Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 170

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 170
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 obligated to pay Maxim $0.2 million which becomes payable upon the closing of one or more debt or
equity financings for which Maxim serves as placement agent or underwriter and in which the Company raises minimum aggregate gross proceeds
of $10 million. In connection with a capital raise in January 2025, the Company repaid in full its obligation to Maxim (see Note 23).

Agreements with Nadir Ali

As previously disclosed under Note 18, the Company
has an outstanding advisory fee obligation to Nadir Ali of $1.5 million, which is payable in $500,000 installments on June 30, 2025, September
30, 2025, and December 31, 2025.

F-40

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

Strategic Transaction Bonus Plan and Consulting
Arrangement with Prior Legacy Inpixon CFO

On July 24, 2023, the compensation committee
of the Board (the “Compensation Committee”) adopted a Strategic Transaction Bonus Plan, which was amended on March 11, 2024,
and was intended to provide incentives to certain employees and other service providers to remain with the Company through the consummation
of a qualifying transaction. During the second quarter of 2024, the Company accrued 100% or $6.3 million of the transaction bonuses,
which is included in general and administrative within the accompanying condensed consolidated statements of operations, as the bonuses
became payable upon the earlier of the closing of financing or June 30, 2024. As of December 31, 2024, the Company had an outstanding
accrued transaction bonus obligation of $4.3 million, which is included in accrued expenses and other current liabilities on the accompanying
consolidated balance sheets.

On March 12, 2024, the Company entered into a
Consulting Agreement with Ms. Wendy Loundermon (the “Loundermon Consulting Agreement”), the Company’s former Chief Financial
Officer. Pursuant to the Loundermon Consulting Agreement, following the Closing, Ms. Loundermon will provide consulting services to the
Company for one year or until earlier termination in accordance with its terms (the “Loundermon Consulting Period”). As compensation
for Ms. Loundermon’s consulting services