XTI Aerospace Announces Restructuring Agreement for $4.5 Million in Promissory Notes

XTI Aerospace Restructures $4.5 Million in Promissory Notes

XTI Aerospace, Inc. (Nasdaq: XTIA), known for its advanced technology platform and a leader in drone solutions through its subsidiary Drone Nerds, has recently announced a critical step in its financial restructuring strategy. On October 29, 2026, the company revealed that it successfully reached a non-binding agreement to amend its promissory notes that total approximately $4.5 million in principal and accumulated interest, originally issued in November 2025.

These promissory notes, better referred to as Seller Notes, unfortunately went into default on October 11, 2026, which prompted the necessity for renegotiation. Under the terms of the newly structured Seller Notes, XTI Aerospace will extend the maturity date, thereby gaining additional financial flexibility during this challenging period. This restructuring initiative appears to align with the company's ongoing strategy to stabilize and grow its financial and operational capabilities.

The revised terms suggest that the restructured notes will carry an interest rate of 8.5% per annum, effective as of June 30, 2026, and will be amortized monthly over a total of 60 months. Additionally, a balloon payment encompassing all principal and accrued interest will be required by September 30, 2028. In a bid to further enhance its financial standing, XTI Aerospace may also opt to utilize payment-in-kind (PIK) interest for the initial year of the Seller Notes’ lifespan, allowing for greater liquidity during this transitional phase.

Simultaneously, XTI Aerospace is engaged in constructive discussions regarding its revolving credit facility with JPMorgan Chase Bank, illustrating the company's commitment to securing necessary financing as it strives to optimize its financial position moving forward. Details concerning the restructured notes will be officially disclosed once the documentation is finalized between all involved parties.

XTI Aerospace, with its deep commitment to drone technology and operational excellence, aims to support not just commercial enterprises but also government initiatives encompassing various sectors, including public safety, agriculture, construction, and energy. The company aims to capitalize on the rapid growth of the unmanned aircraft systems (UAS) industry while ensuring its clients receive an exemplary standard of service from the lifecycle of drone programs, which includes hardware procurement, deployment, training, repair services, and their proprietary Always Flying™ program.

This restructuring news comes at a time when the demand for drone solutions is escalating, and XTI Aerospace is strategically positioned to leverage its established reputation and robust customer base within the United States. By unraveling the complexities surrounding its financial commitments, XTI aims to maintain and potentially enhance its status as a preferred partner for drone manufacturers and software developers looking to scale operations in the domestic market.

In conclusion, while the restructuring comes in light of recent defaults, XTI Aerospace demonstrates proactive measures aimed at fostering financial resilience while navigating challenges in a burgeoning industry landscape. Stakeholders and clients are encouraged to stay tuned for further updates as the company navigates this pivotal juncture in its operational path.

For additional information on XTI Aerospace, visit xtiaerospace.com and follow their updates on LinkedIn, Instagram, X, and YouTube.

Cautionary Note on Forward-Looking Statements

The statements in this release may include certain forward-looking statements as defined in U.S. securities law. Investors should be aware that various risks and uncertainties could result in actual performance differing significantly from those projected.