Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 169

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 169
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 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 six months ended June 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 will assist
XTI Aircraft Company in hiring an executive for expected fees of approximately $0.1 million.

Agreements with Nadir Ali

On March 12, 2024, the Company entered into a
consulting agreement with Nadir Ali (the “Ali Consulting Agreement”), the Company’s former Chief Executive Officer.
Mr. Ali, through 3AM, held shares of the Company’s Series 9 Preferred Stock as disclosed in Note 10