Company: XTIA
Filing Date: 2025-06-03
Form Type: DRS
Source: 0001213900-25-050156
Chunk: 38

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-03
Form: DRS
Chunk 38
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 conversion limitations hereunder) to common stock
which amounts will be paid pari passu with all holders of common stock.

.
The Series 4 Preferred contain an anti-dilution protection feature, to adjust the conversion price if shares of common stock are sold
or issued for a consideration per share less than the conversion price then in effect (subject to certain exemptions), provided, that
the conversion price will not be less than $418,500,000.

.
We are not obligated to redeem or repurchase any shares of Series 4 Preferred Stock. Shares of Series 4 Preferred Stock are not otherwise
entitled to any redemption rights, or mandatory sinking fund or analogous provisions.

Series 5 Preferred Stock

Our board of directors designated
12,000 shares of preferred stock as Series 5 Convertible Preferred Stock, $0.001 par value with a stated value of $1,000 (the “Series
5 Preferred Stock”). The Series 5 Preferred Stock was originally issued in our rights offering consummated on January 15, 2019.
As of May 28, 2025, there were 126 shares of Series 5 Preferred Stock outstanding convertible into 1 share of common stock. Our board
of directors may, without stockholder approval, issue shares of an additional class or series of preferred stock with voting and conversion
rights which could adversely affect the voting power of the holders of the Series 5 Preferred Stock, except as prohibited by the certificate
of designation of preferences, rights and limitations of the Series 5 Preferred Stock.

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. Each share
of Series 5 Preferred Stock will be convertible at the option of the holder at any time, into the number of shares of our common stock
determined by dividing the $1,000 stated value per share of the Series 5 Preferred Stock by a conversion price of $280,968,750 per share.
In addition, the conversion price per share is subject to adjustment for stock dividends, distributions, subdivisions, combinations or
reclassifications. Subject to limited exceptions, a holder of the Series 5 Preferred Stock will not have the right to convert any portion
of the Series 5 Preferred Stock to the extent that, after giving effect to the conversion, the holder, together with its affiliates, would
beneficially own in excess of 4.99% (subject to adjustment to up to 9.99% solely at the holder’s discretion upon 61 days’
prior notice to us)