Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 231

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 231
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 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 installments of $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.

74

On March 31, 2025, the Company
paid the Outstanding Amount in full. As of the date of this report, the Deferred Amount remains outstanding.

Former Management Payments. Pursuant
to the Settlement Agreement, the Company agreed to pay the Former Management Payments (as defined below) on the earlier of (a) the closing
date of the Company’s next financing transaction and (b) 30 days following the Effective Date of the Settlement Agreement, subject
to certain penalties for late payment. The “Former Management Payments” comprise (i) an aggregate amount of $803,260.65 (the
“Bonus Plan Payment”) that, as of the Effective Date, remains payable to the recipients of bonuses payable pursuant to that
certain Strategic Transaction Bonus Plan, adopted on July 24, 2023 and as amended (the “Bonus Plan”) together with (ii) an
aggregate amount of $303,372.87 (the “Loundermon Advisory Fee”) that, as of the Effective Date, is payable to Wendy Loundermon,
the Company’s former Chief Financial Officer and a former director of the Company (“Loundermon”), pursuant
to that certain Consulting Agreement, dated March 12, 2024, by and between the Company and Loundermon (the “Loundermon Consulting
Agreement”).

On March 31, 2025, the Company
paid all amounts due under the Former Management Payments in full.

Ali Release. As of
the Effective Date, Ali, on behalf of himself and his former and current affiliated entities, including 3AM, Grafiti LLC and Grafit