Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 336

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part II, Item 1
Chunk 336
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% 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; 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”) in the principal amount of $250,000.00 held by Streeterville was partitioned into a new secured promissory
note (the “February 2025 Note”) in the same form and amount as the May 2024 Note, with the Company and Streeterville subsequently
agreeing to exchange the February 2025 Note for 59,832 shares of Company common stock with an effective price of $4.21 per share. Aircraft
has not yet responded to the ASOC. The Company has indicated that Aircraft intends to defend against the ASOC vigorously.

Regardless of the merits of
any particular claim, responding to such actions could divert time, resources and management’s attention away from our business
operations, and we may incur significant expenses in defending these lawsuits or other similar lawsuits. The results of litigation and
other legal proceedings are inherently uncertain, and adverse judgments or settlements in some of these legal disputes may result in adverse
monetary damages, penalties or injunctive relief against us, which could have a material adverse effect on our financial condition, operating
results and cash flows. Any claims or litigation, even if fully indemnified or insured, could damage our reputation and make it more difficult
to compete effectively or to obtain adequate insurance in the future.

Furthermore, while we maintain
insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential liabilities and is subject
to various exclusions as well as deductibles and caps on amounts of coverage. Even if we believe a claim is covered by insurance, insurers
may dispute