Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 63

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 63
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’ ability to
sell their shares of our common stock could be limited. A delisting of our common stock from Nasdaq would negatively affect the value
of our common stock. A delisting of our common stock could also adversely affect our ability to obtain financing for our operations and
could result in the loss of confidence in our company.

If
our common stock becomes subject to the penny stock rules, it would become more difficult to trade our shares.

The
SEC has adopted rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks are generally
equity securities with a price of less than $5.00, other than securities registered on certain national securities exchanges or authorized
for quotation on certain automated quotation systems, provided that current price and volume information with respect to transactions
in such securities is provided by the exchange or system. If we do not retain a listing on Nasdaq, and if the price of our common stock
is less than $5.00, our common stock will be deemed a penny stock. The penny stock rules require a broker-dealer, before a transaction
in a penny stock not otherwise exempt from those rules, to deliver a standardized risk disclosure document containing specified information.
In addition, the penny stock rules require that before effecting any transaction in a penny stock not otherwise exempt from those rules,
a broker-dealer must make a special written determination that the penny stock is a suitable investment for the purchaser and receive
(i) the purchaser’s written acknowledgment of the receipt of a risk disclosure statement; (ii) a written agreement to transactions
involving penny stocks; and (iii) a signed and dated copy of a written suitability statement. These disclosure requirements may have
the effect of reducing the trading activity in the secondary market for our common stock, and therefore stockholders may have difficulty
selling their shares.

We
do not intend to pay cash dividends to our stockholders, so it is unlikely that stockholders will receive any return on their investment
in our Company prior to selling our stock.

We
have never paid any dividends to our common stockholders as a public company. We currently intend to retain any future earnings for funding
growth and, therefore, do not expect to pay any cash dividends in the foreseeable future. If we determine that we will pay cash dividends
to the holders of our common stock, we cannot assure that such cash dividends will be paid on a timely basis. The success of your investment
in our Company will likely depend entirely upon any future appreciation. As