XTI Aerospace (NASDAQ: XTIA) misses note payments, triggering cross-defaults

Posted by Anthony Miller on Oct 17th, 2026

What happened

XTI Aerospace, Inc. (NASDAQ: XTIA) said XTI Drones Holdings missed payments on the DN Note and AR Note. That caused defaults on October 11, 2026.

The notes were tied to the acquisitions of Drone Nerds, LLC and Anzu Robotics, LLC. Each note carried 7.25% per annum interest. XTI Drones Holdings had to pay a $1.38 million principal installment on the DN Note and $120,000 on the AR Note by September 30, 2026.

The DN Note had original principal of $10.98 million and the AR Note had original principal of $954,459.53. The filing says unpaid interest was added to principal. All outstanding principal and accrued unpaid interest are due at the November 10, 2026 maturity date.

Key numbers

Metric	Latest	Source
Aggregate outstanding principal of the DN Note and AR Note	approximately $4.51 million	SEC 8-K
Revolving loans outstanding under the Credit Agreement	approximately $8.4 million	SEC 8-K
Commitments under the Credit Agreement	up to $20.0 million	SEC 8-K
Original principal amount of the DN Note	$10.98 million	SEC 8-K
Default interest rate on the DN Note and AR Note	9.25% per annum	SEC 8-K

Why it matters

The defaults raised the note rate to 9.25% per annum and let the sellers declare the unpaid balances due right away. As of October 11, 2026, the aggregate outstanding principal was about $4.51 million. That is about 54% of the approximately $8.4 million of revolving loans outstanding under the credit agreement on October 16, 2026.

The filing says the company does not have enough available liquidity to repay all amounts if the notes or the credit facility are accelerated. While the defaults continue, the lender does not have to make loans or issue letters of credit. The loan parties also may not make dividends or distributions to the company without consent.

Neither the DN Seller nor the AR Seller has demanded payment or said the amounts are immediately due and payable. The lender has not given notice of any remedy either. So acceleration rights have not been used yet, even though default interest is running.

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What's next

The company and XTI Drones Holdings agreed with the DN Seller and the AR Seller on the terms of a temporary waiver, subject to execution of a waiver agreement.

They plan to restructure the notes, and the borrower has told the lender about the defaults.

The next dated milestone is November 10, 2026, when the DN Note and AR Note mature. A signed waiver or restructuring would reduce the immediate liquidity concern. If no agreement is reached, the filing says the sellers could declare the notes due and payable and the lender could use its rights under the credit agreement.