Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 150

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 150
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 Company pursuant to the advisory agreement. Fifty percent of the cash fee is payable within 2 business days of the advisory agreement
and the remaining balance is payable no later than 90 days following commencement of the advisor’s services.

In addition, the Company agreed to reimburse the
advisor for all reasonable travel and other out-of-pocket expenses incurred in connection with the advisory agreement up to a maximum
of $15,000, subject to certain exceptions. The Company also agreed to: (1) pay the advisor a customary fee tail during the 12-month period
following the termination or expiration of the advisory agreement, if applicable; (2) pay an M&A cash fee to the advisor during the
term equal to 3% of the aggregate consideration to the extent the Company enters into a merger or acquisition with a party initially introduced
by the advisor to the Company; and (3) indemnify the advisor in in accordance with the terms and conditions of the advisory agreement.

The advisory agreement has a term of 180 days,
subject to early termination or further extension, each upon the mutual consent of the parties.

37

ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and
results of operations in conjunction with the condensed consolidated financial statements and the related notes included elsewhere in
this Form 10-Q and with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31,
2024, as filed with the SEC. In addition to our historical condensed consolidated financial information, the following discussion contains
forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed
in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere
in this Form 10-Q, particularly in Part II, Item 1A, “Risk Factors.”

Overview of Our Business

We are primarily an aircraft
development company. We also provide real-time location systems (“RTLS”) for the industrial sector, which was Legacy Inpixon’s
focus prior to the closing of the XTI Merger.

Headquartered in Englewood,
Colorado, the Company is developing a vertical takeoff and landing (“VTOL”) airplane that is designed to take off and land
like a helicopter and cruise like a fixed-wing business airplane. We believe our initial configuration, the TriFan 600 airplane, will
be