Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 72

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 72
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 Andromeda Corporation
(together with Valkyrie, the “Borrower”) are jointly and severally liable under the Valkyrie Note. Interest accrues on the
outstanding principal amount at the lesser of 10% per annum or the maximum rate permissible by law. The outstanding principal amount,
together with any accrued but unpaid interest, is due and payable on December 31, 2026 (the “Maturity Date”). After a Qualified
Financing (as defined in the Valkyrie Note) and if the Company does not elect to convert the Valkyrie Note, the Company may, prior to
the Maturity Date, elect to require the Borrower to pay the remaining balance of the Valkyrie Note within 60 days after the delivery of
the election notice to Valkyrie.

September 2025 Offering

On September 12, 2025, the
Company entered into a placement agency agreement with ThinkEquity LLC (“ThinkEquity”), pursuant to which the Company agreed
to issue and sell directly to various investors, in a best efforts public offering (the “September Offering”), 10,575,000
shares of common stock, pre-funded warrants to purchase up to 1,925,000 shares of common stock, and common warrants to purchase up to
12,500,000 shares of common stock. The combined public offering price for each share of common stock, together with one common warrant,
was $1.60. The combined public offering price for each pre-funded warrant, together with one common warrant, was $1.599. Each share of
common stock, or a pre-funded warrant in lieu thereof, was sold together with one common warrant.

The September Offering closed
on September 15, 2025, resulting in net proceeds to the Company of approximately $18.5 million, after deducting the placement agent fees
and other expenses payable by the Company of approximately $1.5 million. Upon closing of the September Offering, the Company issued ThinkEquity
warrants (the “Placement Agent Warrants”) as compensation to purchase up to 625,000 shares of common stock at an exercise
price of $2.00 per share. The Placement Agent Warrants were exercisable immediately upon the date of issuance and expire on the five-year
anniversary of the commencement of sales of securities in the September Offering.

Officer Appointments

Effective as of September
1, 2025, Michael A. Tapp was appointed as the