Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 200

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 200
---
TI’s
second amended counterclaims. On September 23, 2025, the Court denied Xeriant’s motion, concluding that XTI plausibly alleged claims
against Xeriant for breach of contract, breach of fiduciary duty, and declaratory judgment. The Court found that XTI had adequately pleaded
that Xeriant was obligated to contribute $10 million in funding to the joint venture and that it acted disloyally by leveraging a potential
merger opportunity for its own benefit.

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 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.

On September 10, 2025, XTI filed a second letter
motion to compel discovery based on Xeriant’s ongoing failure to comply with its discovery obligations, including its refusal to
engage a qualified e-discovery vendor and produce electronically stored information in accordance with the Court-ordered ESI Protocol.
By order dated October 23, 2025, the Court granted XTI’s motion and compelled Xeriant to conduct ESI discovery in compliance with
the ESI Protocol, warning that continued noncompliance could result in dismissal of Xeriant’s case.

34

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Auctus Matter 

In connection with the “Xeriant Matter”
described above, on June 12, 2024, the Company received correspondence from legal counsel for Auctus Fund, LLC (“Auctus”),
dated April 3,