Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 455

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 455
---
.

November
2024 Consent Waiver and Release, and Letter Agreement with Nadir Ali

On
June 14, 2024, the Company obtained a written consent (the “June 2024 Consent”) from the Required Holders of the Series 9
Preferred Stock, pursuant to which the Required Holders approved a $47.4 million increase to the ATM (the “Maximum Amount”),
provided that, among other things, the Company obtains the consent of the Required Holders for sales of our Common Stock under the ATM
in excess of $6 million up to the Maximum Amount.

On
November 17, 2024, the Company entered into a Consent Waiver and Release Agreement (the “Consent Agreement”) with 3AM
and Streeterville Capital, LLC (“Streeterville”, and together with 3AM, the “Series 9 Holders”), each as
a Required Holder, pursuant to which the Series 9 Holders authorized the Company to raise up to an additional $5,000,000 under the
ATM (the “ATM Increase”) in consideration for the Company’s agreement to pay 20% of the proceeds it receives from sales
under the ATM in connection with the ATM Increase (the “Redemption Proceeds”) to the Series 9 Holders to redeem a portion
of their Series 9 Preferred Stock, to be distributed as follows: (i) 75% of the Redemption Proceeds to Streeterville (15% of
all proceeds received from sales under the ATM) (“15% Redemption Amount”), and (ii) 25% of the Redemption Proceeds to
3AM (5% of all proceeds received from sales under the ATM). Distribution payments will be made by wire transfer of immediately available
funds every Monday for the prior week’s Redemption Proceeds and will be used to partially redeem the Series 9 Preferred Stock.

Additionally,
pursuant to the Consent Agreement, each of Streeterville and 3AM agreed to waive any past breach of or failure to perform any of the
Company’s covenants, obligations, conditions or agreements contained in (i) the Certificate of Designations, (ii) the
June 2024 Consent, (iii) in the case of 3AM, the SPA and (iv) in the case of Streeterville, the Secured Promissory Note
dated as of May 1, 2024 and the Secured Promissory Note dated as of May