Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 28

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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200 shares of common stock (the “Shares”),
pre-funded warrants (the “Pre-funded Warrants”) to purchase up to 2,176,000 shares of common stock, and common warrants (the
“Common Warrants” and together with the Pre-funded Warrants, the “Warrants”) to purchase up to 2,941,200 shares
of common stock. The combined public offering price for each Share, together with one Common Warrant, was $1.36. The combined public offering
price for each Pre-funded Warrant, together with one Common Warrant, was $1.359. Each Share, or a Pre-funded Warrant in lieu thereof,
was sold together with one Common Warrant.

The March Offering closed on March 31, 2025. The
net proceeds to the Company from the sale of the Shares and the Warrants after deducting the underwriting discounts and commissions and
other expenses payable by the Company were approximately $3.4 million.

Allocation of Net Proceeds

The aggregate net proceeds from the January Offering and the March
Offering were approximately $21.7 million. For reporting purposes, the Company allocated approximately $17.9 million of net proceeds to
the sales of common stock and approximately $3.8 million of net proceeds to the issuance of warrants. The net proceeds were allocated
to each of the warrants and the common stock based on their relative fair value as of the date of issuance.

22

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 11 - Preferred Stock

The Company is authorized to issue up to 5,000,000
shares of preferred stock with a par value of $0.001 per share with rights, preferences, privileges and restrictions as to be determined
by the Company’s Board of Directors.

Series 9 Preferred Stock Redemptions

On November 17, 2024, the Company entered into
a Consent, Waiver and Release Agreement (the “Consent Agreement”) with Streeterville and 3AM Investments, LLC (“3AM”),
an entity controlled by Nadir Ali, Legacy Inpixon’s former Chief Executive Officer and a former director of Legacy Inpixon, pursuant
to which Streeterville and 3AM authorized the Company to raise up to an additional $5,000,000 under the ATM (the “ATM Increase”)
in consideration for the Company’s