Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 619

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 619
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 31, 2024 and 2023, the Company recorded variable lease expenses of $0.02 million and $0.00 million, respectively.

Lease
liability is summarized below (in thousands):

    As
    of December 31, 2024  
    As
    of December 31, 2023 
  
    Total lease
    liability 
    $350  
    $   — 
  
    Less:
    short term portion 
     (119) 
     — 
  
    Long
    term portion 
    $231  
    $— 

Maturity
analysis under the lease agreement is as follows (in thousands):

    Year ending December 31, 2025 
    $145 
  
    Year ending December 31, 2026 
     118 
  
    Year ending December 31, 2027 
     124 
  
    Year ending December
    31, 2028 
     10 
  
    Total 
    $397 
  
    Less:
    Present value discount 
     (47)
  
    Lease
    liability 
    $350 

Operating
lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the
present value of lease payments, the Company used its incremental borrowing rate based on the information available at the date of adoption
of Topic 842. As of December 31, 2024, the weighted average remaining lease term is 2.8 years and the weighted average discount rate
used to determine the operating lease liabilities was 8.6%.

Note 23
- Subsequent Events

January 2025 Registered Direct Offering

On January 7, 2025, we entered into a placement agency agreement with
ThinkEquity LLC (“ThinkEquity”), as placement agent, pursuant to which we 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, following the effectiveness of the 1-for-250 reverse stock
split of our outstanding common stock on the same date, which was a condition to the closing of the January Offering. We received net
proceeds of approximately $18.3 million from the January Offering. As part of its compensation for