Company: XTIA
Filing Date: 2025-11-12
Form Type: 8-K
Source: 0001213900-25-108855
Chunk: 4

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-12
Form: 8-K
Item: Item 3.02
Chunk 4
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 as-converted to shares of the Common Stock basis, and in the same form as,
dividends actually paid on shares of the Common Stock when, as, and if such dividends are paid on shares of the Common Stock.

No shares of Common Stock may be issued upon conversion of, or as a
dividend on, the Series 10 Preferred Stock, if the holder, together with its affiliates, would beneficially own in excess of 4.99% (or,
at the election of the holder, 9.99%) of the number of shares of Common Stock outstanding immediately after giving effect to such conversion
(the “ Beneficial Ownership Limitation”). To the extent that the issuance of shares of Common Stock upon conversion of, or
as a dividend on, the Series 10 Preferred Stock would result in the holder exceeding the Beneficial Ownership Limitation, then, in lieu
of the issuance of such shares, at the election of the holder, (i) the holder will be issued such shares in the form of Pre-Funded Warrants
or (ii) such shares will be held by the Company in abeyance for the benefit of such holder.

The Series 10 Preferred Stock
has no voting rights, except as required by law and for certain customary protective provisions set forth in the Certificate of Designation.

Upon any liquidation, dissolution
or winding-up of the Company (but excluding a Fundamental Transaction), whether voluntary or involuntary, the holders of the Series 10
Preferred Stock are entitled to receive out of the assets, whether capital or surplus, of the Company an amount equal to the Stated Value,
plus any accrued and unpaid dividends thereon and any other fees or liquidated damages then due and owing thereon under the Certificate
of Designation, for each share of Series 10 Preferred Stock before any distribution or payment is made to the holders of any Junior Securities.

The foregoing description
of the Certificate of Designation does not purport to be complete and is qualified in its entirety by reference to the full text of the
Certificate of Designation, which is filed as Exhibit 3.1 to this Current Report on Form 8-K and is incorporated by reference herein.

Item 7.01 Regulation FD Disclosure.