Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 66

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 66
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 to acquisition of a “controlling interest” in ownership of outstanding
voting shares of an issuing corporation sufficient to enable the acquiring person, individually or in association with others, directly
or indirectly, to exercise (i) one fifth or more but less than one third, (ii) one third or more but less than a majority or (iii) a
majority or more of the voting power of the issuing corporation in the election of directors, and voting rights must be conferred by
a majority of the disinterested stockholders as each threshold is reached and/or exceeded. In the event that the control shares are accorded
full voting rights and the acquiring person acquires control shares with a majority or more of all the voting power, any stockholder,
other than the acquiring person, who does not vote in favor of authorizing voting rights for the control shares is entitled to demand
payment for the fair value of such person’s shares, and the corporation must comply with the demand. The Nevada control share statute
does not apply to any acquisition of a controlling interest in an issuing corporation if the articles of incorporation or bylaws of the
corporation in effect on the 10th day following the acquisition of a controlling interest by the acquiring person provide
that the provisions of those sections do not apply to the corporation or to an acquisition of a controlling interest specifically by
types of existing or future stockholders, whether or not identified. Therefore, the board of directors of a Nevada corporation usually
may unilaterally avoid the imposition of burdens imposed by the control share statute by amending the bylaws of the corporation in connection
with a transaction. For example, our bylaws provide that, effective as of March 12, 2024 (the closing date of the XTI Merger) (the “Closing
Date”), the provisions of NRS 78.378 through 78.3793, inclusive, are not applicable to the XTI Merger Agreement and the consummation
of the transactions contemplated thereby, including, without limitation, the acquisition of shares, or of rights to acquire shares, of
the Company by the stockholders, or holders of rights to acquire stock, of Legacy XTI as of the Closing Date. A Nevada corporation may
impose stricter requirements if it so desires.

34

These
statutes could prohibit or delay mergers or other takeover or change in control attempts and, accordingly, may discourage attempts to
acquire us.

The
limitation of liability, or our indemnification