Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 198

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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, 2025, the Company paid the $85,000
cash fee and issued 125,000 shares of common stock to the third-party advisor. Fifty percent of the initial cash fee payment, or $42,500,
was subsequently waived and returned to the Company as part of the June Offering closing.

33

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

In addition, the Company agreed to reimburse
the advisor for all reasonable travel and other out-of-pocket expenses incurred in connection with the advisory agreement up to a maximum
of $15,000, subject to certain exceptions. The Company also agreed to: (1) pay the advisor a customary fee tail during the 12-month period
following the termination or expiration of the advisory agreement, if applicable; (2) pay an M&A cash fee to the advisor during the
term equal to 3% of the aggregate consideration to the extent the Company enters into a merger or acquisition with a party initially
introduced by the advisor to the Company; and (3) indemnify the advisor in in accordance with the terms and conditions of the advisory
agreement.

The advisory agreement has a term of 180 days,
subject to early termination or further extension, each upon the mutual consent of the parties.

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.

Xeriant Matter 

On December 6, 2023, Xeriant, Inc.