Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 457

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part II, Item 1A
Chunk 457
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 the timing and, if the insurers prevail,
the amount of our available insurance coverage for a particular claim.

We may also be required to
initiate expensive litigation or other proceedings to protect our business interests. There is a risk that we will not be successful or
otherwise be able to satisfactorily resolve such claims or litigation. Litigation and other legal claims are subject to inherent uncertainties.
Those uncertainties include, but are not limited to, litigation costs and attorneys’ fees, unpredictable judicial or jury decisions
and the differing laws and judicial proclivities regarding damage awards among the states in which we operate. Unexpected outcomes in
such legal proceedings, or changes in management’s evaluation or predictions of the likely outcomes of such proceedings, could have
a material adverse effect on our business, financial condition, results of operations and cash flows. Our current financial status may
increase our default and litigation risks and may make us more financially vulnerable in the face of threatened litigation.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

a) Sales of Unregistered Securities

On May 13, 2025, the Company entered into an advisory agreement with
a third party advisor, pursuant to which the Company issued 125,000 shares of restricted common stock to the advisor’s designees
(the “Advisor Shares”) in consideration for financial advisory services agreed to be rendered to the Company pursuant to the
agreement. The Advisor Shares were issued pursuant to an exemption from registration provided by Section 4(a)(2) and/or Rule 506 of Regulation
D of the Securities Act because such issuances did not involve a public offering, the recipients took the securities for investment and
not resale, the Company took appropriate measures to restrict transfer, and the recipients are sophisticated investors. 

c) Issuer Purchases of Equity Securities

None.

Item 3. Defaults Upon Senior Securities

Not applicable.

Item 4. Mine Safety Disclosure

Not applicable.

Item 5. Other Information

None of the Company’s
directors or officers adopted, modified or terminated a Rule 10b-5 trading arrangement or a non-Rule 10b-5 trading arrangement during
the fiscal quarter ended June 30, 2025, as such terms are defined under Item 408(a) of Regulation S-K.

On August 13, 2025, the board of directors of the Company adopted Amended
and Restated Bylaws of the Company (as amended and restated, the “Bylaws”), effective on