Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 70

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 70
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 call a special or annual meeting of shareholders 180 days thereafter until such Shareholder Approval is obtained, provided, however,
that such obligation will terminate on the two year anniversary of the closing date of the PIPE Offering.

On the Shareholder Approval
Date, the Series 10 Preferred Stock will automatically convert into shares of common stock. To the extent not converted in connection
with a mandatory conversion, the Series 10 Preferred Stock will be convertible into common stock, from and after the Shareholder Approval
Date, at the option of the holder.

Each outstanding share of
Series 10 Preferred Stock is entitled to receive, in preference to shares of Junior Securities (as defined in the Certificate of Designation),
cumulative dividends (“Preferential Dividends”), payable quarterly in arrears, at an annual rate of 12.0% of the Stated Value.
The Preferential Dividends will be payable, at the option of the Company, either in-kind in shares of common stock, through an accrual
on the Stated Value of the Series 10 Preferred Stock or in cash, subject to, with respect to the issuance of shares of common stock, the
receipt of Shareholder Approval and the Beneficial Ownership Limitation (as defined in the Certificate of Designation). The rights to
Preferential Dividends expire automatically on the two-year anniversary of the original issuance date of the Series 10 Preferred Stock.

The Series 10 Preferred Stock
has no voting rights, except as required by law and for certain customary protective provisions set forth in the Certificate of Designation.
The Certificate of Designation also includes customary liquidation provisions. See Note 19 of the Notes to Condensed Consolidated Financial
Statements included in Part I, Item 1 of this report for a summary of the other material terms of the Series 10 Preferred Stock.

Pursuant to the PIPE Purchase
Agreement, the Company agreed to file a registration statement covering the resale of the shares of common stock underlying the Series
10 Preferred Stock within 90 days of the closing date of the PIPE Offering. The Company agreed to use commercially reasonable efforts
to cause such registration to become effective within 60 days (or 90 days if the SEC notifies the Company that it will “review”
the registration statement) following the initial filing of such registration statement and to keep such registration statement effective
at all times until the earlier of (i) the time that Unusual Machines, Inc. and its successors and assigns do not own any Series 10