Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 244

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 244
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of
CVH (the “Class A Units”), an aggregate of 599,999 Class A Units, to the Transferees as bonus consideration in
connection with each Transferee’s services performed for and on behalf of the Company as an employee, as applicable, and (ii) each
Transferee became a member of CVH and a party to the Amended and Restated Limited Liability Company Agreement of CVH, dated as of September 30,
2020.

Nadir
Ali, the Company’s former Chief Executive Officer and a former director, beneficially owned membership interests in CVH through
3AM LLC, a Delaware limited liability company and a founding member of CVH (“3AM”). 3AM was entitled to manage the affairs
of CVH in certain circumstances. CVH was dissolved as of December 31, 2023.

Consulting
Agreement with 3AM

Effective
as of the closing of the Completed Transaction, Design Reactor, Inc. (renamed CXApp US, Inc.), a California corporation and our former
subsidiary, entered into a consulting agreement with 3AM, pursuant to which Mr. Ali provided advisory services to such former subsidiary
following the closing in exchange for $180,000 in consulting fees.

October 2023
Note

Legacy
XTI entered into an amended convertible note agreement with Mr. Brody, its founder, Chairman and majority shareholder, in 2021 that
consolidated a number of his outstanding notes (the “2021 Note”). On October 1, 2023, the existing 2021 Note was replaced
by a new convertible note with a principal balance of $1,079,044 (2021 Note principal of $1,007,323 plus accrued interest of $71,721)
(the “October 2023 Note”) which had a maturity date defined as the earlier of (i) a closing of a merger with a
company whose shares are traded on a public stock exchange, or (ii) January 31, 2024. The October 2023 Note accrued interest
at a rate of 4% compounded annually, provided that on and after the maturity date interest the note shall accrue from and after such
date on the unpaid principal and all accrued but unpaid interest of the note at a rate of 10% per annum. The October 2023 Note provided
that at any time prior to the maturity date, Mr.