Company: XTIA
Filing Date: 2025-06-03
Form Type: DRS
Source: 0001213900-25-050156
Chunk: 18

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-03
Form: DRS
Chunk 18
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 to the
security exercised only as to matters for which the record date occurs after the exercise.

The Pre-funded Warrants are speculative in nature.

Holders of the Pre-funded
Warrants may acquire shares of our common stock issuable upon exercise of such Pre-funded Warrants at an exercise price of $0.001 per
share. There can be no assurance that the market value of the Pre-funded Warrants will equal or exceed their public offering price.

We will not receive any meaningful amount of additional funds upon the exercise of the Pre-funded Warrants.

Each Pre-funded Warrant will
be exercisable until it is fully exercised and by means of payment of the nominal cash purchase price upon exercise or through a “cashless
exercise” procedure. Accordingly, we will not receive any meaningful additional funds upon the exercise of the Pre-funded Warrants.

A possible “short squeeze” due to a sudden increase in demand of our common stock that largely exceeds supply may lead to price volatility in our common stock.

Following this Offering,
investors may purchase shares of our common stock to hedge existing exposure in our common stock or to speculate on the price of our common
stock. Speculation on the price of our common stock may involve long and short exposures. To the extent aggregate short exposure exceeds
the number of shares of our common stock available for purchase in the open market, investors with short exposure may have to pay a premium
to repurchase our common stock for delivery to lenders of our common stock. Those repurchases may in turn dramatically increase the price
of our common stock until investors with short exposure are able to purchase additional shares of common stock to cover their short position.
This is often referred to as a “short squeeze.” A short squeeze could lead to volatile price movements in our common stock
that are not directly correlated to our performance or prospects and once investors purchase the shares of common stock necessary to cover
their short position the price of our common stock may decline.

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This Offering may cause the trading price of our common stock to decrease.

The number of shares of common
stock and/or Pre-funded Warrants and the underlying shares of common stock we propose to issue and ultimately will issue if this Offering
is completed, may result in an immediate decrease in the trading price of our common stock. This decrease may continue after the completion
of this Offering. We cannot predict the effect, if any, that the availability of shares for future sale represented by the Pre-funded
Warrants issued in connection with the