Company: XTIA
Filing Date: 2025-06-12
Form Type: S-1
Source: 0001213900-25-053928
Chunk: 41

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-12
Form: S-1
Chunk 41
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 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 Pre-funded 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 Pre-funded Warrant may be transferred at the option of the holder upon surrender of the Pre-funded 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 available for the Pre-funded Warrants on any securities exchange or nationally recognized trading system, and we do not expect
a trading market to develop. We do not intend to list the Pre-funded Warrants on any securities exchange or nationally recognized trading
market. Without a trading market, the liquidity of the Pre-funded Warrants will be extremely limited.

Right as a Stockholder

Except as otherwise
provided in the Pre-funded Warrants or by virtue of such holder’s ownership of common stock, the holders of the Pre-funded Warrants
do not have the rights or privileges of holders of our common stock, including any voting rights, until they exercise their Pre-funded
Warrants. The Pre-funded Warrants will provide that holders have the right to participate in distributions or dividends paid on our common
stock.

Fundamental Transaction

Upon the consummation
of a fundamental transaction (as described in the Pre-funded Warrants, and generally including any reorganization, recapitalization or
reclassification of our shares of common stock, the sale, transfer or other disposition of all or substantially all of our properties
or assets, our consolidation or merger with or into another person, the acquisition of more than 50% of our outstanding shares of common
stock, or any person or group becoming the beneficial owner of 50% of the voting power of our outstanding shares of common stock), the
holders of the Pre-funded Warrants will be entitled to receive, upon exercise of the Pre-funded Warrants, the kind and amount of securities,
cash or