Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 302

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 302
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the Effective Date, the XTI Parties agreed to release the Ali Parties from and with respect to any and all claims, demands, causes of
action, damages, obligations, liabilities, costs, and expenses of any kind or nature whatsoever (collectively, “XTI Claims”),
arising out of any obligations of the Ali Parties with respect to any obligation of the Ali Parties in connection with the payment of
the purchase price as set forth in the Equity Purchase Agreement, the Ali Consulting Agreement, the Series 9 Purchase Agreement and the
portion of the Bonus Plan relating to Ali, whether known or unknown, foreseen or unforeseen, that the XTI Parties, or any of them, ever
had, now have, or may have against the Ali Parties, or any of them, from the beginning of time through and including the Completion Date.

Entire Agreement. The
Settlement Agreement provides that it supersedes any prior consents or agreements regarding the allocation of financing proceeds for the
payment of any obligations of the Company described in the Settlement Agreement.

Compliance
with Nasdaq Continued Listing Requirements

On
February 11, 2025, the Company received a letter from Nasdaq confirming that the Company has regained compliance with the minimum bid
price requirement set forth under Nasdaq Listing Rule 5550(a)(2), and accordingly, the Nasdaq Hearings Panel has determined to continue
the listing of the Company’s common stock on The Nasdaq Stock Market.

Critical
Accounting Policies and Estimates

Our
consolidated financial statements are prepared in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
In connection with the preparation of our consolidated financial statements, we are required to make assumptions and estimates about
future events, and apply judgments that affect the reported amounts of assets, liabilities, revenue, expenses and the related disclosures.
We base our assumptions, estimates and judgments on historical experience, current trends and other factors that management believes
to be relevant at the time our consolidated financial statements are prepared. On a regular basis, we review the accounting policies,
assumptions, estimates and judgments to ensure that our consolidated financial statements are presented fairly and in accordance with
GAAP. However, because future events and their effects cannot be determined with certainty, actual results could differ from our assumptions
and estimates, and such differences could be material.

Our
significant accounting policies are discussed in Note 3 of the audited consolidated financial statements for the years ended December
31, 2024 and