Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 604

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 604
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during January 2025. Effective upon closing time of the XTI Merger, Mr. Pomeroy was appointed as XTI Aerospace’s Chief
Executive Officer.

F-38

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

Transactions
with AVX Aircraft Company

On March 25, 2024, the Company entered into a letter agreement, as
amended on June 17, 2024, with AVX Aircraft Company (“AVX”) whereas AVX is to provide consulting and advisory services relating
to the development and design of the TriFan 600 airplane. The Company’s Chairman and CEO, Scott Pomeroy, and board member, David
Brody, also sit on the Board of AVX. Additionally, as of the date of this report, David Brody owns approximately 26% of the issued
and outstanding shares of AVX. During the year ended December 31, 2024, the Company paid AVX $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 consolidated balance sheets.

Agreements
with Nadir Ali

On March 12, 2024, the Company entered into a
consulting agreement with Mr. Nadir Ali (the “Ali Consulting Agreement”), the Company’s former Chief Executive Officer.
Mr. Ali, through a company of which he is a controlling member, held shares of the Company’s Series 9 Preferred Stock as disclosed
in Note 11. Pursuant to the Ali Consulting Agreement, following the closing of the XTI Merger, Mr. Ali will provide consulting services
to the Company for 15 months (“Ali Consulting Period”) or until earlier termination in accordance with its terms.
During the Ali Consulting Period, the Company will pay him a monthly fee of $20,000. 

In
addition, the Company shall pay Mr. Ali (a) the amount of $1.5 million due three months following the Closing, and (b) the aggregate
amount of $4.5 million, payable in 12 equal monthly installments, starting four months