Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 454

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 454
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 from a subsequent transaction involving the TriFan 600 technology as part of Legacy XTI’s merger
with the Company. Xeriant asserts causes of action including breach of contract, fraud, unjust enrichment, and misappropriation of confidential
information. It seeks damages in excess of $500 million, injunctive relief, a royalty obligation, and other equitable relief. On March
13, 2024, Legacy XTI moved to dismiss portions of the second amended complaint. The Court denied that motion on January 14, 2025. Legacy
XTI filed an answer on January 28, 2025, and subsequently filed an amended answer and counterclaims on February 18, 2025. The amended
counterclaims, further amended on April 14, 2025, allege that Xeriant breached the Joint Venture Agreement by failing to make required
capital contributions of approximately $4.6 million and by failing to deliver promised intellectual property and strategic support. Legacy
XTI further alleges that Xeriant breached its fiduciary duty by engaging in coercive and self-dealing conduct, including conditioning
a strategic introduction on the issuance of equity and assumption of debt. Legacy XTI seeks declaratory relief confirming that the joint
venture has been terminated, that all intellectual property related to the TriFan 600 belongs solely to Legacy XTI, and that Xeriant has
no rights in the TriFan 600 technology. Xeriant has moved to dismiss Legacy XTI’s amended counterclaims, and that motion remains
pending. The Court has denied Xeriant’s renewed motion to stay discovery. On July 10, 2025, XTI filed a letter motion requesting
a conference to address: (i) ongoing deficiencies in Xeriant’s discovery responses; and (ii) Xeriant’s untimely service of
discovery requests on XTI, which were served more than three months after the applicable deadline. The Court granted XTI’s letter
motion on the same day, and held a conference on July 18, 2025. During the conference, the Court ordered: (i) an extension of all discovery
deadlines by three months, through November 24, 2025; (ii) an extension of expert discovery through February 16, 2026; and (iii) that
the parties finalize a protective order and Electronically Stored Information (“ESI”) protocol by July 25, 2025. The parties
subsequently submitted a stip