XTI Aerospace, Inc., a company specializing in computer programming services with a market capitalization of approximately $9.9 million, has recently undergone transactions involving the issuance of equity securities, as detailed in their latest 8-K filing with the Securities and Exchange Commission. The company's shares have experienced significant volatility, declining over 98% in the past year.
According to InvestingPro analysis, XTI Aerospace is currently facing financial challenges, with a weak overall financial health score and rapid cash burn rate.
On December 2, 2024, XTI Aerospace entered into a Restricted Stock Award Agreement with Nadir Ali, a consultant and the company’s former CEO and director. Under this agreement, the company issued 21,345,967 fully vested common stock shares to Mr. Ali at $0.0476 per share.
This stock issuance serves as payment for the remaining balance of a consulting agreement totaling $1,875,000, which covered five monthly payments from July 12, 2024, to November 12, 2024. The shares were offered under the company's 2018 Employee Stock Incentive Plan and were registered according to a Form S-8 registration statement.
Additionally, on December 2 and December 4, 2024, XTI Aerospace issued 19,961,587 shares of common stock to a holder of the company's Series 9 Preferred Stock. This was in exchange for the return and cancellation of 850 shares of Series 9 Preferred Stock, valued at an aggregate of $892,500. The transaction was executed at an effective price per share between $0.0445 and $0.0449.
The company utilized the exemption from registration provided by Section 3(a)(9) of the Securities Act of 1933 for this exchange, as there was no additional consideration provided by the holder, and no commissions were paid in connection with the exchange.
Following these transactions, as of December 5, 2024, XTI Aerospace has 272,724,231 common stock shares outstanding. The company's common stock is traded on the Nasdaq Capital Market under the ticker symbol XTIA, currently trading at $0.05 per share. InvestingPro analysis reveals concerning metrics, including a current ratio of 0.46 and negative EBITDA of -$19.7 million for the last twelve months. Subscribers to InvestingPro can access 11 additional key insights about XTIA's financial position and market performance.
This report is based on the company's 8-K filing and provides a factual summary of the key events without any speculative or subjective commentary.
In other recent news, XTI Aerospace has been heavily involved in financial and structural shifts. The company has issued a total of 18,745,348 shares of common stock to Streeterville Capital, LLC, and 21,627,674 shares to Nadir Ali, a consultant and former CEO. These transactions were part of an agreement to exchange shares for Series 9 Preferred Stock and to settle overdue consulting payments.
XTI Aerospace has also made payments to Streeterville and 3AM Investments LLC, controlled by Mr. Ali, as part of a broader strategy to manage its equity and fulfill obligations to stakeholders. The company has also completed an equity exchange, issuing 5,267,558 shares of common stock in return for the cancellation of 300 shares of Series 9 Preferred Stock.
In other developments, the company has made key leadership appointments, with Jennifer Gaines becoming Chief Legal Officer and Tobin Arthur taking on the role of Chief Strategy Officer. XTI Aerospace has also amended its Business Combination Agreement with Damon Motors Inc., introducing new conditions and extending the termination date of the agreement.
In terms of product development, the company has filed a non-provisional patent application for its TriFan 600 vertical takeoff and landing aircraft and secured a conditional purchase agreement with Mesa Air Group (NASDAQ:MESA), Inc. for up to 100 TriFan 600 aircraft, potentially generating approximately $1 billion in revenue. Lastly, XTI Aerospace is currently engaged in a legal dispute with Chardan Capital Markets LLC over compensation claims.
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