Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 242

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 242
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 balance sheet is greater or less than $1.0 million.

Pursuant to the Settlement
Agreement, the Company agreed that, effective as of the Effective Date of the Settlement Agreement, the Grafiti Purchase Amount (i.e.,
the aggregate amount of $1.0 million) required to be delivered by Grafiti Group pursuant to 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.

Transition
Services Agreement

On
February 21, 2024, in connection with the closing of the Grafiti Group Divestiture, Grafiti LLC and Inpixon entered into a Transition
Services Agreement (the “Grafiti Transition Services Agreement”) with respect to services to be provided for a period of
one year following closing. Pursuant to the Grafiti Transition Services Agreement, the Company will provide contracted IT and accounting
services to Grafiti LLC and Grafiti LLC will provide certain accounting and payroll services, in each case on an hourly as needed basis
to ensure the orderly transition of the business.

Sublease
Arrangement

The
Company and Grafiti LLC have also arranged for the Company to sublease office space in Palo Alto, CA from Grafiti LLC at a cost of 50%
of monthly rent and operating expenses as of February 1, 2024. The cost is estimated at approximately $2,900 per month.

Subscription
of Units of, and Loan to, Cardinal Venture Holdings

On
September 30, 2020, we entered into a Subscription Agreement (the “Subscription Agreement”) with CVH, pursuant to which
we agreed to (i) contribute up to $1,800,000 (the “Contribution”) to CVH and (ii) purchase up to 599,999 Class A
Units of CVH (the “Class A Units”) and up to 1,800,000 Class B Units of CVH (the “Class B
Units,” and, together with the Class A Units, the “Units”). The aggregate purchase price of $1,800,000 for the
Units is deemed to be satisfied in part through the Contribution. CVH owns certain interests in KINS Capital, LLC, a Delaware limited
liability company, the sponsor entity (the “Sponsor”) to