Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 180

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 180
---
 Convertible notes

    -

    133

    -

    2,009

    Total

    3,154,577

    16,514

    1,644,160

    13,419

35

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 19 - Subsequent Events

June Offering
Over-Allotment Option Exercises

During July 2025, the Company closed multiple
exercises of the over-allotment option granted to the underwriter of the June Offering. The over-allotment option was exercised in full
resulting in the issuance of 1,371,000 shares of common stock, at the public offering price of $1.75 per share, for net proceeds of approximately
$2.2 million.

The Company also issued additional Representative’s
Warrants to the underwriter to purchase an aggregate of 68,551 shares of common stock at an exercise price of $2.1875 per share, subject
to adjustments, with the same terms as the Representative’s Warrants issued in connection with the initial closing of the June Offering.

Settlement Agreement
with Chardan

On or about August 1, 2024, Chardan Capital Markets
LLC (“Chardan”) commenced an arbitration (the “Arbitration”) before the Financial Industry Regulatory Authority
against the Company and its subsidiary, XTI Aircraft Company (“Aircraft”), related to an engagement letter, dated as of June
7, 2022, by and between Chardan and Aircraft, as amended (the “Engagement Letter”). On or about June 13, 2025, Aircraft filed
a counterclaim against Chardan for breach of contract.

On July 8, 2025, Chardan, on the one hand, and
the Company and Aircraft, on the other hand, entered into a settlement agreement (the “Chardan Settlement Agreement”), pursuant
to which the parties agreed to resolve and settle all claims and matters between them. Pursuant to the Chardan Settlement Agreement, simultaneous
with the execution thereof, (i) Chardan, the Company and Aircraft entered into a mutual release, pursuant to which, Chardan, on the one
hand, and the Company and Aircraft, on the other hand, released each other from all claims against each other, including all claims