Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 229

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 229
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 party transactions, including those
required to be disclosed as a “related party” transaction under applicable federal securities laws. The Board has not adopted
any specific procedures for conducting reviews of potential conflicts of interest and considers each transaction in light of the specific
facts and circumstances presented. However, to the extent a potential related party transaction is presented to the Board, the Company
expects that the Board would become fully informed regarding the potential transaction and the interests of the related party, and would
have the opportunity to deliberate outside of the presence of the related party. The Company expects that the Board would only approve
a related party transaction that was in the best interests of the Company, and further would seek to ensure that any completed related
party transaction was on terms no less favorable to the Company than could be obtained in a transaction with an unaffiliated third party.
Other than as described below, no transaction requiring disclosure under applicable federal securities laws occurred since fiscal year
2023 that was submitted to the Board for approval as a “related party” transaction.

Related
Party Transactions

SEC regulations define the related person transactions that require
disclosure to include any transaction, arrangement or relationship in which the amount involved exceeds the lesser of $120,000 or one
percent of the average of our total assets at year-end for the last two completed fiscal years in which we were or are to be a participant
and in which a related person had or will have a direct or indirect material interest. A related person is: (i) an executive officer,
director or director nominee, (ii) a beneficial owner of more than 5% of our Common Stock, (iii) an immediate family member
of an executive officer, director or director nominee or beneficial owner of more than 5% of our Common Stock, or (iv) any entity
that is owned or controlled by any of the foregoing persons or in which any of the foregoing persons has a substantial ownership interest
or control.

For
the period from January 1, 2023, through the date of this report, described below are certain transactions or series of transactions
between us and certain related persons.

Settlement Agreement with Nadir Ali, 3AM,
and Grafiti Group

On March 27, 2025 (the “Effective
Date”), XTI Aerospace, Inc. (the “Company”) entered into a settlement agreement with 3AM Investments LLC (an entity
controlled by Nadir Ali (“Ali”), the Company’s former Chief Executive