Company: XTIA
Filing Date: 2025-06-03
Form Type: DRS
Source: 0001213900-25-050156
Chunk: 25

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-03
Form: DRS
Chunk 25
---
 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.

<div align='center'>12</div>

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 that certain promissory note issued by the Company to Streeterville on December 30, 2022 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; and (d) the February 13, 2025 entry into an Exchange Agreement
with Streeterville, wherein an outstanding secured promissory note issued on May 1, 2024 (the “May 2024 Note