Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 48

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 48
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approximately $115,000) for
a total payment of up to approximately $1.1 million. The Company pays AVX for its actual costs plus the 12% fixed fee on a monthly basis.
The Company’s Chairman and Chief Executive Officer, Scott Pomeroy, and board member, David Brody, also sit on the five-member board
of AVX. Additionally, as of the date of this report, Mr. Brody and his spouse together own approximately 26% of the issued and outstanding
shares of AVX. As a result of a legal financial separation between Mr. Brody and his spouse, Mr. Brody holds approximately 7% of the
voting power of the outstanding securities of AVX and Mr. Brody’s spouse holds approximately 19% of the voting power of the outstanding
securities of AVX. As of the date of this report, Mr. Pomeroy owns restricted stock units of AVX which amount to less than 5% of the
outstanding shares of AVX on a fully diluted basis. During the nine months ended September 30, 2025, the Company did not accrue or pay
AVX any consulting fees. During the year ended December 31, 2024, the Company paid AVX approximately $0.9 million in consulting fees,
which included advance deposits for future services. As of December 31, 2024, the deposit balance for future services was approximately
$0.5 million and is included in prepaid expenses and other current assets on the accompanying condensed consolidated balance sheets.
In April 2025, the deposit balance of approximately $0.5 million was returned to the Company. As of the date of this report, neither
Mr. Brody nor Mr. Pomeroy has received, and neither is entitled to receive, any compensation or other consideration from AVX, in connection
with services provided by AVX to the Company or otherwise.

On April 18, 2025, XTI Aircraft Company entered
into a novation agreement with AVX and a recruiting firm, pursuant to which AVX assigned to XTI Aircraft Company all of AVX’s rights
and obligations under a talent acquisition engagement agreement with the recruiting firm and, as a result, the recruiting firm assisted
XTI Aircraft Company in hiring an executive for fees of approximately $0.1 million, which were incurred subsequent to September 30, 2025.

Agreements with Nadir Ali

On March 12,