Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 65

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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 $2.1875 per
share, subject to adjustments, with the same terms as the Representative’s Warrants issued in connection with the initial closing
of the June Offering.

38

Settlement Agreement with Chardan

On or about August 1, 2024,
Chardan Capital Markets LLC (“Chardan”) commenced an arbitration (the “Arbitration”) before the Financial Industry
Regulatory Authority against the Company and its subsidiary, XTI Aircraft Company (“Aircraft”), related to an engagement letter,
dated as of June 7, 2022, by and between Chardan and Aircraft, as amended (the “Engagement Letter”). On or about June 13,
2025, Aircraft filed a counterclaim against Chardan for breach of contract.

On July 8, 2025, Chardan,
on the one hand, and the Company and Aircraft, on the other hand, entered into a settlement agreement (the “Chardan Settlement Agreement”),
pursuant to which the parties agreed to resolve and settle all claims and matters between them. Pursuant to the Chardan Settlement Agreement,
simultaneous with the execution thereof, (i) Chardan, the Company and Aircraft entered into a mutual release, pursuant to which, Chardan,
on the one hand, and the Company and Aircraft, on the other hand, released each other from all claims against each other, including all
claims related to the Arbitration, and (ii) counsel for the parties executed a joint stipulation whereby Chardan and Aircraft agreed to
dismiss with prejudice all claims asserted against each other with respect to the Arbitration, which was filed in the Arbitration. None
of the parties made any payments in connection with the Chardan Settlement Agreement and, pursuant to the Chardan Settlement Agreement,
the parties agreed that none of the parties owes each other any amount or debt. Pursuant to the Chardan Settlement Agreement, the parties
also agreed that the Engagement Letter is terminated and is of no further force or effect.

Expansion of Corporate Advisory Board 

During the six months ended
June 30, 2025, the Company expanded its corporate advisory board, which is now comprised of ten advisory board members led by Michael
Tapp, who are helping the Company evaluate strategic opportunities to capitalize on the anticipated demand for the TriFan 600.

TriFan 600 Engineering Update

During the quarter ended
June 30, 2025, we continued to advance the