Company: XTIA
Filing Date: 2025-06-25
Form Type: 424B4
Source: 0001213900-25-057901
Chunk: 24

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-25
Form: 424B4
Chunk 24
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 Exchange Agreement, pursuant to which Streeterville exchanged the remaining balance of principal
and accrued interest under that certain promissory note issued by the Company to Streeterville on December 30, 2022 in the aggregate amount
$9,801,521 for 9,801.521 shares of the Company’s Series 9 Preferred Stock; (ii) the entry into an Equity Distribution Agreement
with Maxim that increased the value of stock that could be sold under the Company’s ATM from $48,000,000 to $83,800,000; (iii) the
January 10, 2025 capital raise that used the services of ThinkEquity LLC; and (d) the February 13, 2025 entry into an Exchange Agreement
with Streeterville, wherein an outstanding secured promissory note issued on May 1, 2024 (the “May 2024 Note”) in the principal
amount of $250,000.00 held by Streeterville was partitioned into a new secured promissory note (the “February 2025 Note”)
in the same form and amount as the May 2024 Note, with the Company and Streeterville subsequently agreeing to exchange the February 2025
Note for 59,832 shares of Company common stock with an effective price of $4.21 per share. Aircraft is defending against the ASOC vigorously.
On June 13, 2025, Aircraft filed an answer to the ASOC and counterclaims against Chardan for breach of contract. Such counterclaims assert
recovery of at least $8,668,060.10.

Regardless of the merits of
any particular claim, responding to such actions could divert time, resources and 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