Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 466

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 466
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000, respectively. Pursuant to an amendment
to the consulting agreement, an outstanding payable amount of $320,000 was waived by Mr. Brody, and the consulting agreement terminated
in connection with the closing of the XTI Merger.

79

Letter
                                            Agreement and Letter of Intent with AVX Aircraft Company

On August 27, 2024, the Company entered into an amended and restated
letter agreement (the “AVX Letter Agreement”), with AVX Aircraft Company (“AVX”), which amends and restates the
original letter agreement, dated as of March 25, 2024, by and between the Company and AVX, as subsequently amended. Pursuant to the
AVX Letter Agreement, AVX provides consulting and advisory services to the Company relating to the development and design of the TriFan
600 airplane for which the Company agreed to pay AVX the costs incurred by AVX (with a target cost of approximately $960,000) plus a fixed
fee of 12% of such costs (approximately $115,000) for a total payment of up to approximately $1.1 million. The Company pays AVX for
its actual costs plus the 12% fixed fee on a monthly basis. The Company’s Chairman and CEO, Scott Pomeroy, and board member, David
Brody, also sit on the five-member board of AVX. As of the date of this report, Mr. Brody and his spouse together own approximately
26% of the issued and outstanding shares of AVX. As a result of a legal financial separation between Mr. Brody and his spouse,
Mr. Brody holds approximately 7% of the voting power of the outstanding securities of AVX and Mr. Brody’s spouse holds
approximately 19% of the voting power of the outstanding securities of AVX. As of the date of this report, Mr. Pomeroy owns
restricted stock units of AVX which amount to less than 5% of the outstanding shares of AVX on a fully diluted basis. 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. As of the date of this report, neither
Mr. Brody nor Mr.