Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 315

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 315
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 we do not deliver
the airplanes. The deposits prioritize orders when the TriFan 600 airplane becomes available for delivery. Customers making deposits are
not obligated to purchase any airplanes until they execute a definitive purchase agreement. Customers may request a return of their refundable
deposit any time up until the execution of a purchase agreement. Customers’ request for a return of their refundable deposits could
adversely affect our liquidity resources and we may be financially unable to return such deposits.

Consulting Agreement with Prior “Legacy
Inpixon” CEO and Subsequent Settlement Agreement

On March 27, 2025, the Company
entered into a settlement agreement with 3AM Investments LLC (an entity controlled by Nadir Ali (“Ali”), the Company’s
former Chief Executive Officer and a former director of the Company) (“3AM”), Grafiti Group LLC (“Grafiti Group”)
and Ali (the “Settlement Agreement”) pursuant to which the Company agreed to settle certain existing obligations owed to
former management. As a result of the Settlement Agreement, the Company has an outstanding advisory fee obligation to Ali of $1,500,000
(the “Deferred Amount”) as of the date of this report, which is due in $500,000 installments on June 30, 2025, September
30, 2025, and December 31, 2025. Upon payment of the Deferred Amount in accordance with the terms of the Settlement Agreement, the Ali
Advisory Fees shall be deemed to be satisfied in full and no further amounts shall be payable by the Company to Ali or his affiliated
parties pursuant to the Ali Consulting Agreement dated March 12, 2024. See Note 18 of the Notes to Consolidated Financial Statements
included elsewhere in this report for more information about the Ali Consulting Agreement. See Note 23 of the Notes to Consolidated
Financial Statements included elsewhere in this report for more information about the Settlement Agreement. 

48

Risks
and Uncertainties

As
of December 31, 2024, the Company has a working capital deficit of approximately $8.8 million, and cash and cash equivalents of approximately
$4.1 million. For the year ended December 31, 2024, the Company had a net loss of approximately $35.6 million. During the year ended
December 31, 2024, the Company used approximately $22.3 million of cash for operating activities.