Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 67

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 67
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, of our officers and directors may cause us to use corporate resources in a manner that
conflicts with the interests of our stockholders.

Nevada
law eliminates the personal liability of our directors and officers for damages as a result of an act or failure to act in that capacity
unless a statutory presumption that such person acted in good faith, on an informed basis and with a view to the interests of the corporation
has been rebutted. In addition, it must be proven both that the act or failure to act constituted a breach of a fiduciary duty as a director
or officer and that such breach involved intentional misconduct, fraud or a knowing violation of law. This limitation may not affect
the availability of equitable remedies, such as injunctive relief or rescission. Our Articles of Incorporation require us to indemnify
our directors and officers to the fullest extent permitted by Nevada law, including in circumstances in which indemnification is otherwise
discretionary under Nevada law.

Nevada
law generally permits indemnification of our directors, officers and others if the person either (i) acted in good faith and in a manner
which he or she reasonably believed to be in or not opposed to the Company’s best interests, and, if the action is not by or in
the right of the corporation and is with respect to any criminal proceeding, the person had no reasonable cause to believe that their
conduct was unlawful, or (ii) is not liable under the Nevada statutory provision eliminating the liability of certain persons as described
in the preceding paragraph.

These
persons may be indemnified against expenses, including attorneys’ fees, judgments, fines, penalties, including excise taxes, and
amounts paid in settlement and costs, actually and reasonably incurred by the person in connection with the proceeding. If the person
is adjudged by a court to be liable to the corporation, no indemnification will be made unless that or another court determines that
the person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper.

Insofar
as indemnification for liabilities under the Securities Act may be permitted to directors, officers or persons controlling us under the
above provisions, we have been informed that, in the opinion of the SEC, such indemnification is against public policy as expressed in
the Securities Act and is, therefore, unenforceable.

The
obligations associated with being a public company require significant resources and management attention, which may divert from our
business operations.

We
are