Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 370

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part II, Item 1A
Chunk 370
---
ardan also
sought to recover unspecified amounts relating to an alleged right of first refusal to perform banking services (the “ROFR”)
that the Company supposedly did not honor, including with respect to an At-The-Market securities offering that was underwritten by The
Maxim Group LLC (the “ATM”).  The Company filed a petition in the U.S. District Court for the Southern District of New
York (the “Court”) seeking to stay the Arbitration to the extent that it was asserted against the Company. On or about January
21, 2025, the Court entered a final judgment that: (a) enjoins Chardan from prosecuting the Arbitration against the Company; and (b) declares
that the Company has no contractual or other duty to arbitrate with Chardan. 

On April 30, 2025, Chardan amended its Statement of Claim in the Arbitration. 
The Amended Statement of Claim (“ASOC”) is asserted solely against Aircraft.  Thus, the Company no longer is a respondent
in the Arbitration.  Through the ASOC, Chardan now asserts claims against Aircraft for breach of contract and unjust enrichment. 
It seeks to recover: (a) a $200,000 cash payment that Aircraft supposedly was required to, but did not, make; (b) approximately $134,000
in damages, for supposedly issuing 189,037 shares of the Company’s common stock to Chardan on March 19, 2024 instead of 208,113
shares; and (c) all payments supposedly due to Chardan under the ROFR, which Chardan states continue to accumulate.  According to
Chardan, amounts due under the ROFR include 30% of any banking fees paid with respect to at least the following acts of the Company: 
(i) the entry into an Exchange Agreement, pursuant to which Streeterville exchanged the remaining balance of principal and accrued interest
under a December 2023 Note in the aggregate amount $9,801,521 for 9,801.521 shares of the Company’s  Series 9 Preferred Stock;
(ii) the entry into an Equity Distribution Agreement  with Maxim that increased the value of stock that could be sold under the Company’s
ATM from $48,000,000 to $83,800,000; (iii) the January 10, 2025 capital raise that used the services of ThinkEquity LLC