Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 175

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 175
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 3AM
held zero and 1331.12 shares of Series 9 Preferred Stock, respectively.

Pursuant to the Consent Agreement, the Company
delivered an aggregate of approximately $0.2 million to 3AM on January 5, 2025, which amount represents the Redemption Proceeds payable
to 3AM in connection with amounts received by the Company on January 2, 2025 from sales under the ATM originating on December 31, 2024.
Such payments were made for 167.00 shares of the Company’s Series 9 Preferred Stock held by 3AM. The Company entered into an acknowledgment
agreement with 3AM to record such payment.

On March 27, 2025, the Company entered into a
Settlement Agreement with 3AM and other parties as further disclosed in Note 16. 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”) for the
redemption of the outstanding Series 9 Preferred Stock. Following 3AM’s receipt of the Series 9 Redemption Amount, 3AM no longer
held any shares of Series 9 Preferred Stock.

As of September 30, 2025, there are no shares
of Series 9 Preferred Stock issued and outstanding.

20

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 11 - Stock Award Plans and Stock-Based
Compensation

In 2011, Legacy Inpixon adopted the 2011 Employee
Stock Incentive Plan (the “2011 Plan”). The 2011 Plan terminated by its terms on August 31, 2021 and remains in effect as
to outstanding equity awards granted prior to the date of expiration. No new awards will be issued under the 2011 Plan.

During 2017, Legacy XTI adopted the 2017 Employee
and Consultant Stock Ownership Plan (the “2017 Plan”), which was amended in 2021 to increase the maximum shares eligible to
be granted under the 2017 Plan. The Company assumed the 2017 Plan in connection with the XTI Merger. The Company may issue awards in the
form of restricted stock units and stock options to employees, directors, and consultants. Under the 2017 Plan, stock options are generally
granted with