Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 211

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 211
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, could have
a material adverse effect on our business, financial condition, results of operations and cash flows. Our current financial status may
increase our default and litigation risks and may make us more financially vulnerable in the face of threatened litigation.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

a) Sales of Unregistered Securities

On May 13, 2025, the Company entered into an advisory agreement with
a third party advisor, pursuant to which the Company issued 125,000 shares of restricted common stock to the advisor’s designees
(the “Advisor Shares”) in consideration for financial advisory services agreed to be rendered to the Company pursuant to the
agreement. The Advisor Shares were issued pursuant to an exemption from registration provided by Section 4(a)(2) and/or Rule 506 of Regulation
D of the Securities Act because such issuances did not involve a public offering, the recipients took the securities for investment and
not resale, the Company took appropriate measures to restrict transfer, and the recipients are sophisticated investors. 

c) Issuer Purchases of Equity Securities

None.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosure

Not applicable.

Item 5. Other Information

None of the Company’s
directors or officers adopted, modified or terminated a Rule 10b-5 trading arrangement or a non-Rule 10b-5 trading arrangement during
the fiscal quarter ended June 30, 2025, as such terms are defined under Item 408(a) of Regulation S-K.

On August 13, 2025, the board of directors of the Company adopted Amended
and Restated Bylaws of the Company (as amended and restated, the “Bylaws”), effective on such date, a copy of which Bylaws
are attached as Exhibit 3.21 hereto. The Company will file a Current Report on Form 8-K no later than August 19, 2025 that will describe
the provisions of the original bylaws that were changed by the Bylaws.

Item 6. Exhibits

See the Exhibit index following
the signature page to this Form 10-Q for a list of exhibits filed or furnished with this report, which Exhibit Index is incorporated herein
by reference.

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SIGNATURES

Pursuant to the requirements
of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by