Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 153

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 153
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 Underwritten Offering and Debt Repayment

On January 7, 2025, the Company
entered into a placement agency agreement with ThinkEquity LLC (“ThinkEquity”), as placement agent, pursuant to which the
Company agreed to issue and sell directly to various investors, in a best efforts public offering (the “January Offering”),
an aggregate of 1,454,546 shares of common stock at an offering price of $13.75 per share. The January Offering closed on January 10,
2025, resulting in net proceeds to the Company, after deducting commissions and expenses, of approximately $18.3 million.

On March 28, 2025, the Company
entered into an underwriting agreement with ThinkEquity LLC, as the representative of the underwriters named therein, relating to a firm
commitment underwritten public offering (the “March Offering”) of 765,200 shares of common stock (the “Shares”),
pre-funded warrants (the “Pre-funded Warrants”) to purchase up to 2,176,000 shares of common stock, and common warrants (the
“Common Warrants”) to purchase up to 2,941,200 shares of common stock. The combined public offering price for each Share,
together with one Common Warrant, was $1.36. The combined public offering price for each Pre-funded Warrant, together with one Common
Warrant, was $1.359. Each Share, or a Pre-funded Warrant in lieu thereof, was sold together with one Common Warrant. The March Offering
closed on March 31, 2025, resulting in net proceeds to the Company, after deducting commissions and expenses, of approximately $3.4 million.
The Company used approximately $2.7 million of the net proceeds from the March Offering to repay in full all amounts outstanding, including
a 115% prepayment penalty, in respect of two secured promissory notes issued by the Company to Streeterville Capital, LLC on May 1, 2024
and May 24, 2024.

Settlement Agreement

On March 27, 2025, the Company
entered into the Settlement Agreement with 3AM, Grafiti Group and Nadir Ali (“Ali”). As a result of the Settlement Agreement,
that certain Consulting Agreement, dated March 12, 2024 by and between the Company and Ali (the “Ali Consulting Agreement”)
was terminated, and the Company has an outstanding advisory fee obligation