Company: XTIA
Filing Date: 2025-04-18
Form Type: POS AM
Source: 0001213900-25-033058
Chunk: 13

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-18
Form: POS AM
Chunk 13
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 in writing by Ali, for the redemption of the Outstanding
Preferred Stock. Following Ali’s receipt of the Series 9 Redemption Amount, Ali no longer held any shares of Series 9 Preferred
Stock. As of the date of this prospectus, there are no shares of Series 9 Preferred Stock issued and outstanding.

. The Settlement Agreement provides that effective as of the Effective Date,that
certain Consulting Agreement, dated March 12, 2024 by and between the Company and Ali (the “Ali Consulting Agreement”) is
terminated, and in lieu of the$2,775,000 (the “Ali Advisory Fees”) that would
be owed to Ali pursuant to the terms of the Ali Consulting Agreement as a result of the termination of such Ali Consulting Agreement prior
to the 15 month anniversary of the effective date thereof, the Company agreed (i) that the aggregate amount of $1,000,000 (the “Grafiti Purchase Amount”) required to be delivered by Grafiti Group pursuant to that certain Equity Purchase Agreement, dated February 16, 2024, by and among the Company, Grafiti LLC, and Grafiti Group, as amended (the “Equity Purchase Agreement”), shall be deemed to be satisfied in full and no further amounts shall be payable to the Company by Grafiti Group or any of its affiliated parties pursuant to the Equity Purchase Agreement; (ii) to deliver a cash amount of $60,000 (the “Outstanding Amount”) to Ali by wire transfer of immediately available funds; and (iii) to deliver $1,500,000 (the “Deferred Amount”) by wire transfer of immediately available funds in three equal installmentsof $500,000 (“Installment Amounts”) each
on June 30, 2025, September 30, 2025 and December 30, 2025 (the “Deferred Amount Installment Dates”).
Any Installment Amount that is not paid by the applicable due dates will be subject to interest at a rate of 18% per annum. Upon payment
of the Outstanding Amount and 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. On March 31, 2025, the Company paid the Outstanding Amount in full. As of the date of this prospectus, the Deferred Amount remains outstanding.

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