Company: XTIA
Filing Date: 2025-06-12
Form Type: S-1
Source: 0001213900-25-053928
Chunk: 38

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-12
Form: S-1
Chunk 38
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 4 Preferred Stock has no voting rights.

.Upon
any dissolution, liquidation or winding up, whether voluntary or involuntary, holders of Series 4 Preferred Stock will be entitled to
receive distributions out of our assets, whether capital or surplus, of the same amount that a holder of common stock would receive if
the Series 4 Preferred Stock were fully converted (disregarding for such purposes any conversion limitations hereunder) to common stock
which amounts will be paid pari passu with all holders of common stock.

.
The Series 4 Preferred contain an anti-dilution protection feature, to adjust the conversion price if shares of common stock are sold
or issued for a consideration per share less than the conversion price then in effect (subject to certain exemptions), provided, that
the conversion price will not be less than $418,500,000.

.
We are not obligated to redeem or repurchase any shares of Series 4 Preferred Stock. Shares of Series 4 Preferred Stock are not otherwise
entitled to any redemption rights, or mandatory sinking fund or analogous provisions.

Series 5 Preferred Stock

Our board of directors designated 12,000 shares of preferred stock
as Series 5 Convertible Preferred Stock, $0.001 par value with a stated value of $1,000 (the “Series 5 Preferred Stock”).
The Series 5 Preferred Stock was originally issued in our rights offering consummated on January 15, 2019. As of June 11, 2025, there
were 126 shares of Series 5 Preferred Stock outstanding convertible into 1 share of common stock. Our board of directors may, without
stockholder approval, issue shares of an additional class or series of preferred stock with voting and conversion rights which could adversely
affect the voting power of the holders of the Series 5 Preferred Stock, except as prohibited by the certificate of designation of preferences,
rights and limitations of the Series 5 Preferred Stock.

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. Each share
of Series 5 Preferred Stock will be convertible at the option of the holder at any time, into the number of shares of our common stock
determined by dividing the $1,000 stated value per share of the Series 5 Preferred Stock by a conversion price of $280,968,750 per share.
In addition, the conversion price per share is subject to adjustment for stock dividends, distributions, subdivisions, combinations or
reclassifications. Subject to limited exceptions, a holder of the Series