Company: XTIA
Filing Date: 2025-06-03
Form Type: DRS
Source: 0001213900-25-050156
Chunk: 20

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-03
Form: DRS
Chunk 20
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 or obtain additional financing in the future.                                                                                                                                                                          |

Delisting from Nasdaq could
also result in other negative consequences, including the potential loss of confidence by suppliers, customers and employees, the loss
of institutional investor interest and fewer business development opportunities.

If our shares of common stock
lose their status on Nasdaq, we believe that they would likely be eligible to be quoted on the inter-dealer electronic quotation and trading
system operated by OTC Markets Group Inc., commonly referred to as the Pink Open Market and we may also qualify to be traded on their
OTCQB market, also called The Venture Market. These markets are generally not considered to be as efficient as, and not as broad as, Nasdaq.
Selling our shares on these markets could be more difficult because smaller quantities of shares would likely be bought and sold, and
transactions could be delayed. In addition, in the event our shares are delisted, broker-dealers have certain regulatory burdens imposed
upon them, which may discourage broker-dealers from effecting transactions in our common stock or even holding our common stock, further
limiting the liquidity of our common stock. These factors could result in lower prices and larger spreads in the bid and ask prices for
our common stock.

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If our common stock becomes subject to the penny stock rules, it would become more difficult to trade our shares.

The SEC has adopted rules
that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally equity securities with
a price of less than $5.00, other than securities registered on certain national securities exchanges or authorized for quotation on certain
automated quotation systems, provided that current price and volume information with respect to transactions in such securities is provided
by the exchange or system. If we do not retain a listing on the Nasdaq Capital Market, and if the price of our common stock is less than
$5.00, our common stock will be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction in a penny stock
not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information. In addition,
the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules, a broker-dealer
must make a special written determination that the penny stock is a suitable investment for the purchaser and receive (i) the purchaser’s
written acknowledgment of the receipt of a risk disclosure statement; (