Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 297

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 4
Chunk 297
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 and fraudulent actions, has caused substantial harm to Xeriant and
has prevented it from obtaining compensation owed to it under various agreements entered into between Xeriant and Legacy XTI, including
but not limited to a joint venture agreement, a cross-patent license agreement, an operating agreement, and a letter dated May 17, 2022
(the “May 17 letter”) arising from Xeriant’s introducing Legacy XTI to a Nasdaq listed company as a potential acquirer
of Legacy XTI. In particular, Xeriant contends that Legacy XTI gained substantial advantages from the intellectual property, expertise,
and capital deployed by Xeriant in the design and development of Legacy XTI’s TriFan 600 airplane yet has excluded Xeriant from
the transaction involving the TriFan 600 technology in its merger with us, which has resulted in a breach of the May 17 letter, in addition
to the other aforementioned agreements. Xeriant, in the second amended complaint, asserts the following causes of action: (1) breach of
contract; (2) intentional fraud; (3) fraudulent concealment; (4) quantum meruit; (5) unjust enrichment; (6) unfair competition/deceptive
business practices; and (7) misappropriation of confidential information, and seeks damages in excess of $500 million, injunctive relief
enjoining us from engaging in any further misconduct, the imposition of a royalty obligation, and such other relief as deemed appropriate
by the court. On March 13, 2024, Legacy XTI moved for partial dismissal of the second amended complaint. On January 14, 2025, the Court
denied Legacy XTI’s motion to dismiss the complaint. On January 28, 2025, Legacy XTI filed an answer to the second amended complaint.
On January 28, 2025, Legacy XTI filed an amended answer and counterclaims against Xeriant. The counterclaims assert that Xeriant (1) breached
the joint venture agreement by failing to pay $4,600,000 to fund development of the TriFan 600 technology, and (2) breached its fiduciary
duty to XTI by engaging in bad faith, coercion, and self-dealing, including by appropriating material information for its own use and
concealing from Legacy XTI the identity of a potential strategic partner. On March 18, 2025, Xeriant moved for dismissal of Legacy