Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 146

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 146
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 with amounts raised from sales under the ATM during
the period from November 7, 2024 through December 31, 2024. Such payments were made for 469.00 shares of the Company’s Series 9
Preferred Stock held by Streeterville and 287.70 shares of the Company’s Series 9 Preferred Stock held by 3AM. The Company
entered into acknowledgment agreements with each of Streeterville and 3AM to record such payments.

As
of December 31, 2024, Streeterville and 3AM held zero and 1331.12 shares of Series 9 Preferred Stock, respectively. Pursuant to a Settlement Agreement dated March 27, 2025, the Company redeemed the remaining Series 9 Preferred Stock
held by 3AM as further disclosed in Note 23.

F-30

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

Note
12 - Stock Award Plans and Stock-Based Compensation

The
Company has three Employee Stock Incentive plans. The Company assumed Legacy XTI’s 2017 Employee and Consultant Stock Ownership
Plan (the “2017 Plan”) in connection with the XTI Merger. Legacy Inpixon had put in place a 2011 Employee Stock Incentive
Plan (the “2011 Plan”) and a 2018 Employee Stock Incentive Plan (the “2018 Plan” and together with the 2011 Plan,
the “Legacy Inpixon Option Plans”). The Company determined that activity within the 2011 Plan is not material.

2017
Plan

During
2017, Legacy XTI adopted the 2017 Plan, which was amended in 2021 to increase the maximum shares eligible to be granted under the 2017
Plan. The Company may issue awards in the form of restricted stock units and stock options to employees, directors, and consultants.
Under the 2017 Plan, stock options are generally granted with an exercise price equal to the estimated fair value of the Company’s
common stock, as determined by the Company’s Board of Directors on the date of grant. Options generally have contractual terms
of ten years. Incentive stock options (ISO) may only be granted to employees, whereas all other stock awards may be granted to employees,
directors, consultants and other