Company: XTIA
Filing Date: 2025-06-25
Form Type: 424B4
Source: 0001213900-25-057901
Chunk: 19

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-25
Form: 424B4
Chunk 19
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 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; (ii) a written agreement to transactions involving penny stocks;
and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have the effect of reducing the
trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty selling their shares.

Adverse judgments or settlements in legal proceedings could materially harm our business, financial condition, operating results and cash flows.

We may be a party to claims
that arise from time to time in the ordinary course of our business, which may include those related to, for example, our securities offerings,
contracts, sub-contracts, protection of confidential information or trade secrets, adversary proceedings arising from customer bankruptcies,
employment of our workforce and immigration requirements or compliance with any of a wide array of state and federal statutes, rules and
regulations that pertain to different aspects of our business.

Additionally, we are and we
may be made a party to future claims relating to the XTI Merger. On December 6, 2023, Xeriant, Inc. (“Xeriant”) filed a complaint
against Legacy XTI, along with two unnamed companies and five unnamed persons, in the United States District Court for the Southern District
of New York (the “Court”). On January 31, 2024, Xeriant filed an amended complaint, which added us as a defendant. On February
2, 2024, the Court ordered Xeriant to show cause as to why the amended complaint should not be dismissed without prejudice for lack of
subject matter jurisdiction. On February 29, 2024,