Company: XTIA
Filing Date: 2025-03-28
Form Type: 8-K
Source: 0001013762-25-003568
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Company: XTI Aerospace, Inc.
Filing Date: 2025-03-28
Form: 8-K
Item: Item 1.01
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Item 1.01 Entry into a Material Definitive
Agreement.

Settlement Agreement

On March 27, 2025 (the “ Effective
Date”), XTI Aerospace, Inc. (the “ Company”) entered into a settlement agreement with3AM
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”).
The terms of the Settlement Agreement include:

Preferred
Stock RedemptionCompany will deliver the aggregate amount
of $1,251,651.26 (the “ Series 9 Redemption Amount”) by wire transfer of immediately available funds to an account designated
in writing by Ali, for the redemption of the Outstanding Preferred Stock. Following Ali’s receipt of the Series 9 Redemption Amount,
Ali will no longer hold any shares of Series 9 Preferred Stock, and shall cooperate with any reasonable request by the Company to
execute any document evidencing the transfer of the Outstanding Preferred Stock back to the Company.

Termination
of Ali Consulting Agreementthat certain Consulting
Agreement, dated March 12, 2024 by and between the Company and Ali (the “ Ali Consulting Agreement”) is terminated,
and in lieu of the$2,775,000 (the “ Ali Advisory Fees”) that would be owed to Ali pursuant to the terms of the Ali
Consulting Agreement as a result of the termination of such Ali Consulting Agreement prior to the 15 month anniversary of the effective
date thereof, the Company agreed (i) that the aggregate amount of $1,000,000 (the “ Grafiti
Purchase Amount”) required to be delivered by Grafiti Group pursuant to that certain Equity Purchase Agreement, dated February 16,
2024, by and among the Company, Grafiti LLC, and Grafiti Group, as amended (the “ Equity Purchase Agreement”), shall be deemed
to be satisfied in full and no further amounts shall be payable to the Company by Grafiti Group or any of its affiliated parties pursuant
to the Equity Purchase Agreement; (ii) to deliver a cash amount of $60,000 (the “ Outstanding Amount”) to Ali by wire transfer
of immediately available funds; and (iii) to deliver $1,500,000 (the “ Deferred Amount”) by wire transfer of immediately available
funds in three equal installmentsof $500,000 (“ Installment