Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 65

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 65
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 discourage acquirers and eliminate a potentially beneficial sale for our stockholders.

We
are subject to the provisions of Sections 78.411 to 78.444, inclusive, of the Nevada Revised Statutes, known as the “business combination”
statute. This statute prevents many Nevada corporations from engaging in a business combination with any interested stockholder, under
specified circumstances. For these purposes, a business combination includes a merger or sale of more than 5% of our assets, and an interested
stockholder includes a stockholder who owns 10% or more of our outstanding voting stock, as well as affiliates and associates of these
persons that, within two years prior to the combination, beneficially owned such percentage of the voting power. Under these provisions,
this type of business combination is prohibited for up to four years following the date that the stockholder became an interested stockholder
unless the transaction in which the stockholder became an interested stockholder is approved by the board of directors prior to the date
the interested stockholder attained that status. Where the person becoming an interested stockholder was not approved in advance by the
board of directors, the Nevada business combination statute imposes a basic moratorium of two years on business combinations unless they
are approved by the board of directors and stockholders owning at least 60% of the outstanding voting power not beneficially owned by
the interested stockholder and its affiliates and associates. After the two-year period, but before four years, combinations remain prohibited
but may also be permitted if the interested stockholder satisfies certain requirements with respect to the aggregate consideration to
be received by holders of outstanding shares in the combination.

We are also subject to the
“acquisition of controlling interest” provisions of Sections 78.378 through 78.3793, inclusive, of the Nevada Revised Statutes,
also known as the “control share” statute, which apply to “issuing corporations” that are Nevada corporations
doing business, directly or through an affiliate, in Nevada, and having at least 200 stockholders of record, including at least 100 of
whom have addresses in Nevada appearing on the stock ledger of the corporation. Under that statute, any person who acquires a controlling
interest in a corporation may not exercise voting rights of any control shares unless such voting rights are conferred by a majority
vote of the disinterested stockholders of the issuing corporation at a special meeting of such stockholders held upon the request and
at the expense of the acquiring person. The statute applies