Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 72

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 72
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 in Part I, Item 1 of this report under the heading “Litigation.”

There are no proceedings in
which any of the directors, officers or affiliates of the Company, or any registered or beneficial holder of more than 5% of the Company’s
voting securities, is an adverse party or has a material interest adverse to that of the Company.

 Item 1A. Risk Factors

We
face a number of significant risks and uncertainties in connection with our operations. Our business, results of operations and financial
condition could be materially adversely affected by these risks. In addition to the risk factors set forth below and the other information
set forth in this Form 10-Q, you should carefully consider the factors disclosed in Part I, Item 1A, “Risk Factors,” in our
Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on April 15, 2025, which report is incorporated
by reference herein, all of which could materially affect our business, financial condition and future results.

Adverse judgments or settlements in legal
proceedings could materially harm our business, financial condition, operating results and cash flows.

We may be a party to claims
that arise from time to time in the ordinary course of our business, which may include those related to, for example, our securities offerings,
contracts, sub-contracts, protection of confidential information or trade secrets, adversary proceedings arising from customer bankruptcies,
employment of our workforce and immigration requirements or compliance with any of a wide array of state and federal statutes, rules and
regulations that pertain to different aspects of our business.

Additionally, we are and we
may be made a party to future claims relating to the XTI Merger. On December 6, 2023, Xeriant, Inc. (“Xeriant”) filed a complaint
against Legacy XTI, along with two unnamed companies and five unnamed persons, in the United States District Court for the Southern District
of New York. On January 31, 2024, Xeriant filed an amended complaint, which added us as a defendant. On February 2, 2024, the Court ordered
Xeriant to show cause as to why the amended complaint should not be dismissed without prejudice for lack of subject matter jurisdiction.
On February 29, 2024, Xeriant filed a second amended complaint, which removed us and one of the unnamed companies as defendants. The second
amended