Company: XTIA
Filing Date: 2025-06-20
Form Type: S-1/A
Source: 0001213900-25-055855
Chunk: 43

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-20
Form: S-1/A
Chunk 43
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 will
be exercisable, at the option of each holder, in whole or in part, by delivering to us a duly executed exercise notice accompanied by
payment in full for the number of shares of our common stock purchased upon such exercise (except in the case of a cashless exercise
as discussed below).

Cashless Exercise

If, at the time a holder
exercises its Common Warrants, a registration statement registering the issuance of the shares of our common stock underlying the Common
Warrants under the Securities Act is not then effective or available and an exemption from registration under the Securities Act is not
available for the issuance of such shares, then in lieu of making the cash payment otherwise contemplated to be made to us upon such
exercise in payment of the aggregate exercise price, the holder may elect instead to receive upon such exercise (either in whole or in
part) the net number of shares of our common stock determined according to a formula set forth in the Common Warrants.

Exercise Limitation

In general, a holder will
not have the right to exercise any portion of a Common Warrant if the holder (together with its Attribution Parties (as defined in the
Common Warrant)) would beneficially own in excess of 4.99% or 9.99%, at the election of the holder, of the number of shares of our common
stock outstanding immediately after giving effect to the exercise, as such percentage ownership is determined in accordance with the
terms of the Common Warrant. However, any holder may increase or decrease such percentage to any other percentage not in excess of 9.99%
upon notice to us, provided, that any increase in this limitation will not be effective until 61 days after such notice from the holder
to us and such increase or decrease will apply only to the holder providing such notice.

Fractional Shares

No fractional
shares of common stock will be issued upon the exercise of the Common Warrants. Rather, the number of shares of common stock to be issued
will, at our election, either be rounded up to the next whole share or we will pay a cash adjustment in respect of such final fraction
in an amount equal to such fraction multiplied by the exercise price.

Transferability

Subject to
applicable laws, a Common Warrant may be transferred at the option of the holder upon surrender of the Common Warrant to us together
with the appropriate instruments of transfer and funds sufficient to pay any transfer taxes payable upon such transfer.

Trading Market

There is
no trading market