Company: XTIA
Filing Date: 2025-11-21
Form Type: PRER14A
Source: 0001213900-25-113701
Chunk: 16

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-21
Form: PRER14A
Chunk 16
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 also could materially and adversely affect the market price of the Company’s common
stock.

<div align='center'>8</div>

If the stockholders do not
approve this proposal, we will be unable to issue any shares of the Company’s common stock upon conversion of the Series 10 Preferred
Stock (or upon exercise of any associated Pre-Funded Warrants issued in accordance with the Certificate of Designation), as the Certificate
of Designation provides for no issuance of any such shares unless and until stockholder approval is obtained. Similarly, we will not
be able issue any shares of the Company’s common stock to the placement agent upon the exercise of the placement agent warrants.

Any shares of Series 10
Preferred Stock that cannot be converted due to such limitation will remain outstanding in accordance with their terms and will continue
to constitute a separate class of equity with the rights, preferences, and limitations set forth in the Certificate of Designation. The
continued existence of an unconverted class of Series 10 Preferred Stock restricts our ability to simplify our capital structure and
limits our flexibility to use common stock in future financing or strategic transactions that require the issuance of additional shares
of common stock, because (i) we must continue to reserve authorized but unissued shares of common stock for the possible future conversion
of the Series 10 Preferred Stock and (ii) as long as any shares of Series 10 Preferred Stock remain outstanding, we cannot, without the
consent of the holders of a majority of the outstanding shares of Series 10 Preferred Stock, (A) amend our articles of incorporation
or the Certificate of Designation in a manner that adversely affects the rights of the Series 10 Preferred Stock, (B) authorize or create
any class of stock ranking senior to, or pari passu with, the Series 10 Preferred Stock as to dividends, redemption or liquidation, or
(C) increase the number of authorized shares of Series 10 Preferred Stock.

In addition, if stockholder
approval is not obtained, under the terms of the PIPE Purchase Agreement, we will be prohibited, until both (i) Shareholder Approval
is obtained and (ii) the Registration Statement has been declared effective by the Commission, from entering into any transaction for
the sale of any of our equity securities or securities convertible into its equity securities unless the price per share of the Company’s
common stock or per unit price (or conversion price or exercise price, as applicable) is equal to or greater than $2.50, subject to