Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 450

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 450
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 with 3AM Investments LLC (an entity
controlled by Nadir Ali (“Ali”), the Company’s former Chief Executive Officer and a former director of the Company)
(“3AM”), Grafiti Group LLC (“Grafiti Group”) and Ali (the “Settlement Agreement”). The terms of the
Settlement Agreement include:

Preferred Stock Redemption.
The Company and 3AM entered into that certain securities purchase agreement dated as of March 12, 2024 (the “Series 9 Purchase Agreement”),
pursuant to which 3AM acquired 1,500 shares of the Company’s Series 9 Preferred Stock, of which 1,164.12 shares of Series 9 Preferred
Stock were issued and outstanding as of March 27, 2025 (the “Outstanding Preferred Stock”). Pursuant to the Settlement Agreement,
on the Effective Date, the Company delivered the aggregate amount of $1,251,651.26 (the “Series 9 Redemption Amount”)
by wire transfer of immediately available funds to an account designated in writing by Ali, for the redemption of the Outstanding Preferred
Stock. Following Ali’s receipt of the Series 9 Redemption Amount, Ali no longer held any shares of Series 9 Preferred Stock. As
of the date of this report, there are no shares of Series 9 Preferred Stock issued and outstanding.

Termination of Ali Consulting
Agreement. The Settlement Agreement provides that effective as of the Effective Date, that certain Consulting Agreement, dated
March 12, 2024 by and between the Company and Ali (the “Ali Consulting Agreement”) is terminated, and in lieu of the $2,775,000
(the “Ali Advisory Fees”) that would be owed to Ali pursuant to the terms of the Ali Consulting Agreement as a result of the
termination of such Ali Consulting Agreement prior to the 15 month anniversary of the effective date thereof, the Company agreed
(i) that the aggregate amount of $1,000,000 (the “Grafiti Purchase Amount”) required to be delivered by Grafiti Group pursuant
to that certain Equity Purchase Agreement, dated February 16, 2024, by and among the Company, Grafiti LLC, and Grafiti Group, as amended
(the “Equity Purchase Agreement”), shall be deemed to be satisfied in full and no further amounts shall be payable to the
Company by Grafiti Group or any of its affiliated parties pursuant to the Equity Purchase Agreement;