XTI Aerospace unit defaults on $4.51M drone notes; cross-default hits $20M JPMorgan revolver

XTI Aerospace, Inc.

XTI Drones Holdings missed Sept 30, 2026 installments of $1,380,000 (DN Note) and $120,000 (AR Note); 10-day grace lapsed and default was declared Oct 11, 2026.
DN Note principal $10,976,284.58 and AR Note $954,459.53, both at 7.25% and due Nov 10, 2026; default interest now 9.25% (stated rate plus 2.00%).
Default triggered cross-default under the Feb 11, 2026 JPMorgan credit agreement ($20.0M ABL revolver); ~$8.4M of revolving loans outstanding as of Oct 16, 2026.
Lender may stop lending, block distributions, accelerate debt, charge +2.00% default interest and seize collateral; company says liquidity is insufficient to repay if accelerated.
Sellers agreed to terms of a temporary waiver subject to execution and a restructuring is planned; Q2 2026 10-Q expected to flag substantial doubt about going concern.

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