Company: XTIA
Filing Date: 2025-06-20
Form Type: S-1/A
Source: 0001213900-25-055855
Chunk: 11

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-20
Form: S-1/A
Chunk 11
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warrants are exercised in full. The common warrants were immediately exercisable upon issuance, have an exercise price of $1.36 per share,
and expire on the fifth anniversary of the date of issuance.

As part of its compensation
for serving as representative in connection with the March 2025 Offering, we issued ThinkEquity representative warrants to purchase up
to 147,060 shares of common stock. The representative warrants were immediately exercisable upon issuance, have an exercise price of $1.70
per share and expire on March 28, 2030.

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Settlement Agreement On March 27, 2025, the Company entered into a settlement agreement with 3AM Investments LLC, an entity controlled by Nadir Ali (“Ali”), the Company’s former Chief Executive Officer and a former director of the Company (“3AM”), Grafiti Group LLC (“Grafiti Group”) and Ali (the “Settlement Agreement”). As a result of the Settlement Agreement, among other things, that certain Consulting Agreement, dated March 12, 2024 by and between the Company and Ali (the “Ali Consulting Agreement”) was terminated, the Company made certain payments to Ali and other former executives of the Company, and the Company has an outstanding advisory fee obligation to Ali of $1.5 million (the “Deferred Amount”), which is due in $500,000 installments on June 30, 2025, September 30, 2025 and December 31, 2025. Balance Sheet Improvement The net proceeds from the public offerings completed during the quarter ended March 31, 2025 allowed the Company to strengthen its balance sheet during the quarter ended March 31, 2025 by increasing its cash position by approximately $3.9 million while repaying in full the outstanding secured promissory notes held by Streeterville and significantly reducing other liabilities including the accounts payable and obligations either inherited from Legacy Inpixon or triggered by the closing of the XTI Merger on March 12, 2024. In addition, the Company redeemed the remaining outstanding shares of Series 9 Preferred Stock, leaving zero shares of Series 9 Preferred Stock issued and outstanding as of March 31, 2025. The Series 9 Preferred Stock had restricted the Company’s ability to raise capital, as the Company was prohibited from taking certain actions without prior written consent from the holders of the Series 9 Preferred Stock. TriFan 600 Engineering Update Below are some of the key