Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 610

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 610
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 final judgement that: (a) enjoins Chardan from prosecuting
the arbitration against the Company and (b) declares that the Company has no contractual or other duty to arbitrate with Chardan. The
Aircraft subsidiary remains as a party to the arbitration and intends to defend against the arbitration vigorously. As of December 31,
2024, the Company has accrued $200,000 relating to the Agreement, which is included in accounts payable on the consolidated balance sheets.

Financial
Advisory Fees

Pursuant to the terms of an amended advisory fees agreement between
the Company and Maxim, the Company is obligated to pay Maxim $0.2 million which becomes payable upon the closing of one or more debt or
equity financings for which Maxim serves as placement agent or underwriter and in which the Company raises minimum aggregate gross proceeds
of $10 million. In connection with a capital raise in January 2025, the Company repaid in full its obligation to Maxim (see Note 23).

Agreements with Nadir Ali

As previously disclosed under Note 18, the Company
has an outstanding advisory fee obligation to Nadir Ali of $1.5 million, which is payable in $500,000 installments on June 30, 2025, September
30, 2025, and December 31, 2025.

F-40

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

Strategic Transaction Bonus Plan and Consulting
Arrangement with Prior Legacy Inpixon CFO

On July 24, 2023, the compensation committee
of the Board (the “Compensation Committee”) adopted a Strategic Transaction Bonus Plan, which was amended on March 11, 2024,
and was intended to provide incentives to certain employees and other service providers to remain with the Company through the consummation
of a qualifying transaction. During the second quarter of 2024, the Company accrued 100% or $6.3 million of the transaction bonuses,
which is included in general and administrative within the accompanying condensed consolidated statements of operations, as the bonuses
became payable upon the earlier of the closing of financing or June 30, 2024. As of December 31, 2024, the Company had an outstanding
accrued transaction bonus obligation of $4.3