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XTI Aerospace, Inc., a Nevada-based company specializing in computer programming services, has entered into a settlement agreement with several parties including its former CEO, Nadir Ali. The agreement, effective March 27, 2025, resolves outstanding financial obligations and terminates previous agreements. According to InvestingPro data, the company faces significant financial challenges, with a weak overall Financial Health Score of 0.96 and a concerning current ratio of 0.46, indicating potential liquidity issues.
The settlement includes the redemption of 1,164.12 shares of Series 9 Preferred Stock held by 3AM Investments LLC, an entity controlled by Ali, for $1,251,651.26 - a significant sum considering the company’s current market capitalization of just $4.56 million. With this payment, Ali no longer holds any Series 9 Preferred Stock.
Additionally, a Consulting Agreement between XTI Aerospace and Ali, dated March 12, 2024, has been terminated. Instead of the $2,775,000 advisory fees due to Ali, the company will satisfy a $1,000,000 obligation to Grafiti Group LLC, pay Ali $60,000 immediately, and transfer $1,500,000 in three installments due by the end of 2025. Should these installments not be paid on time, they will accrue interest at 18% per annum.
The settlement also addresses payments to former management, including $803,260.65 for bonuses under a Transaction (JO:NTUJ) Bonus Plan and $303,372.87 to former CFO Wendy Loundermon under a separate Consulting Agreement. These payments are due by the earlier of the next company financing or 30 days from the settlement date, with a 10-day cure period before the deferred amount to Ali becomes due.
Both Ali and XTI Aerospace have agreed to mutual releases of any claims related to the agreements covered by the settlement, effectively closing all matters between them up to the completion of the settlement terms.
This agreement supersedes any previous arrangements regarding the allocation of financing proceeds for the company’s obligations outlined in the settlement.
The details of this settlement are based on a press release statement filed with the SEC and are integral to understanding the current financial and managerial position of XTI Aerospace. With the company’s EBITDA at -$19.72 million and mounting financial pressures, InvestingPro subscribers can access 15 additional key insights and detailed financial metrics to better evaluate the company’s future prospects.
In other recent news, XTI Aerospace announced the pricing of a public offering expected to raise approximately $4 million. The offering includes 2,941,200 shares of common stock and warrants, with the proceeds aimed at general corporate purposes, including repaying outstanding secured promissory notes. The company also reported mixed financial results for the year ended December 31, 2024, with estimated annual revenues of $3.2 million against operating expenses of $38.9 million. Additionally, XTI Aerospace changed its certifying accountant from Marcum LLP to CBIZ (NYSE:CBZ) CPAs P.C., following Marcum’s business acquisition. In engineering developments, the company completed the TriFan 600 flight deck mockup design and updated the aircraft’s fuel system, increasing fuel capacity and potentially enhancing performance. XTI Aerospace also appointed Archduke Sandor Habsburg-Lothringen to its Corporate Advisory Board, bringing expertise in sustainable energy and global business strategy. These developments reflect XTI Aerospace’s ongoing efforts in innovation and expansion within the aerospace sector.
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