Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 374

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 374
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) remeasured
at the warrant redemption value of approximately $1.6 million resulting in a fair value loss of approximately $0.7 million, which
is reported in other income (expense) within the consolidated statements of operations for the year ended December 31, 2024, and (ii)
reclassified to stockholders’ equity (deficit) within the consolidated balance sheet as of December 31, 2024. Following the consummation
of the warrant exchange, the Existing Warrants were cancelled and no further shares are issuable pursuant to the Existing Warrants agreement.

F-34

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

On
May 30, 2024, the Company entered into a warrant exchange agreement with the holder of certain warrants of the Company (the “Assumed
Warrants”) to purchase shares of common stock, which Assumed Warrants were originally issued by Legacy XTI and assumed by the Company
in connection with the XTI Merger. Pursuant to the terms of the agreement, the Company issued to the warrant holder an aggregate of 462 shares
of common stock valued at approximately $0.1 million in exchange for 771 Assumed Warrants, which included 671 warrants
shares granted during the year ended December 31, 2024 as result of price protection clauses per the Assumed Warrant agreements relating
to subsequent equity sales by the Company. As the Assumed Warrants were liability classified, the exchange resulted in the liability
being (i) remeasured at the warrant redemption value of approximately $0.1 million resulting in an immaterial loss, and (ii) reclassified
to stockholders’ equity (deficit) within the consolidated balance sheet as of December 31, 2024. Following the consummation of
the warrant exchange, the Assumed Warrants were cancelled and no further shares are issuable pursuant to the Assumed Warrants agreement.

On
June 12, 2024 and June 13, 2024, the Company entered into warrant exchange agreements with the holders (the “Warrant Holders”)
of 1,965 existing warrants of the Company (the “Existing Warrants”) initially issued on December 19, 2023, which were