Company: XTIA
Filing Date: 2025-06-25
Form Type: 424B4
Source: 0001213900-25-057901
Chunk: 21

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-25
Form: 424B4
Chunk 21
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 (1) Xeriant
breached the Joint Venture Agreement by failing to make nearly $4.6 million in required capital contributions, as well as failing to provide
promised strategic support and intellectual property; (2) Xeriant breached its fiduciary duty to Legacy XTI by engaging in coercive and
self-dealing conduct—most notably, by conditioning a strategic introduction to a potential merger partner on Legacy XTI’s
agreement to issue Xeriant equity and assume its debt; and (3) Legacy XTI is entitled to a declaratory judgment confirming that the joint
venture has terminated, that all intellectual property developed through the joint venture belongs exclusively to Legacy XTI, and that
Xeriant has no further rights in the TriFan 600 technology or related assets. On April 28, 2025, Xeriant moved for dismissal of Legacy
XTI’s amended counterclaims, and Legacy XTI has opposed that motion. On May 27, 2025, Xeriant filed a renewed motion to stay discovery,
which the Court denied on May 29, 2025. The case is in its early stages of discovery, and we are unable to estimate the likelihood or
magnitude of a potential adverse judgment. Legacy XTI nevertheless denies the allegations of wrongdoing contained in the second amended
complaint and is vigorously defending against the lawsuit.

<div align='center'>11</div>

In connection with the litigation
matter described in the immediately preceding paragraph, on June 12, 2024, we received a letter from counsel for Auctus Fund, LLC (“Auctus”),
dated April 3, 2024, claiming that, pursuant to the above-referenced May 17 letter by and between Xeriant and Legacy XTI, as a result
of the XTI Merger and Legacy XTI’s entry into a promissory note agreement with Legacy Inpixon in March 2023, XTI Aerospace and Legacy
XTI may have assumed Xeriant’s obligations under that certain senior secured promissory note in the principal amount of $6,050,000
issued by Xeriant to Auctus (the “Senior Secured Promissory Note”), including the obligation to repay Auctus all principal
and accrued and unpaid interest thereunder, which Auctus claims was $8,435,008.81 as of April 3, 2024. In July 2024, Legacy XTI responded