Company: XTIA
Filing Date: 2025-07-09
Form Type: 8-K
Source: 0001213900-25-062190
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Company: XTI Aerospace, Inc.
Filing Date: 2025-07-09
Form: 8-K
Item: Item 8.01
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Item 8.01 Other Events.

As previously disclosed, on
or about August 1, 2024, Chardan Capital Markets LLC (“ Chardan”) commenced an arbitration (the “ Arbitration”)
before the Financial Industry Regulatory Authority against XTI Aerospace, Inc. (the “ Company”) and its subsidiary, XTI Aircraft
Company (“ Aircraft”), related to an engagement letter, dated as of June 7, 2022, by and between Chardan and Aircraft, as amended
(the “ Engagement Letter”). The Company filed a petition in the U. S. District Court for the Southern District of New York (the
“ Court”) seeking to stay the Arbitration to the extent that it was asserted against the Company. On or about January 21, 2025,
the Court entered a final judgment that: (a) enjoined Chardan from prosecuting the Arbitration against the Company; and (b) declared that
the Company has no contractual or other duty to arbitrate with Chardan. On or about April 30, 2025, Chardan filed an Amended Statement
of Claim (the “ ASOC”) that eliminated the Company as a party to the Arbitration and that was asserted solely against Aircraft.
On or about June 13, 2025, Aircraft filed an answer to the ASOC and counterclaims against Chardan for breach of contract.

On July 8, 2025, Chardan,
on the one hand, and the Company and Aircraft, on the other hand, entered into a settlement agreement (the “ Settlement Agreement”),
pursuant to which the parties agreed to resolve and settle all claims and matters between them. Pursuant to the Settlement Agreement,
simultaneous with the execution thereof, (i) Chardan, the Company and Aircraft entered into a mutual release, pursuant to which, Chardan,
on the one hand, and the Company and Aircraft, on the other hand, released each other from all claims against each other, including all
claims related to the Arbitration, and (ii) counsel for the parties executed a joint stipulation whereby Chardan and Aircraft agreed to
dismiss with prejudice all claims asserted against each other with respect to the Arbitration, which will be filed in the Arbitration.
None of the parties made any payments in connection with the Settlement Agreement and, pursuant to the Settlement Agreement, the parties
agreed that none of the parties owes each other any amount or debt. Purs