Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 576

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 576
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 includes an original issue discount of approximately $0.3 million. In exchange for the Note, the Holder paid an aggregate
purchase price to the Company of $1.0 million.

Interest
on the Note accrues at a rate of 10.0% per annum and is payable on the maturity date or otherwise in accordance with the Note. The
effective interest rate is 10.5%. If the Note is still outstanding on the date that is six months from the issuance date,
then a one-time monitoring fee equal to 10% of the then-current outstanding balance will be added to the outstanding balance of
the Note.

The
Company’s obligations under the Note, the additional secured promissory note issued by the Company to the Holder on May 24, 2024
(as described below) and the other transaction documents are secured by (i) a pledge of all of the stock the Company owns in Legacy XTI
and (ii) those assets owned by Legacy XTI constituting Collateral (as defined in a security agreement by and between Legacy XTI and the
Holder). Additionally, Legacy XTI provided a guarantee of the Company’s obligations to the Holder under the Note, the additional
secured promissory note and the other transaction documents.

Promissory
Note - May 24, 2024

Pursuant
to the terms of the Purchase Agreement, on May 24, 2024, the Company issued and sold to Streeterville Capital, LLC an additional secured
promissory note in the initial principal amount of $1.3 million, which carries an original issue discount of $0.3 million.
The terms of this additional note are identical to the terms of the May 1, 2024 note, as described above. In exchange for the promissory
note, the Holder paid an aggregate purchase price of $1.0 million.

On March 31, 2025, the Company repaid the May
1, 2024 and May 24, 2024 promissory notes in full which relieved the Company from all obligations. As a result of the repayments, Streeterville
released its security interest in the stock the Company owns in Legacy XTI and the assets owned by Legacy XTI.

F-25

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER