Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 173

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 173
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 relating
                                    to Ali, from the beginning of time through and including the Completion Date.

    ●
    Entire Agreement.
    The Settlement Agreement provides that it supersedes any prior consents or agreements regarding the allocation of financing proceeds
    for the payment of any obligations of the Company described in the Settlement Agreement.

Grafiti Group Divestiture

On February 21, 2024, Legacy Inpixon completed
the disposition of the remaining portion of the Shoom, SAVES, and Game Your Game business lines and assets in accordance with the terms
and conditions of the Equity Purchase Agreement. Pursuant to the terms of the Equity Purchase Agreement, Grafiti Group acquired 100% of
the equity interest in Grafiti LLC, including the assets and liabilities primarily relating to Legacy Inpixon’s SAVES, Shoom and
Game Your Game business, including 100% of the equity interests of Inpixon India, Grafiti GmbH (previously Inpixon GmbH) and Game Your
Game, Inc., from the Company for a minimum purchase price of $1.0 million to be paid in two annual cash installments of $0.5 million due
within 60 days after December 31, 2024 and 2025 (the “Grafiti Purchase Amount”). The purchase price and annual cash installment
payments were to be (i) decreased for the amount of transaction expenses assumed; and (ii) increased or decreased by the amount of working
capital of Grafiti LLC on the closing balance sheet is greater or less than $1.0 million. As of December 31, 2024, $0.5 million of the
receivable is included in current assets as other receivables on the Company’s condensed consolidated balance sheets, and the remaining
$0.5 million of the receivable is included in long term assets as other assets on the Company’s consolidated balance sheets.

Pursuant to the Settlement Agreement dated March
27, 2025 (see “Settlement Agreement” above in this note), the Company agreed that, effective as of the Effective Date
of the Settlement Agreement, the Grafiti Purchase Amount 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. As such, there are no receivables
due from Grafiti Group or any of its affiliates reported in the Company