Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 405

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 405
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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, 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 of common stock, 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 of common stock, or a Pre-funded Warrant in
lieu thereof, was sold together with one Common Warrant. We received net proceeds of approximately $3.3 million from the March Offering
after deducting the underwriting discounts and commissions and other expenses payable by us.

The Pre-funded Warrants were immediately exercisable upon issuance,
have an exercise price of $0.001 per share and may be exercised at any time until all of the Pre-funded Warrants are exercised in full.
The Common Warrants were immediately exercisable upon issuance, have an exercise price of $1.36 per share, and expire on the fifth anniversary
of the date of issuance. As a result of our failure to timely file a Current Report on Form 8-K, upon the filing of this Annual Report
on Form 10-K, we became ineligible to file new short form registration statements on Form S-3 or to use the Current Shelf Registration
Statement. Therefore, we agreed to file a subsequent registration statement covering the issuance of the shares issuable upon exercise
of the Pre-funded Warrants and the Common Warrants within the timeframes set forth in such warrants. As of April 11, 2025, 1,126,000 Pre-funded
Warrants remained outstanding and unexercised.

As part of its compensation for serving as representative
in connection with the March Offering, we issued ThinkEquity and its designees Representative Warrants to purchase up to 147,060 shares
of common stock. The Representative Warrants were immediately exercisable upon issuance, have an exercise price of $1.70 per share and
expire on the five-year anniversary of the commencement of sales of the securities issued in the March Offering.

F-48

ITEM
9: CHANGES IN AND DISAGREEMENTS WITH