Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 55

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 55
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claims on February 18, 2025. The amended counterclaims, further amended on April
14, 2025, allege that Xeriant breached the Joint Venture Agreement by failing to make required capital contributions of approximately
$4.6 million and by failing to deliver promised intellectual property and strategic support. Legacy XTI further alleges that Xeriant breached
its fiduciary duty by engaging in coercive and self-dealing conduct, including conditioning a strategic introduction on the issuance of
equity and the assumption of debt. Legacy XTI seeks declaratory relief confirming that the joint venture has been terminated, that all
intellectual property related to the TriFan 600 belongs solely to Legacy XTI, and that Xeriant has no rights in the TriFan 600 technology.

On April 28, 2025, Xeriant moved to dismiss XTI’s
second amended counterclaims. On September 23, 2025, the Court denied Xeriant’s motion, concluding that XTI plausibly alleged claims
against Xeriant for breach of contract, breach of fiduciary duty, and declaratory judgment. The Court found that XTI had adequately pleaded
that Xeriant was obligated to contribute $10 million in funding to the joint venture and that it acted disloyally by leveraging a potential
merger opportunity for its own benefit.

On July 10, 2025, XTI filed a letter motion requesting
a conference to address: (i) ongoing deficiencies in Xeriant’s discovery responses; and (ii) Xeriant’s untimely service of
discovery requests on XTI, which were served more than three months after the applicable deadline. The Court granted XTI’s letter
motion the same day, and held a conference on July 18, 2025. During the conference, the Court ordered: (i) an extension of all discovery
deadlines by three months, through November 24, 2025; (ii) an extension of expert discovery through February 16, 2026; and (iii) that
the parties finalize a protective order and Electronically Stored Information (“ESI”) protocol by July 25, 2025. The parties
subsequently submitted a stipulated protective order and ESI protocol, which the Court entered on July 28, 2025.

On September 10, 2025, XTI filed a second letter
motion to compel discovery based on Xeriant’s ongoing failure to