Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 203

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 203
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 accrual in the period such determination is made.

Settlement Agreement with Chardan

On or about August 1, 2024, Chardan Capital Markets
LLC (“Chardan”) commenced an arbitration (the “Arbitration”) before the Financial Industry Regulatory Authority
against the Company and Legacy XTI, related to an engagement letter, dated as of June 7, 2022, by and between Chardan and Legacy XTI,
as amended (the “Engagement Letter”). On or about June 13, 2025, Legacy XTI filed a counterclaim against Chardan for breach
of contract.

On July 8, 2025, Chardan, on the one hand, and
the Company and Legacy XTI, on the other hand, entered into a settlement agreement (the “Chardan Settlement Agreement”), pursuant
to which the parties agreed to resolve and settle all claims and matters between them. Pursuant to the Chardan Settlement Agreement, simultaneous
with the execution thereof, (i) Chardan, the Company and Legacy XTI entered into a mutual release, pursuant to which, Chardan, on the
one hand, and the Company and Legacy XTI, on the other hand, released each other from all claims against each other, including all claims
related to the Arbitration, and (ii) counsel for the parties executed a joint stipulation whereby Chardan and Legacy XTI agreed to dismiss
with prejudice all claims asserted against each other with respect to the Arbitration, which was filed in the Arbitration. None of the
parties made any payments in connection with the Chardan Settlement Agreement and, pursuant to the Chardan Settlement Agreement, the parties
agreed that none of the parties owes each other any amount or debt. Pursuant to the Chardan Settlement Agreement, the parties also agreed
that the Engagement Letter is terminated and is of no further force or effect.

35

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 18 - Net Loss Per Share Attributable to Common Stockholders

The following table presents the calculation
of basic and diluted loss per share attributable to common stockholders (in thousands, except share and per share data):

    For the Three Months Ended
    September 30,  
    For the Nine Months Ended
    September 30,