Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 138

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 138
---

    $
    1,377

    $
    —

    $
    —

    $
    2,430

    Goodwill by geographic area
     
    $
    3,142

    $
    8,930

    $
    —

    $
    —

    $
    12,072

31

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 17 - Related Party Transactions

Consulting Agreement with David Brody

David Brody, board member and founder of Legacy XTI, provided legal
and strategic consulting services to Legacy XTI under a consulting agreement. During the three months ended March 31, 2025 and 2024, Legacy
XTI paid Mr. Brody consulting compensation of $0 and $20,000, respectively. Pursuant to an amendment to the consulting agreement, an outstanding
payable amount of $320,000 was waived by Mr. Brody, and the consulting agreement terminated in connection with the closing of the XTI
Merger. This forgiveness of a related party payable was accounted for as a capital contribution on the condensed consolidated statement
of changes in stockholders’ equity.

Consulting Agreement
with Scott Pomeroy

Scott Pomeroy and Legacy XTI entered into a consulting
agreement dated July 1, 2022, as amended effective January 1, 2023, that provided for his engagement as Legacy XTI’s Chief Financial
Officer. The agreement provided that Mr. Pomeroy receive a monthly compensation of $17,500. During the three months ended March 31, 2025
and 2024, the Company paid Mr. Pomeroy consulting compensation of $0 and $43,750, respectively. Pursuant to the consulting agreement and
in connection with the closing of the XTI Merger in March 2024, Mr. Pomeroy (i) received 4,000,000 shares (pre-merger, pre-reverse stock
splits) of Legacy XTI common stock valued at $1.9 million as transaction-related compensation and (ii) was entitled to receive a transaction
cash bonus of $400,000. The transaction cash bonus obligation remained outstanding as of December 31, 2024 and is included in accrued
expenses and other current liabilities on the accompanying consolidated balance sheets. This cash bonus obligation was subsequently paid
in