Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 172

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 172
---
 The “Former Management Payments” comprise (i) an aggregate amount of $803,260.65 that, as of the Effective Date, remained payable to the recipients of bonuses payable pursuant to the Strategic Transaction Bonus Plan together with (ii) an aggregate amount of $303,372.87 (the “Loundermon Advisory Fee”) that, as of the Effective Date, was payable to Wendy Loundermon, the Company’s former Chief Financial Officer and a former director of the Company (“Loundermon”), pursuant to that certain Consulting Agreement, dated March 12, 2024, by and between the Company and Loundermon. 

On March 31, 2025, the Company
paid the Former Management Payments in full.

31

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

    ● Preferred Stock Redemption. Pursuant to the Settlement Agreement, on the Effective Date, the Company
delivered the aggregate amount of approximately $1.3 million (the “Series 9 Redemption Amount”) to Ali for the redemption
of 1,164.12 shares of Series 9 Preferred Stock outstanding as of such date. Following Ali’s receipt of the Series 9 Redemption Amount,
Ali no longer held any shares of Series 9 Preferred Stock. 

    ●
    Mutual Release.
                                    As of the Effective Date, Ali, on behalf of himself and his former and current affiliated entities,
                                    including 3AM, Grafiti LLC and Grafiti Group (collectively, the “Ali Parties”) agreed
                                    to release the Company from all claims arising out of any obligations of the Company with respect
                                    to the Ali Consulting Agreement, that certain securities purchase agreement, dated as of March 12,
                                    2024 (the “Series 9 Purchase Agreement”), by and between the Company and 3AM, and the
                                    portion of the Strategic Transaction Bonus Plan relating to Ali, from the beginning of time through
                                    and including the date on which the Company has delivered all payments due under the Settlement Agreement
                                    (the “Completion Date”). As of the Effective Date, the Company agreed to release the
                                    Ali Parties from all claims arising out of any obligations of the Ali Parties with respect to 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 Strategic Transaction Bonus Plan