI Drones, LLC, acquired 100%
of the issued and outstanding equity interests of two enterprise drone solutions providers, Drone Nerds, LLC (“Drone Nerds”),
a Florida limited liability company, and Anzu Robotics, LLC (“Anzu Robotics”), a Delaware limited liability company (the “Acquisition”)
for total purchase consideration of $40.0 million, which was comprised of $20.0 million in cash, $11.9 million in the form of two promissory
notes (including approximately $1.6 million in working capital adjustments), and $9.7 million in the form of equity consideration, specifically
an aggregate of 6,524,576  Class B Units of XTI Drones Holdings (the “Class B Units”).

 Drone Nerds is one of the largest drone distributors
and solutions