Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 358

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 358
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 into voluntary note conversion letter agreements in February 2024 as detailed in the below table. Per the letter agreements,
some or all of the outstanding principal and accrued interest under the notes was converted at a reduced conversion price into shares
of Legacy XTI common stock immediately prior to the XTI Merger closing time, which converted into shares of the Company’s common
stock upon the closing of the XTI Merger. In connection with some of the voluntary note conversions, the Company assumed a repayment
obligation with respect to any outstanding balance under the notes that was not converted into Legacy XTI shares. The Company accounted
for these conversions as an inducement and recognized a loss of approximately $6.7 million related to the fair value of the additional
shares issued compared to the original terms of the convertible note, which is included in inducement loss on debt conversions in the
other income and expense section of the condensed consolidated statements of operations. The following table details the notes converted
into shares of Legacy XTI common stock (in thousands, except share amounts and conversion price).

    Letter Agreement 
    Aggregate
    Principal and Interest Outstanding Immediately Prior to XTI Merger  
    Aggregate
    Principal and Interest Converted to Common Shares  
    Reduced
    Conversion Price  
    Post
    - Exchange Ratio / Post 1-for-250 Split  Common Shares  
    Outstanding
    Payment Obligation Immediately After XTI Merger  
    Net
    Inducement Charge 
  
    Convertible
    Note 2021 
    $2,777  
    $2,504  
     742.22  
     3,376  
    $273  
    $3,266 
  
    Convertible Note 2017 
    $2,148  
    $2,148  
     742.22  
     2,896  
    $—  
    $2,795 
  
    Convertible Note 2022 
    $682  
    $600  
     742.22  
     808  
    $82  
    $464 
  
    Convertible
    Note 2023 
    $333  
    $300  
     742.22  
     404  
    $33  
    $207 
  
    Totals 
    $5,940  
    $5,552  
        
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