Company: XTIA
Filing Date: 2025-09-12
Form Type: 424B5
Source: 0001213900-25-087270
Chunk: 36

Company: XTI Aerospace, Inc.
Filing Date: 2025-09-12
Form: 424B5
Chunk 36
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 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.

<div align='center'>S-17</div>

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 available for the Common 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 Common Warrants on any securities exchange or nationally recognized trading market. Without
a trading market, the liquidity of