Company: XTIA
Filing Date: 2025-11-21
Form Type: PRER14A
Source: 0001213900-25-113701
Chunk: 17

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-21
Form: PRER14A
Chunk 17
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 certain
customary exempt issuance exceptions.

If the market price of the
Company’s common stock is below $2.50 per share, this restriction will prevent us from conducting customary market-priced equity
financings. As a result, we may be unable to raise additional equity capital on the terms ordinarily available to us, and any capital
we obtain may need to be raised through alternative financing arrangements that do not involve the issuance of common stock, which may
not be available on terms acceptable to us.

If stockholder approval
is not obtained, we will also remain obligated under PIPE Purchase Agreement to continue soliciting stockholder approval of this proposal
at meetings held at intervals of 180 days until stockholder approval is obtained or until the second anniversary of the closing of the
PIPE Offering. The placement agent warrants also includes an obligation for the Company to call a special or annual meeting of shareholders
180 days thereafter until Shareholder Approval is obtained. Continuing to submit this proposal to stockholders will result in additional
administrative and solicitation expenses and will require additional management time and attention.

Our ability to successfully
implement our business plans and ultimately generate value for our stockholders is dependent upon our ability to raise capital and satisfy
our ongoing business needs. If we are unable to issue the shares of the Company’s common stock pursuant to the PIPE Purchase Agreement,
we may be unable to fully satisfy our ongoing business needs on the terms or timeline we anticipate, if at all, the effect of which could
materially and adversely impact future operating results.

Vote Required

The Nasdaq 20% Issuance
Proposal requires the affirmative vote of a majority of the voting power of the capital stock entitled to vote thereon and present in
person or represented by proxy at the Annual Meeting. Abstentions will have the effect of an “AGAINST” on this proposal.
Broker non-votes will have no effect.

<div align='center'>***THE BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS A VOTE “FOR” THE NASDAQ 20% ISSUANCE PROPOSAL***

9</div>

| 3. | Proposal Four                                                  
 (originally numbered Proposal Three): The Adjournment Proposal |

As a result of the addition
of new Proposal Three described in this Supplement, the proposal originally designated as “Proposal Three” (the Adjournment
Proposal) in the Proxy Statement is renumbered as “Proposal Four.” All references in the Proxy Statement to “Proposal
Three” shall be deemed to