Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 52

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 52
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 Former Management Payments in full.

31

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

    ● Preferred Stock Redemption. Pursuant to the Settlement Agreement, on the Effective Date, the Company
delivered the aggregate amount of approximately $1.3 million (the “Series 9 Redemption Amount”) to Ali for the redemption
of 1,164.12 shares of Series 9 Preferred Stock outstanding as of such date. Following Ali’s receipt of the Series 9 Redemption Amount,
Ali no longer held any shares of Series 9 Preferred Stock. 

    ●
    Mutual Release.
                                    As of the Effective Date, Ali, on behalf of himself and his former and current affiliated entities,
                                    including 3AM, Grafiti LLC and Grafiti Group (collectively, the “Ali Parties”) agreed
                                    to release the Company from all claims arising out of any obligations of the Company with respect
                                    to the Ali Consulting Agreement, that certain securities purchase agreement, dated as of March 12,
                                    2024 (the “Series 9 Purchase Agreement”), by and between the Company and 3AM, and the
                                    portion of the Strategic Transaction Bonus Plan relating to Ali, from the beginning of time through
                                    and including the date on which the Company has delivered all payments due under the Settlement Agreement
                                    (the “Completion Date”). As of the Effective Date, the Company agreed to release the
                                    Ali Parties from all claims arising out of any obligations of the Ali Parties with respect to the
                                    payment of the purchase price as set forth in the Equity Purchase Agreement, the Ali Consulting Agreement,
                                    the Series 9 Purchase Agreement and the portion of the Strategic Transaction Bonus Plan relating
                                    to Ali, from the beginning of time through and including the Completion Date.

    ●
    Entire Agreement.
    The Settlement Agreement provides that it supersedes any prior consents or agreements regarding the allocation of financing proceeds
    for the payment of any obligations of the Company described in the Settlement Agreement.

Grafiti Group Divestiture

On February 21, 2024, Legacy Inpixon completed
the disposition of the remaining portion of the Shoom, SAVES, and Game Your Game business lines and assets in accordance with the terms
and conditions of the Equity Purchase Agreement. Pursuant to the terms of the Equity Purchase Agreement, Grafiti Group acquired 100