Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 607

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 607
---
 Amount (i.e., the aggregate amount
of $1.0 million) required to be delivered by Grafiti Group pursuant to the Equity Purchase Agreement shall be deemed to be satisfied
in full and no further amounts shall be payable to the Company by Grafiti Group or any of its affiliated parties pursuant to the Equity
Purchase Agreement. Refer to Note 23 for further disclosure of the Settlement Agreement. 

F-39

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

Note 19
- Commitments and Contingencies

Litigation

From
time to time, the Company is subject to various claims, charges and litigation matters that arise in the ordinary course of business.
The Company records a provision for a liability when it is both probable that the loss has been incurred and the amount of the loss can
be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be reasonably
estimated, it discloses the possible loss or range of loss. Any potential gains associated with legal matters are not recorded until
the period in which all contingencies are resolved and the gain is realized or realizable. Depending on the nature and timing of any
such proceedings that may arise, an unfavorable resolution of a matter could materially affect the Company’s future consolidated
results of operations, cash flows or financial position in a particular period. Except if otherwise indicated, it is not reasonably possible
to determine the probability of loss or estimate damages for any of the matters discussed below, and therefore, the Company has not established
reserves for any of these matters.

On December 6, 2023, 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 (the
“Xeriant Matter”). On January 31, 2024, Xeriant filed an amended complaint, which added the Company as a defendant to the
Xeriant Matter. On February 29, 2024, Xeriant filed a second amended complaint. The Xeriant Matter alleges that Legacy XTI has prevented
Xeriant from obtaining compensation owed under various agreements entered into between Xeriant and Legacy XTI, including but not limited
to a joint venture agreement, a cross-p