Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 61

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 61
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 resources, which could materially and adversely affect our business,
financial condition, results of operations and growth prospects.

Offers
or availability for sale of a substantial number of shares of our common stock may cause the price of our common stock to decline.

If
our stockholders sell substantial amounts of our common stock in the public market upon the expiration of any statutory holding period
under Rule 144, or shares issued upon the exercise of outstanding options or warrants, it could create a circumstance commonly referred
to as an “overhang” and, in anticipation of which, the market price of our common stock could fall. The existence of an overhang,
whether or not sales have occurred or are occurring, also could make more difficult our ability to raise additional financing through
the sale of equity or equity-related securities in the future at a time and price that we deem reasonable or appropriate.

In
general, a non-affiliated person who has held restricted shares for a period of six months, under Rule 144, may sell into the market
our common stock all of their shares, subject to the Company being current in its periodic reports filed with the SEC. As of the date
of this filing, a significant portion of our outstanding shares of common stock outstanding are free trading.

Sales
of our common stock or other securities, or the perception that future sales may occur, may cause the market price of our common stock
to decline, even if our business is doing well.

Sales
of our common stock or other securities, or the perception that future sales may occur, may cause the market price of our common stock
to decline, even if our business is doing well. Sales of substantial amounts of our common stock in the public market, or the perception
that these sales could occur, could adversely affect the price of our common stock and could impair our ability to raise capital through
the sale of additional shares. Historically, we have issued our securities to raise additional capital and used our shares of common
stock to satisfy our outstanding debt obligations, and, in the future, we expect to continue to issue our securities to raise additional
capital or satisfy outstanding debt obligations. The number of new shares of our common stock issued in connection with raising additional
capital or satisfying our outstanding debt obligations could constitute a material portion of the then-outstanding shares of our common
stock. The issuance or sale of such securities could depress the market price of our common stock.

32

There
may be future sales or other dilution of our equity, which may adversely affect the