Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 154

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 154
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 to Ali of $1.5 million (the “Deferred Amount”)
as of the date of this report, which is due in $500,000 installments on June 30, 2025, September 30, 2025, and December 31, 2025. Upon
payment of the Deferred Amount in accordance with the terms of the Settlement Agreement, the Ali Advisory Fees shall be deemed to be satisfied
in full and no further amounts shall be payable by the Company to Ali or his affiliated parties pursuant to the Ali Consulting Agreement.

Share Repurchase Program

On March 18, 2025, the Company
issued a press release announcing that its board of directors authorized a share repurchase program to acquire up to $5 million of the
Company’s common stock. The Company may purchase common stock by way of open market transactions, through privately negotiated transactions,
or by other means including through the use of trading plans intended to qualify under Rule 10b-18 under the Exchange Act, in accordance
with applicable securities laws and other restrictions. The timing, total value of stock repurchases, and aggregate number of shares repurchased
will depend upon business, economic and market conditions, corporate and regulatory requirements, prevailing stock prices, and other considerations.
The share repurchase program has an initial term of 12 months, which may be extended to 18 months. The share repurchase program may be
suspended or discontinued at any time and does not obligate us to acquire any amount of common stock.

Expansion of Corporate Advisory Board

During the quarter ended March
31, 2025, the Company expanded its corporate advisory board, which is now comprised of nine advisory board members led by Michael Tapp,
who are helping the Company evaluate strategic opportunities to capitalize on the anticipated demand for the TriFan 600.

TriFan 600 Engineering Update

During the quarter ended March
31, 2025, the Company continued to advance the development of the TriFan 600. Below are key development milestones that were achieved
during the quarter:

●Optimization
of the fuel system design of the airplane which increased the wing fuel volume from approximately 300 gallons to 400 gallons, improving
maximum range and mission length.

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●Improving
the air intake and exhaust design to enhance performance and efficiency of the airplane’s propulsion system.

●Completed
the downwash / outwash study allowing us to understand the airflows generated by the airplane during vertical takeoff and landing in
order to evaluate safety and performance.