Company: XTIA
Filing Date: 2025-03-31
Form Type: 424B5
Source: 0001013762-25-004458
Chunk: 31

Company: XTI Aerospace, Inc.
Filing Date: 2025-03-31
Form: 424B5
Chunk 31
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 an obligation on the part of the customer
to purchase an aircraft, and a customer may request the full return of its refundable deposit. Most pre-orders are subject to the execution
of a definitive purchase agreement between us and each party that contains the final terms for the purchase of our aircraft, including,
but not limited to, the final number of aircraft to be purchased and the timing for delivery of the aircraft. Some or most customers might
not transition to non-refundable purchase contracts until prior to aircraft delivery, if at all. Aircraft customers might respond to weak
economic conditions or competitive alternatives in the market by canceling orders, resulting in lower demand for our aircraft and other
materials, such as parts, services, and training, from which we expect to generate additional revenue. Customers’ request for a
return of their refundable deposits could have a material adverse effect on our financial results and/or liquidity, including, but not
limited to, the possibility that we may be financially unable to return such deposits.

<div align='center'>S-12

USE OF PROCEEDS</div>

We estimate that the net proceeds
from the sale of our common stock and/or Pre-funded Warrants and accompanying Common Warrants in this offering will be approximately $3.3
million, after deducting underwriting discounts and commissions and estimated offering expenses payable by us, and excluding the proceeds
we may receive from any exercises of the Common Warrants or the Representative’s Warrants.

We currently expect to use
the net proceeds from this offering for working capital and other general corporate purposes. We also intend to use a portion
of the net proceeds from this offering, approximately $2.7 million, to repay in full all amounts outstanding, including a 115% prepayment penalty, in respect of two secured
promissory notes (the “Notes”) issued by the Company to Streeterville Capital, LLC on May 1, 2024 and May 24, 2024. Each Note
matures 12 months from its respective issuance date. The net proceeds from the Notes have been primarily used for working capital needs.

This expected use of the net
proceeds from this offering and our existing cash represents our intentions based upon our current plans, financial condition and business
conditions. The amount, timing and nature of specific expenditures of net proceeds from this offering will depend on a number of factors,
including the timing, scope, progress and results of our development efforts and the timing and progress of any collaboration efforts.
As of