Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 208

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 208
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 The amended
counterclaims, further amended on April 14, 2025, allege that Xeriant breached the Joint Venture Agreement by failing to make required
capital contributions of approximately $4.6 million and by failing to deliver promised intellectual property and strategic support. Legacy
XTI further alleges that Xeriant breached its fiduciary duty by engaging in coercive and self-dealing conduct, including conditioning
a strategic introduction on the issuance of equity and assumption of debt. Legacy XTI seeks declaratory relief confirming that the joint
venture has been terminated, that all intellectual property related to the TriFan 600 belongs solely to Legacy XTI, and that Xeriant has
no rights in the TriFan 600 technology. Xeriant has moved to dismiss Legacy XTI’s amended counterclaims, and that motion remains
pending. The Court has denied Xeriant’s renewed motion to stay discovery. On July 10, 2025, XTI filed a letter motion requesting
a conference to address: (i) ongoing deficiencies in Xeriant’s discovery responses; and (ii) Xeriant’s untimely service of
discovery requests on XTI, which were served more than three months after the applicable deadline. The Court granted XTI’s letter
motion on the same day, and held a conference on July 18, 2025. During the conference, the Court ordered: (i) an extension of all discovery
deadlines by three months, through November 24, 2025; (ii) an extension of expert discovery through February 16, 2026; and (iii) that
the parties finalize a protective order and Electronically Stored Information (“ESI”) protocol by July 25, 2025. The parties
subsequently submitted a stipulated protective order and ESI protocol, which the Court entered on July 28, 2025. The parties are continuing
to exchange written discovery and will be conducting depositions.  The litigation remains in the early stages of discovery. The Company
believes the claims against Legacy XTI are without merit and intends to continue to vigorously defend against them. At this time, the
Company is unable to predict the outcome of this matter or estimate the likelihood or magnitude of a potential loss, if any.

51

In connection with the litigation matter described in the immediately
preceding paragraph, on June 12, 2024, the Company received correspondence from legal counsel for Auctus Fund, LLC (“A