Company: XTIA
Filing Date: 2025-03-31
Form Type: 424B5
Source: 0001013762-25-004458
Chunk: 30

Company: XTI Aerospace, Inc.
Filing Date: 2025-03-31
Form: 424B5
Chunk 30
---
 management’s attention away from our business
operations, and we may incur significant expenses in defending these lawsuits or other similar lawsuits. The results of litigation and
other legal proceedings are inherently uncertain, and adverse judgments or settlements in some of these legal disputes may result in adverse
monetary damages, penalties or injunctive relief against us, which could have a material adverse effect on our financial condition, operating
results and cash flows. Any claims or litigation, even if fully indemnified or insured, could damage our reputation and make it more difficult
to compete effectively or to obtain adequate insurance in the future.

Furthermore, while we maintain
insurance for certain potential liabilities, such insurance does not cover all types and amounts of potential liabilities and is subject
to various exclusions as well as deductibles and caps on amounts of coverage. Even if we believe a claim is covered by insurance, insurers
may dispute our entitlement to coverage for a variety of potential reasons, which may affect the timing and, if the insurers prevail,
the amount of our available insurance coverage for a particular claim.

We may also be required to
initiate expensive litigation or other proceedings to protect our business interests. There is a risk that we will not be successful or
otherwise be able to satisfactorily resolve such claims or litigation. Litigation and other legal claims are subject to inherent uncertainties.
Those uncertainties include, but are not limited to, litigation costs and attorneys’ fees, unpredictable judicial or jury decisions
and the differing laws and judicial proclivities regarding damage awards among the states in which we operate. Unexpected outcomes in
such legal proceedings, or changes in management’s evaluation or predictions of the likely outcomes of such proceedings, could have
a material adverse effect on our business, financial condition, results of operations and cash flows. Our current financial status may
increase our default and litigation risks and may make us more financially vulnerable in the face of threatened litigation.

The pre-orders we have received for our aircraft are non-binding, conditional or written expressions of interest and may be terminated at any time prior to execution of a definitive purchase agreement. If these pre-orders are cancelled, modified, delayed or not placed in accordance with the terms agreed with each party, our business, results of operations, liquidity and cash flow will be materially adversely affected.

We previously had a pre-sales
program that included refundable deposits for the TriFan 600 aircraft. Most pre-orders do not include deposits. Pre-sale agreements generally
provide customers a delivery slot for their aircraft. The deposits we have received do not create