Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 674

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 674
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 Stock. Payments will be due on (i) with respect to ATM sales, every Monday for the prior week’s ATM sales, and (ii) with
respect to any other Financing, five business days following the closing of such Financing. The terms of the February 2025 Consent were
superseded by the terms of the Settlement Agreement, as described above under “- Settlement Agreement with Nadir Ali, 3AM, and
Grafiti Group.”

The term “Required
Holders” is defined in the Certificate of Designations of Preferences and Rights of Series 9 Preferred Stock as the holders of
at least a majority of the outstanding Series 9 Preferred Stock; provided that, pursuant to that certain securities purchase agreement
dated as of March 12, 2024, by and between the Company and 3AM, 3AM will be deemed a “Required Holder” as long as 3AM holds
any shares of Series 9 Preferred Stock. As of the date of this report, there are no shares of Series 9 Preferred Stock issued and outstanding.

January
2025 Consent from 3AM

In
accordance with the terms of the Series 9 Preferred Stock Certificate of Designation, the Company obtained a written consent, effective
as of January 7, 2025 (the “January 2025 Consent”), from 3AM as the Required Holder of the Series 9 Preferred Stock, authorizing
the Company to issue securities in a best efforts public offering that closed on January 10, 2025 (the “Offering”) in consideration
for the Company’s agreement to pay, within five business days of the closing, 20% of the approximately $20 million of gross proceeds
from the Offering (the “Payment Amount”), (a) first, to the Bonus Plan Recipients (the “Bonus Plan Payments”);
and (b) second, to the extent the Bonus Plan Payments have been fully satisfied, any remaining portion of the Payment Amount shall be
applied to the redemption of outstanding shares of the Series 9 Preferred Stock (the “Redemption”). Pursuant to the January
2025 Consent, on January 13, 2025, the Company paid an aggregate of approximately $3.5 million in Bonus Plan Payments, after which payment
no portion of the Payment Amount remained to pay the Redemption.

75

December
2024 Consent from 3AM

On December 23, 2024, the Company received a consent and