Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 47

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 47
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 September 30, 2024, Legacy XTI paid Mr. Brody consulting compensation of $20,000.

Consulting Agreement
with Scott Pomeroy

Scott Pomeroy and Legacy XTI entered into a consulting
agreement dated July 1, 2022, as amended effective January 1, 2023, that provided for his engagement as Legacy XTI’s Chief Financial
Officer. The agreement provided that Mr. Pomeroy receive a monthly compensation of $17,500. Pursuant to the consulting agreement and
in connection with the closing of the XTI Merger in March 2024, Mr. Pomeroy (i) received 4,000,000 shares (pre-merger, pre-reverse stock
splits) of Legacy XTI common stock valued at $1.9 million as transaction-related compensation and (ii) was entitled to receive a transaction
cash bonus of $400,000. The transaction cash bonus obligation remained outstanding as of December 31, 2024 and was included in accrued
expenses and other current liabilities on the accompanying consolidated balance sheets. This cash bonus obligation was subsequently paid
in full during January 2025. Effective upon closing time of the XTI Merger, Mr. Pomeroy was appointed as XTI Aerospace’s Chief
Executive Officer (“CEO”). As the consulting agreement was terminated upon Mr. Pomeroy’s appointment as the Company’s
CEO on March 12, 2024, no consulting compensation was accrued or paid to Mr. Pomeroy during the three months ended September 30, 2025
and 2024. During the nine months ended September 30, 2025 and 2024, the Company paid Mr. Pomeroy consulting compensation of $0 and $43,750,
respectively.

Transactions with AVX Aircraft Company

On August 27, 2024, the Company entered into
an amended and restated letter agreement with AVX Aircraft Company (“AVX”), which amends and restates the original letter
agreement, dated as of March 25, 2024, by and between the Company and AVX, as subsequently amended, pursuant to which AVX provides consulting
and advisory services to the Company relating to the development and design of the TriFan 600 airplane in exchange for the payment of
costs incurred by AVX (with a target cost of approximately $960,000) plus a fixed fee of 12% of such costs (