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Item 9A. Controls and Procedures

2025-04-15 compared with 2024-04-16 · 1920 added, 1103 removed, 120 unchanged (96% of the section changed)

CONTROLS AND PROCEDURES

Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management, including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Evaluation of Disclosure Controls and Procedures

We carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer (our principal executive officer) and our chief financial officer (our principal financial and accounting officer), of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report.

The evaluation was undertaken in consultation with our accounting personnel.

Based on that evaluation, our chief executive officer and our chief financial officer concluded that as of December 31, 2023, our disclosure controls and procedures were effective to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining internal control over financial reporting.

Internal control over financial reporting is defined in Rule 13a-15(f) and 15d-15(f) promulgated under the Exchange Act as a process designed by, or under the supervision of, our principal executive and principal financial officers and effected by our Board, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles and includes those policies and procedures that:

• pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of our assets;

• provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that our receipts and expenditures are being made only in accordance with authorizations of management and our directors;

• provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of our assets that could have a material effect on the financial statements.

Because of its inherent limitations, our internal control over financial reporting may not prevent or detect misstatements.

Therefore, even those systems determined to be effective can provide only reasonable assurance with respect to financial statement preparation and presentation.

Projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

Management conducted an assessment of the effectiveness of our internal control over financial reporting based on the criteria set forth in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework).

Based on the assessment, management has concluded that its internal control over

financial reporting was effective as of December 31, 2023 to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements in accordance with U.S.

Changes in Internal Control over Financial Reporting

There have been no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15 (f) under the Exchange Act) during the fourth quarter of the last fiscal year that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed

by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuer’s management,

including its principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow

timely decisions regarding required disclosure.

of Disclosure Controls and Procedures

carried out an evaluation, under the supervision and with the participation of our management, including our chief executive officer

(our principal executive officer) and our chief financial officer (our principal financial and accounting officer), of the effectiveness

of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report.

The evaluation

was undertaken in consultation with our accounting personnel.

Based on that evaluation, our chief executive officer and our chief financial

officer concluded that as of December 31, 2024, our disclosure controls and procedures were effective to ensure that information

required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported

within the time periods specified in the Securities and Exchange Commission’s rules and forms.

on Internal Control over Financial Reporting

management is responsible for establishing and maintaining adequate internal control over financial reporting, as such term is defined

in Rules 13a-15(f) and 15d-15(f) of the Exchange Act.

Our internal control system is designed to provide reasonable assurance regarding

the preparation and fair presentation of financial statements for external purposes in accordance with generally accepted accounting

All internal control systems, no matter how well designed, have inherent limitations and can provide only reasonable assurance

that the objectives of the internal control system are met.

We have performed an evaluation of the effectiveness of our internal control

over financial reporting, based on criteria established by the Committee of Sponsoring Organizations of the Treadway Commission (COSO)

in its 2013 Internal Control-Integrated Framework.

Based on that evaluation, our management, including our chief executive officer and

chief financial officer, concluded that our internal control over financial reporting was effective as of December 31, 2024.

Remediation of Material Weakness

Management, with the input,

oversight and support of our audit committee, has completed the following steps, which management believes assisted us in remediating

the material weakness in our internal control over financial reporting relating to Legacy XTI, a private company prior to the XTI Merger,

not being previously subject to Section 404 of the Sarbanes-Oxley Act as initially disclosed and further described in our quarterly report

on Form 10-Q for the period ended March 31, 2024 filed with the SEC on May 20, 2024.

2024, we completed the Legacy XTI subsidiary’s integration into the Company’s established COSO internal control

framework and based on the results of our evaluation and testing procedures, we determined Legacy XTI’s internal controls to

be effective.

As a result, we have concluded that the material weakness related to Legacy XTI has been remediated as of December 31,

in Internal Control over Financial Reporting

Other than as described above

under “- The Remediation of Material Weakness,” there have been no changes in our internal control over financial reporting

(as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fourth quarter of the last fiscal year that

have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

OTHER INFORMATION

None of the Company’s directors or officers adopted , modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s fiscal quarter ended December 31, 2023, as such terms are defined under Item 408(a) of Regulation S-K.

The information set forth below is included herein for the purpose of providing the disclosure required under “ Item 1.01 – Entry into a Material Definitive Agreement.

” of Form 8-K.

On April 15, 2024, we entered into an amendment (the “Warrant Amendment”), effective as of March 11, 2024, with a counterparty located in the southwest region of the United States (“Counterparty A”) to a warrant to purchase 567,467 shares of our common stock (the “Counterparty A Warrant”), which was originally issued by Legacy XTI on February 2, 2022, amended on April 3, 2022 and assumed by us in connection with the closing of the XTI Merger on March 12, 2024.

The Warrant Amendment modifies the vesting criteria with respect to the shares of common stock underlying the Counterparty A Warrant.

As amended by the Warrant Amendment, (i) one-third of the shares represented by the Counterparty A Warrant vested upon the execution and delivery of the conditional aircraft purchase contract (the “Aircraft Purchase Agreement”), dated February 2, 2022, by and between Legacy XTI and Counterparty A, relating to the purchase of 100 TriFan 600 aircraft, (ii) one-sixth of the shares vested on March 11, 2024 and (iii) one-third of the shares will vest upon the acceptance of delivery and final purchase of the first TriFan 600 aircraft by Counterparty A pursuant to the Aircraft Purchase Agreement.

The Warrant Amendment requires the parties to agree on an initial strategic public and industry announcement within 90 days of March 11, 2024 or such other time as the parties may mutually agree.

The foregoing description of the Warrant Amendment does not purport to be complete and is qualified in its entirety by reference to the full text of the Warrant Amendment, a copy of which is filed as Exhibit 4.31 hereto and is incorporated herein by reference.

of the Company’s directors or officers adopted , modified or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading

arrangement during the Company’s fiscal quarter ended December 31, 2024, as such terms are defined under Item 408(a) of Regulation

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The following table sets forth the names and ages of all of our current directors and executive officers.

Our officers are appointed by, and serve at the pleasure of, the Company’s Board of Directors (referred to herein as the “Board”) and/or our Chief Executive Officer.

Name Age Position

Scott Pomeroy 62 Chief Executive Officer, Chairman and Director

Brooke Turk 58 Chief Financial Officer

Michael Hinderberger 62 Chief Executive Officer, XTI Aircraft Company

Soumya Das 51 Chief Executive Officer, Real Time Location System Division, and Director

David Brody 75 Director

Kareem Irfan 63 Director

Scott Pomeroy, Chairman and Chief Executive Officer .

Pomeroy served as Legacy XTI's Chief Financial Officer under a consulting arrangement since July 1, 2022 and as a director of Legacy XTI since February 2023 and was appointed as our Chief Executive Officer and as Chair of the Board effective as of the effective time of the XTI Merger.

Pomeroy has served on several boards of directors, including the board of directors of AVX Aircraft Company since 2009.

Pomeroy was the CFO of Dex Media, overseeing equity and debt capital raises of more than $10 billion, and was CEO and founder of Local Insight Media.

He also co-founded Gen3 Financial Services, a boutique merchant bank providing financial and business advisory services in connection with capital raising to clients in a variety of industries including aerospace.

He led capital raising efforts for a $50 million fund in 2021-22.

following table sets forth the names and ages of all of our current directors and executive officers.

Our officers are appointed by,

and serve at the pleasure of, the Company’s Board of Directors (referred to herein as the “Board”) and/or our Chief

Executive Officer.

Scott Pomeroy

Executive Officer, Chairman and Director

Financial Officer

Strategy Officer

Executive Officer, Real Time Location System Division, and Director

and Secretary

Pomeroy, Chairman and Chief Executive Officer .

Pomeroy was appointed as our Chief Executive Officer and as Chairman

of the Board in March 2024, at the effective time of the XTI Merger.

He previously served as Legacy XTI’s Chief Financial Officer

under a consulting arrangement from July 2022 until the XTI Merger and as a director of Legacy XTI from February 2023 until

the XTI Merger.

Pomeroy previously served as the CFO of Dex Media, overseeing equity and debt capital raises of more than $10 billion,

and was CEO and founder of Local Insight Media.

He also co-founded Gen3 Financial Services, a boutique merchant bank providing capital

raising and business advisory services to clients in a variety of industries including aerospace.

He led capital raising efforts for a

$50 million fund in 2021-22.

Pomeroy has served on several boards of directors, including the board of directors of

AVX Aircraft Company since 2009.

Pomeroy began his career at KPMG Peat Marwick.

He has a BBA in Accounting from the University of New Mexico and is a Certified Public Accountant.

We believe that Mr.

Pomeroy’s over 35 years’ experience in launching new businesses, raising capital, and serving as founder and CEO, President, and Chief Financial Officer of several companies qualifies him to serve on our Board.

Brooke Turk, Chief Financial Officer.

Turk served as a consultant for Legacy XTI since August 2023 and was appointed as our Chief Financial Officer effective as of the effective time of the XTI Merger.

Turk has provided CFO services to multiple companies as a member of Springboard Ventures since August 2011.

Turk has acted as the chief financial officer or fractional chief financial officer of several businesses, including MADSKY from March 2017 to October 2018, The Champion Group from April 2020 to present, Catalyst Solutions from February 2022 to March 2023, and CB Scientific, Inc.

from November 2021 to present.

Over her 32-year career, Ms.

Turk has played a key role in multiple corporate transactions — including mergers, acquisitions and divestitures;

He has a BBA in Accounting from the University

of New Mexico and is a Certified Public Accountant.

believe that Mr.

Pomeroy’s over 35 years’ experience in launching new businesses, raising capital, and serving

as founder and CEO, President, and Chief Financial Officer of several companies qualifies him to serve on our Board.

Turk, Chief Financial Officer.

Turk was appointed as our Chief Financial Officer in March 2024, at the effective time

of the XTI Merger.

She previously served as a consultant for Legacy XTI from August 2023 until the XTI Merger.

Turk has provided

CFO services to multiple companies as a member of Springboard Ventures since August 2011.

During her time with Springboard Ventures,

Turk has acted as the chief financial officer of several businesses, including MADSKY from March 2017 to October 2018,

The Champion Group from March 2020 to April 2024, Catalyst Solutions from February 2022 to May 2023 and CB Scientific

from November 2021 to September 2024.

Over her 30 plus year career, Ms.

Turk has played a key role in multiple corporate

transactions, including mergers, acquisitions and divestitures;

restructures and reorganizations;

debt and equity capital raises, a Chapter 11 bankruptcy and an IPO.

debt and equity capital raises, a Chapter 11

bankruptcy and an IPO.

Turk began her career at Arthur Andersen.

She received a Master of Science in Business Administration from Colorado State University and a Bachelor of Arts in Organizational Communication from Western Colorado University and is a Certified Public Accountant..

Michael Hinderberger, Chief Executive Officer of XTI Aircraft Company .

Hinderberger was named Chief Executive Officer of Legacy XTI on July 1, 2022 after serving as Legacy XTI’s SVP of Engineering and Technology since July 2021.

He is responsible for all matters related to the development of the TriFan 600 aircraft and Legacy XTI's operations.

Prior to joining Legacy XTI, from 2014 to 2021 he was Chief Engineer for Aerion Supersonic Corporation where he was instrumental in transitioning the Aerion AS-2 aircraft from an R&D project into a full-scale development program.

Hinderberger has led major development projects at Gulfstream, Hawker Beechcraft, Rolls Royce, and Piper Aircraft.

Hinderberger has a Bachelor of Science degree in Mechanical Engineering from the University of Cincinnati and a Master of Science degree in Technical Management from Embry Riddle Aeronautical University.

Soumya Das, Chief Executive Officer of Real Time Location System Division and Director.

Das served as our Chief Operating Officer from February 2018 until the effective time of the XTI Merger, and was appointed as the Chief Executive Officer of Real Time Location System Division and a member of our Board effective as of the effective time of the XTI Merger.

Das also currently serves as the Managing Director of our wholly owned subsidiary Inpixon GmbH and its wholly owned subsidiary IntraNav GmbH.

He previously served as our Chief Marketing Officer from November 2016 until March 2021.

Prior to joining the Company, from November 2013 until January 2016, Mr.

Das was the Chief Marketing Officer

of Identiv, a security technology company.

From January 2012 until October 2013, Mr.

Das was the Chief Marketing Officer of SecureAuth, a provider of multi-factor authentication, single sign-on, adaptive authentication and self-services tools for different applications.

She received a Master of Science in Business Administration

from Colorado State University and a Bachelor of Arts in Organizational Communication from Western Colorado University and is a Certified

Public Accountant.

Arthur, Chief Strategy Officer .

Arthur has served as our Chief Strategy Officer since September 2024.

Arthur brings over 30 years of experience in helping companies develop and implement corporate strategies focused on innovation.

Arthur began his career at Starbucks Corporation when it was a newly public company where he held various leadership roles in

both the operations and technology groups.

He then transitioned to building, investing in and advising startups on their business strategies,

including their capital development and executive recruitment.

From 2011 to 2013, Mr.

Arthur served as President of CureUs, a medical

publishing platform.

In 2013, he founded AngelMD, an online healthcare innovation community that connects clinicians, startups, and investors;

since 2013 he has also served as AngelMD’s Executive Chairman.

In 2017, he co-founded Catalyst Fund LP, a medtech-focused venture

capital fund.

Arthur launched the Innovation4Alpha podcast which has evolved into an advisory firm focused on helping

companies with strategy, storytelling and capital formation.

Arthur holds a B.A.

in English from the University of Southern California.

Das, Chief Executive Officer of Real Time Location System Division and Director.

Das was appointed as the Chief Executive

Officer of our Real Time Location System Division and a member of our Board in March 2024, at the effective time of the XTI Merger.

Das also currently serves as the Managing Director of our wholly owned subsidiary Inpixon GmbH and its wholly owned subsidiary

IntraNav GmbH.

He previously served as our Chief Operating Officer from February 2018 until the XTI Merger, and as our Chief

Marketing Officer from November 2016 until March 2021.

Prior to joining the Company, from November 2013 until January 2016,

Das was the Chief Marketing Officer of Identiv, a security technology company.

From January 2012 until October 2013,

Das was the Chief Marketing Officer of SecureAuth, a provider of multi-factor authentication, single sign-on, adaptive authentication

and self-services tools for different applications.

Prior to joining SecureAuth, Mr.

Das was the Vice President, Marketing and Strategy of CrownPeak, a provider of web content management solutions, from April 2010 until January 2012.

Das has also served as a member of the board of Museum on Mile since January 4, 2019.

Das earned an MBA from Richmond College, London, United Kingdom, and Bachelor of Business Management from Andhra University in India.

We believe that Mr.

Das was the Vice President, Marketing and Strategy

of CrownPeak, a provider of web content management solutions, from April 2010 until January 2012.

Das has also served

as a member of the board of Museum on Mile since January 4, 2019.

Das earned an MBA from Richmond College, London, United

Kingdom, and Bachelor of Business Management from Andhra University in India.

believe that Mr.

Das’s experience in managing and operating high growth public companies qualifies him to serve on our Board.

Non-Executive Directors

David Brody, Director.

Brody is the founder of Legacy XTI, previously served as its Chairman of its Board and was appointed as a member of our Board effective as of the effective time of the XTI Merger.

He designed the initial TriFan 600 configuration, technology and performance objectives.

He formed the initial leadership team, filed for patents and began development of the TriFan aircraft in 2014.

Brody is also the founder of the advanced technology helicopter company, AVX Aircraft Company (an engineering design and U.S.

defense contractor) and was its Chairman and Chief Executive Officer until 2013 and continues to serve on the AVX board.

Brody, a lawyer, practiced law in Denver from 1974 to 2021, including with the international law firm, Hogan Lovells US LLP from 2013-2021.

An inventor, he holds several patents for inventions in aircraft technology and other fields.

He has a Bachelor of Arts degree in Political Science and Philosophy from the University of Colorado in Boulder, and a Juris Doctorate from American University Law School in Washington D.C.

We believe that Mr.

Brody’s experience in the legal field, in the aerospace industry and as a founder of XTI qualifies him to serve on the combined company’s board of directors.

Kareem Irfan, Director.

Non-Executive

Brody, Director and Secretary.

Brody has served as a member of our Board and as our Secretary

since March 2024, at the effective time of the XTI Merger.

He also currently serves as a director of Legacy XTI.

is the founder of Legacy XTI and previously served as the Chairman of its board until the XTI Merger.

He designed the initial TriFan 600

configuration, technology and performance objectives.

Brody formed the initial leadership team, filed for patents and began development

of the TriFan airplane in 2014.

Brody is also the founder of the advanced technology helicopter company, AVX Aircraft Company

(an engineering design and U.S.

defense contractor) and was its Chairman and Chief Executive Officer until 2013 and continues to

serve on the AVX Aircraft Company board.

Brody, a lawyer, practiced law in Denver from 1974 to 2021, including with the international

law firm, Hogan Lovells US LLP from 2013-2021.

An inventor, he holds several patents for inventions in aircraft technology and other

He has a Bachelor of Arts degree in Political Science and Philosophy from the University of Colorado in Boulder, and a Juris Doctorate

from American University Law School in Washington D.C.

believe that Mr.

Brody’s experience in the legal field, in the aerospace industry and as a founder of Legacy XTI qualify him

to serve on our Board.

Axton, Director.

Axton has served as a member of our Board since May 2024.

Axton has been a Senior Managing Director at FTI Consulting, Inc.

in the Corporate Finance practice since May 2019 where she specializes

in developing and executing successful operational and financial strategies for businesses in various stages of their business cycle,

including serving as Interim CFO.

Axton previously served as Chief Financial Officer for Neighbors Health, LLC (2016-2019), Chief

Operating Officer for Pinnacle Medical Partners (2015-2016), Chief Financial Officer for Colorado Bancorp (2010-2012) and Vice President-Finance

at Kevco, Inc.

From 2019 to 2024, Ms.

Axton was a director of Houston Arboretum & Nature Center, chair of their

Audit Committee and a member of their Finance Committee.

She began her career at KPMG, was a Transaction Services Partner for KPMG in

Silicon Valley, California and Denver, Colorado for eight years and served as Office Managing Partner for the Denver office.

Axton has a BBA in Accounting from Texas A&M University and is a Certified Public Accountant.

We believe that Ms.

Axton’s 30 plus years of experience

in start-up and high growth businesses, capital markets, building and leading teams, accounting and auditing, mergers and acquisitions,

investor relations and system implementations give her strong qualifications and skills to serve on our Board.

Irfan, Director.

Irfan has served as a member of our Board since July 2014.

Irfan has been Chicago-based CEO (Global Businesses) since 2013 of Cranes Software International Limited (Cranes), a group of multinational corporations providing IT, Big-Data Analytics, Business Intelligence & Tech-Education services.

Irfan previously served as Chief Strategy Officer for Cranes;

a General Counsel for Schneider Electric (a Paris-based global leader in energy management) from 2005 to 2011;

has been Chicago-based CEO (Global Businesses) since 2013 of Cranes Software International Limited (Cranes), a group of multinational

corporations providing IT, Big-Data Analytics, Business Intelligence & Tech-Education services.

Irfan previously served

as Chief Strategy Officer for Cranes;

a General Counsel for Schneider Electric (a Paris-based global leader in energy management) from

2005 to 2011;

a Chief Counsel for Square D (US), and practiced IP law at two international.

law firms in the US.

He also advises global corporate, NGOs, NPOs and ed-institutions on M&A strategies, CSG/SRI, strategic sustainability & governance, inter-faith bridge-building, diversity/cultural sensitivity, international collaborations, and industry-oriented management/Leadership programs.

Irfan is a graduate of DePaul University College of Law, holds a MS in Computer Engineering from the University of Illinois, and a BS in Electronics Engineering from Bangalore University.

Irfan’s extensive experience in advising information technology companies, managing corporate governance and regulatory management policies, including over 30 years as a business strategist and over fifteen years of executive management leadership give him strong qualifications and skills to serve on our Board.

Family Relationships

There are no family relationships between any of our directors and executive officers.

Our Board may establish the authorized number of directors from time to time by resolution.

The current authorized number of directors is five (5).

In accordance with the terms of our bylaws, as amended, our Board is divided into three classes, Class I, Class II and Class III, with members of each class serving staggered three-year terms.

Upon the expiration of the term of a class of directors, directors in that class will be eligible to be elected for a new three-year term at the annual meeting of stockholders in the year in which their term expires.

He also advises

global corporate, NGOs, NPOs and ed-institutions on M&A strategies, CSG/SRI, strategic sustainability & governance, inter-faith

bridge-building, diversity/cultural sensitivity, international collaborations, and industry-oriented management/Leadership programs.

is a graduate of DePaul University College of Law, holds a MS in Computer Engineering from the University of Illinois, and a BS in Electronics

Engineering from Bangalore University.

extensive experience in advising information technology companies, managing corporate governance and regulatory management policies,

including over 30 years as a business strategist and over fifteen years of executive management leadership give him strong

qualifications and skills to serve on our Board.

Relationships

are no family relationships between any of our directors and executive officers.

Board may establish the authorized number of directors from time to time by resolution.

The current authorized number of directors is

In accordance with the terms of our bylaws, as amended, our Board is divided into three classes, Class I, Class II and Class

III, with members of each class serving staggered three-year terms.

Upon the expiration of the term of a class of directors, directors

in that class will be eligible to be elected for a new three-year term at the annual meeting of stockholders in the year in which their

term expires.

The directors are divided among the three classes as follows:

• the Class I directors are Scott Pomeroy and Soumya Das, and their terms will expire at our annual meeting of stockholders to be held in 2024;

• the Class II director is Kareem Irfan, and his term will expire at our annual meeting of stockholders to be held in 2025;

• the Class III director is David Brody and his term will expire at our annual meeting of stockholders to be held in 2026.

We expect that any additional directorships resulting from an increase in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third of the directors.

The division of our Board into three classes with staggered three-year terms may delay or prevent a change of our’s management or a change in control.

We expect that in the first meeting of the newly comprised Board following the closing of the XTI Merger, the Board will reevaluate board committee chairs and composition.

We continue to review our corporate governance policies and practices by comparing our policies and practices with those suggested by various groups or authorities active in evaluating or setting best practices for corporate governance of public companies.

Based on this review, we have adopted, and will continue to adopt, changes that the Board believes are the appropriate corporate governance policies and practices for our Company.

Our Board held four (4) meetings during 2023 and acted through twenty-one (21) written consents.

No member of our Board attended fewer than 75% of the aggregate of (i) the total number of meetings of the Board (held during the period for which he or she was a director) and (ii) the total number of meetings held by all committees of the Board on which such director served (held during the period that such director served).

Class I directors are Scott Pomeroy and Soumya Das, and their terms will expire at our annual meeting of stockholders to be held

Class II director is Kareem Irfan, and his term will expire at our annual meeting of stockholders to be held in 2025;

Class III director are Tensie Axton and David Brody and their terms will expire at our annual

meeting of stockholders to be held in 2026.

We expect that any additional directorships resulting from an increase

in the number of directors will be distributed among the three classes so that, as nearly as possible, each class will consist of one-third

of the directors.

The division of our Board into three classes with staggered three-year terms may delay or prevent a change of our management

or a change in control.

continue to review our corporate governance policies and practices by comparing our policies and practices with those suggested by various

groups or authorities active in evaluating or setting best practices for corporate governance of public companies.

Based on this review,

we have adopted, and will continue to adopt, changes that the Board believes are the appropriate corporate governance policies and practices

for our Company.

Board held fourteen (14) meetings during 2024.

No member of our Board attended fewer than

75% of the aggregate of (i) the total number of meetings of the Board (held during the period for which he or she was a director) and

(ii) the total number of meetings held by all committees of the Board on which such director served (held during the period that such

director served).

Members of our Board are invited and encouraged to attend our annual meeting of stockholders.

Independence of Directors

In determining the independence of our directors, we apply the definition of “independent director” provided under the listing rules of Nasdaq.

Pursuant to these rules, the Board has determined that all of the directors currently serving on the Board are independent within the meaning of Nasdaq Listing Rule 5605 with the exception of Scott Pomeroy and Soumya Das, who are executive officers.

Committees of our Board

The Board has three standing committees:

determining the independence of our directors, we apply the definition of “independent director” provided under the listing

rules of Nasdaq.

Pursuant to these rules, the Board has determined that all of the directors currently serving on the Board are independent

within the meaning of Nasdaq Listing Rule 5605 with the exception of Soumya Das and Scott Pomeroy, who are executive officers.

Board has three standing committees:

the Audit Committee, the Compensation Committee, and the Nominating and Corporate Governance Committee.

We expect that the newly comprised Board following the closing of the XTI Merger will reevaluate board committee chairs and composition.

Audit Committee

The Audit Committee consists of David Brody and Kareem Irfan, both of whom are “independent” as defined under section 5605(a)(2) of the Nasdaq Listing Rules.

The Board has determined that Mr.

Irfan qualifies as an “audit committee financial expert” as defined in the rules of the SEC.

The Audit Committee operates pursuant to a charter, which can be viewed on our website at http://www.xtiaerospace.com (under “Investors”).

The Inpixon Audit Committee met four (4) times during 2023.

Audit Committee consists of Tensie Axton, David Brody and Kareem Irfan, each of whom is “independent” as defined under section

5605(a)(2) of the Nasdaq Listing Rules.

Irfan is the Chairman of the Audit Committee.

The Board has determined that Ms.

Irfan qualify as an “audit committee financial expert” as defined in the rules of the SEC.

The Audit Committee met three (3) times during 2024.

All members attended more than 75% of such committee meetings.

The primary role of the Audit Committee is to:

• oversee management’s preparation of our financial statements and management’s conduct of the accounting and financial reporting processes;

• oversee management’s maintenance of internal controls and procedures for financial reporting;

• oversee our compliance with applicable legal and regulatory requirements, including without limitation, those requirements relating to financial controls and reporting;

• oversee the independent auditor’s qualifications and independence;

• oversee the performance of the independent auditors, including the annual independent audit of our financial statements;

• prepare the report required by the rules of the SEC to be included in our Proxy Statement;

• discharge such duties and responsibilities as may be required of the Committee by the provisions of applicable law, rule or regulation.

The Audit Committee is authorized to establish procedures to receive, address, monitor, and retain complaints arising out of accounting and auditing matters.

The role of the Audit Committee is to:

management’s preparation of our financial statements and management’s conduct of the accounting and financial reporting

management’s maintenance of internal controls and procedures for financial reporting;

our compliance with applicable legal and regulatory requirements, including without limitation, those requirements relating to financial

controls and reporting;

the independent auditor’s qualifications and independence;

the performance of the independent auditors, including the annual independent audit of our financial statements;

the report required by the rules of the SEC to be included in our Proxy Statement;

such duties and responsibilities as may be required of the Committee by the provisions of applicable law, rule or regulation.

Audit Committee is authorized to establish procedures to receive, address, monitor, and retain complaints arising out of accounting and

auditing matters.

As it deems appropriate, the Audit Committee is authorized to engage outside auditors, counsel, or other experts.

A copy of the charter of the Audit Committee is available on our website at http://www.xtiaerospace.com (under "Investors").

Leonard Oppenheim, a former independent director and the former Chairman of the Audit Committee, resigned from the Board effective as of March 31, 2024.

On April 4, 2024, the Company received a notification letter from the Listing Qualifications Department of Nasdaq that due to Mr.

Oppenheim's resignation, the Company no longer complies with Nasdaq’s independent director and audit committee requirements as set forth in Listing Rule 5605 as the Board is not comprised of a majority of “independent directors” (as that term is defined in Nasdaq Listing Rule 5605(a)(2)) as required by Nasdaq Listing Rule 5605(b)(1) and the Audit Committee is not comprised of at least three independent directors as required by Nasdaq Listing Rule 5605(c)(2)(A).

Consistent with Nasdaq Listing Rules 5605(b)(1)(A) and 5605(c)(4), Nasdaq has provided the Company a cure period in order to regain compliance (i) until the earlier of the Company’s next annual shareholders’ meeting or March 31, 2025, or (ii) if the next annual shareholders’ meeting is held before September 27, 2024, then the Company must evidence compliance no later than September 27, 2024.

The Company intends to appoint an additional independent director to the Board and the Audit Committee prior to the end of the cure period.

In addition, the Company will appoint a new Chairman of the Audit Committee as expeditiously as possible.

Compensation Committee

The Compensation Committee consists of Kareem Irfan and David Brody each of whom are “independent” as defined in section 5605(a)(2) of the Nasdaq Listing Rules.

Brody is the current Chairman of the Compensation Committee.

The Inpixon Compensation Committee met four (4) times during 2023.

copy of the charter of the Audit Committee is available on our website at http://www.xtiaerospace.com (under “Investors/Governance/Governance

The Compensation

Committee consists of David Brody, Tensie Axton and Kareem Irfan, each of whom is “independent” as defined in section

5605(a)(2) of the Nasdaq Listing Rules.

Brody is the Chairman of the Compensation Committee.

The Compensation Committee met

three (3) times during 2024.

All members attended 75% or more of such committee meetings.

The primary role of the Compensation Committee is to:

• develop and recommend to the independent directors of the Board the annual compensation (base salary, bonus, stock options and other benefits) for our directors and officers;

• review, approve and recommend to the independent directors of the Board the annual compensation (base salary, bonus and other benefits) for all of our Executive Officers (as used in Section 16 of the Securities Exchange Act of 1934 and defined in Rule 16a-1 thereunder);

• review, approve and recommend to the Board the annual profit-sharing contribution, aggregate number of equity grants and other benefits to be granted to all other employees;

• review, the management's succession planning process in consultation with CEO, and provide report to the Board on Company's leadership succession planning for the CEO and other Executive Officers, on annual basis;

• ensure that a significant portion of executive compensation is reasonably related to the long-term interest of our stockholders.

A copy of the charter of the Compensation Committee is available on our website at http://www.xtiaerospace.com (under “Investors”).

The Compensation Committee may form and delegate a subcommittee consisting of one or more members to perform the functions of the Compensation Committee.

The Compensation Committee may engage outside advisers, including outside auditors, attorneys and consultants, as it deems necessary to discharge its responsibilities.

The Compensation Committee has sole authority to retain and terminate any compensation expert or consultant to be used to provide advice on compensation levels or assist in the evaluation of director, President/Chief Executive Officer or senior executive compensation, including sole authority to approve the fees of any expert or consultant and other retention terms.

In addition, the Compensation Committee considers, but is not bound by, the recommendations of our Chief Executive Officer with respect to the compensation packages of our other executive officers.

Nominating and Corporate Governance Committee

The Nominating and Corporate Governance Committee, or the “Governance Committee,” consists of David Brody, who is “independent” as defined in section 5605(a)(2) of the Nasdaq Listing Rules.

Brody is the Chairman of the Governance Committee.

The Nominating and Corporate Governance Committee did not meet in person during 2023 and acted by written consent one (1) time during 2023.

The role of the Compensation Committee is

and recommend to the independent directors of the Board the annual compensation (base salary, bonus, stock options and other benefits)

for our directors and officers;

approve and recommend to the independent directors of the Board the annual compensation (base salary, bonus and other benefits) for

all of our Executive Officers (as used in Section 16 of the Securities Exchange Act of 1934, as amended (the

“Exchange Act”), and defined in Rule 16a-1 thereunder);

approve and recommend to the Board the annual profit-sharing contribution, aggregate number of equity grants and other benefits to

be granted to all other employees;

the management’s succession planning process in consultation with CEO, and provide report to the Board on Company’s leadership

succession planning for the CEO and other executive officers, on annual basis;

that a significant portion of executive compensation is reasonably related to the long-term interest of our stockholders.

copy of the charter of the Compensation Committee is available on our website at http://www.xtiaerospace.com (under “Investors/Governance/Governance

Compensation Committee may form and delegate a subcommittee consisting of one or more members to perform the functions of the Compensation

The Compensation Committee may engage outside advisers, including outside auditors, attorneys and consultants, as it deems

necessary to discharge its responsibilities.

The Compensation Committee has sole authority to retain and terminate any compensation expert

or consultant to be used to provide advice on compensation levels or assist in the evaluation of director, President/Chief Executive

Officer or senior executive compensation, including sole authority to approve the fees of any expert or consultant and other retention

In addition, the Compensation Committee considers, but is not bound by, the recommendations of our Chief Executive Officer with

respect to the compensation packages of our other executive officers.

and Corporate Governance Committee

Nominating and Corporate Governance Committee, or the “Governance Committee,” consists of Tensie Axton and David Brody, each

of whom is “independent” as defined in section 5605(a)(2) of the Nasdaq Listing Rules.

Axton is the Chairman of the Governance

The Nominating and Corporate Governance Committee met one (1) time during 2024.

The role of the Governance Committee is to:

• evaluate from time to time the appropriate size (number of members) of the Board and recommend any increase or decrease;

• determine the desired skills and attributes of members of the Board, taking into account the needs of the business and listing standards;

• establish criteria for prospective members, conduct candidate searches, interview prospective candidates, and oversee programs to introduce the candidate to us, our management, and operations;

• annually recommend to the Board persons to be nominated for election as directors;

• recommend to the Board the members of all standing Committees;

• periodically review the “independence” of each director;

• adopt or develop for Board consideration corporate governance principles and policies;

• provide oversight to the strategic planning process conducted annually by our management.

A copy of the charter of the Governance Committee is available on our website at http://www.xtiaerospace.com (under “Investors”).

Stockholder Communications

Two-way communication is important for maintaining transparency and resolving any grievances with stockholders.

Stockholders may communicate with the members of the Board, either individually or collectively, by writing to the Board at 8123 InterPort Blvd., Suite C, Englewood, Colorado 80112.

These communications will be reviewed by the Secretary as agent for the non-employee directors in facilitating direct communication to the Board.

The Secretary will treat communications containing complaints relating to accounting, internal accounting controls, or auditing matters as reports under our Whistleblower Policy.

Further, the Secretary will disregard communications that are bulk mail, solicitations to purchase products or services not directly related either to us or the non-employee directors’ roles as members of the Board, sent other than by stockholders in their capacities as such or from particular authors or regarding particular subjects that the non-employee directors may specify from time to time, and all other communications which do not meet the applicable requirements or criteria described below, consistent with the instructions of the non-employee directors.

General Communications.

The Secretary will summarize all stockholder communications directly relating to our business operations, the Board, our officers, our activities or other matters and opportunities closely related to us.

This summary and copies of the actual stockholder communications will then be circulated to the Chairman of the Governance Committee.

Stockholder Proposals and Director Nominations and Recommendations.

Stockholder proposals are reviewed by the Secretary for compliance with the requirements for such proposals set forth in our Bylaws and in Regulation 14a-8 promulgated under the Exchange Act.

Stockholder proposals that meet these requirements will be summarized by the Secretary.

Summaries and copies of the stockholder proposals are circulated to the Chairman of the Governance Committee.

Stockholder nominations for directors are reviewed and summarized by the Secretary.

The Governance Committee will consider director candidates recommended by stockholders.

If a director candidate is recommended by a stockholder, the Governance Committee expects to evaluate such candidate in the same manner it evaluates

director candidates it identifies.

Stockholders desiring to make a recommendation to the Governance Committee should follow the procedures set forth above regarding stockholder nominations for directors.

Retention of Stockholder Communications.

Any stockholder communications which are not circulated to the Chairman of the Governance Committee because they do not meet the applicable requirements or criteria described above will be retained by the Secretary for at least ninety calendar days from the date on which they are received, so that these communications may be reviewed by the directors generally if such information relates to the Board as a whole, or by any individual to whom the communication was addressed, should any director elect to do so.

Distribution of Stockholder Communications.

Except as otherwise required by law or upon the request of a non-employee director, the Chairman of the Governance Committee will determine when and whether a stockholder communication should be circulated among one or more members of the Board and/or Company management.

Director Qualifications and Diversity

The Board seeks independent directors who represent a diversity of backgrounds and experiences that will enhance the quality of the Board’s deliberations and decisions.

The Board is particularly interested in maintaining a mix that includes individuals who are active or retired executive officers and senior executives, particularly those with experience in technology;

from time to time the appropriate size (number of members) of the Board and recommend any increase or decrease;

the desired skills and attributes of members of the Board, taking into account the needs of the business and listing standards;

criteria for prospective members, conduct candidate searches, interview prospective candidates, and oversee programs to introduce

the candidate to us, our management, and operations;

recommend to the Board persons to be nominated for election as directors;

to the Board the members of all standing Committees;

review the “independence” of each director;

or develop for Board consideration corporate governance principles and policies;

oversight to the strategic planning process conducted annually by our management.

copy of the charter of the Governance Committee is available on our website at http://www.xtiaerospace.com (under “Investors/Governance/Governance

Communications

may communicate with the members of the Board, either individually or collectively, by writing to the Board at 8123 InterPort Blvd., Suite

C, Englewood, CO 80112.

These communications will be reviewed by the Secretary as agent for the non-employee directors in facilitating

direct communication to the Board.

The Secretary will treat communications containing complaints relating to accounting, internal accounting

controls, or auditing matters as reports under our Whistleblower Policy.

Further, the Secretary will disregard communications that are

bulk mail, solicitations to purchase products or services not directly related either to us or the non-employee directors’ roles

as members of the Board, sent other than by stockholders in their capacities as such or from particular authors or regarding particular

subjects that the non-employee directors may specify from time to time, and all other communications which do not meet the applicable

requirements or criteria described below, consistent with the instructions of the non-employee directors.

Communications.

The Secretary will summarize all stockholder communications directly relating to our business operations, the Board,

our officers, our activities or other matters and opportunities closely related to us.

This summary and copies of the actual stockholder

communications will then be circulated to the Chairman of the Governance Committee.

Proposals and Director Nominations and Recommendations.

Stockholder proposals are reviewed by the Secretary for compliance with the requirements

for such proposals set forth in our Bylaws and in Regulation 14a-8 promulgated under the Exchange Act.

Stockholder proposals

that meet these requirements will be summarized by the Secretary.

Summaries and copies of the stockholder proposals are circulated to

the Chairman of the Governance Committee.

nominations for directors are reviewed and summarized by the Secretary and are then circulated to the Chairman of the Governance Committee.

Governance Committee will consider director candidates recommended by stockholders.

If a director candidate is recommended by a stockholder,

the Governance Committee expects to evaluate such candidate in the same manner it evaluates director candidates it identifies.

desiring to make a recommendation to the Governance Committee should follow the procedures set forth above regarding stockholder nominations

for directors.

addition to satisfying the foregoing requirements under our Bylaws, stockholders who intend to solicit proxies in support of director

nominees other than our nominees must comply with the additional requirements of Rule 14a-19 under the Exchange Act (the “universal

proxy rules”).

The requirements under the universal proxy rules are in addition to the applicable procedural requirements under

our Bylaws described above.

of Stockholder Communications.

Any stockholder communications which are not circulated to the Chairman of the Governance Committee because

they do not meet the applicable requirements or criteria described above will be retained by the Secretary for at least ninety calendar days

from the date on which they are received, so that these communications may be reviewed by the directors generally if such information

relates to the Board as a whole, or by any individual to whom the communication was addressed, should any director elect to do so.

of Stockholder Communications.

Except as otherwise required by law or upon the request of a non-employee director, the Chairman of the

Governance Committee will determine when and whether a stockholder communication should be circulated among one or more members of the

Board and/or Company management.

Qualifications and Diversity

Board seeks independent directors who represent a diversity of backgrounds and experiences that will enhance the quality of the Board’s

deliberations and decisions.

The Board is particularly interested in maintaining a mix that includes individuals who are active or retired

executive officers and senior executives, particularly those with experience in technology;

research and development;

finance, accounting and banking;

finance, accounting

or marketing and sales.

There is no difference in the manner in which the Governance Committee evaluates nominees for director based on whether the nominee is recommended by a stockholder.

In evaluating nominations to the Board, the Governance Committee also looks for depth and breadth of experience within the Company’s industry and otherwise, outside time commitments, special areas of expertise, accounting and finance knowledge, business judgment, leadership ability, experience in developing and assessing business strategies, corporate governance expertise, and for incumbent members of the Board, the past performance of the incumbent director.

Each of the candidates nominated for election to our Board at our last annual meeting of stockholders was recommended by the Governance Committee.

Code of Business Conduct and Ethics

The Board has adopted a code of business conduct and ethics (the “Code”) designed, in part, to deter wrongdoing and to promote honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships, full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with or submits to the SEC and in the Company’s other public communications, compliance with applicable governmental laws, rules and regulations, the prompt internal reporting of Code violations to an appropriate person or persons, as identified in the Code and accountability for adherence to the Code.

is no difference in the manner in which the Governance Committee evaluates nominees for directors based on whether the nominee is recommended

by a stockholder.

In evaluating nominations to the Board, the Governance Committee also looks for depth and breadth of experience within

the Company’s industry and otherwise, outside time commitments, special areas of expertise, accounting and finance knowledge, business

judgment, leadership ability, experience in developing and assessing business strategies, corporate governance expertise, and for incumbent

members of the Board, the past performance of the incumbent director.

Each of the candidates nominated for election to our Board at our

last annual meeting of stockholders was recommended by the Governance Committee.

Business Conduct and Ethics

Board has adopted a code of business conduct and ethics (the “Code”) designed, in part, to deter wrongdoing and to promote

honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional

relationships, full, fair, accurate, timely and understandable disclosure in reports and documents that the Company files with or submits

to the SEC and in the Company’s other public communications, compliance with applicable governmental laws, rules and regulations,

the prompt internal reporting of Code violations to an appropriate person or persons, as identified in the Code and accountability for

adherence to the Code.

The Code applies to all directors, executive officers and employees of the Company.

The Code is periodically reviewed by the Board.

A copy of the Code is available on our website at http://www.xtiaerospace.com (under "Investors").

In the event we determine to amend or waive certain provisions of the Code, we intend to disclose such amendments or waivers on our website within four (4) business days following such amendment or waiver or as otherwise required by the Nasdaq Listing Rules.

Policy against Hedging Stock

Our insider trading policy (which was adopted by the Board in November 2015 and updated as of August 2020) prohibits our directors, officers, and other employees, and their designees, from engaging in short sales or from hedging transactions of any nature that are designed to hedge or offset a decrease in market value of such person's ownership of the Company's equity securities.

The Code is periodically reviewed

by the Board.

In the event we determine to amend or waive certain provisions of the Code, we intend to disclose such amendments or waivers

on our website at http://www.xtiaerospace.com under the heading “Investors” within four business days following

such amendment or waiver or as otherwise required by the Nasdaq Listing Rules.

Trading Policy

We have an insider trading

policy (which was adopted by the Board in November 2015 and updated as of August 2020) that governs the purchase, sale, and/or

other dispositions of our securities by our directors, officers and employees.

We believe that our insider trading policy is reasonably

designed to promote compliance with insider trading laws, rules and regulations, and Nasdaq listing standards.

Our insider trading policy,

among other things, prohibits directors, executive officers and members of our executive and operations teams (collectively, “Covered

Persons”) from holding our securities in a margin account, pledging our securities as collateral for a loan, or engaging in short

selling or similar hedging activities involving our securities.

A copy of our insider trading policy is filed as an exhibit to this Annual

Risk Oversight

Our Board provides risk oversight for our entire company by receiving management presentations, including risk assessments, and discussing these assessments with management.

Our officers are responsible for overseeing the material risk faced by our Company as part of their day-to-day management responsibilities.

Our Board’s overall risk oversight, which focuses primarily on risks and exposures associated with current matters that may present material risk to our operations, plans, prospects or reputation, is supplemented by the various committees.

Our Audit Committee discusses with management and our

independent registered public accounting firm our risk management guidelines and policies, our major financial risk exposures and the steps taken to monitor and control such exposures.

Our Compensation Committee oversees risks related to our compensation programs and discusses with management its annual assessment of our employee compensation policies and programs.

Our Governance Committee oversees risks related to corporate governance and management and director succession planning.

Board Leadership Structure

Our Board does not have a policy regarding the separation of the roles of Chief Executive Officer and Chairman of the Board, as our Board believes it is in the best interest of the Company to make that determination based on the position and direction of the Company and the membership of the Board.

Our Board has determined that having an employee director serve as Chairman is in the best interest of our stockholders at this time because of the efficiencies achieved in having the role of Chief Executive Officer and Chairman combined, and because the detailed knowledge of our day-to-day operations and business that the Chief Executive Officer possesses greatly enhances the decision-making processes of our board of directors as a whole.

The Chairman of the Board and the other members of the Board work in concert to provide oversight of our management and affairs.

Our Board encourages communication among its members and between management and the Board to facilitate productive working relationships.

Working with the other members of the Board, our Chairman also strives to ensure that there is an appropriate balance and focus among key board responsibilities such as strategic development, review of operations and risk oversight.

Board provides risk oversight for our entire company by receiving management presentations, including risk assessments, and discussing

these assessments with management.

The Board’s overall risk oversight, which focuses primarily on risks and exposures associated

with current matters that may present material risk to our operations, plans, prospects or reputation, is supplemented by the various

The Audit Committee discusses with management and our independent registered public accounting firm our risk management guidelines

and policies, our major financial risk exposures and the steps taken to monitor and control such exposures.

Our Compensation Committee

oversees risks related to our compensation programs and discusses with management its annual assessment of our employee compensation

policies and programs.

Our Governance Committee oversees risks related to corporate governance and management and director succession

Leadership Structure

Board does not have a policy regarding the separation of the roles of Chief Executive Officer and Chairman of the Board, as our Board

believes it is in the best interest of the Company to make that determination based on the position and direction of the Company and

the membership of the Board.

Board has determined that having an employee director serve as Chairman is in the best interest of our stockholders at this time because

of the efficiencies achieved in having the role of Chief Executive Officer and Chairman combined, and because the detailed knowledge

of our day-to-day operations and business that the Chief Executive Officer possesses greatly enhances the decision-making processes

of our board of directors as a whole.

Chairman of the Board and the other members of the Board work in concert to provide oversight of our management and affairs.

encourages communication among its members and between management and the Board to facilitate productive working relationships.

with the other members of the Board, our Chairman also strives to ensure that there is an appropriate balance and focus among key board

responsibilities such as strategic development, review of operations and risk oversight.

Delinquent Section

16(a) Reports

16(a) of the Exchange Act requires our directors, executive officers and persons who own more than 10% of a registered class of our equity

securities to file with the SEC initial reports of ownership and reports of changes in ownership of common stock and other equity securities

Directors, executive officers and greater than 10% holders are required by SEC regulation to furnish us with copies of all Section

16(a) reports they file.

Based solely on our review of Forms 3 and 4 filed during 2024 (and any written representations to us by such

persons), we believe that all directors, executive officers and 10% stockholders complied with all applicable Section 16(a) filing requirements

during 2024, with the exception of one Form 4 filed late by Nadir Ali on March 14, 2024 reporting one transaction dated December 19,

EXECUTIVE COMPENSATION

Set forth below is information regarding the historical compensation of certain Inpixon executive officers prior to the completion of the XTI Merger.

In addition, set forth below is information regarding the historical compensation of Legacy XTI executive officers prior to completion of the XTI Merger, and employment and compensatory arrangements we have made with our executive officers following the completion of the XTI Merger, both of which we are voluntarily providing.

Inpixon Executive Compensation

The table below sets forth, for the last two fiscal years, the compensation earned by (i) each individual who served as our principal executive officer and (ii) our two other most highly compensated executive officers, other than our principal executive officer, who were serving as an executive officer at the end of the last fiscal year.

table below sets forth, for the last two fiscal years, the compensation earned by (i) each individual who served as our principal executive

officer during the last fiscal year, (ii) our two other most highly compensated executive officers, other than our principal executive

officer, who were serving as an executive officer at the end of the last fiscal year and (iii) up to two additional individuals for whom

disclosure would have been required but for the fact that the individual was not serving as an executive officer at the end of the last

Together, these individuals are sometimes referred to as the “Named Executive Officers.”

Name and Principal Position Year Salary

($) Stock Awards ($) Option Awards

($)(1) All Other Compensation

Nadir Ali, 2023 $ 280,000 $ 2,451,225 (5) $ — $ — $ 754,399 (3) $ 3,485,624

Former Chief Executive Officer 2022 $ 280,000 $ 220,000 $ — $ 370,005 (1) $ 294,610 (3) $ 1,164,615

Soumya Das 2023 $ 312,000 $ 288,863 $ — $ — $ 106,897 (2) $ 707,760

Former Chief Operating Officer 2022 $ 312,000 $ 280,838 $ — $ 185,023 (1) $ 12,000 (2) $ 789,861

Principal Position

Scott Pomeroy

$ 2,246,450 (2)

Chairman and Chief Executive

$ 210,000 (3)

Chief Financial Officer

$ 101,250 (3)

$ 912,000 (4)

Chief Executive Officer,

Real Time Location System Division, and Director

$ 106,897 (5)

$ 3,581,000 (6)

$ 1,565,803 (7)

Former Chief Executive

$ 2,451,225 (6)

$ 754,399 (7)

Wendy Loundermon

Former Chief Financial Officer 2022 $ 300,000 $ 150,000 $ — $ 185,023 (1) $ 24,519 (4) $ 659,542

(1) The fair value of employee option grants are estimated on the date of grant using the Black-Scholes option pricing model with key weighted average assumptions, expected stock volatility and risk free interest rates based on US Treasury rates from the applicable periods.

(2) The 2022 amount represents automobile allowance.

The 2023 amount includes a $12,000 automobile allowance and CVH unit grants valued at $94,897, which is the fair market value at the date of grant.

(3) The 2022 amount includes $54,611 of accrued vacation paid as compensation, a $12,000 automobile allowance and a $227,999 housing allowance.

The 2023 amount includes $51,970 of accrued vacation paid as compensation, a $12,000 automobile allowance, a $227,999 housing allowance, and CVH unit grants valued at $462,430, which is the fair market value at the date of grant.

(4) The 2022 amount represents accrued vacation paid as compensation.

The 2023 amount includes $21,635 of accrued vacation paid as compensation and CVH unit grants valued at $181,400, which is the fair market value at the date of grant.

(5) Bonus earned under Completed Transaction Bonus Plan.

(6) Bonus earned under Completed Transaction Bonus Plan and employment agreement.

Outstanding Equity Awards at Fiscal Year-End

There were no outstanding unexercised options, unvested stock, and/or equity incentive plan awards issued to our Named Executive Officers as of December 31, 2023.

Employment Agreements and Arrangements

On July 1, 2010, Nadir Ali entered into an at-will Employment and Non-Compete Agreement, as subsequently amended, with Inpixon Federal, Inc., Inpixon Government Services and Inpixon Consulting prior to their acquisition by the Company.

Under the terms of the Employment Agreement Mr.

Ali serves as President.

The employment agreement was assumed by the Company and Mr.

Ali became CEO in September 2011.

Ali’s salary under the agreement was initially $240,000 per annum plus other benefits including a bonus plan, a housing allowance, health insurance, life insurance and other standard Inpixon employee benefits.

Ali’s employment is terminated without Cause (as defined), he will receive his base salary for 12 months from the date of termination.

Ali’s employment agreement provides that he will not compete with the Company and will be subject to non-solicitation provisions relating to employees, consultants and customers, distributors,

partners, joint ventures or suppliers of the Company during the term of his employment or consulting relationship with the Company.

On April 17, 2015, the compensation committee approved the increase of Mr.

Ali’s annual salary to $252,400, effective January 1, 2015.

Effective May 16, 2018 the compensation committee approved an increase in Mr.

Ali’s annual salary to $280,000 and an auto allowance of $1,000 a month.

On February 27, 2023, the Company entered into a Limited Liability Company Unit Transfer and Joinder Agreement with Mr.

Ali, pursuant to which (i) the Company transferred 219,999 Class A Units of Cardinal Venture Holdings LLC, a Delaware limited liability company (“CVH”), to Mr.

Ali in connection with Mr.

Ali’s services performed for and on behalf of the Company as an employee and a director of the Company and (ii) Mr.

Ali became a member of CVH and a party to the Amended and Restated Limited Liability Company Agreement of CVH, dated as of September 30, 2020 (the “CVH LLC Agreement”).

The fair market value of the Class A Units at the date of grant is $462,430.

$ 1,150,000 (8)

$ 543,930 (9)

Former Chief Financial

$ 530,175 (8)

$ 203,035 (9)

fair value of employee option grants are estimated on the date of grant using the Black-Scholes option pricing model with key weighted

average assumptions, expected stock volatility and risk free interest rates based on US Treasury rates from the applicable periods.

all cash and equity compensation including accrued transaction bonuses earned as a consultant for XTI Aircraft Company from January

1, 2024 up to the closing of the XTI Merger on March 12, 2024.

compensation earned as a consultant for XTI Aircraft Company in 2023.

a $612,000 bonus earned under the Strategic Transaction Bonus Plan and a $300,000 bonus earned under an employment agreement.

2024 amount includes a $12,000 automobile allowance.

The 2023 amount includes a $12,000 automobile allowance and CVH unit grants

valued at $94,897, which is the fair market value at the date of grant.

2024 amount represents a bonus earned under the Strategic Transaction Bonus Plan.

The 2023 amount represents a bonus earned under

the Completed Transaction Bonus Plan.

2024 amount includes $1,487,012 of severance compensation, $18,791 of accrued vacation paid as compensation, a $3,000 automobile

allowance, and a $57,000 housing allowance.

The 2023 amount includes $51,970 of accrued vacation paid as compensation,

a $12,000 automobile allowance, a $227,999 housing allowance, and CVH unit grants valued at $462,430, which is the fair market value

at the date of grant.

2024 amount represents a bonus earned under the Strategic Transaction Bonus Plan.

The 2023 amount represents a bonus earned under

the Completed Transaction Bonus Plan.

2024 amount includes $521,344 of severance compensation and $22,586 of accrued vacation paid as compensation.

The 2023 amount includes

$21,635 of accrued vacation paid as compensation and CVH unit grants valued at $181,400, which is the fair market value at the date

Equity Awards at Fiscal Year-End

than as set forth below, there were no outstanding unexercised options, unvested stock, and/or equity incentive plan awards issued to

our Named Executive Officers as of December 31, 2024.

un-exercisable

Exercise Price

Option expiration

Scott Pomeroy

Wendy Loundermon

vest 1/3 rd per year at each grant date anniversary.

Agreements and Arrangements

The Company entered into an employment agreement with Mr.

on May 6, 2024 (the “Pomeroy Employment Agreement”), pursuant to which Mr.

Pomeroy agreed to continue to serve as

the Company’s Chief Executive Officer and as a member and Chairman of the Board.

Pursuant to the terms of the Pomeroy Employment

Agreement, Mr.

Pomeroy is entitled to receive an annual base salary of $400,000, which may be increased by the Board from time to

time in its sole discretion.

Pursuant to the Pomeroy Employment Agreement, Mr.

Pomeroy received retroactive pay with respect to the

period from March 13, 2024 until April 30, 2024 in the aggregate amount of $54,545 and with respect to the period from May 1,

2024 until May 6, 2024 in the amount of $6,061.

Pomeroy is also entitled to receive an annual cash bonus of up to a baseline

of 100% of his base salary, with the right and ability to earn up to a cap of 150% of his base salary, applying a weighted average percentage

of the objective and subjective criteria and milestones set forth in the Pomeroy Employment Agreement, which include target amounts and

target dates for equity investments received by the Company and the Company’s average market cap in addition to the completion of

certain milestones in the development of the Company’s TriFan 600 airplane.

The Board will determine and award the annual cash bonus

by January 31 following the end of each calendar year during Mr.

Pomeroy’s employment period.

to the Pomeroy Employment Agreement, Mr.

Pomeroy is also eligible to participate in the Company’s incentive stock option plan

and may receive additional stock options or other equity incentives in the sole discretion of the Board.

In addition, Mr.

Ali beneficially owned membership interests in CVH through 3AM LLC, a Delaware limited liability company and a founding member of CVH.

CVH was dissolved as of December 31, 2023.

On March 12, 2024, the Company and Mr.

Ali entered into an amendment (the “Ali Employment Agreement Amendment”) to Mr.

Ali’s Amended and Restated Employment Agreement dated May 15, 2018, to provide for payment of his cash severance thereunder on or as soon as practicable following the date that is 21 days following the XTI Merger.

Ali was also a participant of the Completed Transaction Bonus Plan pursuant to which he received a cash bonus in an aggregate amount of 3.5% of the $70,350,000 transaction value of the Enterprise Apps Spin-off.

Ali is a participant of the Contemplated Transaction Plan pursuant to which he is eligible for (a) a cash bonus in an aggregate amount of 3.5% of the transaction value attributed to a Contemplated Transaction less $6.5 million;

(b) a cash bonus in an aggregate amount equal to 100% of his aggregate annual base salary and target bonus amount following the closing of a Contemplated Transaction and (c ) an award (the “Award”) of fully vested shares of Company common stock (“Shares”) issued under the Inpixon 2018 Employee Stock Incentive Plan or any successor equity incentive plan adopted by the Company (the “Equity Plan”) on the date that is three (3) months following the Closing of the XTI Merger (the “Grant Date”) covering a number of shares having a fair market value (based on the closing price per Share on the Grant Date) equal to $1,023,600.

Notwithstanding the foregoing, Nadir Ali shall not be eligible to receive the Award if his Consulting Agreement with the Company dated as of March 12, 2024 (the “Consulting Agreement”), terminates before the Grant Date due to (a) Company Good Reason (as defined in the Consulting Agreement) or (b) termination by Nadir Ali for any reason other than Consultant Good Reason (as defined in the Consulting Agreement).

The XTI Merger is a Contemplated Transaction.

(See Part II, Item 7, " Recent Events - Transaction Bonus Plan in connection with Future Strategic Transactions" for a description of the Contemplated Transaction Plan.)

On November 4, 2016, and effective as of November 7, 2016, Mr.

is entitled to vacation time, paid holidays, sick days and personal days in accordance with the Company’s policies applicable

to other senior executives of the Company;

provided that he is entitled to six weeks of vacation annually.

Pomeroy is also

eligible to participate in all benefit plans and programs maintained by the Company for the benefit of its senior executives.

the Company agreed to reimburse Mr.

Pomeroy for all reasonable and necessary business expenses incurred by him in connection with

the performance of his duties under the Pomeroy Employment Agreement within a reasonable period of time after Mr.

submission of expense vouchers, in accordance with Company’s expense reimbursement policies.

Pomeroy’s employment agreement term ends on December 31,

2025, with one automatic one-year extension to December 31, 2026, unless either party provides prior notice of non-renewal on or

before March 31, 2025.

The Pomeroy Employment Agreement provides that Mr.

Pomeroy’s receipt of compensation following

termination of employment is subject to his execution of a release releasing all claims against the Company and its executives, directors

and employees, other than as prohibited by law.

Pomeroy is terminated without cause (other than due to death or disability)

or if he resigns for good reason (as such terms are defined in the Pomeroy Employment Agreement), then Mr.

Pomeroy will be entitled

to (i) a severance payment equivalent to the base salary that would have been paid to him through the end of the employment period,

(ii) payment for any unused vacation accrued to the date of termination, (iii) payment for any accrued but unpaid expenses through

the date of termination and (iv) any benefits to which he may be entitled upon termination pursuant to the terms of any applicable

plans and programs or as may be required by applicable law.

Pomeroy terminates for good reason, in addition to the foregoing

compensation and benefits, he is entitled to receive reimbursements of premium payments for continuation coverage under applicable state

or federal law, in the event he elects such continuation coverage, for the remainder of his employment period, or, if longer, for a period

of six months after termination of employment.

The Pomeroy Employment Agreement also includes provisions governing Company confidential

Pomeroy is terminated for cause, then immediately following such termination, he is entitled only to any unpaid

compensation and unreimbursed expenses.

previously served as Legacy XTI’s Chief Financial Officer from July 2022 until the XTI Merger pursuant to a consulting agreement

dated July 1, 2022, as amended effective January 1, 2023.

The consulting agreement provided that Mr.

Pomeroy receive monthly

compensation of $17,500.

Pursuant to the consulting agreement and in connection with the closing of the XTI Merger, Mr.

received 4,000,000 shares of Legacy XTI common stock that were exchanged for 357,039 shares of our Common Stock.

The Company entered into an employment agreement with Ms.

Turk on May 8,

2024 (the “Turk Employment Agreement”), pursuant to which Ms.

Turk agreed to continue to serve as the Company’s Chief

Financial Officer.

Pursuant to the terms of the Turk Employment Agreement, Ms.

Turk is entitled to receive an annual base salary of $350,000,

which may be increased by the Board from time to time in its sole discretion.

Pursuant to the Turk Employment Agreement, Ms.

Turk received

retroactive pay with respect to the period from March 13, 2024 until April 30, 2024 in the aggregate amount of $47,788 and with

respect to the period from May 1, 2024 until May 8, 2024 in the amount of $7,955.

Turk is also entitled to receive an annual

cash bonus of up to a baseline of 75% of her base salary, with the right and ability to earn up to a cap of 112.5% of her base salary,

applying a weighted average percentage of the objective and subjective criteria and milestones set forth in the Turk Employment Agreement,

which include target amounts and target dates for equity investments received by the Company and the Company’s average market cap

in addition to the completion of certain milestones in the development of the Company’s TriFan 600 airplane.

The Board will determine

and award the annual cash bonus within 30 days after the end of each calendar year during Ms.

Turk’s employment period.

remaining material terms of the Turk Employment Agreement are substantially similar to the terms of the Pomeroy Employment Agreement described

In connection with his appointment as Chief Strategy Officer, the Company

entered into an employment agreement with Tobin Arthur on September 19, 2024, effective as of such date, which sets forth the terms

Arthur’s services as Chief Strategy Officer and his compensation arrangement (the “Arthur Employment Agreement”).

Pursuant to the terms of the Arthur Employment Agreement, Mr.

Arthur is entitled to receive an annual base salary of $300,000, which

may be increased by the Board from time to time in its sole discretion.

In addition, the Company paid Mr.

Arthur the following compensation

for his services rendered prior to the execution of the Arthur Employment Agreement:

$25,000 for the period from August 1, 2024 until

August 31, 2024 and $15,000 for the period from September 1, 2024 until September 18, 2024.

Arthur is also entitled

to receive an annual cash bonus of up to a baseline of 60% of his base salary, with the right and ability to earn up to a cap of 90% of

his base salary, applying a weighted average percentage of the objective and subjective criteria and milestones set forth in the Arthur

Employment Agreement, which include target amounts and target dates for equity investments received by the Company and the Company’s

average market cap in addition to the completion of certain milestones in the development of the Company’s TriFan 600 airplane.

The Board will determine and award the annual cash bonus within 30 days after the end of each calendar year during Mr.

employment period.

The remaining material terms of the Arthur Employment Agreement are substantially similar to the terms of the Pomeroy

Employment Agreement described above;

provided that Mr.

Arthur is entitled to five weeks of vacation annually.

On November 4, 2016, and effective as of November 7, 2016,

Das entered into an employment agreement to serve as Chief Marketing Officer of the Company.

On February 2, 2018, he was promoted to Chief Operating Officer.

On February 2, 2018, he was

promoted to Chief Operating Officer.

In accordance with the terms of the agreement, Mr.

Das will receive a base salary of $250,000 per annum.

In addition, Mr.

Das will receive a bonus up to $75,000 annually, provided that he completes the required tasks before their deadlines, and the tasks, their deadlines and the amount of corresponding bonuses shall be determined by the Company and the CEO.

The agreement was effective for an initial term of twenty-four (24) months and was automatically renewed for one additional twelve (12) month period.

Das was entitled to a base salary of $250,000

per annum and a bonus of up to $75,000 annually.

The agreement was effective for an initial term of twenty-four (24) months and was

automatically renewed for one additional twelve (12) month period.

The Company may terminate the services of Mr.

Das with or without “just cause,” (as defined).

without “just cause” (as defined therein).

If the Company terminates Mr.

Das’ employment without just cause, or if Mr.

Das resigns within twenty-four (24) months following a change of control (as defined) and as a result of a material diminution of his position or compensation, Mr.

Das will receive (1) his base salary at the then current rate and levels for one (1) month if Mr.

Das has been employed by the Company for at least six (6) months but not more than twelve (12) months as of the date of termination or resignation, for three (3) months if Mr.

Das has been employed by the Company more than twelve (12) but not more than twenty-four (24) months as of the date of termination or resignation, or for six (6) months if Mr.

Das has been employed by the Company for more than twenty-four (24) months as of the date of resignation or termination;

(2) 50% of the value of any accrued but unpaid bonus that Mr.

Das’ employment without just cause, or

Das resigns within twenty-four (24) months following a change of control (as defined) and as a result of a material diminution

of his position or compensation, Mr.

Das will receive (1) his base salary at the then current rate and levels for one (1) month

Das has been employed by the Company for at least six (6) months but not more than twelve (12) months as of the

date of termination or resignation, for three (3) months if Mr.

Das has been employed by the Company more than twelve (12) but

not more than twenty-four (24) months as of the date of termination or resignation, or for six (6) months if Mr.

been employed by the Company for more than twenty-four (24) months as of the date of resignation or termination;

the value of any accrued but unpaid bonus that Mr.

Das otherwise would have received;

(3) the value of any accrued but unpaid vacation time;

(3) the value of any accrued but unpaid

vacation time;

and (4) any unreimbursed business expenses and travel expenses that are reimbursable under the agreement.

If the Company terminates Mr.

If the Company

terminates Mr.

Das’ employment with just cause, Mr.

Das will receive only the portion of his base salary and accrued but unused vacation pay that has been earned through the date of termination.

Das will receive only the portion of his base salary and accrued but

unused vacation pay that has been earned through the date of termination.

On August 31, 2018, the Company amended Mr.

Das’ employment agreement to make the following changes to his compensation effective May 14, 2018:

(1) increase in base salary to $275,000 per year, (2) have up to $50,000 in MBO’s annually, (3) commissions equal to 2% of recognized revenue associated with the IPA product line paid quarterly and subject to

the Company policies in connection with commissions payable and (4) provide a transportation allowance of $1,000 per month.

employment agreement to make the following changes to his compensation effective May 14, 2018:

(1) increase in base salary to

$275,000 per year, (2) have up to $50,000 in MBO’s annually, (3) commissions equal to 2% of recognized revenue associated

with the IPA product line paid quarterly and subject to the Company policies in connection with commissions payable and (4) provide

a transportation allowance of $1,000 per month.

On May 10, 2019, the Company amended Mr.

Das’ commission plan to include a 1% commission on recognized revenue associated with the Shoom product line paid quarterly and subject to Company commission plan policies.

Das’s salary was increased to $275,000 effective May 31, 2018 and $312,000 effective January 1, 2021, Effective January 1, 2021, any entitlement to commissions payable to Mr.

Das was superseded by adjusting his annual bonus target up to a maximum of $300,000 subject to the achievement of certain milestones, with tasks, deadlines and amounts determined by the Chief Executive Officer.

Das’ commission plan to include

a 1% commission on recognized revenue associated with the Shoom product line paid quarterly and subject to Company commission plan policies.

Das’s salary was increased to $275,000 effective May 31, 2018 and $312,000 effective January 1, 2021, Effective

January 1, 2021, any entitlement to commissions payable to Mr.

Das was superseded by adjusting his annual bonus target up to

a maximum of $300,000 subject to the achievement of certain milestones, with tasks, deadlines and amounts determined by the Chief Executive

Effective as of March 2021, Mr.

Das resigned from his position as Chief Marketing Officer.

On February 27, 2023, the Company entered into a Limited Liability Company Unit Transfer and Joinder Agreement with Mr.

Das, pursuant to which (i) the Company transferred 50,000 Class A Units of CVH to Mr.

February 27, 2023, the Company entered into a Limited Liability Company Unit Transfer and Joinder Agreement with Mr.

Das, pursuant

to which (i) the Company transferred 50,000 Class A Units of Cardinal Venture Holdings LLC, a Delaware limited liability

company (“CVH”), to Mr.

Das in connection with Mr.

Das’ services performed for and on behalf of the Company as an employee of the Company and (ii) Mr.

Das became a member of CVH and a party to the CVH LLC Agreement.

The fair market value of the Class A Units at the date of grant is $94,897.

Das’ services performed for and on behalf of the Company

as an employee of the Company and (ii) Mr.

Das became a member of CVH and a party to the Amended and Restated Limited Liability

Company Agreement of CVH, dated as of September 30, 2020 (the “CVH LLC Agreement”).

The fair market value of the Class A

Units at the date of grant is $94,897.

CVH was dissolved as of December 31, 2023.

Das is a participant of the Contemplated Transaction Plan pursuant to which he is eligible for a cash bonus in an aggregate amount equal to 100% of his aggregate annual base salary and target bonus amount following the closing of a Contemplated Transaction and any applicable Qualifying Transaction.

is a participant of the Strategic Transaction Bonus Plan pursuant to which he is eligible for a cash bonus in an aggregate amount equal

to 100% of his aggregate annual base salary and target bonus amount following the closing of a Contemplated Transaction and any applicable

Qualifying Transaction.

The XTI Merger qualifies as a Contemplated Transaction.

(See Part II, Item 7, " Recent Events - Transaction Bonus Plan in connection with Future Strategic Transactions" for a description of the Contemplated Transaction Plan.)

Wendy Loundermon

On October 21, 2014, and effective as of October 1, 2014, the Company entered into an at-will employment agreement with Wendy Loundermon.

Loundermon currently serves as CFO, Director and Secretary of the Company and Secretary of Inpixon Canada, Inc.

See “Executive Compensation — Strategic

Transaction Bonus Plan” for a description of the Strategic Transaction Bonus Plan.

On July 1, 2010, Nadir Ali entered into an at-will Employment

and Non-Compete Agreement, as subsequently amended, with Inpixon Federal, Inc., Inpixon Government Services and Inpixon Consulting prior

to their acquisition by the Company.

Under the terms of the employment agreement, Mr.

Ali served as President.

The employment agreement

was assumed by the Company and Mr.

Ali became CEO in September 2011.

Ali’s salary under the agreement was initially

$240,000 per annum plus other benefits including a bonus plan with goals and targets established by the Compensation Committee, a housing

allowance, health insurance, life insurance and other standard Inpixon employee benefits.

Ali’s employment is terminated

without Cause (as defined), he will receive his base salary for 12 months from the date of termination.

Ali’s employment

agreement provides that he will not compete with the Company and will be subject to non-solicitation provisions relating to employees,

consultants and customers, distributors, partners, joint ventures or suppliers of the Company during the term of his employment or consulting

relationship with the Company.

On April 17, 2015, the Compensation Committee approved the increase of Mr.

salary to $252,400, effective January 1, 2015.

Effective May 16, 2018, the Compensation Committee approved an increase in Mr.

annual salary to $280,000 and an auto allowance of $1,000 a month.

February 27, 2023, the Company entered into a Limited Liability Company Unit Transfer and Joinder Agreement with Mr.

Ali, pursuant

to which (i) the Company transferred 219,999 Class A Units of CVH to Mr.

Ali in connection with Mr.

services performed for and on behalf of the Company as an employee and a director of the Company and (ii) Mr.

member of CVH and a party to the CVH LLC Agreement.

The fair market value of the Class A Units at the date of grant is $462,430.

In addition, Mr.

Ali beneficially owned membership interests in CVH through 3AM LLC, a Delaware limited liability company and a

founding member of CVH.

CVH was dissolved as of December 31, 2023.

March 12, 2024, the Company and Mr.

Ali entered into an amendment to Mr.

Ali’s Amended and Restated Employment Agreement

dated May 15, 2018, to provide for payment of his cash severance thereunder on or as soon as practicable following the date that

is 21 days following the XTI Merger.

was also a participant of the Completed Transaction Bonus Plan pursuant to which he received a cash bonus in an aggregate amount of 3.5%

of the $70,350,000 transaction value of the Completed Transaction.

See “Executive Compensation — Completed Transaction

Bonus Plan” for a description of the Completed Transaction Bonus Plan.

is a participant of the Strategic Transaction Bonus Plan pursuant to which he is eligible for (a) a cash bonus in an aggregate amount

of 3.5% of the transaction value attributed to a Contemplated Transaction less $6.0 million;

(b) a cash bonus in an aggregate

amount equal to 100% of his aggregate annual base salary and target bonus amount following the closing of a Contemplated Transaction

and (c) an award (the “Award”) of fully vested shares of Company common stock (“Shares”) issued under the

Company’s 2018 Employee Stock Incentive Plan or any successor equity incentive plan adopted by the Company on the date that is

three (3) months following the closing of the XTI Merger (the “Grant Date”) covering a number of shares having a fair

market value (based on the closing price per Share on the Grant Date) equal to $1,023,600.

Notwithstanding the foregoing, Nadir Ali shall

not be eligible to receive the Award if his Consulting Agreement with the Company dated as of March 12, 2024 (the “Consulting

Agreement”), terminates before the Grant Date due to (a) Company Good Reason (as defined in the Consulting Agreement) or (b) termination

by Nadir Ali for any reason other than Consultant Good Reason (as defined in the Consulting Agreement).

The XTI Merger qualifies as a

Contemplated Transaction.

See “Executive Compensation — Strategic Transaction Bonus Plan” for a description

of the Strategic Transaction Bonus Plan.

On October 21, 2014, and effective as of October 1, 2014,

the Company entered into an at-will employment agreement with Wendy Loundermon.

Loundermon previously served as CFO, Director and

Secretary of the Company and Secretary of Inpixon Canada, Inc.

Pursuant to the agreement, Ms.

Loundermon was compensated at an annual rate of $200,000 and is entitled to benefits customarily provided to senior management including equity awards and cash bonuses subject to the satisfaction of certain performance goals determined by the Company.

The standards and goals and the bonus targets is set by the compensation committee, in its sole discretion.

Loundermon was compensated at an annual

rate of $200,000 and is entitled to benefits customarily provided to senior management including equity awards and cash bonuses subject

to the satisfaction of certain performance goals determined by the Company.

The standards and goals and the bonus targets is set by the

Compensation Committee, in its sole discretion.

The Company may terminate the services of Ms.

Loundermon with or without “cause” (as defined).

Loundermon with or without “cause”

(as defined).

If the Company terminates Ms.

Loundermon’s employment without cause or in connection with a change of control (as defined), Ms.

Loundermon will receive (1) severance consisting of her base salary at the then current rate for twelve (12) months from the date of termination, and (2) her accrued but unpaid salary.

Loundermon’s employment is terminated under any circumstances other than the above, Ms.

Loundermon’s employment without cause or in connection with a change of control (as

defined), Ms.

Loundermon will receive (1) severance consisting of her base salary at the then current rate for twelve (12) months

from the date of termination, and (2) her accrued but unpaid salary.

Loundermon’s employment is terminated under any

circumstances other than the above, Ms.

Loundermon will receive her accrued but unpaid salary.

Loundermon’s salary was increased to $228,500 effective April 1, 2017, $250,000 effective March 1, 2018, $280,000 effective January 2021 and $300,000 effective January 2022.

On February 27, 2023, the Company entered into a Limited Liability Company Unit Transfer and Joinder Agreement with Ms.

Loundermon, pursuant to which (i) the Company transferred 100,000 Class A Units of CVH to Ms.

Loundermon’s salary was increased

to $228,500 effective April 1, 2017, $250,000 effective March 1, 2018, $280,000 effective January 2021 and $300,000 effective

January 2022.

February 27, 2023, the Company entered into a Limited Liability Company Unit Transfer and Joinder Agreement with Ms.

pursuant to which (i) the Company transferred 100,000 Class A Units of CVH to Ms.

Loundermon in connection with Ms.

Loundermon’s services performed for and on behalf of the Company as an employee and a director of the Company and (ii) Ms.

Loundermon became a member of CVH and a party to the CVH LLC Agreement.

services performed for and on behalf of the Company as an employee and a director of the Company and (ii) Ms.

Loundermon became

a member of CVH and a party to the CVH LLC Agreement.

The fair market value of the Class A Units at the date of grant is $181,400.

CVH was dissolved as of December 31, 2023.

On March 12, 2024, the Company and Ms.

Loundermon entered into an amendment (the “Loundermon Employment Agreement Amendment”) to Ms.

Loundermon’s Employment Agreement dated October 1, 2014 (as amended), to provide for payment of her cash severance thereunder on or as soon as practicable following the date that is 21 days following the XTI Merger.

Loundermon was also a participant of the Completed Transaction Bonus Plan pursuant to which she received a cash bonus in an aggregate amount of 0.5% of the $70,350,000 transaction value of the Enterprise Apps Spin-off.

Loundermon is a participant of the Contemplated Transaction Plan pursuant to which she is eligible for (a) a cash bonus in an aggregate amount of 0.5% of the transaction value attributed to a Contemplated Transaction and (b) a cash bonus in an aggregate amount equal to 100% of her aggregate annual base salary and target bonus amount following the closing of a Contemplated Transaction.

March 12, 2024, the Company and Ms.

Loundermon entered into an amendment to Ms.

Loundermon’s Employment Agreement dated October 1,

2014 (as amended), to provide for payment of her cash severance thereunder on or as soon as practicable following the date that is 21 days

following the XTI Merger.

Loundermon was also a participant of the Completed Transaction Bonus Plan pursuant to which she received a cash bonus in an aggregate

amount of 0.5% of the $70,350,000 transaction value of the Completed Transaction.

See “Executive Compensation — Completed

Transaction Bonus Plan” for a description of the Completed Transaction Bonus Plan.

Loundermon is a participant of the Strategic Transaction Bonus Plan pursuant to which she is eligible for (a) a cash bonus in an

aggregate amount of 0.5% of the transaction value attributed to a Contemplated Transaction and (b) a cash bonus in an aggregate

amount equal to 100% of her aggregate annual base salary and target bonus amount following the closing of a Contemplated Transaction.

The XTI Merger qualifies as a Contemplated Transaction.

(See Part II, Item 7, " Recent Events - Transaction Bonus Plan in connection with Future Strategic Transactions" for a description of the Contemplated Transaction Plan.)

Employee Stock Incentive Plans

2018 Employee Stock Incentive Plan

The following is a summary of the material terms of our 2018 Employee Stock Incentive Plan, as amended to date (the “2018 Plan”).

See “Executive Compensation — Strategic Transaction Bonus

Plan” for a description of the Strategic Transaction Bonus Plan.

Transaction Bonus Plan

March 14, 2023, the Company completed a reorganization involving the transfer of the Company’s CXApp and enterprise app business

lines to CXApp Holding Corp., a Delaware corporation and wholly-owned subsidiary of the Company (“Legacy CXApp”), followed

by a distribution of shares of Legacy CXApp to the Company’s equityholders.

The reorganization was followed by a subsequent business

combination transaction (the “CXApp Merger”) pursuant to that certain Agreement and Plan of Merger, dated as of September 25,

2022, by and among the Company, Legacy CXApp, KINS Technology Group Inc., a special purpose acquisition company (“KINS”)

which was renamed CXApp, Inc.

upon the consummation of the CXApp Merger, and KINS Merger Sub Inc., a Delaware corporation and a wholly-owned

subsidiary of KINS, pursuant to which KINS Merger Sub Inc.

merged with and into Legacy CXApp, with Legacy CXApp continuing as the surviving

company and as a wholly-owned subsidiary of CXApp, Inc.

(such reorganization and business combination, collectively, the “Completed

Transaction”).

July 24, 2023, the Compensation Committee adopted a Transaction Bonus Plan (the “Completed Transaction Bonus Plan”),

which was intended to compensate certain current and former employees and service providers for the successful consummation of the Completed

The Completed Transaction Bonus Plan was administered by the Compensation Committee.

It terminated upon the completion of

all payments under the terms of the Completed Transaction Bonus Plan.

to the Completed Transaction Bonus Plan, in connection with the Completed Transaction:

● Participants

listed on Schedule 1 of the Completed Transaction Bonus Plan were eligible for a cash

bonus equal to 100% of their aggregate annual base salary in effect as of the end of the

year ended December 31, 2022, provided that the participants were required to execute a customary

release of claims and confidentiality agreement.

● Participants

listed on Schedule 2 of the Completed Transaction Bonus Plan, including our named executive

officers Nadir Ali and Wendy Loundermon, were eligible for a cash bonus in an aggregate amount

of 4% of the $70,350,000 transaction value of the Completed Transaction, with Mr.

Loundermon being entitled to 3.5% and 0.5% of such transaction value, respectively.

the three months ended September 30, 2023, the Company paid approximately $3.5 million to Company management and former

management under the Completed Transaction Bonus Plan.

No amounts were owed under the Completed Transaction Bonus Plan as of September 30,

addition, if a participant was entitled to any payments or benefits from the Completed Transaction Bonus Plan or any other amounts (collectively,

the “Company Payments Relating to the Completed Transaction Plan”) that are subject to the tax imposed by Section 4999

of the Internal Revenue Code of 1986, as amended (the “Excise Tax”), the Company agreed to pay the participant the greater

of the following amounts:

(i) the Company Payments Relating to the Completed Transaction Plan, or (ii) one dollar less than

the amount of the Company Payments Relating to the Completed Transaction Plan that would subject the participant to the Excise Tax, as

mutually agreed between the Company and the participant.

Transaction Bonus Plan

July 24, 2023, the Compensation Committee adopted a Transaction Bonus Plan, which was amended on March 11, 2024 (as amended,

the “Strategic Transaction Bonus Plan,” and such amendment, the “Plan Amendment”), and is intended to provide

incentives to certain employees and other service providers to remain with the Company through the consummation of a Contemplated Transaction

or Qualifying Transaction (each as defined below) and to maximize the value of the Company with respect to such transaction for the benefit

of its stockholders.

The Strategic Transaction Bonus Plan is administered by the Compensation Committee.

It will automatically terminate

upon the earlier of (i) the one-year anniversary of the adoption date, (ii) the completion of all payments under the terms of

the Strategic Transaction Bonus Plan, or (iii) at any time by the Compensation Committee, provided, however, that the Strategic Transaction

Bonus Plan may not be amended or terminated following the consummation of a Contemplated Transaction or Qualifying Transaction without

the consent of each participant being affected, except as required by any applicable law.

A “Contemplated Transaction” refers to a strategic alternative

transaction including an asset sale, merger, reorganization, spin-off or similar transaction (a “Strategic Transaction”) that

results in a change of control as defined in the Strategic Transaction Bonus Plan.

A Qualifying Transaction refers to a Strategic Transaction

that does not result in a change of control for which bonuses may be paid pursuant to the Strategic Transaction Bonus Plan as

approved by the Compensation Committee.

The XTI Merger qualifies as a Contemplated Transaction.

Plan Amendment, among other things, changed the timing of and imposed certain additional conditions on the payment of certain bonuses

to be paid to the participants thereunder, including Nadir Ali, Wendy Loundermon and Soumya Das.

to the Strategic Transaction Bonus Plan, in connection with the closing of a Contemplated Transaction or a Qualifying Transaction, the

participants will be eligible to receive bonuses as described below.

● Participants listed on Schedule 1 of the Strategic Transaction

Bonus Plan, including Nadir Ali, Wendy Loundermon, Soumya Das and certain other employees, are eligible for a cash bonus equal to 100%

of their aggregate annual base salary and target bonus amount in effect as of the closing of the Contemplated Transaction or a Qualifying

Transaction, provided, however, that the Company’s payment of such bonus to a participant may, in the Company’s discretion,

be conditioned on the participant’s timely execution and delivery of a customary release of claims and confidentiality agreement

and such participant’s non-revocation of the release prior to the expiration of any revocation rights afforded to such participant

by applicable law.

These bonus amounts will generally be paid at the closing of each applicable transaction, except that bonus amounts

in connection with the closing of the XTI Merger are payable according to the payment schedule set forth in the Plan Amendment and described

● Participants

listed on Schedule 2 of the Strategic Transaction Bonus Plan, including Nadir Ali and

Wendy Loundermon, are eligible for a cash bonus based on the Transaction Value (as defined

below) attributed to the Contemplated Transaction or Qualifying Transaction, as calculated

in accordance with the terms of the Strategic Transaction Bonus Plan.

Ali is eligible

for 3.5% of such Transaction Value less $6.0 million.

Loundermon is eligible for

0.5% of such Transaction Value less $0.5 million.

These bonus amounts will generally

be paid at the closing of each applicable transaction subject to the treatment of deferred

payments in accordance with the terms of the Strategic Transaction Bonus Plan, except that

bonus amounts in connection with the closing of the XTI Merger are payable according to the

payment schedule set forth in the Plan Amendment and described below.

Value” means the sum of any cash and the fair market value of any securities or other

assets or property received by the Company or available for distribution to the holders of

the Company’s equity securities in connection with the applicable transaction as provided

for in the definitive agreement governing the applicable transaction, or such value as will

be designated by the Compensation Committee.

The Transaction Value applicable to the XTI

Merger was assessed at $225 million which was determined by the Compensation Committee

in part based on the enterprise value of Legacy XTI following a valuation analysis performed

by an independent financial advisory firm.

● Participants listed on Schedule 3 of the Strategic Transaction

Bonus Plan will be eligible for equity-based grants, including but not limited to, options, restricted stock awards, restricted stock

units, or such other rights to acquire shares of the Company’s common stock in connection with the closing of the Contemplated Transaction

or a Qualifying Transaction, in such form and for such amounts as set forth on Schedule 3 or, if no such form or amount is specified

for a participant on Schedule3, in such form and for such amounts that may be approved by the Compensation Committee in its sole and absolute

of the Strategic Transaction Bonus Plan provides that:

Ali will receive an award (the “Award”) of fully vested shares of Company common stock issued under the Company’s 2018

Employee Stock Incentive Plan or any successor equity incentive plan adopted by the Company (the “Equity Plan”) on the date

that is three (3) months following the closing of the XTI Merger (the “Grant Date”) covering a number of shares having

a fair market value (based on the closing price per share on the Grant Date) equal to $1,023,600.

Notwithstanding the foregoing, Nadir

Ali will not be eligible to receive the Award if his Consulting Agreement with the Company dated as of March 12, 2024 (the “Ali

Consulting Agreement”), terminates before the Grant Date due to (a) Company Good Reason (as defined in the Ali Consulting

Agreement) or (b) termination by Nadir Ali for any reason other than Consultant Good Reason (as defined in the Ali Consulting Agreement).

amounts payable to any participant in cash pursuant to the Strategic Transaction Bonus Plan,

may be paid in shares under the Equity Plan upon written agreement of the Company and such

Plan Amendment provides that any amounts payable to a participant in connection with the closing of the XTI Merger are payable as follows:

first fifty percent (50%) of any amounts payable in connection with the XTI Merger pursuant

to Schedule 1 and Schedule 2 of the Strategic Transaction Bonus Plan for each participant,

as applicable (the “First Fifty Percent”), will become earned upon the earlier

of closing of a financing (whether a registered offering or private unregistered offering)

in which the Company sells Qualifying Securities (as defined below) and receives an amount

of gross proceeds that when added to the proceeds of previous sales of Qualifying Securities

following the closing of the XTI Merger equals $5 million (the “First Financing”)

or June 30, 2024 (the “Earned Date”).

“Qualifying Securities”

means any debt or equity securities other than debt or equity securities having a maturity

date or a redemption right at the option of the holder of fewer than six (6) months

following the issuance of that security.

remaining fifty percent (50%) of any amounts payable pursuant to Schedule 1 and Schedule 2

of the Strategic Transaction Bonus Plan (the “Remaining Fifty Percent”) will

be earned upon the earlier of the closing of a subsequent financing in which the Company

receives an amount of gross proceeds that when added to the proceeds of previous sales of

Qualifying Securities following the First Financing aggregates to at least $5 million

(“Subsequent Financing”) or the Earned Date.

(3) Following

the Earned Date, the First Fifty Percent (50%) will be paid in three (3) equal monthly

installments, beginning on July 1, 2024, and on the first day of each month thereafter

until the First Fifty Percent is paid in full.

The Remaining Fifty Percent (50%) will be

paid in three (3) equal monthly installments, beginning October 1, 2024 and on

the first day of each month thereafter until the Remaining Fifty Percent (50%) is paid

participant’s right to receive payment of the First Fifty Percent (50%) or the Second

Fifty Percent (50%) is subject to the participant’s continuing employment or other

service with the Company or any of its subsidiaries or affiliates until the date on which

the payment is earned (as specified in clause (1) or (2) above);

provided, however,

that if a participant’s employment or service with the Company or any of its subsidiaries

or affiliates terminates before the applicable payment is earned due to the involuntary termination

of the participant other than for Cause, such participant will be deemed for this purpose

to continue in employment or service with the Company and its subsidiaries and affiliates

following the participant’s termination date until the date the applicable payment

the event the Company is unable to raise a minimum of $5 million from the sale of Qualifying

Securities as of June 30, 2024, the participants designate and appoint Nadir Ali as

the “Participant Representative” to work with the Company as necessary to amend

the payment schedule set forth above to ensure that the Company will have sufficient cash

to support its operations.

If Nadir Ali cannot or refuses to serve the Participant Representative,

then the Participant Representative will be selected by the Company from among the other

participants entitled to receive any payment pursuant to Schedule 1 or Schedule 2

of the Strategic Transaction Bonus Plan.

(6) If the Company or Legacy XTI pays cash bonuses related to the closing

of the XTI Merger to the Company’s or Legacy XTI’s employees or individual service providers who are not participants (“Non-Plan

Transaction Bonuses”), any then-unpaid payments to participants pursuant to the Strategic Transaction Bonus Plan will be paid on

an accelerated basis pursuant to a payment schedule that is substantially similar to the bonus payment schedule for the Non-Plan Transaction

Conversely, if the Company agrees to an accelerated payment or more favorable payment terms of amounts payable pursuant to the

Strategic Transaction Bonus Plan, all recipients of Non-Plan Transaction Bonuses will receive similar treatment.

connection with the Plan Amendment, the Compensation Committee also adopted a new form of confidentiality and release agreement, which

was executed and delivered by the Strategic Transaction Bonus Plan participants who resigned from their Company positions at the closing

of the XTI Merger on March 12, 2024, including Mr.

In addition, on March 12, 2024, the Strategic

Transaction Bonus Plan participants who retained their employment with the Company following the closing of the XTI Merger, including

Das, delivered an acknowledgment agreement to the Company irrevocably waiving and releasing the Company from any and all rights

to payment of such individual’s payments under Schedule 1 of the Strategic Transaction Bonus Plan except pursuant to and as

provided under the terms of the Plan Amendment.

Company recognized the $6.3 million expense of the strategic transaction bonus as it became payable during the second quarter of 2024.

During the third and fourth quarter of 2024, we paid $2.0 million of the strategic transaction bonus, with the remaining $4.3 million

of the strategic transaction bonus payable as of December 31, 2024.

From January 1, 2025 through the date of this filing, the Company

repaid the remaining $4.3 million strategic transaction bonus obligation.

Stock Incentive Plans

2018 Employee

Stock Incentive Plan

following is a summary of the material terms of our 2018 Employee Stock Incentive Plan, as amended to date (the “2018 Plan”).

This description is not complete.

For more information, we refer you to the full text of the 2018 Plan, and as amended from time to time.

The 2018 Plan is an important part of our compensation program.

It promotes financial saving for the future by our employees, fosters good employee relations, and encourages employees to acquire shares of our common stock, thereby better aligning their interests with those of the other stockholders.

Therefore, the Board believes it is essential to our ability to attract, retain, and motivate highly qualified employees in an extremely competitive environment both in the United States and internationally.

Amount of Shares of Common Stock.

The number of shares of our common stock available for issuance under the 2018 Plan as of April 3, 2024 is 64,146,695, which number is automatically increased on the first day of each quarter through October 1, 2028, by a number of shares of common stock equal to the least of (i) 3,000,000 shares, (ii) twenty percent (20%) of the outstanding shares of common stock on the last day of the immediately preceding calendar quarter, or (iii) such number of shares that may be determined by the Board.

The amount of shares available for issuance is not adjusted in connection with a change in the outstanding shares of common stock by reason of stock dividends, stock splits, reverse stock splits, recapitalizations, mergers, consolidations, combinations or exchanges of shares, separations, reorganizations or liquidations;

however, that in no event will the Company issue more than 120,000,000 shares of common stock under the 2018 Plan, including the maximum amount of shares of common stock that may be added to the 2018 Plan in accordance with the automatic quarterly increases.

Types of Awards .

The 2018 Plan provides for the granting of incentive stock options, non-qualified stock options (“NQSOs”), stock grants and other stock-based awards, including Restricted Stock and Restricted Stock Units (as defined in the 2018 Plan).

• Incentive and Nonqualified Stock Options.

For more information, we refer you to the full text of the 2018 Plan.

2018 Plan is an important part of our compensation program.

It promotes financial saving for the future by our employees, fosters good

employee relations, and encourages employees to acquire shares of our Common Stock, thereby better aligning their interests with those

of the other stockholders.

Therefore, the Board believes it is essential to our ability to attract, retain, and motivate highly qualified

employees in an extremely competitive environment both in the United States and internationally.

of Shares of Common Stock.

The number of shares of our Common Stock available for issuance under the 2018 Plan automatically increases

on the first day of each quarter through October 1, 2028, by a number of shares of Common Stock equal to the least of (i) 3,000,000

shares, (ii) twenty percent (20%) of the outstanding shares of Common Stock on the last day of the immediately preceding calendar

quarter, or (iii) such number of shares that may be determined by the Board.

The amount of shares available for issuance is not

adjusted in connection with a change in the outstanding shares of Common Stock by reason of stock dividends, stock splits, reverse stock

splits, recapitalizations, mergers, consolidations, combinations or exchanges of shares, separations, reorganizations or liquidations;

however, that (i) the amount of shares available for issuance under the 2018 Plan may not exceed the maximum amount of

authorized shares available for issuance under the Articles of Incorporation and (ii) in no event will the Company issue more than

120,000,000 shares of Common Stock under the 2018 Plan, including the maximum amount of shares of Common Stock that may be added to the

2018 Plan in accordance with the automatic quarterly increases.

As the date of this filing, there are approximately 73 million shares

of Common Stock authorized for issuance under the 2018 Plan.

The 2018 Plan provides for the granting of incentive stock options, non-qualified stock options (“NQSOs”),

stock grants and other stock-based awards, including Restricted Stock and Restricted Stock Units (as defined in the 2018 Plan).

and Nonqualified Stock Options.

The plan administrator determines the exercise price of each stock option.

The exercise price of an NQSO may not be less than the fair market value of our common stock on the date of grant.

The exercise price of an incentive stock option may not be less than the fair market value of our common stock on the date of grant if the recipient holds 10% or less of the combined voting power of our securities, or 110% of the fair market value of a share of our common stock on the date of grant otherwise.

• Stock Grants.

The plan administrator may grant or sell stock, including restricted stock, to any participant, which purchase price, if any, may not be less than the par value of shares of our common stock.

The stock grant will be subject to the conditions and restrictions determined by the administrator.

The recipient of a stock grant shall have the rights of a stockholder with respect to the shares of stock issued to the holder under the 2018 Plan.

The exercise price of

an NQSO may not be less than the fair market value of our Common Stock on the date of grant.

The exercise price of an incentive stock

option may not be less than the fair market value of our Common Stock on the date of grant if the recipient holds 10% or less of

the combined voting power of our securities, or 110% of the fair market value of a share of our Common Stock on the date of grant

The plan administrator may grant or sell stock, including restricted stock, to any participant, which purchase price, if

any, may not be less than the par value of shares of our Common Stock.

The stock grant will be subject to the conditions and restrictions

determined by the administrator.

The recipient of a stock grant shall have the rights of a stockholder with respect to the shares

of stock issued to the holder under the 2018 Plan.

Stock-Based Awards.

1 unchanged sentence

The holder of a stock-based award shall not have the rights of a stockholder except to the extent permitted in the applicable agreement.

Plan Administration .Our Board is the administrator of the 2018 Plan, except to the extent it delegates its authority to a committee, in which case the committee shall be the administrator.

Administration .

Our Board is the administrator of the 2018 Plan, except to the extent it delegates its authority to a committee,

in which case the committee shall be the administrator.

Our Board has delegated this authority to our compensation committee.

The administrator has the authority to determine the terms of awards, including exercise and purchase price, the number of shares subject to awards, the value of our common stock, the vesting schedule applicable to awards, the form of consideration, if any, payable upon exercise or settlement of an award and the terms of award agreements for use under the 2018 Plan.

Eligibility .The plan administrator will determine the participants in the 2018 Plan from among our employees, directors and consultants.

A grant may be approved in advance with the effectiveness of the grant contingent and effective upon such person’s commencement of service within a specified period.

Termination of Service .Unless otherwise provided by the administrator or in an award agreement, upon a termination of a participant’s service, all unvested options then held by the participant will terminate and all other unvested awards will be forfeited.

Transferability .Awards under the 2018 Plan may not be transferred except by will or by the laws of descent and distribution, unless otherwise provided by the plan administrator in its discretion and set forth in the applicable agreement, provided that no award may be transferred for value.

Adjustment .In the event of a stock dividend, stock split, recapitalization or reorganization or other change in change in capital structure, the plan administrator will make appropriate adjustments to the number and kind of shares of stock or securities subject to awards.

Corporate Transaction .If we are acquired, the plan administrator will:

(i) arrange for the surviving entity or acquiring entity (or the surviving or acquiring entity’s parent company) to assume or continue the award or to substitute a similar award for the award;

(ii) cancel or arrange for cancellation of the award, to the extent not vested or not exercised prior to the effective time of the transaction, in exchange for such cash consideration, if any, as the plan administrator in its sole discretion, may consider appropriate;

or (iii) make a payment, in such form as may be determined by the plan administrator equal to the excess, if any, of (A) the value of the property the holder would have received upon the exercise of the award immediately prior to the effective time of the transaction, over (B) any exercise price payable by such holder in connection with such exercise.

In addition in connection with such transaction, the plan administrator may accelerate the vesting, in whole or in part, of the award (and, if applicable, the time at which the award may be exercised) to a date prior to the effective time of such transaction and may arrange for the lapse, in whole or in part, of any reacquisition or repurchase rights held by us with respect to an award.

Amendment and Termination .The 2018 Plan will terminate on January 4, 2028 or at an earlier date by vote of our Board;

provided, however, that any such earlier termination shall not affect any awards granted under the 2018 Plan prior to the date of such termination.

The 2018 Plan may be amended by our Board, except that our Board may not alter the terms of the 2018 Plan if it would adversely affect a participant’s rights under an outstanding stock right without the participant’s consent.

The Board may at any time amend or terminate the 2018 Plan;

provided that no amendment may be made without the approval of the stockholder if such amendment would increase either the maximum number of shares which may be granted under the 2018 Plan or any specified limit on any particular type or types of award, or change the class of employees to whom an award may be granted, or withdraw the authority to administer the 2018 Plan from a committee whose members satisfy the independence and other requirements of Section 162(m) and applicable SEC and Nasdaq requirements.

Pursuant to the listing standards of the Nasdaq Stock Market, certain other material revisions to the 2018 Plan may also require stockholder approval.

Federal Income Tax Consequences of the 2018 Plan.

The federal income tax consequences of grants under the 2018 Plan will depend on the type of grant.

The following is a general summary of the principal United States federal income taxation consequences to participants and us under current law with respect to participation in the 2018 Plan.

This summary is not intended to be exhaustive and does not discuss the income tax laws of any city, state or foreign jurisdiction in which a participant may reside or the rules applicable to deferred compensation under Section 409A of the Code.

Our ability to realize the benefit of any tax deductions described below depends on our generation of taxable income as well as the requirement of reasonableness, the provisions of Section 162(m) of the Code and the satisfaction of our tax reporting obligations.

From the grantees’ standpoint, as a general rule, ordinary income will be recognized at the time of delivery of shares of our common stock or payment of cash under the 2018 Plan.

Future appreciation on shares of our common stock held beyond the ordinary income recognition event will be taxable as capital gain when the shares of our common stock are sold.

The tax rate applicable to capital gain will depend upon how long the grantee holds the shares.

We, as a general rule, will be entitled to a tax deduction that corresponds in time and amount to the ordinary income recognized by the grantee, and we will not be entitled to any tax deduction with respect to capital gain income recognized by the grantee.

Exceptions to these general rules arise under the following circumstances:

• If shares of our common stock, when delivered, are subject to a substantial risk of forfeiture by reason of any employment or performance-related condition, ordinary income taxation and our tax deduction will be delayed

until the risk of forfeiture lapses, unless the grantee makes a special election to accelerate taxation under section 83(b) of the Code.

• If an employee exercises a stock option that qualifies as an ISO, no ordinary income will be recognized, and we will not be entitled to any tax deduction, if shares of our common stock acquired upon exercise of the stock option are held until the later of (A) one year from the date of exercise and (B) two years from the date of grant.

However, if the employee disposes of the shares acquired upon exercise of an ISO before satisfying both holding period requirements, the employee will recognize ordinary income at the time of the disposition equal to the difference between the fair market value of the shares on the date of exercise (or the amount realized on the disposition, if less) and the exercise price, and we will be entitled to a tax deduction in that amount.

The gain, if any, in excess of the amount recognized as ordinary income will be long-term or short-term capital gain, depending upon the length of time the employee held the shares before the disposition.

• A grant may be subject to a 20% tax, in addition to ordinary income tax, at the time the grant becomes vested, plus interest, if the grant constitutes deferred compensation under section 409A of the Code and the requirements of section 409A of the Code are not satisfied.

Section 162(m) of the Code generally disallows a publicly held corporation’s tax deduction for compensation paid to its chief executive officer or certain other officers in excess of $1 million in any year.

Qualified performance-based compensation is excluded from the $1 million deductibility limit, and therefore remains fully deductible by the corporation that pays it.

We intend that options and SARs granted under the 2018 Plan will be qualified performance-based compensation.

Stock units, stock awards, dividend equivalents, and other stock-based awards granted under the 2018 Plan may be designated as qualified performance-based compensation if the Committee conditions such grants on the achievement of specific performance goals in accordance with the requirements of section 162(m) of the Code.

We have the right to require that grantees pay to us an amount necessary for us to satisfy our federal, state or local tax withholding obligations with respect to grants.

The administrator

has the authority to determine the terms of awards, including exercise and purchase price, the number of shares subject to awards, the

value of our Common Stock, the vesting schedule applicable to awards, the form of consideration, if any, payable upon exercise or settlement

of an award and the terms of award agreements for use under the 2018 Plan.

Eligibility .

The plan administrator will determine the participants in the 2018 Plan from among our employees, directors and consultants.

may be approved in advance with the effectiveness of the grant contingent and effective upon such person’s commencement of service

within a specified period.

Unless otherwise provided by the administrator or in an award agreement, upon a termination of a participant’s

service, all unvested options then held by the participant will terminate and all other unvested awards will be forfeited

Transferability .

Awards under the 2018 Plan may not be transferred except by will or by the laws of descent and distribution, unless otherwise provided

by the plan administrator in its discretion and set forth in the applicable agreement, provided that no award may be transferred for

In the event of a stock dividend, stock split, recapitalization or reorganization or other change in change in capital structure, the

plan administrator will make appropriate adjustments to the number and kind of shares of stock or securities subject to awards.

Transaction .

If we are acquired, the plan administrator will:

(i) arrange for the surviving entity or acquiring entity (or the

surviving or acquiring entity’s parent company) to assume or continue the award or to substitute a similar award for the award;

(ii) cancel or arrange for cancellation of the award, to the extent not vested or not exercised prior to the effective time of the

transaction, in exchange for such cash consideration, if any, as the plan administrator in its sole discretion, may consider appropriate;

or (iii) make a payment, in such form as may be determined by the plan administrator equal to the excess, if any, of (A) the

value of the property the holder would have received upon the exercise of the award immediately prior to the effective time of the transaction,

over (B) any exercise price payable by such holder in connection with such exercise.

In addition in connection with such transaction,

the plan administrator may accelerate the vesting, in whole or in part, of the award (and, if applicable, the time at which the award

may be exercised) to a date prior to the effective time of such transaction and may arrange for the lapse, in whole or in part, of any

reacquisition or repurchase rights held by us with respect to an award.

and Termination .

The 2018 Plan will terminate on January 4, 2028 or at an earlier date by vote of our Board;

provided, however,

that any such earlier termination shall not affect any awards granted under the 2018 Plan prior to the date of such termination.

2018 Plan may be amended by our Board, except that our Board may not alter the terms of the 2018 Plan if it would adversely affect a

participant’s rights under an outstanding stock right without the participant’s consent.

Board may at any time amend or terminate the 2018 Plan;

provided that no amendment may be made without the approval of the stockholder

if such amendment would increase either the maximum number of shares which may be granted under the 2018 Plan or any specified limit

on any particular type or types of award, or change the class of employees to whom an award may be granted, or withdraw the authority

to administer the 2018 Plan from a committee whose members satisfy the independence and other requirements of Section 162(m) and

applicable SEC and Nasdaq requirements.

Pursuant to the listing standards of the Nasdaq Stock Market, certain other material revisions

to the 2018 Plan may also require stockholder approval.

Income Tax Consequences of the 2018 Plan.

The federal income tax consequences of grants under the 2018 Plan will depend on the type

The following is a general summary of the principal United States federal income taxation consequences to participants

and us under current law with respect to participation in the 2018 Plan.

This summary is not intended to be exhaustive and does not discuss

the income tax laws of any city, state or foreign jurisdiction in which a participant may reside or the rules applicable to deferred

compensation under Section 409A of the Code.

Our ability to realize the benefit of any tax deductions described below depends on

our generation of taxable income as well as the requirement of reasonableness, the provisions of Section 162(m) of the Code

and the satisfaction of our tax reporting obligations.

the grantees’ standpoint, as a general rule, ordinary income will be recognized at the time of delivery of shares of our Common

Stock or payment of cash under the 2018 Plan.

Future appreciation on shares of our Common Stock held beyond the ordinary income recognition

event will be taxable as capital gain when the shares of our Common Stock are sold.

The tax rate applicable to capital gain will depend

upon how long the grantee holds the shares.

We, as a general rule, will be entitled to a tax deduction that corresponds in time and amount

to the ordinary income recognized by the grantee, and we will not be entitled to any tax deduction with respect to capital gain income

recognized by the grantee.

to these general rules arise under the following circumstances:

If shares of our Common Stock, when delivered, are subject to a substantial

risk of forfeiture by reason of any employment or performance-related condition, ordinary income taxation and our tax deduction will be

delayed until the risk of forfeiture lapses, unless the grantee makes a special election to accelerate taxation under section 83(b) of

If an employee exercises a stock option that qualifies as an ISO, no

ordinary income will be recognized, and we will not be entitled to any tax deduction, if shares of our Common Stock acquired upon exercise

of the stock option are held until the later of (A) one year from the date of exercise and (B) two years from the date

However, if the employee disposes of the shares acquired upon exercise of an ISO before satisfying both holding period requirements,

the employee will recognize ordinary income at the time of the disposition equal to the difference between the fair market value of the

shares on the date of exercise (or the amount realized on the disposition, if less) and the exercise price, and we will be entitled to

a tax deduction in that amount.

The gain, if any, in excess of the amount recognized as ordinary income will be long-term or short-term

capital gain, depending upon the length of time the employee held the shares before the disposition.

grant may be subject to a 20% tax, in addition to ordinary income tax, at the time the grant

becomes vested, plus interest, if the grant constitutes deferred compensation under section

409A of the Code and the requirements of section 409A of the Code are not satisfied.

Section 162(m) of the Code generally disallows a publicly

held corporation’s tax deduction for compensation paid to its chief executive officer or certain other officers in excess of $1 million

Qualified performance-based compensation is excluded from the $1 million deductibility limit, and therefore remains

fully deductible by the corporation that pays it.

Stock units, stock awards, dividend equivalents, and other stock-based awards granted

under the 2018 Plan may be designated as qualified performance-based compensation if the Committee conditions such grants on the achievement

of specific performance goals in accordance with the requirements of section 162(m) of the Code.

have the right to require that grantees pay to us an amount necessary for us to satisfy our federal, state or local tax withholding obligations

with respect to grants.

We may withhold from other amounts payable to a grantee an amount necessary to satisfy these obligations.

The Committee may permit a grantee to satisfy our withholding obligation with respect to grants paid in shares of our common stock by having shares withheld, at the time the grants become taxable, provided that the number of shares withheld does not exceed the individual’s minimum applicable withholding tax rate for federal, state and local tax liabilities.

Committee may permit a grantee to satisfy our withholding obligation with respect to grants paid in shares of our Common Stock by having

shares withheld, at the time the grants become taxable, provided that the number of shares withheld does not exceed the individual’s

minimum applicable withholding tax rate for federal, state and local tax liabilities.

Employee Stock Incentive Plan

Except as set forth below, the material terms of our 2011 Employee Stock Incentive Plan, as amended to date (the “2011 Plan”) are substantially similar to the material terms of the 2018 Plan.

as set forth below, the material terms of our 2011 Employee Stock Incentive Plan, as amended to date (the “2011 Plan”) are

substantially similar to the material terms of the 2018 Plan.

However, this description is not complete.

For more information, we refer you to the full text of the 2011 Plan.

The 2011 Plan is intended to encourage ownership of common stock by our employees and directors and certain of our consultants in order to attract and retain such people, to induce them to work for the benefit of us and to provide additional incentive for them to promote our success.

The 2011 Plan terminated in accordance with its terms on August 31, 2021 and no new awards will be issued under the 2011 Plan.

Securities Authorized for Issuance under Equity Compensation Plans

The following table provides information as of December 31, 2023 regarding the shares of our common stock to be issued upon exercise of outstanding options or available for issuance under equity compensation plans and other compensation arrangements that were (i) adopted by our security holders and (ii) were not approved by our security holders.

Plan Category Number of securities to be issued upon

exercise of outstanding options

(a) Weighted-average exercise

price of outstanding options

(b) Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column a)

For more information, we refer

you to the full text of the 2011 Plan.

2011 Plan was intended to encourage ownership of Common Stock by our employees and directors and certain of our consultants in order

to attract and retain such people, to induce them to work for the benefit of us and to provide additional incentive for them to promote

The 2011 Plan (but not awards granted under the 2011 Plan) terminated in accordance with its terms on August 31, 2021

and no new awards will be issued under the 2011 Plan.

Employee and Consultant Stock Ownership Plan

2017, Legacy XTI adopted the 2017 Employee and Consultant Stock Ownership Plan (as amended, “2017 Plan”), which was amended

in 2021 to increase the maximum shares eligible to be granted under the 2017 Plan.

The Company assumed the 2017 Plan in connection with

the XTI Merger.

The Company may issue awards in the form of restricted stock units and stock options to employees, directors, and consultants.

Under the 2017 Plan, stock options are generally granted with an exercise price equal to the estimated fair value of the Company’s

common stock, as determined by the Board on the date of grant.

Options generally have contractual terms of ten years.

stock options may only be granted to employees, whereas all other stock awards may be granted to employees, directors and consultants.

Authorized for Issuance under Equity Compensation Plans

following table provides information as of December 31, 2024 regarding the shares of our common stock to be issued upon exercise of outstanding

options or available for issuance under equity compensation plans and other compensation arrangements that were (i) adopted by our security

holders and (ii) were not approved by our security holders.

Plan Category

exercise price

of outstanding

Number of securities

Equity compensation plans approved by security holders

Equity compensation plans not approved by security holders

Total 1,063 $ 730,081.00 62,162,810

(1) Represents 9 shares of common stock that may be issued pursuant to outstanding stock options granted under the 2011 Plan and 1,054 shares of common stock that may be issued pursuant to outstanding stock options granted under the 2018 Plan.

(2) Represents 0 shares of common stock available for future issuance in connection with equity award grants under the 2011 Plan and 62,162,813 shares of common stock available for future issuance in connection with equity award grants under the 2018 Plan.

Legacy XTI Executive Compensation

Legacy XTI’s named executive officers for 2023 are:

• Scott Pomeroy - Mr.

Pomeroy is our current Chief Executive Officer.

Pomeroy was appointed as Legacy XTI's Chief Financial Officer in July 2022.

• Michael Hinderberger - Mr.

Hinderberger is Legacy XTI's current Chief Executive Officer.

Hinderberger was Legacy XTI's “Principal Executive Officer” at the end of 2022.

Hinderberger was serving as Legacy XTI's SVP of Engineering and Technology beginning August 2021 until he was named CEO on July 1, 2022.

We refer to these executives as the Legacy XTI named executive officers.

Legacy XTI Executive Compensation Program Overview

Legacy XTI's compensation program had two primary objectives:

(1) to attract, motivate and retain our employees and (2) to align their interests with those of our stockholders.

Base Salary .

Base salaries were intended to provide a level of compensation sufficient to attract and retain an effective management team, when considered in combination with the other components of the executive compensation program.

In general, Legacy XTI provided a base salary level designed to reflect each executive officer’s scope of responsibility and accountability.

Please see the “Base Salary” column in the Summary Compensation Table for the base salary amounts received by each Legacy XTI named executive officer in 2023 and 2022.

No Legacy XTI named executive officers received or earned cash or non -cash bonuses with respect to fiscal year 2023.

Alignment of interests .

Each of Legacy XTI's named executive officers has received certain equity awards as a form of long-term incentive compensation, which Legacy XTI believed served to align the interests of its employees with those of iequity holders.

Summary Compensation Table

The following table sets forth information about the annual compensation of the Legacy XTI named executive officers during our last two completed fiscal years.

Base Salary ($)

Cash Bonus ($)

Option Awards (1) ($)

Total compensation ($)

Legacy XTI Named Executive Officers:

Scott Pomeroy

$ 210,000 $ — $ — $ 210,000

(Chief Financial Officer) (2)

$ 105,000 $ — $ 6,358 $ 111,358

Michael Hinderberger

$ 350,000 $ — $ 356,360 $ 706,360

(Chief Executive Officer)

$ 337,500 $ — $ 2,234,590 $ 2,572,090

(1) Stock option awards are reported at grant date fair value in the year granted, in accordance with FASB ASC Topic 718.

Pomeroy was appointed as Legacy XTI's Chief Financial Officer in July 2022.

Legacy XTI Employment Agreements

Scott Pomeroy - Mr.

Pomeroy entered into a consulting agreement dated July 1, 2022, as amended effective January 1, 2023, that provided for his engagement as Legacy XTI’s Chief Financial Officer.

The agreement provided that Mr.

Pomeroy receive a monthly compensation of $17,500.

Pursuant to the consulting agreement and in connection with the closing of the XTI Merger, Mr.

Pomeroy received 4,000,000 shares of Legacy XTI common stock.

Upon closing of the XTI Merger, these Legacy XTI shares were exchanged for 357,040 shares of XTI Aerospace common stock in accordance with the exchange ratio pursuant to the XTI Merger Agreement.

Effective upon closing time of the XTI Merger, Mr.

Pomeroy was appointed as XTI Aerospace's Chief Executive Officer.

It is anticipated that the Company and Mr.

Pomeroy will enter into an employment agreement on terms to be approved by the Board but which are expected to provide for an annual base salary of approximately $400,000 and a cash bonus target in an amount of up to 150% of base salary upon the satisfaction of certain performance criteria and milestones which shall be determined and approved by the Compensation Committee.

Michael Hinderberger - Mr.

Hinderberger entered into an employment agreement dated July 1, 2022 that provides for his employment as Legacy XTI’s Chief Executive Officer.

The agreement provides that Mr.

Hinderberger will receive an annual base salary of $350,000, which may be increased by the board of directors.

Hinderberger is also entitled to receive an annual bonus up to $350,000 based on achieving financing goals (40%) and TriFan 600 aircraft development milestones (60%) as outlined in the agreement.

The calculated annual bonus payout amount is subject to approval by Legacy XTI's board of directors.

Hinderberger’s employment agreement term ends on July 31, 2024 and automatically renews thereafter for one additional one-year period unless either party provides at least 60 days’ prior notice of non-renewal.

The agreement provides that if Mr.

Hinderberger is terminated without cause (other than due to death or disability) or if he resigns for good reason (as such terms are defined in the agreement), then Mr.

Hinderberger will be entitled to (i) a cash payment equal to 12 months of base salary in effect at the time of termination and (ii) a cash payment for any unused vacation at the time of termination.

In addition, and if Mr.

Hinderberger is terminated for good reason, he is entitled to receive reimbursements of COBRA premium cost applicable to Mr.

Hinderberger (and any dependents) for a period of six months after termination of employment.

The agreement contains customary confidentiality obligations, non-solicitation and non-competition restrictions.

Legacy XTI maintains a qualified 401(k) savings plan that provides eligible employees with an opportunity to save for retirement on a tax advantaged basis.

For the year ending December 31, 2023, Legacy XTI did not make matching employer contributions to the 401(k) plan on behalf of Michael Hinderberger.

Option Awards

During fiscal years 2023 and 2022, the Legacy XTI named executive officers were awarded the following stock options:

Number of Options

Option Exercise Price ($)

Date of Exercisability

Scott Pomeroy

1.67 100% on Grant Date

Michael Hinderberger

100% on Grant Date

Michael Hinderberger

100% on Grant Date

Michael Hinderberger

100% on Jan 1, 2023

Michael Hinderberger

Performance Vesting

Outstanding Option Awards at Fiscal Year-End

The following table sets forth information about the outstanding stock options of the named executive officers as of our last completed fiscal year-end:

Number of securities underlying unexercised options (#) exercisable

Number of securities underlying unexercised options (#) un-exercisable

Option Exercise Price ($)

Option expiration date

2,666 shares of common stock that may be issued pursuant to outstanding stock options granted under the 2017 Plan and 48,519 shares

of common stock that may be issued pursuant to outstanding stock options granted under the 2018 Plan.

0 shares of common stock available for future issuance in connection with equity award grants under the 2017 Plan and 38,359 shares

of common stock available for future issuance in connection with equity award grants under the 2018 Plan.

and Practices for Granting Certain Equity Awards

policies and practices regarding the granting of equity awards are carefully designed to ensure compliance with applicable securities

laws and to maintain the integrity of our executive compensation program.

The Compensation Committee is responsible for the timing and

terms of equity awards to executives and other eligible employees and for reviewing, and recommending to the Board for approval, all

director compensation.

timing of equity award grants is determined with consideration to a variety of factors, including but not limited to, the achievement

of pre-established performance targets, market conditions and internal milestones.

We may also grant equity awards to individuals upon

hire, determined on a case-by-case basis.

The Company does not follow a predetermined schedule for the granting of equity awards;

instead, each grant is considered on a case-by-case basis to align with the Company’s strategic objectives and to ensure the competitiveness

of our compensation packages, provided that the Company grants its non-employee directors stock options annually pursuant to our non-employee

director compensation policy adopted in May 2024 (see “- Director Compensation” for more information).

determining the timing and terms of an equity award, the Board or the Compensation Committee may consider material nonpublic information

to ensure that such grants are made in compliance with applicable laws and regulations.

The Board’s or the Compensation Committee’s

procedures to prevent the improper use of material nonpublic information in connection with the granting of equity awards include oversight

by legal counsel and, where appropriate, delaying the grant of equity awards until the public disclosure of such material nonpublic information.

Company is committed to maintaining transparency in its executive compensation practices and to making equity awards in a manner that

is not influenced by the timing of the disclosure of material nonpublic information for the purpose of affecting the value of executive

compensation.

The Company regularly reviews its policies and practices related to equity awards to ensure they meet the evolving standards

of corporate governance and continue to serve the best interests of the Company and its shareholders.

following table presents information regarding stock options issued to the Named Executive Officers during the year ended December 31,

2024 during any period beginning four business days before the filing of a periodic report on Form 10-K or Form 10-Q, or the filing or

furnishing of a current report on Form 8-K that discloses material nonpublic information (other than a Form 8-K disclosing a new material

option award) and ending one business day after the filing or furnishing of such report with the SEC.

On June 12, 2024, the Company granted

options to the Named Executive Officers.

On June 14, 2024, the Company filed a current report on Form 8-K disclosing material non-public

fair value of

change in the

closing market price of the

securities underlying the

award between the trading

day ending immediately

prior to the disclosure of

material nonpublic

information and the trading

day beginning immediately

the disclosure of

material nonpublic

Scott Pomeroy

Michael Hinderberger

Executive Compensation Arrangements - Post-Closing Arrangements

As of the Effective Time, the Board appointed Scott Pomeroy as our Chief Executive Officer of the Company, Brooke Turk as our Chief Financial Officer, and Soumya Das as the Chief Executive Officer of Real Time Location System Division.

Michael Hinderberger continued in his role as Chief Executive Officer of XTI Aircraft Company.

We intend to develop an executive compensation program that is designed to align compensation with our business objectives and the creation of stockholder value, while enabling us to attract, motivate and retain individuals who contribute to the long - term success of the combined company.

We intend to enter into employment agreements with our executive officers that are consistent with that program.

Decisions on the executive compensation program will be made by the compensation committee of the board of directors.

Our employment agreements with Messrs.

Das and Hinderberger are still in effect as of the date of this report.

Until we enter into a new employment agreement with Mr.

Pomeroy, he will continue to receive compensation in accordance with the terms of his existing consulting agreement.

Incentive Plan

Under our 2018 Plan, we are authorized to grant cash and equity incentive awards to eligible employees, consultants, and non-employee directors in order to attract, motivate and retain the talent for which we compete.

Inpixon Director Compensation

The following table provides certain summary information concerning compensation awarded to, earned by or paid to our Directors in the year ended December 31, 2023 except Nadir Ali and Wendy Loundermon, whose aggregate compensation information has been disclosed above.

Name Fees Earned or paid in cash

($) Option awards

($) (1) Non-equity Incentive plan compensation

($) Nonqualified deferred compensation earnings

($) All other compensation

following table provides certain summary information concerning compensation awarded to, earned by or paid to our Directors in the year

ended December 31, 2024 except Scott Pomeroy and Soumya Das, whose aggregate compensation information has been disclosed above.

Current Non-Executive Directors:

Leonard Oppenheim (2)

Kareem Irfan $ 170,500 — $ — — — $ — $ 170,500

Tanveer Khader (3)

(1) The fair value of the director option grants are estimated on the date of grant using the Black-Scholes option pricing model with key weighted average assumptions, expected stock volatility and risk free interest rates based on US Treasury rates from the applicable periods.

(2) Leonard Oppenheim resigned from the Board, effective as of March 31, 2024.

Directors are entitled to reimbursement of ordinary and reasonable expenses incurred in exercising their responsibilities and duties as a director.

Effective July 1, 2015, the Board approved the following compensation plan for the independent directors payable in accordance with each independent director’s services agreement:

$30,000 per year for their services rendered on the Board, $15,000 per year for service as the audit committee chair, $10,000 per year for service as the compensation committee chair, $6,000 per year for service on the audit committee, $4,000 per year for service on the compensation committee, $2,500 per year for service on the nominating committee, a one-time non-qualified stock option grant to purchase 20,000 shares (on a pre-Reverse Splits basis) of the Company’s common stock under the 2011 Plan and restricted stock awards of 20,000 shares (on a pre-Reverse Splits basis) of common stock under the 2011 Plan, which are granted in four equal installments on a quarterly basis and are each 100% vested upon grant.

On January 25, 2019, each independent director entered into an amendment to his respective director services agreement pursuant to which the Company agreed to grant each independent director, so long as such director continues to fulfill his duties and provide services pursuant to their services agreement, an annual non-qualified stock option to purchase up to 20,000 shares of common stock in lieu of the above-mentioned equity awards.

Each stock option grant will be subject to the approval of the Board, which shall determine the appropriate vesting schedule, if any, and the exercise price.

On May 16, 2022, Mr.

Irfan's Director Services Agreement (as amended, the "Amended Director Services Agreement") was amended to increase his quarterly compensation by an additional $10,000 per month as consideration for the additional time and efforts dedicated to the Company and management in support of the evaluation of strategic relationships and growth initiatives.

The Amended Director Services Agreement supersedes and replaces all prior agreements by and between the Company and Mr.

During the year ended December 31, 2023, no independent director was awarded any stock options or restricted stock awards.

Legacy XTI Director Compensation

Historically, Legacy XTI did not pay cash or equity compensation to any of its directors for their services as directors.

Commencing on January 1, 2022, we agreed to pay David Brody $10,000 per month for providing legal and strategic consulting services to XTI.

Legacy XTI reimbursed its directors for reasonable expenses incurred during the course of their performance.

fair value of the director option grants are estimated on the date of grant using the Black-Scholes option pricing model with key

weighted average assumptions, expected stock volatility and risk free interest rates based on US Treasury rates from the applicable

Oppenheim resigned from the Board, effective as of March 31, 2024.

Khader resigned from the Board, effective as of the effective time of the XTI Merger on March 12, 2024.

are entitled to reimbursement of ordinary and reasonable expenses incurred in exercising

their responsibilities and duties as a director.

July 1, 2015, the Board approved the following compensation plan for the independent directors payable in accordance with each independent

director’s services agreement:

$30,000 per year for their services rendered on the Board, $15,000 per year for service as the Audit

Committee chair, $10,000 per year for service as the Compensation Committee chair, $6,000 per year for service on the Audit Committee,

$4,000 per year for service on the Compensation Committee, $2,500 per year for service on the Governance Committee, a one-time non-qualified

stock option grant to purchase 20,000 shares of Common Stock (not adjusted for any subsequent reverse stock splits) under the 2011 Plan

and restricted stock awards of 20,000 shares of Common Stock (not adjusted for any subsequent reverse stock splits) under the 2011 Plan,

which are granted in four equal installments on a quarterly basis and are each 100% vested upon grant.

January 25, 2019, each independent director entered into an amendment to his respective director services agreement pursuant to which

the Company agreed to grant each independent director, so long as such director continues to fulfill her or his duties and provide services

pursuant to their services agreement, an annual non-qualified stock option to purchase up to 20,000 shares of Common Stock (not adjusted

for any subsequent reverse stock splits) in lieu of the above-mentioned equity awards.

Each stock option grant will be subject to the

approval of the Board, which shall determine the appropriate vesting schedule, if any, and the exercise price.

May 16, 2022, Mr.

Irfan’s Director Services Agreement (as amended, the “Amended Director Services Agreement”)

was amended to increase his quarterly compensation by an additional $10,000 per month as consideration for the additional time and efforts

dedicated to the Company and management in support of the evaluation of strategic relationships and growth initiatives.

The Amended Director

Services Agreement superseded and replaced all prior agreements by and between the Company and Mr.

On May 1, 2024, the Board approved and adopted the following compensation

policy for the Company’s non-employee directors:

$50,000 per year for general availability and participation in meetings and conference

calls of the Board, $20,000 per year for service as the Audit Committee chair, $15,000 per year for service as the Compensation Committee

chair, $10,000 per year for service as the Governance Committee chair, $10,000 per year for service on the Audit Committee, $7,500 per

year for service on the Compensation Committee, $5,000 per year for service on the Governance Committee.

All cash compensation will be

payable quarterly in arrears.

Each of the Company’s non-employee directors will also receive an annual grant of stock options pursuant

to the 2018 Plan, with a fair market value equal to the aggregate annual cash retainer for the applicable director based upon a Black-Scholes

option pricing model.

The exercise price of the stock options will be equal to the market price of the Common Stock at the time of grant.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The following table sets forth certain information as of April 3, 2024, regarding the beneficial ownership of our common stock by the following persons:

• our Named Executive Officers;

• each director;

• all of our executive officers and directors as a group;

• each person or entity who, to our knowledge, owns more than 5% of our common stock.

Except as indicated in the footnotes to the following table, subject to applicable community property laws, each stockholder named in the table has sole voting and investment power.

Unless otherwise indicated, the address for each stockholder listed is c/o XTI Aerospace, Inc., 8123 InterPort Blvd., Suite C, Englewood, Colorado 80112.

Shares of common stock subject to options, warrants, or other rights currently exercisable or exercisable within 60 days of April 3, 2024, are deemed to be beneficially owned and outstanding for computing the share ownership and percentage of the stockholder holding the options, warrants or other rights, but are not deemed outstanding for computing the percentage of any other stockholder.

The information provided in the following table is based on our records, information filed with the SEC, and information furnished by our stockholders.

Name of Beneficial Owner Amount and nature of beneficial ownership Percent of Class(1)

The following table sets forth certain information as of April 11,

2025, regarding the beneficial ownership of our common stock by the following persons:

Named Executive Officers;

of our current executive officers and directors as a group;

person or entity who, to our knowledge, owns more than 5% of our common stock.

Except as indicated in the footnotes to the following table, subject

to applicable community property laws, each stockholder named in the table has sole voting and investment power.

Unless otherwise indicated,

the address for each stockholder listed is c/o XTI Aerospace, Inc., 8123 InterPort Blvd., Suite C, Englewood, CO 80112.

common stock subject to options, warrants, or other rights currently exercisable or exercisable within 60 days of April 11, 2025,

are deemed to be beneficially owned and outstanding for computing the share ownership and percentage of the stockholder holding the options,

warrants or other rights, but are not deemed outstanding for computing the percentage of any other stockholder.

The information provided

in the following table is based on our records, information filed with the SEC, and information furnished by our stockholders.

Name of Beneficial Owner

Named Executive Officers and Directors

Dave Brody 2,497,799 (2) 25.18 %

Scott Pomeroy

Brooke Turk — *

Michael Hinderberger 216,136 (4) 2.13 %

Soumya Das — *

Kareem Irfan 1 *

Nadir Ali 643 (5) *

Wendy Loundermon 70 *

All current executive officers and directors as a group (7 persons)

Greater than 5% shareholders

Robert Denehy 812,025 8.19 %

NMV Aero Technologies LLC 667,099 (7) 6.71 %

Daniel Potter 1,020,564 10.29 %

* Represents beneficial ownership of less than 1%.

Nadir Ali - former chief executive officer

Wendy Loundermon - former chief financial officer

More than 5% shareholders

beneficial ownership of less than 1%.

Based on 5,537,540 shares outstanding as of April 11, 2025.

(2) Includes (i) 1,338,897 shares of common stock held indirectly through the Jason S.

Brody 2019 Trust, of which Mr.

Brody is the trustee, (ii) 843,505 shares of common stock held indirectly through the David E.

Brody 2019 Spousal Trust, of which Susan R.

Brody's spouse is the trustee, (iii) 49,093 shares held by Susan R.

Brody, and (iv) 266,304 shares of common stock held directly by David Brody.

Includes (i) 1,429 shares of common stock held of record by Mr.

Pomeroy, and (ii) 535 shares of common stock issuable upon exercise of options exercisable within 60 days of April 3, 2024.

(4) Includes 216,136 shares of common stock issuable upon exercise of options exercisable within 60 days of April 3, 2024.

(5) Includes (i) 641 shares of common stock held of record by Nadir Ali, (ii) 1 share of common stock held of record by Lubna Qureishi, Mr.

Ali’s wife, and (iii) 1 share of common stock held of record by the Qureishi Ali Grandchildren Trust, of which Mr.

Ali is the joint-trustee (with his wife Lubna Qureishi) of the Qureishi Ali Grandchildren Trust and has shared voting and investment control over the shares held.

Ali also indirectly owns 1,500 shares of Series 9 Preferred Stock

through 3AM Investments LLC that are not included in this table because they are not convertible into common stock, have no voting rights except as required by law, and are not registered under Section 12 of the Exchange Act.

(6) Excludes beneficial ownership of Mr.

Ali, our former Chief Executive Officer, and Ms.

Loundermon, our former Chief Financial Officer.

Includes (i) 672,437 shares of common stock held directly, or by spouse or relative, (ii) 2,182,402 shares of common stock held of record by entities, and (iii) 216,671 shares of common stock issuable upon exercise of options exercisable within 60 days of April 3, 2024.

(7) Includes (i) 649,249 shares of common stock and (ii) 17,850 shares of common stock issuable upon exercise of warrants exercisable within 60 days of April 3, 2024.

and (ii) 3 shares of common stock issuable upon exercise of options exercisable within 60 days of April 11, 2025.

(i) 5,356 shares of common stock held indirectly through the Jason S.

Brody 2019 Trust, of which David Brody is the trustee and (ii)

1,067 shares of common stock held directly by Mr.

Does not include (i) 3,206 shares of common stock held indirectly through

Brody 2019 Spousal Trust, of which Susan R.

Brody’s spouse, is the trustee and (ii) 366 shares held

Brody, as to which Mr.

Brody disclaims beneficial ownership.

current directors and executive officers are:

Scott Pomeroy (Chief Executive Officer, Chairman and Director), Brooke Turk (Chief

Financial Officer), Tobin Arthur (Chief Strategy Officer), Soumya Das (Chief Executive Officer, Real Time Location System Division,

and Director), Tensie Axton (Director), David Brody (Director and Secretary) and Kareem Irfan (Director).

Includes (i) 7,852

shares of common stock held directly, or by spouse or relative, and (ii) 3 shares of common stock issuable upon exercise of

options exercisable within 60 days of April 11, 2025 .

CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Review, Approval or Ratification of Transactions with Related Persons.

The Board reviews issues involving potential conflicts of interest, and reviews and approves all related 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 during 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.

Approval or Ratification of Transactions with Related Persons.

Board reviews issues involving potential conflicts of interest, and reviews and approves all related 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.

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, 2022, through the date of this report (the “Reporting Period”), described below are certain transactions or series of transactions between us and certain related persons.

Consulting Agreements

On March 12, 2024, the Company entered into a Consulting Agreement with Mr.

Nadir Ali (the “Ali Consulting Agreement”), the Company's former Chief Executive Officer.

Pursuant to the Ali Consulting Agreement, following the Closing of the XTI Merger, Mr.

Ali will provide consulting services to the Company for 15 months or until earlier termination in accordance with its terms (the “Ali Consulting Period”).

During the Ali Consulting Period, the Company will pay him a monthly fee of $20,000.

If the Company terminates the Ali Consulting Agreement during the first six months of the Ali Consulting Period without Company Good Reason (as defined in the Ali Consulting Agreement), the Company will be required to pay all consulting fees that would be due for such six-month period.

Ali terminates the Ali Consulting Agreement during the Ali Consulting Period for Consultant Good Reason (as defined in the Ali Consulting Agreement), the Company will be required to pay all consulting fees that would be due for the remainder of the Ali Consulting Period, including the Equity Payment described below, including the Equity Payment described below.

In addition, the Company shall pay Mr.

Ali (a) the amount of $1,500,000 due three months following the Closing, and (b) the aggregate amount of $4,500,000, payable in 12 equal monthly installments of $375,000 each, starting four months after the Effective Date (the payments described in (a) and (b), each an “Equity Payment”).

Each Equity Payment may be made, in

Company’s discretion, in (i) cash, (ii) fully vested shares of common stock under the Company’s equity incentive plan and registered on a registration statement on Form S-8 or another appropriate form (“Registered Shares”), or a combination of cash and Registered Shares.

Ali must continue to provide consulting services to the Company on the date of payment of an Equity Payment to receive the Equity Payment, unless the Company terminates the Ali Consulting Agreement without Company Good Reason or Mr.

Ali terminates the Ali Consulting Agreement for Consulting Good Reason, in which case the Equity Payments would become due and payable in full.

To the extent all or a portion of an Equity Payment is made in shares, such shares will be valued based on the closing price per share on the date on which the Equity Payment is made.

Subject to compliance with Section 15(b)(13) of the Exchange Act, if Mr.

Ali provides services involving the identification of prospective merger or acquisition targets for the Company or its affiliates, it is intended that he be eligible for a bonus upon the successful delivery of services.

(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

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 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

Following Ali’s receipt of the Series 9 Redemption Amount, Ali no longer held any shares of Series 9 Preferred Stock.

of the date of this report, there are no shares of Series 9 Preferred Stock issued and outstanding.

Termination of Ali Consulting

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;

(ii) to deliver a cash amount of

$60,000 (the “Outstanding Amount”) to Ali by wire transfer of immediately available funds;

and (iii) to deliver $1,500,000

(the “Deferred Amount”) by wire transfer of immediately available funds in three equal installments of $500,000 (“Installment

Amounts”) each on June 30, 2025, September 30, 2025 and December 30, 2025 (the “Deferred Amount Installment Dates”).

Any Installment Amount that is not paid by the applicable due dates will be subject to interest at a rate of 18% per annum.

of the Outstanding Amount and the Deferred Amount in accordance with the terms of the Settlement Agreement, the Ali Advisory Fees shall

be deemed to be satisfied in full and no further amounts shall be payable by the Company to Ali or his affiliated parties pursuant

to the Ali Consulting Agreement.

On March 31, 2025, the Company

paid the Outstanding Amount in full.

As of the date of this report, the Deferred Amount remains outstanding.

Former Management Payments.

to the Settlement Agreement, the Company agreed to pay the Former Management Payments (as defined below) on the earlier of (a) the closing

date of the Company’s next financing transaction and (b) 30 days following the Effective Date of the Settlement Agreement, subject

to certain penalties for late payment.

The “Former Management Payments” comprise (i) an aggregate amount of $803,260.65 (the

“Bonus Plan Payment”) that, as of the Effective Date, remains payable to the recipients of bonuses payable pursuant to that

certain Strategic Transaction Bonus Plan, adopted on July 24, 2023 and as amended (the “Bonus Plan”) together with (ii) an

aggregate amount of $303,372.87 (the “Loundermon Advisory Fee”) that, as of the Effective Date, is payable to Wendy Loundermon,

the Company’s former Chief Financial Officer and a former director of the Company (“Loundermon”), pursuant

to that certain Consulting Agreement, dated March 12, 2024, by and between the Company and Loundermon (the “Loundermon Consulting

On March 31, 2025, the Company

paid all amounts due under the Former Management Payments in full.

Ali Release .

the Effective Date, Ali, on behalf of himself and his former and current affiliated entities, including 3AM, Grafiti LLC and Grafiti Group

(collectively, the “Ali Parties”) agreed to release the Company and each of its former and current subsidiaries, divisions,

affiliates, predecessors, successors, assigns, and its and their respective employees, officers, directors, shareholders, members, partners,

trustees, joint venturers, attorneys, agents, and representatives (collectively, the “XTI Parties”), from and with respect

to any and all claims, demands, causes of action, damages, obligations, liabilities, costs, and expenses of any kind or nature whatsoever

(collectively, “Ali Claims”), arising out of any obligations of the Company with respect to the Ali Consulting Agreement,

the Series 9 Purchase Agreement and the portion of the Bonus Plan relating to Ali, whether known or unknown, foreseen or unforeseen, that

the Ali Parties, or any of them, ever had, now have, or may have against the XTI Parties, or any of them, from the beginning of time through

and including the Completion Date (as defined below).

As used in the Settlement Agreement, the term “Completion Date” means

the date on which the Company has delivered (i) the Series 9 Redemption Amount to Ali by wire transfer of immediately available funds;

(ii) the Deferred Amount to Ali by wire transfer of immediately available funds;

(iii) the Outstanding Amount to Ali by wire transfer

of immediately available funds;

(iv) the Former Management Payments to Loundermon and the recipients of the Bonus Plan Payments by wire

transfer of immediately available funds.

the Effective Date, the XTI Parties agreed to release the Ali Parties from and with respect to any and all claims, demands, causes of

action, damages, obligations, liabilities, costs, and expenses of any kind or nature whatsoever (collectively, “XTI Claims”),

arising out of any obligations of the Ali Parties with respect to any obligation of the Ali Parties in connection with the payment of

the purchase price as set forth in the Equity Purchase Agreement, the Ali Consulting Agreement, the Series 9 Purchase Agreement and the

portion of the Bonus Plan relating to Ali, whether known or unknown, foreseen or unforeseen, that the XTI Parties, or any of them, ever

had, now have, or may have against the Ali Parties, or any of them, from the beginning of time through and including the Completion Date.

Entire Agreement.

Settlement Agreement provides that it supersedes any prior consents or agreements regarding the allocation of financing proceeds for the

payment of any obligations of the Company described in the Settlement Agreement.

2025 Consent from 3AM

On February 12, 2025, the

Company obtained a written consent (the “February 2025 Consent”) from 3AM as the Required Holder (as defined below) of the

Company’s Series 9 Preferred Stock, in connection with the Company’s now expired “at the market” offering program

pursuant to that certain Equity Distribution Agreement, dated as of July 22, 2022, by and between the Company and Maxim Group LLC, as

amended from time to time (the “ATM”).

Pursuant to the February 2025 Consent, 3AM authorized the Company to raise up to an

additional $10 million of common stock under the ATM in consideration for the Company’s agreement to pay 20% of the gross proceeds

(the “Payment Amount”) of any sale by the Company of any debt or equity securities of the Company, including but not limited

to sales of common stock under the ATM (each, a “Financing”), (a) first, to those certain employees and other service providers,

including Nadir Ali, Wendy Loundermon (the Company’s former Chief Financial Officer and a former director of the Company) and Soumya

Das (the Company’s Chief Executive Officer of its Real Time Location System Division and a current director of the Company) (the

“Bonus Plan Recipients”), entitled to bonuses payable pursuant to that certain Transaction Bonus Plan, adopted on July 24,

2023, as amended from time to time (“Bonus Plan Payments”);

and (b) second, to the extent the Bonus Plan Payments have been

fully satisfied, any remaining portion of the Payment Amount shall be applied to the redemption of outstanding shares of the Series 9

Preferred Stock.

Payments will be due on (i) with respect to ATM sales, every Monday for the prior week’s ATM sales, and (ii) with

respect to any other Financing, five business days following the closing of such Financing.

The terms of the February 2025 Consent were

superseded by the terms of the Settlement Agreement, as described above under “- Settlement Agreement with Nadir Ali, 3AM, and

Grafiti Group.”

The term “Required

Holders” is defined in the Certificate of Designations of Preferences and Rights of Series 9 Preferred Stock as the holders of

at least a majority of the outstanding Series 9 Preferred Stock;

provided that, pursuant to that certain securities purchase agreement

dated as of March 12, 2024, by and between the Company and 3AM, 3AM will be deemed a “Required Holder” as long as 3AM holds

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.

2025 Consent from 3AM

accordance with the terms of the Series 9 Preferred Stock Certificate of Designation, the Company obtained a written consent, effective

as of January 7, 2025 (the “January 2025 Consent”), from 3AM as the Required Holder of the Series 9 Preferred Stock, authorizing

the Company to issue securities in a best efforts public offering that closed on January 10, 2025 (the “Offering”) in consideration

for the Company’s agreement to pay, within five business days of the closing, 20% of the approximately $20 million of gross proceeds

from the Offering (the “Payment Amount”), (a) first, to the Bonus Plan Recipients (the “Bonus Plan Payments”);

and (b) second, to the extent the Bonus Plan Payments have been fully satisfied, any remaining portion of the Payment Amount shall be

applied to the redemption of outstanding shares of the Series 9 Preferred Stock (the “Redemption”).

Pursuant to the January

2025 Consent, on January 13, 2025, the Company paid an aggregate of approximately $3.5 million in Bonus Plan Payments, after which payment

no portion of the Payment Amount remained to pay the Redemption.

2024 Consent from 3AM

On December 23, 2024, the Company received a consent and waiver from

3AM as the Required Holder of the Series 9 Preferred Stock, authorizing the Company to raise up to an additional $5,000,000 under the

ATM in consideration for the Company’s agreement to allocate the 15% Redemption Amount (as defined below) to the Bonus Plan Recipients,

in lieu of 3AM, as the remaining holder of Series 9 Preferred Stock, following the date on which Streeterville no longer owns any shares

of Series 9 Preferred Stock.

2024 Consent Waiver and Release, and Letter Agreement with Nadir Ali

June 14, 2024, the Company obtained a written consent (the “June 2024 Consent”) from the Required Holders of the Series 9

Preferred Stock, pursuant to which the Required Holders approved a $47.4 million increase to the ATM (the “Maximum Amount”),

provided that, among other things, the Company obtains the consent of the Required Holders for sales of our Common Stock under the ATM

in excess of $6 million up to the Maximum Amount.

November 17, 2024, the Company entered into a Consent Waiver and Release Agreement (the “Consent Agreement”) with 3AM

and Streeterville Capital, LLC (“Streeterville”, and together with 3AM, the “Series 9 Holders”), each as

a Required Holder, pursuant to which the Series 9 Holders authorized the Company to raise up to an additional $5,000,000 under the

ATM (the “ATM Increase”) in consideration for the Company’s agreement to pay 20% of the proceeds it receives from sales

under the ATM in connection with the ATM Increase (the “Redemption Proceeds”) to the Series 9 Holders to redeem a portion

of their Series 9 Preferred Stock, to be distributed as follows:

(i) 75% of the Redemption Proceeds to Streeterville (15% of

all proceeds received from sales under the ATM) (“15% Redemption Amount”), and (ii) 25% of the Redemption Proceeds to

3AM (5% of all proceeds received from sales under the ATM).

Distribution payments will be made by wire transfer of immediately available

funds every Monday for the prior week’s Redemption Proceeds and will be used to partially redeem the Series 9 Preferred Stock.

Additionally,

pursuant to the Consent Agreement, each of Streeterville and 3AM agreed to waive any past breach of or failure to perform any of the

Company’s covenants, obligations, conditions or agreements contained in (i) the Certificate of Designations, (ii) the

June 2024 Consent, (iii) in the case of 3AM, the SPA and (iv) in the case of Streeterville, the Secured Promissory Note

dated as of May 1, 2024 and the Secured Promissory Note dated as of May 24, 2024 issued by the Company to Streeterville (such

notes, together, the “Secured Notes”).

Each of Streeterville and 3AM also agreed that none of such breaches or failures of

perform shall constitute an Event of Default (as defined in the Certificate of Designations or the Secured Notes, as applicable) under

the Certificate of Designations or, in the case of Streeterville, the Secured Notes.

The Consent Agreement provides that failure to timely

the remit the Redemption Proceeds as set forth in the Consent Agreement will be considered an Event of Default under the Certificate

of Designations, and the Series 9 Holders’ consent to the ATM Increase will be immediately and automatically withdrawn in

the event the Company fails to make payment pursuant to the Consent Agreement and such payment failure is not cured within one business day.

The Consent Agreement may only be terminated or modified with the written consent of the Series 9 Holders and the Company.

further inducement for 3AM to approve the ATM Increase, pursuant to the Consent Agreement, on November 17, 2024, the Company entered

into a Letter Agreement (the “Letter Agreement”) with Nadir Ali, on behalf of himself and on behalf of 3AM, Grafiti Group

LLC (“Buyer”) and Grafiti LLC (“Grafiti”).

Pursuant to the Letter Agreement, the Company agreed to amend that

certain Equity Purchase Agreement, dated as of February 16, 2024 (the “Equity Purchase Agreement”), by and among the

Company, Grafiti and Buyer, to remove the inclusion of any Net Income After Taxes in the Purchase Price (as such terms are defined in

the Equity Purchase Agreement) effective immediately upon execution of the Letter Agreement, and thereby waive future payments to the

Company of any Net Income After Taxes under the Equity Purchase Agreement.

As previously described in a Current Report on Form 8-K

filed by the Company on February 23, 2024, the Company entered into the Equity Purchase Agreement to divest the businesses held

by Grafiti, then a wholly-owned subsidiary of the Company, by transferring 100% of the equity interest in Grafiti to Buyer.

is the Managing Member of Buyer, which is the managing Member of Grafiti.

Additionally,

pursuant to the Letter Agreement, the Company agreed to (i) pay an amount equal to $426,006.00 representing amounts that remain

outstanding and payable to Mr.

Nadir Ali in accordance with the terms of that certain Amended and Restated Employment Agreement,

dated as of May 15, 2018, as further amended on March 22, 2024, by and between XTI and Nadir Ali (the “Employment Agreement”),

with payment to be made in full no later than November 19, 2024 (the “Severance Payment”) and (ii) pay an amount

equal to $60,000 representing the total monthly cash service fee currently outstanding and payable pursuant to that certain Consulting

Agreement dated March 12, 2024, by and between XTI and Nadir Ali (the “Ali Consulting Agreement”), no later than November 19,

2024 (the “Consulting Payment”).

The Company paid Mr.

Ali the Severance Payment and the Consulting Payment in full on

November 18, 2024.

the Letter Agreement provides that in the event that the Company breaches the terms and conditions

of the Letter Agreement or fails to satisfy the conditions and obligations described therein,

the Consent Agreement as provided by 3AM shall be deemed to be void ab initio .

to the Letter Agreement, Nadir Ali and 3AM agreed to waive any past breach of or failure to perform any of the Company’s covenants,

obligations, conditions or agreements contained in the Employment Agreement and the Consulting Agreement relating to the Severance Payment

and the Consulting Payment as applicable.

of Redemption Proceeds Pursuant to the Consent Agreement

to the Consent Agreement, the Company delivered an aggregate of $492,331 to Streeterville and $302,116 to 3AM during the period from

November 17, 2024 through December 31, 2024, via wire transfer of immediately available funds, which amounts represent the Redemption

Proceeds payable to Streeterville and 3AM, respectively, in connection with amounts raised from sales under the ATM.

Such payments were

made for 469.00 shares of the Company’s Series 9 Preferred Stock held by Streeterville and 287.70 shares of the Company’s

Series 9 Preferred Stock held by 3AM.

The Company entered into acknowledgment agreements with each of Streeterville and 3AM

to record such payments.

Purchase Agreement with 3AM

On March 12, 2024, the

Company entered into the SPA with 3AM, an entity controlled by Nadir Ali, the Company’s former Chief Executive Officer and a former

director of the Company.

Pursuant to the SPA, 3AM purchased 1,500 shares of Series 9 Preferred Stock for a total purchase price

of $1,500,000, based on a purchase price of $1,000 per share of Series 9 Preferred Stock.

The Company agreed that 3AM will be deemed

a “Required Holder” as defined in the Certificate of Designations of Preferences and Rights of Series 9 Preferred Stock

as long as 3AM holds 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.

Agreement with Nadir Ali

On March 12, 2024, the Company entered into the Ali Consulting

Agreement with Nadir Ali, the Company’s former Chief Executive Officer.

Pursuant to the Ali Consulting Agreement, following the

closing of the XTI Merger, Mr.

Ali will provide consulting services to the Company for 15 months or until earlier termination

in accordance with its terms (the “Ali Consulting Period”).

During the Ali Consulting Period, the Company will pay him a monthly

fee of $20,000.

If the Company terminated the Ali Consulting Agreement during the first six months of the Ali Consulting Period without

Company Good Reason (as defined in the Ali Consulting Agreement), the Company would have been required to pay all consulting fees due

for such six-month period.

Ali terminates the Ali Consulting Agreement during the Ali Consulting Period for Consultant Good

Reason (as defined in the Ali Consulting Agreement), the Company will be required to pay all consulting fees that would be due for the

remainder of the Ali Consulting Period, including the Equity Payment described below.

addition, the Company shall pay Mr.

Ali (a) the amount of $1,500,000 due three months following the closing of the XTI

Merger, and (b) the aggregate amount of $4,500,000, payable in 12 equal monthly installments of $375,000 each, starting four months

after the closing of the XTI Merger (the payments described in (a) and (b), each an “Equity Payment”).

Each Equity Payment

may be made, in Company’s discretion, in (i) cash, (ii) fully vested shares of Common Stock under the Company’s

equity incentive plan and registered on a registration statement on Form S-8 or another appropriate form (“Registered Shares”),

or a combination of cash and Registered Shares.

Ali must continue to provide consulting services to the Company on the date

of payment of an Equity Payment to receive the Equity Payment, unless the Company terminates the Ali Consulting Agreement without Company

Good Reason or Mr.

Ali terminates the Ali Consulting Agreement for Consultant Good Reason, in which case the Equity Payments would

become due and payable in full.

To the extent all or a portion of an Equity Payment is made in shares, such shares will be valued based

on the closing price per share on the date on which the Equity Payment is made.

to compliance with Section 15(b)(13) of the Exchange Act, if Mr.

Ali provides services involving the identification

of prospective merger or acquisition targets for the Company or its affiliates, it is intended that he be eligible for a bonus upon the

successful delivery of services.

The specifics of the bonus will be negotiated and mutually agreed upon by the Company and Mr.

On March 12, 2024, the Company also entered into a Consulting Agreement with Ms.

Wendy Loundermon (the “Loundermon Consulting Agreement”), the Company's former Chief Financial Officer.

As described above, the Settlement

Agreement provides that as of the Effective Date of the Settlement Agreement, the Ali Consulting Agreement is terminated.

Issuances to Nadir Ali

June 13, 2024, July 5, 2024, November 19, 2024 and December 2, 2024, the Company entered into a Restricted Stock Award

Agreement with Nadir Ali (the “June 2024 RSA Agreement,” the “July 2024 RSA Agreement”, the “November 2024

RSA Agreement” and the “December 2024 RSA Agreement,” respectively), a consultant to the Company and the Company’s

former Chief Executive Officer and a former director of the Company.

Pursuant to each agreement, the Company issued Mr.

vested shares of Common Stock (the “Shares”) under the 2018 Plan, which Shares were registered pursuant to a registration

statement on Form S-8.

to the June 2024 RSA Agreement, the Company issued 10,722 Shares to Mr.

Ali at a price per share of $110.00 in partial satisfaction

of the $1,500,000 Equity Payment owed to Mr.

Ali on June 12, 2024 under the Ali Consulting Agreement.

to the July 2024 RSA Agreement, the Company issued 11,100 Shares to Mr.

Ali at a price per share of $100.00.

Approximately

$308,804 of the Shares were issued to Mr.

Ali in satisfaction of the remaining amount of the $1,500,000 Equity Payment owed to Mr.

on June 12, 2024 under the Ali Consulting Agreement.

Approximately $792,269 of the Shares were issued to Mr.

Ali in partial

satisfaction of amounts owed to Mr.

Ali under the Strategic Transaction Bonus Plan.

Pursuant to the November 2024

RSA Agreement, the Company issued an aggregate of 86,511 Shares to Mr.

Ali at a price per share of $12.50.

Approximately $858,932

of the Shares were issued to Mr.

Ali in partial satisfaction of five monthly payments of $375,000 each from July 12, 2024 to

November 12, 2024 (in the aggregate amount of $1,875,000) owed to Mr.

Ali under the Ali Consulting Agreement.

Approximately

$231,331 of the Shares were issued to Mr.

Ali in partial satisfaction of amounts owed to Mr.

Ali under the Strategic Transaction

to the December 2024 RSA Agreement, the Company issued an aggregate of 85,384 Shares to Mr.

Ali at a price per share of $10.00.

The full $1,016,068 value of the Shares was issued to Mr.

Ali in partial satisfaction of amounts owed to Mr.

Ali under the Ali Consulting

Consulting Agreement

with Wendy Loundermon

On March 12, 2024, the Company

entered into a Consulting Agreement with Ms.

Wendy Loundermon (the “Loundermon Consulting Agreement”), the Company’s

former Chief Financial Officer.

Pursuant to the Loundermon Consulting Agreement, following the Closing, Ms.

Loundermon will provide consulting services to the Company for one year or until earlier termination in accordance with its terms (the “Loundermon Consulting Period”).

Loundermon agreed to provide

consulting services to the Company for one year or until earlier termination in accordance with its terms (the “Loundermon Consulting

As compensation for Ms.

Loundermon ’s c onsulting services , the Company will pay her (i) $83,333 per month for the first six months of the Loundermon Consulting Period for services she perform s on an as-needed basis during the Loundermon Consulting Period regarding the transition of the management of the Company’s financial reporting function to ensure continuity of business operations (with such advisory fees payable , subject to certain conditions, pursuant to the payment schedule set forth in the Loundermon Consulting Agreement), and (ii) $300 per hour for services performed on an as needed basis regarding the preparation and filing of Company’s public company financial reporting and compliance matters including accounting, payroll, audit and tax compliance functions.

If, during the first six months of the Loundermon Consulting Period, the Company terminates the Consulting Agreement without Company Good Reason (as defined in the Loundermon Consulting Agreement) or Ms.

Loundermon terminates the Loundermon Consulting Agreement for Consultant Good Reason (as defined in the Consulting Agreement), the Company will be required to pay all advisory fees that would be due for such six month period.

Securities Purchase Agreement

On March 12, 2024, the Company entered into a securities purchase agreement (the “Securities Purchase Agreement”) with an entity controlled by the Company’s former director and Chief Executive Officer, Mr.

Nadir Ali (the “Purchaser”).

Pursuant to the Securities Purchase Agreement, the Purchaser purchased 1,500 shares of Series 9 Preferred Stock for a total purchase price of $1,500,000, based on a purchase price of $1,000 per share of Series 9 Preferred Stock.

The Company agreed that the Purchaser will be deemed a “Required Holder” as defined in the Certificate of Designations of Preferences and Rights of Series 9 Preferred Stock as long as the Purchaser holds any shares of Series 9 Preferred Stock.

The Securities Purchase Agreement sets forth certain restrictions on the Company’s use of the proceeds from the sale of the Series 9 Preferred Stock pursuant thereto, including that the proceeds must be used in connection with the redemption of the Series 9 Preferred Stock pursuant to the Certificate of Designation or working capital purposes, and may not, without the consent of the required holders of Series 9 Preferred Stock, be used for, among other things, (i) the redemption of any XTI Aerospace common stock or common stock equivalents, (ii) the settlement of any outstanding litigation, or (iii) for the repayment of debt for borrowed money to any officer or director, or XTI Merger-transaction related bonuses to any employee or vendor except for such non-merger transaction related bonuses as may be payable to participants pursuant to the Company’s existing employee bonus plan.

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

On September 30, 2020, we entered into a Subscription Agreement (the “Subscription Agreement”) with Cardinal Venture Holdings LLC, a Delaware limited liability company (“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.

The Contribution was used by CVH to fund the Sponsor’s purchase of securities in the KINS.

CVH owns certain interests in KINS Capital, LLC, a Delaware limited liability company, the sponsor entity (the “Sponsor”) to KINS Technology Group, Inc., a Delaware corporation and publicly traded former special purpose acquisition company ("KINS") with which the Company entered into the Business Combination.

Concurrently with our entry into the Subscription Agreement, we entered into the Amended and Restated Limited Liability Company Agreement of CVH (the “LLC Agreement”), dated as of September 30, 2020.

Under the terms of the LLC Agreement, in the event the Managing Member can no longer manage CVH’s affairs due to his death, disability or incapacity, 3AM will serve as CVH’s replacement Managing Member.

Except as may be required by law, we, as a non-managing member under the LLC Agreement, do not have any voting rights and generally cannot take part in the management or control of CVH’s business and affairs.

On December 16, 2020, the Company entered into a second subscription agreement with CVH, pursuant to which the Company agreed to (i) contribute $700,000 (the "Additional Contribution") to CVH and (ii) purchase 700,000 Class B Units.

The aggregate purchase price of $700,000 for the Class B Units is deemed to be satisfied through the Additional Contribution.

Following the closing of the Additional Contribution, the Company owned an aggregate of 599,999 Class A Units and 2,500,000 Class B Units.

Additionally, on July 1, 2022, we loaned $150,000 to CVH.

The loan bears no interest and is due and payable in full on the earlier of (i) the date by which KINS has to complete a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses (a "business combination"), and (ii) immediately prior to the date of consummation of the Business Combination of KINS, unless accelerated upon the occurrence of an event of default.

As a result of the closing of the Business Combination, the loan was repaid on March 15, 2023.

On February 27, 2023, the Company entered into Limited Liability Company Unit Transfer and Joinder Agreements with certain of the Company’s employees (the “Transferees”), pursuant to which (i) the Company transferred all of its Class A Units of CVH (the “Class A Units”), an aggregate of 599,999 Class A Units, to the Transferees as bonus consideration in connection with each Transferee’s services performed for and on behalf of the Company as an employee, as applicable, and (ii) each Transferee became a member of CVH and a party to the Amended and Restated Limited Liability Company Agreement of CVH, dated as of September 30, 2020.

Nadir Ali, the Company's former Chief Executive Officer and a former director, beneficially owned membership interests in CVH through 3AM LLC, a Delaware limited liability company and a founding member of CVH ("3AM").

Ali's relationship may create conflict of interest between Mr.

Ali's obligation to our company and its shareholders and his economic interests and possible fiduciary obligation to 3AM.

CVH was dissolved as of December 31, 2023.

Enterprise Apps Spin-off and Business Combination

On September 25, 2022, we entered into an Agreement and Plan of Merger (the "Merger Agreement") by and among Inpixon, KINS Technology Group Inc., a Delaware corporation (renamed CXApp Inc., "KINS" or "New CXApp"), CXApp Holding Corp., a Delaware corporation and wholly-owned subsidiary of New CXApp (formerly a wholly-owned subsidiary of Inpixon, "CXApp"), and KINS Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of KINS ("Merger Sub"), pursuant to which KINS would acquire Inpixon's enterprise apps business (including its workplace experience technologies, indoor mapping, events platform, augmented reality and related business solutions) (the "Enterprise Apps Business") through the merger of Merger Sub with and into CXApp (the “Merger”), with CXApp continuing as the surviving company and as a wholly-owned subsidiary of KINS, in exchange for the issuance of shares of KINS capital stock valued at $69 million (the "Business Combination").

Immediately prior to the Merger and pursuant to a Separation and Distribution Agreement, dated as of September 25, 2022, among KINS, Inpixon, CXApp and Design Reactor, Inc., a California corporation ("Design Reactor") (the "Separation Agreement"), and other ancillary conveyance documents, Inpixon would, among other things and on the terms and subject to the conditions of the Separation Agreement, transfer the Enterprise Apps Business, including certain related subsidiaries of Inpixon, including Design Reactor, to CXApp (the "Reorganization").

Following the Reorganization, Inpixon would distribute 100% of the common stock of CXApp, par value $0.00001, to certain holders of Inpixon securities as of the record date of March 6, 2023 (the "Enterprise Apps Spin-Off").

The Merger closed on March 14, 2023.

See “Recent Events - Enterprise Apps Spin-off and Business Combination” under Part II, Item 7 herein for more details.

Effective as of the closing of the Merger, Design Reactor, entered into a consulting agreement with 3AM, pursuant to which Mr.

Ali provideed advisory services following the closing of the Business Combination in exchange for $180,000 in consulting fees.

CVH Class A Unit Transfers

On February 27, 2023, the Company entered into Limited Liability Company Unit Transfer and Joinder Agreements with certain of the Company’s employees and directors (the “Transferees”), pursuant to which (i) the Company transferred all of its Class A Units of CVH (the “Class A Units”), an aggregate of 599,999 Class A Units, to the Transferees as bonus consideration in connection with each Transferee’s services performed for and on behalf of the Company as an employee, as applicable, and (ii) each Transferee became a member of CVH and a party to the Amended and Restated Limited Liability Company Agreement of CVH, dated as of September 30, 2020.

The following table sets forth the number of Class A Units awarded to each Transferee pursuant to the terms of their respective Transfer Agreement:

Name Title Number of Class A Units

Nadir Ali Chief Executive Officer, Director 219,999

Wendy Loundermon Chief Financial Officer, Director 100,000

Soumya Das Chief Operating Officer 50,000

Solutions Divestiture

Grafiti Group Equity Purchase Agreement

On February 21, 2024, the Company completed the disposition of the remaining portion of the Shoom, SAVES, and GYG business lines and assets (the "Grafiti Group Divestiture") that were excluded from the Grafiti Holding Transaction in accordance with the terms and conditions of an Equity Purchase Agreement, dated February 16, 2024, by and among Inpixon (“Seller”), Grafiti LLC, and Grafiti Group LLC (a newly formed entity controlled by Nadir Ali, the Company's CEO and a director) (“Buyer”).

Pursuant to the terms of the Equity Purchase Agreement, Buyer acquired from 100% of the equity interest in Grafiti LLC, including the assets and liabilities primarily relating to Inpixon’s Saves, Shoom and Game Your Game business, including 100% of the equity interests of Inpixon India, Grafiti GmbH (previously Inpixon GmbH) and Game Your Game, Inc.

from the Company for a minimum purchase price of $1.0 million paid in two annual cash installments of $0.5 million due within 60 days after December 31, 2024 and 2025.

The purchase price and annual cash installment payments will be (i) increased for 50% of net income after taxes, if any, from the operations of Grafiti LLC for the years ended December 31, 2024 and 2025;

(ii) decreased for the amount of transaction expenses assumed;

(iii) increased or decreased by the amount working capital of Grafiti LLC on the closing balance sheet is greater or less than $1.0 million.

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.

Loundermon’s consulting services, the Company agreed to pay her (i) $83,333 per month for

the first six months of the Loundermon Consulting Period for services she performs on an as-needed basis during the Loundermon Consulting

Period regarding the transition of the management of the Company’s financial reporting function to ensure continuity of business

operations, and (ii) $300 per hour for services performed on an as needed basis regarding the preparation and filing of Company’s

public company financial reporting and compliance matters including accounting, payroll, audit and tax compliance functions.

year ended December 31, 2024, the Company owed Ms.

Loundermon accrued consulting fees of $0.5 million pursuant to the Loundermon Consulting

Pursuant to the Settlement Agreement, on March 31, 2025, the Company repaid the remaining consulting compensation obligation

of approximately $0.3 million owed to Ms.

Group Equity Purchase Agreement

On February 21, 2024,

Inpixon completed the disposition of the remaining portion of the Shoom, SAVES, and GYG business lines and assets (the “Grafiti

Group Divestiture”) in accordance with the terms and conditions of an Equity Purchase Agreement, dated February 16, 2024,

by and among Inpixon (“Seller”), Grafiti LLC, and Grafiti Group LLC (an entity controlled by Nadir Ali, who was then the

Company’s CEO and a director) (“Buyer”) (the “Equity Purchase Agreement”).

Pursuant to the terms of the

Equity Purchase Agreement, Buyer acquired from 100% of the equity interest in Grafiti LLC, including the assets and liabilities primarily

relating to Inpixon’s SAVES, Shoom and Game Your Game business, including 100% of the equity interests of Inpixon India, Grafiti

GmbH (previously Inpixon GmbH) and Game Your Game, Inc.

from the Company for a minimum purchase price of $1.0 million paid in two

annual cash installments of $0.5 million due within 60 days after December 31, 2024 and 2025 (the “Grafiti Purchase

As described above, the Letter Agreement, dated as of November 17, 2024, amended the Equity Purchase Agreement to

remove the inclusion of net income after taxes from the purchase price.

As so amended, the purchase price and annual cash installment

payments will be (i) decreased for the amount of transaction expenses assumed;

and (ii) increased or decreased by the amount

working capital of Grafiti LLC on the closing 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.

Services Agreement

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.

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.

Legacy XTI Transactions

During the years ended December 31, 2023 and 2022, Legacy XTI paid its Chief Operating Advisor consultant, Charlie Johnson, who was then a board member and stockholder of Legacy XTI, compensation of $60,000 and $30,000, respectively.

As of December 31, 2023 and December 31, 2022, Legacy XTI owed Mr.

Johnson accrued compensation of $120,000 and $60,000, respectively.

Pursuant to an amendment to the consulting agreement in 2024, the Company paid $60,000 to Mr.

Johnson in March 2024 and the remaining accrued compensation balance of $60,000 was waived.

Transactions with Mr.

Replacement Note

Legacy XTI entered into an amended convertible note agreement with Mr.

Brody, its founder, Chairman and majority shareholder, in 2021 that consolidated a number of his outstanding notes (the “2021 Note”).

On October 1, 2023, the existing 2021 Note was replaced by a new convertible note with a principal balance of $1,079,044 (2021 Note principal of $1,007,323 plus accrued interest of $71,721) (the “Brody Note”) and with a maturity date defined as the earlier of (i) a closing of a merger with a company whose shares are traded on a public stock exchange, or (ii) March 31, 2024 (as amended).

The Brody Note accrued interest at a rate of 4% compounded annually, provided that on and after the maturity date interest the note shall accrue from and after such date on the unpaid principal and all accrued but unpaid interest of the note at a rate of 10% per annum.

The Brody Note provided that at any time prior to the maturity date, Mr.

Brody may convert all or a portion of the outstanding note balance into shares of Legacy XTI at a conversion price equal to $1.00.

Prior to Closing, Mr.

Brody elected to convert all except $175,000 of the Brody Note.

On March 11, 2024, Legacy XTI and Mr.

Brody entered into an Amendment No.

1 (the “Brody Note Amendment”) to the Brody Note pursuant to which Mr.

Brody converted $922,957 principal amount of the Brody Note and accrued and unpaid interest thereon, into shares of Legacy XTI common stock at a rate of $0.3094 in principal amount per share, and Legacy XTI agreed to pay Mr.

Brody the remaining $175,000 in principal amount at the time of Closing.

The shares issued as consideration under the Brody Note Amendment converted into 266,273 shares of XTI Aerospace common stock in accordance with the exchange ratio pursuant to the XTI Merger Agreement.

After the Closing of the Merger, the Company assumed the Brody Note as Maker, and the Company and Mr.

of Units of, and Loan to, Cardinal Venture Holdings

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 KINS with which the Company entered into the CXApp Merger.

The Contribution

was used by CVH to fund the Sponsor’s purchase of securities in the CXApp Merger.

with our entry into the Subscription Agreement, we entered into the Amended and Restated Limited Liability Company Agreement of CVH (the

“LLC Agreement”), dated as of September 30, 2020.

Under the terms of the LLC Agreement, in the event the Managing Member

can no longer manage CVH’s affairs due to his death, disability or incapacity, 3AM will serve as CVH’s replacement Managing

Except as may be required by law, we, as a non-managing member under the LLC Agreement, do not have any voting rights and generally

cannot take part in the management or control of CVH’s business and affairs.

December 16, 2020, the Company entered into a second subscription agreement with CVH, pursuant to which the Company agreed to (i) contribute

$700,000 (the “Additional Contribution”) to CVH and (ii) purchase 700,000 Class B Units.

The aggregate purchase

price of $700,000 for the Class B Units is deemed to be satisfied through the Additional Contribution.

Following the closing

of the Additional Contribution, the Company owned an aggregate of 599,999 Class A Units and 2,500,000 Class B Units.

Additionally,

on July 1, 2022, we loaned $150,000 to CVH.

The loan did not bear interest and was due and payable in full on the earlier of

(i) the date by which KINS has to complete a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or

similar business combination with one or more businesses (a “business combination”), and (ii) immediately prior to the

date of consummation of the business combination of KINS, unless accelerated upon the occurrence of an event of default.

of the closing of the CXApp Merger, the loan was repaid on March 15, 2023.

February 27, 2023, the Company entered into Limited Liability Company Unit Transfer and Joinder Agreements with certain of the Company’s

employees and directors (the “Transferees”), pursuant to which (i) the Company transferred all of its Class A Units of

CVH (the “Class A Units”), an aggregate of 599,999 Class A Units, to the Transferees as bonus consideration in

connection with each Transferee’s services performed for and on behalf of the Company as an employee, as applicable, and (ii) each

Transferee became a member of CVH and a party to the Amended and Restated Limited Liability Company Agreement of CVH, dated as of September 30,

Ali, the Company’s former Chief Executive Officer and a former director, beneficially owned membership interests in CVH through

3AM LLC, a Delaware limited liability company and a founding member of CVH (“3AM”).

3AM was entitled to manage the affairs

of CVH in certain circumstances.

CVH was dissolved as of December 31, 2023.

Agreement with 3AM

as of the closing of the Completed Transaction, Design Reactor, Inc.

(renamed CXApp US, Inc.), a California corporation and our former

subsidiary, entered into a consulting agreement with 3AM, pursuant to which Mr.

Ali provided advisory services to such former subsidiary

following the closing in exchange for $180,000 in consulting fees.

XTI entered into an amended convertible note agreement with Mr.

Brody, its founder, Chairman and majority shareholder, in 2021 that

consolidated a number of his outstanding notes (the “2021 Note”).

On October 1, 2023, the existing 2021 Note was replaced

by a new convertible note with a principal balance of $1,079,044 (2021 Note principal of $1,007,323 plus accrued interest of $71,721)

(the “October 2023 Note”) which had a maturity date defined as the earlier of (i) a closing of a merger with a

company whose shares are traded on a public stock exchange, or (ii) January 31, 2024.

The October 2023 Note accrued interest

at a rate of 4% compounded annually, provided that on and after the maturity date interest the note shall accrue from and after such

date on the unpaid principal and all accrued but unpaid interest of the note at a rate of 10% per annum.

The October 2023 Note provided

that at any time prior to the maturity date, Mr.

Brody may convert all or a portion of the outstanding note balance into shares

of Legacy XTI at a conversion price equal to $1.00.

March 11, 2024, Legacy XTI and Mr.

Brody entered into Amendment No.

2 (the “Brody Note Second Amendment”) to the Brody Note which extended the maturity date for the $175,000 payment to April 1, 2024.

January 2023 Note

In connection with the XTI Merger, the Company assumed a Promissory Note issued by XTI to Mr.

Brody on January 5, 2023 (the “January 2023 Note”), with an outstanding principal balance of $125,000 along with an interest balance of $10,058 calculated as of April 30, 2024.

1 to the October 2023 Note pursuant to which Mr.

converted $922,957 principal amount of the October 2023 Note and accrued and unpaid interest thereon, into shares of Legacy XTI

common stock at a rate of $0.309 in principal amount per share, and Legacy XTI agreed to pay Mr.

Brody the remaining $175,000 in

principal amount at the time of closing of the XTI Merger.

The shares issued as consideration under such amendment converted into 266,272

shares of our Common Stock in accordance with the exchange ratio pursuant to the XTI Merger Agreement and the Company assumed the $175,000

repayment obligation.

On March 27, 2024, the Company and Mr.

Brody entered into Amendment No.

2 to the October 2023 Note

which extended the maturity date for the $175,000 payment to April 1, 2024.

This repayment obligation was paid in full on April 1,

connection with the XTI Merger, the Company assumed a Promissory Note issued by Legacy XTI to Mr.

Brody on January 5, 2023

(the “January 2023 Note”), with an outstanding principal balance of $125,000 along with an interest balance of $10,058

calculated as of April 30, 2024.

On March 27, 2024, Mr.

Brody and the Company entered into an amendment to the January 2023 Note which extended the Maturity Date to April 30, 2024.

Consulting Agreement

Brody provided legal and strategic consulting services to Legacy XTI under a consulting agreement.

During the years ended December 31, 2023 and 2022, Legacy XTI paid Mr.

Brody compensation of $60,000 and $100,000, respectively.

As of December 31, 2023 and December 31, 2022, Legacy XTI had payable amounts owed to Mr.

Brody of $320,000 and $260,000, respectively, under his consulting agreement.

Pursuant to an amendment to the consulting agreement, these accrued amounts were waived by Mr.

Brody and the consulting agreement terminated in connection with the closing of the XTI Merger.

Brody and the Company entered into an amendment to the January 2023

Note which extended the Maturity Date to April 30, 2024.

The outstanding principal and accrued interest balances were repaid in

full during the second quarter of 2024.

Agreement with David Brody

provided legal and strategic consulting services to Legacy XTI under a consulting agreement.

During the years ended December 31,

2024 and 2023, Legacy XTI paid Mr.

Brody consulting compensation of $20,000 and $60,000, 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.

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,

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.

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

Brody nor Mr.

Pomeroy has received, and neither is entitled to receive, any compensation or other consideration from AVX,

in connection with services provided by AVX to the Company or otherwise.

May 31, 2024, Legacy XTI entered into a non-binding letter of intent with AVX that sets forth the preliminary terms and conditions

of a potential definitive agreement between Legacy XTI and AVX pursuant to which AVX would provide engineering services to support the

continued development of the TriFan 600.

No assurances can be made that the parties will successfully negotiate and enter into a definitive

Agreement with Scott Pomeroy

XTI entered into a consulting agreement with Scott Pomeroy dated July 1, 2022, as amended effective January 1, 2023, that

provided for his engagement as Legacy XTI’s Chief Financial Officer.

The agreement provided that Mr.

Pomeroy receive a

monthly compensation of $17,500.

During the years ended December 31, 2024 and 2023, the Company paid Mr.

compensation of $92,750 and $152,250, respectively, pursuant to the consulting agreement.

Pursuant to the consulting agreement and

in connection with the closing of the XTI Merger in March 2024, Mr.

Pomeroy (i) received 4,000,000 shares (pre-merger,

pre-reverse stock splits) of Legacy XTI common stock valued at $1.9 million as transaction-related compensation and (ii) was

entitled to receive a transaction cash bonus of $400,000 which was paid in full during January 2025.

Effective upon the

closing of the XTI Merger, Mr.

Pomeroy was appointed as XTI Aerospace Inc.’s Chief Executive Officer.

On May 6, 2024, XTI

Aerospace, Inc.

entered into an employment agreement with Mr.

Pomeroy, which superseded the consulting agreement.

Agreement with Brooke Turk

as of August 16, 2023, Legacy XTI entered into a consulting agreement with Brooke Turk for her executive consulting services in the areas

of financial reporting and operational planning.

The consulting agreement provided for a monthly retainer of $22,500 and the term of

the agreement was until December 31, 2025.

During the years ended December 31, 2024 and 2023, the Company paid Ms.

Turk compensation

of $79,050 and $101,250, respectively, pursuant to the consulting agreement.

Effective upon the closing of the XTI Merger, Ms.

was appointed as XTI Aerospace Inc.’s Chief Financial Officer.

On May 8, 2024, XTI Aerospace, Inc.

entered into an employment agreement

Turk, which superseded the consulting agreement.

Agreements with Charlie Johnson

the year ended December 31, 2023, Legacy XTI paid its Chief Operating Advisor consultant, Charlie Johnson, who was then a board

member of Legacy XTI until the closing of the XTI Merger, compensation of $60,000 pursuant to a consulting agreement.

As of December 31,

2023, Legacy XTI owed Mr.

Johnson accrued compensation of $120,000.

Pursuant to an amendment to the consulting agreement in 2024,

the Company paid $60,000 to Mr.

Johnson in March 2024 and the remaining accrued compensation balance of $60,000 was waived.

The consulting agreement was terminated in connection with the closing of the XTI Merger.

Effective June 17, 2024, the Company and

Johnson entered into a new consulting arrangement that compensates Mr.

Johnson $10,000 per month in combination of both

cash and equity.

The June 17, 2024 consulting arrangement initially has a term through December 31, 2024 at which time it becomes month-to-month

unless either party terminates the agreement upon 30 days written notice.

Hinderberger, former Chief Executive Officer of Legacy XTI

Effective as of July 1, 2022, Legacy XTI entered into an employment

agreement with Michael Hinderberger to serve as Chief Executive Officer of Legacy XTI.

Hinderberger remained Legacy XTI’s CEO

upon the closing of the Merger until the expiration of his employment agreement on July 31, 2024.

The employment agreement provides for

an initial term until July 31, 2024 and an automatic renewal thereafter for one additional one-year period unless either party provides

at least 60 days’ prior notice of non-renewal.

On May 30, 2024, Legacy XTI notified Mr.

Hinderberger that it would not renew his

employment agreement, which expired by its terms on July 31, 2024.

The agreement provided for an annual base salary of $350,000, which

may be increased by the board of directors.

Hinderberger was also entitled to receive an annual bonus up to $350,000 based on achieving

financing goals (40%) and TriFan 600 airplane development milestones (60%) as outlined in the agreement, subject to Board approval.

the years ended December 31, 2024 and 2023, the Company paid Mr.

Hinderberger compensation of $469,325.65 and $315,848.32, respectively.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

Inpixon incurred the following fees for services rendered by Marcum LLP, Inpixon's independent registered public accounting firm, for the fiscal years ended December 31, 2023 and 2022.

Company incurred the following fees for services rendered by Marcum LLP, Company’s independent registered public accounting firm,

for the fiscal years ended December 31, 2024 and 2023.

Audit Fees(1)

Audit Related Fees

Tax Fees $ — $ —

All Other Fees

(1) Audit fees represent fees for professional services provided in connection with the audit of our Company's 2023 and 2022 annual consolidated financial statements included in this Annual Report on Form 10-K and review of our quarterly financial statements included in the Company's Quarterly Reports on Form 10-Q and audit services provided in connection with other statutory or regulatory filings.

The “Audit Fees” are the aggregate fees of Marcum attributable to professional services rendered in 2023 and 2022 for the audit of our annual financial statements in our annual reports on Form 10-K, for review of financial statements included in our quarterly reports on Form 10-Q or for services that are normally provided by Marcum in connection with statutory and regulatory filings or engagements for that fiscal year.

These fees include fees billed for professional services rendered by Marcum for the review of registration statements or services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years.

fees represent fees for professional services provided in connection with the audit of our Company’s 2024 and 2023 annual consolidated

financial statements included in this Annual Report on Form 10-K and review of our quarterly financial statements included in the

Company’s Quarterly Reports on Form 10-Q and audit services provided in connection with other statutory or regulatory filings.

Audit fees also include fees for professional services provided in connection with the audits of Legacy XTI’s 2023 and 2022

financial statements.

The “Audit Fees” are the aggregate fees of Marcum attributable to professional services rendered in 2024 and 2023

for the audit of our annual financial statements in our annual reports on Form 10-K, for review of financial statements included in our

quarterly reports on Form 10-Q or for services that are normally provided by Marcum in connection with statutory and regulatory filings

or engagements for that fiscal year.

These fees include fees billed for professional services rendered by Marcum for the review of registration

statements or services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal

Audit-Related Fees .

Marcum billed us for professional services that were reasonably related to the performance of the audit or review of financial statements for fiscal years ended 2023 and 2022, which are not included under Audit Fees above including the filing of our registration statements, including our Registration Statement on Form S-3.

This amount also includes audit fees related to acquisitions and fees for special audits related to our transactions.

Marcum did not perform any audit-related services in 2024.

The audit-related fees for 2023 related to acquisitions and fees for special

audits related to our transactions.

Marcum did not perform any tax advice or planning services in 2024 or 2023.

All Other Fees .

Marcum did not perform any services for us or charge any fees other than the services described above in 2024 and 2023.

Pre-approval Policies and Procedures

The Audit Committee is required to review and approve in advance the retention of the independent auditors for the performance of all audit and lawfully permitted non-audit services and the fees for such services.

The Audit Committee may delegate to one or more of its members the authority to grant pre-approvals for the performance of certain non-audit services, and any such Audit Committee member who pre-approves a non-audit service must report the pre-approval to the full Audit Committee at its next scheduled meeting.

The Audit Committee is required to periodically notify the Board of their approvals.

Policies and Procedures

Audit Committee is required to review and approve in advance the retention of the independent auditors for the performance of all audit

and lawfully permitted non-audit services and the fees for such services.

The Audit Committee may delegate to one or more of its members

the authority to grant pre-approvals for the performance of certain non-audit services, and any such Audit Committee member who pre-approves

a non-audit service must report the pre-approval to the full Audit Committee at its next scheduled meeting.

The Audit Committee is required

to periodically notify the Board of their approvals.

The required pre-approval policies and procedures were complied with during 2024.

Exhibits, Financial Statement Schedules

15(a)(1) Financial Statements

The financial statements filed as part of this report are listed and indexed in the table of contents.

Financial statement schedules have been omitted because they are not applicable or the required information has been included elsewhere in this report.

15(a)(2) Financial Statement Schedules

Not applicable.

15(a)(3) Exhibits

The exhibits filed as part of this Annual Report on Form 10-K are listed in the Exhibit Index immediately preceding the exhibits.

The Company has identified in the Exhibit Index each management contract and compensation plan filed as an exhibit to this Annual Report on Form 10-K in response to Item 15(a)(3) of Form 10-K.

Financial Statements

financial statements filed as part of this report are listed and indexed in the table of contents.

Financial statement schedules have

been omitted because they are not applicable or the required information has been included elsewhere in this report.

Financial Statement Schedules

exhibits filed as part of this Annual Report on Form 10-K are listed in the Exhibit Index immediately preceding the exhibits.

has identified in the Exhibit Index each management contract and compensation plan filed as an exhibit to this Annual Report on Form

10-K in response to Item 15(a)(3) of Form 10-K.

FORM 10-K SUMMARY.

Not applicable.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

XTI AEROSPACE, INC.

April 16, 2024 By:

/s/ Scott Pomeroy

Scott Pomeroy

Chief Executive Officer

Each person whose signature appears below constitutes and appoints Scott Pomeroy and Brooke Turk, and each of them, as his or her true and lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him or her and in his or her name, place and stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done in connection therewith, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming all that said attorneys-in-fact and agents, or any of them, or their or his substitutes, may lawfully do or cause to be done by virtue thereof.

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated:

Signature Title Date

/s/ Scott Pomeroy

Chief Executive Officer, Chairman and Director

April 16, 2024

Scott Pomeroy

(Principal Executive Officer)

/s/ Brooke Turk

Chief Financial Officer

April 16, 2024

(Principal Financial and Accounting Officer)

/s/ David Brody

Director April 16, 2024

/s/ Soumya Das

Director April 16, 2024

/s/ Kareem Irfan

Director April 16, 2024

EXHIBIT INDEX

Number Exhibit Description Form File No.

Exhibit Filing Date Filed

2.1 Agreement and Plan of Merger dated August 31, 2013 by and among Sysorex Global Holdings Corp., Sysorex Merger Sub, Inc., Shoom, Inc.

and the Shareholder Representative.

S-1 333-191648

2.4 October 9, 2013

2.2 Agreement and Plan of Merger dated as of December 20, 2013, by and among Sysorex Global Holdings Corp., AirPatrol Corporation, AirPatrol Acquisition Corp.

I, AirPatrol Acquisition Corp.

II, and Shareholders Representative Services LLC.

S-1/A 333-191648

2.6 January 21, 2014

2.3 Amendment No.

1 to Agreement and Plan of Merger dated February 28, 2014 with AirPatrol Corporation.

S-1/A 333-191648

2.7 March 13, 2014

2.4 Amendment No.

2 to Agreement and Plan of Merger dated April 18, 2014 with AirPatrol Corporation.

8-K 001-36404

2.8 April 24, 2014

2.5 Waiver and Amendment No.

3 to Agreement and Plan of Merger dated May 30, 2014 with AirPatrol Corporation.

S-1 333-198502

12.9 August 29, 2014

Asset Purchase Agreement, dated as of April 24, 2015, between Sysorex Global Holdings Corp., LightMiner Systems, Inc.

and Chris Baskett.

8-K 001-36404

2.1 April 30, 2015

2.7 Separation and Distribution Agreement, dated August 7, 2018 between Inpixon and Sysorex, Inc.

10-Q 001-36404

2.1 August 13, 2018

2.8 Amendment No.

1 to Separation and Distribution Agreement dated August 31, 2018 between Inpixon and Sysorex, Inc.

8-K 001-36404

10.5 September 4, 2018

Share Purchase Agreement, dated May 21, 2019, by and among Inpixon, Inpixon Canada, Inc., Locality Systems Inc., Kirk Moir, in his capacity as the Sellers’ Representative, the Sellers and Garibaldi Capital Advisors Ltd.

8-K 001-36404 2.1 May 22, 2019

Asset Purchase Agreement, dated June 27, 2019, by and between Inpixon and GTX Corp.

8-K 001-36404

2.1 July 1, 2019

Share Purchase Agreement, dated July 9, 2019, by and among Inpixon, Inpixon Canada, Inc., Jibestream Inc., the Vendors, and Chris Wiegand, in his capacity as the Vendors’ Representative.

8-K 001-36404

2.1 July 11, 2019

Amendment to Share Purchase Agreement, dated as of August 8, 2019, by and among Inpixon, Inpixon Canada, Inc., Jibestream Inc., the Vendors, and Chris Wiegand, in his capacity as the Vendors’ Representative.

8-K 001-36404

2.1 August 9, 2019

2.13 The Second Amendment to the Share Purchase Agreement, dated August 15, 2019, by and among Inpixon, Inpixon Canada, Inc., Jibestream Inc, and Chris Wiegand, in his capacity as the Vendors’ representative.

8-K 001-36404

2.1 August 19, 2019

2.14† Asset Purchase Agreement, dated as of August 19, 2020, by and among Inpixon, Ten Degrees Inc., Ten Degrees International Limited, mCube International Limited and mCube, Inc.

8-K 001-36404

2.1 August 20, 2020

2.15† Share Sale and Purchase Agreement, dated as of October 5, 2020, among Inpixon GmbH, Sensera Limited and Nanotron Technologies GmbH.

8-K 001-36404 2.1 October 5, 2020

2.16 Amendment to the Share Sale and Purchase Agreement, dated as of February 24, 2021, among Inpixon GmbH, Sensera Limited and Nanotron Technologies GmbH.

8-K 001-36404 2.1 February 26, 2021

2.17† Stock Purchase Agreement, dated as of March 25, 2021, among Inpixon, Game Your Game, Inc., Rick Clemmer, and Martin Manniche.

10-K 001-36404 2.23 March 31, 2021

2.18† Stock Purchase Agreement, dated as of April 30, 2021, among Inpixon, Design Reactor, Inc., dba The CXApp, the sellers set forth on the signature page thereto and each other person who owns outstanding capital stock of The CXApp and executes a Joinder to Stock Purchase Agreement, and Leon Papkoff, as Sellers’ Representative

8-K 001-36404 2.1 May 6, 2021

2.19† Share Sale and Purchase Agreement, dated as of December 8, 2021, between Nanotron Technologies GmbH and the Shareholders of IntraNav GmbH.

8-K 001-36404 2.1 December 13, 2021

2.20 Amendment to Stock Purchase Agreement, dated as of December 30, 2021, by and between Inpixon and Leon Papkoff, in his capacity as the Sellers’ Representative.

8-K 001-36404 2.1 December 30, 2021

2.21 Second Amendment to Stock Purchase Agreement, dated as of March 3, 2022, by and between Inpixon and Leon Papkoff, in his capacity as Sellers' Representative

8-K 001-36404 2.1 March 9, 2022

2.22† Agreement and Plan of Merger, dated as of September 25, 2022, by and among KINS Technology Group Inc., Inpixon, CXApp Holding Corp.

and KINS Merger Sub Inc.

8-K 001-36404 2.1 September 26, 2022

2.23† Separation and Distribution Agreement, dated as of September 25, 2022, by and among KINS Technology Group, Inc., Inpixon, CXApp Holding Corp.

and Plan of Merger, dated as of September 25, 2022, by and among KINS Technology Group Inc., Inpixon, CXApp Holding Corp.

Merger Sub Inc.

and Distribution Agreement, dated as of September 25, 2022, by and among KINS Technology Group, Inc., Inpixon, CXApp Holding Corp.

and Design Reactor Inc.

8-K 001-36404 2.2 September 26, 2022

2.24 Sponsor Support Agreement, dated as of September 25, 2022, by and among KINS Capital LLC, KINS Technology Group Inc., Inpixon and CXApp Holding Corp

8-K 001-36404 2.3 September 26, 2022

Agreement and Plan of Merger, dated July 24, 2023, among Inpixon, Superfly Merger Sub Inc.

Support Agreement, dated as of September 25, 2022, by and among KINS Capital LLC, KINS Technology Group Inc., Inpixon and CXApp Holding

and Plan of Merger, dated July 24, 2023, among Inpixon, Superfly Merger Sub Inc.

and XTI Aircraft Company.

8-K 001-36404 2.1 July 25, 2023

First Amendment to Merger Agreement, dated December 30, 2023, by and between Inpixon, Superfly Merger Sub Inc.

Amendment to Merger Agreement, dated December 30, 2023, by and between Inpixon, Superfly Merger Sub Inc.

and XTI Aircraft Company.

2.27† Second Amendment to Merger Agreement, dated March 12, 2024, by and between Inpixon, Superfly Merger Sub Inc.

Amendment to Merger Agreement, dated March 12, 2024, by and between Inpixon, Superfly Merger Sub Inc.

and XTI Aircraft Company.

8-K 001-36404 10.1 March 15, 2024

Separation Agreement, dated as of October 23, 2023, by and between Inpixon and Grafiti Holding Inc.

8-K 001-36404 2.1 October 23, 2023

Business Combination Agreement, dated as of October 23, 2023, by and among Inpixon, Grafiti Holding Inc., 1444842 B.C.

Agreement, dated as of October 23, 2023, by and between Inpixon and Grafiti Holding Inc.

Combination Agreement, dated as of October 23, 2023, by and among Inpixon, Grafiti Holding Inc., 1444842 B.C.

and Damon Motors

to Business Combination Agreement, dated as of June 18, 2024, by and among XTI Aerospace, Inc., Grafiti Holding Inc., 1444842 B.C.

and Damon Motors Inc.

8-K 001-36404 2.2

October 23, 2023

2.30† Equity Purchase Agreement, dated as of February 16, 2024, by and among Inpixon, Grafiti LLC and Grafiti Group LLC.

8-K 001-36404 2.1 February 23, 2024

3.1 Restated Articles of Incorporation.

S-1 333-190574 3.1 August 12, 2013

3.2 Certificate of Amendment to Articles of Incorporation (Increase Authorized Shares).

S-1 333-218173 3.2 May 22, 2017

3.3 Certificate of Amendment to Articles of Incorporation (Reverse Split).

8-K 001-36404 3.1 April 10, 2014

3.4 Articles of Merger (renamed Sysorex Global).

8-K 001-36404 3.1 December 18, 2015

3.5 Articles of Merger (renamed Inpixon).

8-K 001-36404 3.1 March 1, 2017

3.6 Certificate of Amendment to Articles of Incorporation (Reverse Split).

8-K 001-36404 3.2 March 1, 2017

3.7 Certificate of Amendment to Articles of Incorporation (authorized share increase).

8-K 001-36404 3.1 February 5, 2018

3.8 Certificate of Amendment to Articles of Incorporation (Reverse Split).

8-K 001-36404 3.1 February 6, 2018

3.9 Certificate of Amendment to Articles of Incorporation (Reverse Split).

8-K 001-36404 3.1 November 1, 2018

3.10 Certificate of Amendment to Articles of Incorporation, effective as of January 7, 2020 (Reverse Split).

8-K 001-36404

3.1 January 7, 2020

3.11 Certificate of Amendment to the Articles of Incorporation increasing the number of authorized shares of Common Stock from 250,000,000 to 2,000,000,000 filed with the Secretary of State of the State of Nevada on November 18, 2021

8-K 001-36404

3.1 November 19, 2021

3.12 Certificate of Change filed with the Secretary of State of the State of Nevada on October 4, 2022 (effective as of October 7, 2022)

8-K 001-36404 3.1 October 6, 2022

3.13 Certificate of Amendment to the Articles of Incorporation increasing the number of authorized shares of Common Stock from 26,666,667 to 500,000,000 filed with the Secretary of State of the State of Nevada on November 29, 2022

8-K 001-36404 3.1 December 2, 2022

C ertificate of Designations of Preferences and Rights of Series 9 Preferred Stock .

8-K 001-36404

March 15, 2024

C ertificate of Amendment (Reverse Stock Split).

8-K 001-36404

March 15, 2024

C ertificate of Amendment (Name Change).

8-K 001-36404

March 15, 2024

Bylaws, as amended.

S-1 333-190574

3.2 August 12, 2013

Bylaws Amendment

8-K 001-36404

3.2 September 13, 2021

By-Laws Amendment No.

8-K 001-36404

September 19, 2023

By-Laws Amendment No.

8-K 001-36404

September 19, 2023

B ylaws Amendment.

8-K 001-36404

March 15, 2024

4.1 Specimen Stock Certificate of the Company.

S-1 333-190574 4.1 August 12, 2013

4.2 Form of Certificate of Designation of Preferences, Rights and Limitations of Series 4 Convertible Preferred Stock.

8-K 001-36404

3.1 April 24, 2018

4.3 Certificate of Designation of Series 5 Convertible Preferred Stock, dated as of January 14, 2019.

8-K 001-36404

3.1 January 15, 2019

Promissory Note, dated as of December 21, 2018

8-K 001-36404 4.1 December 31, 2018

Form of Warrant

8-K 001-36404 4.1 January 15, 2019

Form of Warrant Agency Agreement

8-K 001-36404 4.2 January 15, 2019

Promissory Note, dated as of May 3, 2019

8-K 001-36404 4.1 May 3, 2019

Promissory Note, dated as of June 27, 2019.

8-K 001-36404 4.1 June 27, 2019

Form of Series A warrants.

8-K 001-36404 4.2 August 14, 2019

Series 6 Preferred Certificate of Designation, effective as of August 13, 2019.

8-K 001-36404 4.1 August 14, 2019

Promissory Note, dated as of March 18, 2020.

8-K 001-36404 4.1 March 20, 2020

Series 7 Convertible Preferred Stock Certificate of Designation, filed with the Secretary of State of the State of Nevada and effective September 13, 2021

8-K 001-36404 3.1 September 15, 2021

Description of Registrant's Securities

Series 8 Convertible Preferred Stock Certificate of Designation, filed with the Secretary of State of the State of Nevada and effective March 22, 2022

8-K 001-36404 3.1 March 24, 2022

Promissory Note, dated as of July 22, 2022

8-K 001-36404 4.1 July 22, 2022

Form of Purchase Warrants

8-K 001-36404 4.1 October 20, 2022

Promissory Note, dated as of December 30, 2022

8-K 001-36404 4.1 December 30, 2022

Common Stock Purchase Warrant

001-36404 4.7

Form of New Warrant.

001-36404 4.1 December 15, 2023

Promissory Note, dated effective as of January 5, 2023

Amendment No.

1 to Promissory Note, dated as of March 27, 2024, by and between XTI Aerospace, Inc.

Unsecured Convertible Promissory Note, dated as of October 1, 2023.

Amendment to Business Combination Agreement, dated as of September 26, 2024, by and among XTI Aerospace, Inc., Grafiti Holding Inc.,

and Damon Motors Inc.

Purchase Agreement, dated as of February 16, 2024, by and among Inpixon, Grafiti LLC and Grafiti Group LLC.

Articles of Incorporation.

of Amendment to Articles of Incorporation (Increase Authorized Shares).

of Amendment to Articles of Incorporation (Reverse Split).

of Merger (renamed Sysorex Global).

of Merger (renamed Inpixon).

of Amendment to Articles of Incorporation (Reverse Split).

of Amendment to Articles of Incorporation (authorized share increase).

of Amendment to Articles of Incorporation (Reverse Split).

of Certificate of Designation of Preferences, Rights and Limitations of Series 4 Convertible Preferred Stock.

of Amendment to Articles of Incorporation (Reverse Split).

of Designation of Series 5 Convertible Preferred Stock, dated as of January 14, 2019.

of Amendment to Articles of Incorporation, effective as of January 7, 2020 (Reverse Split).

of Amendment to the Articles of Incorporation increasing the number of authorized shares of Common Stock from 250,000,000 to 2,000,000,000

filed with the Secretary of State of the State of Nevada on November 18, 2021

of Change filed with the Secretary of State of the State of Nevada on October 4, 2022 (effective as of October 7, 2022)

of Amendment to the Articles of Incorporation increasing the number of authorized shares of Common Stock from 26,666,667 to 500,000,000

filed with the Secretary of State of the State of Nevada on November 29, 2022

of Designations of Preferences and Rights of Series 9 Preferred Stock.

of Amendment (Reverse Stock Split).

of Amendment (Name Change).

Amendment No.

1 to Unsecured Convertible Promissory Note, dated as of March 12, 2024, by and between XTI Aircraft Company and David E.

Amendment No.

2 to Unsecured Convertible Promissory Note, dated as of March 27, 2024, by and between XTI Aerospace, Inc.

Form of Warrant initially issued by XTI Aircraft Company and assumed by the Registrant.

of Amendment to Designations of Preferences and Rights of Series 9 Preferred Stock.

of Amendment to Articles of Incorporation, effective as of January 10, 2025.

Specimen Stock Certificate of the Company.

Description of Registrant’s Securities.

of Purchase Warrants

of Warrant initially issued by XTI Aircraft Company and assumed by the Registrant.

Form of Warrant initially issued by XTI Aircraft Company and assumed by the Registrant.

F orm of Amendment No.

2 to Warrant initially issued by XTI Aircraf t Company and assumed by the Registrant.

10.1+ Amended and Restated 2011 Employee Stock Incentive Plan.

S-8 333-195655 10.22 May 2, 2014

F orm of Incentive Stock Option Agreement.

001-36404 10.9 October 27, 2014

10.3+ Form of Non-Qualified Stock Option Agreement.

8-K 001-36404 10.5 October 27, 2014

10.4+ Form of Restricted Stock Award Agreement.

8-K 001-36404 10.6 October 27, 2014

of Warrant initially issued by XTI Aircraft Company and assumed by the Registrant.

Form of Amendment No.

2 to Warrant initially issued by XTI Aircraft Company and assumed by the Registrant.

Note, dated as of May 1, 2024.

Note, dated as of May 24, 2024.

of Placement Agent Warrant.

Form of Pre-funded Warrant.

March 31, 2025

Form of Common Warrant.

March 31, 2025

Form of Representative’s Warrant.

March 31, 2025

and Restated 2011 Employee Stock Incentive Plan.

of Incentive Stock Option Agreement.

of Non-Qualified Stock Option Agreement.

of Restricted Stock Award Agreement.

Employee Stock Incentive Plan, as amended.

S-8 333-234458 99.1 November 1, 2019

Employee Stock Incentive Plan Form of Incentive Stock Option Agreement.

10-K 001-36404 10.8 March 31, 2021

Employee Stock Incentive Plan Form of Non-Qualified Stock Option Agreement.

10-K 001-36404 10.7 March 31, 2021

Employee Stock Incentive Plan Form of Restricted Stock Award Agreement.

10-K 001-36404 10.6 March 31, 2021

10.9+ Director Services Agreement with Leonard A.

Services Agreement with Leonard A.

Oppenheim dated October 21, 2014.

8-K 001-36404 10.1 October 27, 2014

10.10+ Director Services Agreement with Kareem M.

Irfan dated October 21, 2014.

8-K 001-36404 10.3 October 27, 2014

10.11+ Director Services Agreement with Tanveer A.

Khader dated October 21, 2014.

8-K 001-36404 10.4 October 27, 2014

10.12+ Amended and Restated Employment Agreement by and between the Company and Nadir Ali

10-Q 001-36404 10.14 May 15, 2018

10.13+ Employment Agreement, effective as of October 1, 2014, between Wendy Loundermon and the Company.

8-K 001-36404 10.8 October 27, 2014

10.14+ Employment Agreement dated November 4, 2016, by and between Sysorex USA and Soumya Das.

10-K 001-36404 10.51 April 17, 2017

10.15+ Amendment to Employment Agreement dated August 31, 2018 among Inpixon, Sysorex, Inc.

and Restated Employment Agreement by and between the Company and Nadir Ali

Agreement, effective as of October 1, 2014, between Wendy Loundermon and the Company.

Agreement dated November 4, 2016, by and between Sysorex USA and Soumya Das.

to Employment Agreement dated August 31, 2018 among Inpixon, Sysorex, Inc.

and Soumya Das

8-K 001-36404 10.8 September 4, 2018

10.16+ Waiver and Amendment No.

1 to Board of Directors Services Agreement with Leonard A.

Oppenheim dated February 4, 2019.

10-K 001-36404 10.9 March 28, 2019

10.17+ Waiver and Amendment No.

and Amendment No.

1 to Board of Directors Services Agreement with Kareem M.

Irfan dated February 4, 2019.

10-K 001-36404 10.11 March 28, 2019

10.18+ Waiver and Amendment No.

1 to Board of Directors Services Agreement with Tanveer A.

Khader dated February 4, 2019.

10-K 001-36404 10.13 March 28, 2019

10.19 Second Amendment Agreement, dated as of April 2, 2019, between Inpixon and Sysorex, Inc.

8-K 001-36404 10.1 April 5, 2019

10.20† Patent Assignment and License-Back Agreement, dated June 27, 2019, by and between Inpixon and GTX Corp.

8-K 001-36404 10.1 July 1, 2019

10.21† Patent License Agreement, dated June 27, 2019, by and between Inpixon and Inventergy.

8-K 001-36404 10.4 July 1, 2019

10.22† Patent License Agreement, dated June 27, 2019, by and between Inpixon and GTX Corp.

8-K 001-36404 10.2 July 1, 2019

10.23 Note Purchase Agreement, dated as of March 18, 2020.

8-K 001-36404 10.1 March 20, 2020

10.24† Exclusive Software License and Distribution Agreement, dated as of June 19, 2020, by and among Inpixon, Cranes Software International Ltd., and Systat Software, Inc.

8-K 001-36404 10.1 June 22, 2020

10.25 Amendment and Waiver to Exclusive Software License & Distribution Agreement, dated as of June 30, 2020, by and among Inpixon, Cranes Software International Ltd., and Systat Software, Inc.

8-K 001-36404 10.1 July 2, 2020

10.26+ Amendment No.

Assignment and License-Back Agreement, dated June 27, 2019, by and between Inpixon and GTX Corp.

License Agreement, dated June 27, 2019, by and between Inpixon and Inventergy.

License Agreement, dated June 27, 2019, by and between Inpixon and GTX Corp.

Software License and Distribution Agreement, dated as of June 19, 2020, by and among Inpixon, Cranes Software International Ltd.,

and Systat Software, Inc.

and Waiver to Exclusive Software License & Distribution Agreement, dated as of June 30, 2020, by and among Inpixon, Cranes Software

International Ltd., and Systat Software, Inc.

4 to Inpixon 2018 Employee Stock Incentive Plan.

10-Q 001-36404 10.7 August 14, 2020

10.27 Form of Amended and Restated Limited Liability Company Agreement of Cardinal Venture Holdings LLC.

8-K 001-36404 10.2 October 5, 2020

10.28 Amendment #2 to Promissory Note, dated as of March 17, 2021, by and between Inpixon and Iliad Research and Trading, L.P.

8-K 001-36404 10.1 March 19, 2021

10.29 Securities Settlement Agreement, dated as of April 14, 2021, by and between Sysorex, Inc.

8-K 001-36404 10.1 April 14, 2021

10.30 Right to Shares Letter Agreement, dated as of April 14, 2021, by and between Sysorex, Inc.

8-K 001-36404 10.2 April 14, 2021

10.31 Form of Registration Rights Agreement, dated as of April 14, 2021 by and among Sysorex, Inc.

and the parties to the Securities Subscription Agreement and certain other parties.

8-K 001-36404 10.3 April 14, 2021

10.32# Stockholders’ Agreement, dated as of April 9, 2021, among Inpixon, Game Your Game, Inc.

and the Minority Stockholders.

8-K 001-36404 10.4 April 14, 2021

10.33 Amendment #3 to Promissory Note, dated as of March 16, 2022, by and between Inpixon and Iliad Research and Trading, L.P.

10-K 001-36404 10.40 March 16, 2022

10.34+ Amendment to the Inpixon 2018 Employee Stock Incentive Plan

8-K 001-36404 10.1 November 19, 2021

10.35† Exchange Agreement, dated January 28, 2022, by and between Inpixon and Warrant Holder

8-K 001-36404 10.1 January 28, 2022

10.36† Form of Securities Purchase Agreement

8-K 001-36404 10.1 March 22, 2022

10.37 Form of Lock-up Agreement

8-K 001-36404 10.2 March 22, 2022

10.38 Equity Distribution Agreement, dated as of July 22, 2022, between Inpixon and Maxim Group LLC

8-K 001-36404 10.1 July 22, 2022

10.39† Note Purchase Agreement, dated as of July 22, 2022

8-K 001-36404 10.2 July 22, 2022

10.40 Securities Purchase Agreement, dated as of April 27, 2022, by and between Inpixon and FOXO Technologies, Inc.

10-Q 001-36404 10.1 August 15, 2022

10.41 10% Original Issue Discount Senior Convertible Debenture

10-Q 001-36404 10.2 August 15, 2022

10.42 Subsidiary Guarantee

10-Q 001-36404 10.3 August 15, 2022

10.43† Form of Securities Purchase Agreement.

8-K 001-36404 10.1 October 20, 2022

10.44 Placement Agency Agreement, dated as of October 18, 2022, by and between Inpixon and Maxim Group LLC

8-K 001-36404 10.2 October 20, 2022

10.45 Amendment to the Inpixon 2018 Employee Stock Incentive Plan

8-K 001-36404 10.1 December 2, 2022

10.46 Amendment No.

to the Inpixon 2018 Employee Stock Incentive Plan

Distribution Agreement, dated as of July 22, 2022, between Inpixon and Maxim Group LLC

of Securities Purchase Agreement.

Agency Agreement, dated as of October 18, 2022, by and between Inpixon and Maxim Group LLC

2 to Board of Directors Services Agreement, dated as of May 16, 2022, between Inpixon and Kareem M.

10-Q 001-36404 10.1 November 14, 2022

10.47† Note Purchase Agreement, dated as of December 30, 2022

8-K 001-36404 10.1 December 30, 2022

Form of Amendment No.

1 to Common Stock Purchase Warrants.

8-K 001-36404 10.1 February 28, 2023

Form of Limited Liability Company Unit Transfer and Joinder Agreement.

8-K 001-36404 10.2 February 28, 2023

Employee Matters Agreement, dated March 14, 2023, by and among KINS, KINS Merger Sub Inc., Inpixon, and Legacy CXApp.

8-K 001-36404 10.1 March 20, 2023

Tax Matters Agreement, dated March 14, 2023, by and among KINS, Inpixon, and Legacy CXApp.

8-K 001-36404 10.2 March 20, 2023

Transition Services Agreement, dated March 14, 2023, by and between Inpixon and Legacy CXApp.

8-K 001-36404 10.3 March 20, 2023

Warrant Purchase Agreement

10-Q 001-36404 10.6 May 16, 2023

Placement Agency Agreement

10-Q 001-36404 10.7 May 16, 2023

Amendment #2 to Promissory Note, dated as of May 16, 2023.

8-K 001-36404 10.1 May 19, 2023

Amendment to Promissory Note, dated as of May 16, 2023.

8-K 001-36404 10.2 May 19, 2023

Amendment No.

to the Inpixon 2018 Employee Stock Incentive Plan

Matters Agreement, dated March 14, 2023, by and among KINS, KINS Merger Sub Inc., Inpixon, and Legacy CXApp.

Matters Agreement, dated March 14, 2023, by and among KINS, Inpixon, and Legacy CXApp.

Services Agreement, dated March 14, 2023, by and between Inpixon and Legacy CXApp.

1 to Equity Distribution Agreement, dated as of June 13, 2023, by and between Inpixon and Maxim Group LLC.

8-K 001-36404 10.1 June 13, 2023

Form of Amendment Agreement.

8-K 001-36404 10.1 June 21, 2023

XTI Amended and Restated Senior Secured Note with Loan Schedule.

10-Q 001-36404 10.23 November 20, 2023

Form of Security and Pledge Agreement.

8-K 001-36404 10.2 July 25, 2023

Inpixon Transaction Bonus Plan, dated July 24, 2023.

8-K 001-36404 10.3 July 25, 2023

Inpixon Transaction Bonus Plan, dated July 24, 2023.

8-K 001-36404 10.4 July 25, 2023

First Amendment to Employment Agreement, dated July 24, 2023, between Inpixon and Wendy Loundermon.

8-K 001-36404 10.5 July 25, 2023

Form of Securities Purchase Agreement by and between Damon Motors Inc.

8-K 001-36404 10.1 October 23, 2023

Form of Convertible Promissory Note to be issued by Damon Motors Inc.

8-K 001-36404 10.2 October 23, 2023

Form of Common Share Purchase Warrant to be issued by Damon Motors Inc.

8-K 001-36404 10.3 October 23, 2023

Form of Securityholder Support Agreement by and among Inpixon, Grafiti Holding Inc., Damon Motors Inc.

Amended and Restated Senior Secured Note with Loan Schedule.

of Security and Pledge Agreement.

Transaction Bonus Plan, dated July 24, 2023.

Amendment to Employment Agreement, dated July 24, 2023, between Inpixon and Wendy Loundermon.

of Securities Purchase Agreement by and between Damon Motors Inc.

of Convertible Promissory Note to be issued by Damon Motors Inc.

of Common Share Purchase Warrant to be issued by Damon Motors Inc.

of Securityholder Support Agreement by and among Inpixon, Grafiti Holding Inc., Damon Motors Inc.

and certain securityholders.

8-K 001-36404 10.4 October 23, 2023

Form of Lockup Agreement by and among Grafiti Holding Inc., Damon Motors and certain securityholders who are insiders.

8-K 001-36404 10.5 October 23, 2023

Form of Lockup Agreement by and among Grafiti Holding Inc., Damon Motors and certain securityholders who are not insiders.

8-K 001-36404 10.6 October 23, 2023

Form of Inducement Agreement by and between Inpixon and the Holder.

8-K 001-36404 10.1 December 15, 2023

Amendment No.

of Lockup Agreement by and among Grafiti Holding Inc., Damon Motors and certain securityholders who are insiders.

of Lockup Agreement by and among Grafiti Holding Inc., Damon Motors and certain securityholders who are not insiders.

2 to Equity Distribution Agreement, dated as of June 13, 2023, by and between Inpixon and Maxim Group LLC.

8-K 001-36404 10.1 January 3, 2024

Liquidating Trust Agreement, dated as of December 27, 2023, by and among Inpixon, Grafiti Holding Inc.

Trust Agreement, dated as of December 27, 2023, by and among Inpixon, Grafiti Holding Inc.

and the sole original trustee named therein.

8-K 001-36404 10.2 January 3, 2024

First Amendment to Senior Secured Promissory Note, dated as of December 30, 2023, by and between Inpixon and XTI Aircraft Company.

8-K 001-36404 10.3 January 3, 2024

Second Amendment to Senior Secured Promissory Note, dated as of February 2, 2024, by and between Inpixon and XTI Aircraft Company.

8-K 001-36404 10.1 February 5, 2024

Exchange Agreement, dated March 12, 2024, by and between Inpixon and Streeterville Capital, LLC.

8-K 001-36404 10.2 March 15, 2024

Securities Purchase Agreement, dated March 12, 2024, by and between Inpixon and 3AM Investments LLC.

8-K 001-36404 10.3 March 15, 2024

Form of Indemnification Agreement.

8-K 001-36404 10.4 March 15, 2024

Consulting Agreement, dated March 12, 2024, by and between XTI Aerospace, Inc.

Amendment to Senior Secured Promissory Note, dated as of December 30, 2023, by and between Inpixon and XTI Aircraft Company.

Amendment to Senior Secured Promissory Note, dated as of February 2, 2024, by and between Inpixon and XTI Aircraft Company.

Agreement, dated March 12, 2024, by and between Inpixon and Streeterville Capital, LLC.

Purchase Agreement, dated March 12, 2024, by and between Inpixon and 3AM Investments LLC.

of Indemnification Agreement.

Agreement, dated March 12, 2024, by and between XTI Aerospace, Inc.

and Nadir Ali.

8-K 001-36404 10.5 March 15, 2024

Consulting Agreement, dated March 12, 2024, by and between XTI Aerospace, Inc.

Agreement, dated March 12, 2024, by and between XTI Aerospace, Inc.

and Wendy Loundermon.

8-K 001-36404 10.6 March 15, 2024

Amendment to Employment Agreement, dated March 12, 2024, by and between Inpixon and Nadir Ali.

8-K 001-36404 10.7 March 15, 2024

Amendment to Employment Agreement, dated March 12, 2024, by and between Inpixon and Wendy Loundermon.

8-K 001-36404 10.8 March 15, 2024

Amendment to Inpixon Transaction Bonus Plan, dated March 11, 2024.

8-K 001-36404 10.9 March 15, 2024

Form of Acknowledgement Agreement.

8-K 001-36404 10.10

to Employment Agreement, dated March 12, 2024, by and between Inpixon and Nadir Ali.

to Employment Agreement, dated March 12, 2024, by and between Inpixon and Wendy Loundermon.

to Inpixon Transaction Bonus Plan, dated March 11, 2024.

of Acknowledgement Agreement.

Aircraft Purchase Agreement, dated February 2, 2022, among XTI Aircraft Company, Mesa Airlines, Inc.

and Mesa Air Group, Inc.

Purchase Agreement, dated as of May 1, 2024, by and between XTI Aerospace, Inc.

and Streeterville Capital, LLC.

dated as of May 1, 2024, of XTI Aircraft Company.

Agreement, dated as of May 1, 2024, by and between XTI Aerospace, Inc.

and Streeterville Capital, LLC.

Agreement, dated as of May 1, 2024, by and between XTI Aircraft Company and Streeterville Capital, LLC.

of Exchange Agreement.

Agreement, dated May 6, 2024, by and between XTI Aerospace, Inc.

and Scott Pomeroy.

Agreement, dated May 8, 2024, by and between XTI Aerospace, Inc.

and Brooke Turk .

Axton Offer Letter

Director Compensation Policy .

3 to Equity Distribution Agreement, dated as of May 28, 2024, by and between XTI Aerospace, Inc.

and Maxim Group LLC .

4 to Equity Distribution Agreement, dated as of May 31, 2024, by and between XTI Aerospace, Inc.

and Maxim Group LLC .

Agreement, dated May 30, 2024, by and between XTI Aerospace, Inc.

and the Warrant Holder.

5 to Equity Distribution Agreement, dated as of June 10, 2024, by and between XTI Aerospace, Inc.

and Maxim Group LLC .

6 to Equity Distribution Agreement, dated as of June 14, 2024, by and between XTI Aerospace, Inc.

and Maxim Group LLC.

of Exchange Agreement .

Agreement, signed June 18, 2024, by and between Damon Motors Inc.

and XTI Aerospace, Inc.

Collation and Distribution Agreement, dated as of dated June 28, 2024, by and among XTI Aerospace, Inc., FC Imperial Limited, PIC

IHC LLP and a Global Administrative Service Provider.

Agreement, dated September 19, 2024, by and between XTI Aerospace, Inc.

and Tobin Arthur.

of Second Letter Agreement by and between Damon Motors Inc.

and XTI Aerospace, Inc.

Agreement, dated October 28, 2024, by and between XTI Aerospace, Inc.

and Jennifer Gaines.

Waiver and Release, dated November 17, 2024, by and among XTI Aerospace, Inc., 3AM Investments LLC and Streeterville Capital, LLC.

Agreement, dated November 17, 2024, by and among XTI Aerospace, Inc., Nadir Ali, 3AM Investments LLC, Grafiti Group LLC and Grafiti

Agency Agreement, dated January 7, 2025, by and between XTI Aerospace, Inc.

and ThinkEquity LLC.

of Lock-Up Agreement.

Settlement Agreement, dated March 27, 2025, by and between XTI Aerospace Inc., 3AM Investments LLC, Grafiti Group LLC, and Nadir Ali.

March 28, 2025

Aircraft Purchase Agreement, dated February 2, 2022, between XTI Aircraft Company and Counterparty A.

S-1 333-273964 10.62 October 6, 2023

Consulting Services Agreement, dated July 5, 2022, by and between XTI Aircraft Company and Waymaker Capital, LLC.

Consulting Agreement, dated August 16, 2023, by and between XTI Aircraft Company and Playa Property Management, LLC, d/b/a Springboard Ventures.

Employment Agreement, dated July 28, 2022, but effective as of July 1, 2022, by and between XTI Aircraft Company and Michael Hinderberger.

Form of Lock-Up Agreement.

March 31, 2025

Letter from Marcum LLP to the Securities and Exchange Commission, dated March 27, 2025.

March 27, 2025

Insider Trading Policy.

List of Subsidiaries of the Company.

5 unchanged sentences

Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.

XTI Aerospace, Inc.

Aerospace, Inc.

Clawback Policy .

101.INS Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) X

101.SCH Inline XBRL Taxonomy Extension Schema Document X

101.CAL Inline XBRL Taxonomy Extension Calculation Linkbase Document X

101.DEF Inline XBRL Taxonomy Extension Definition Linkbase Document X

101.LAB Inline XBRL Taxonomy Extension Label Linkbase Document X

101.PRE Inline XBRL Taxonomy Extension Presentation Linkbase Document X

104 Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) X

+ Indicates a management contract or compensatory plan.

† Exhibits, schedules and similar attachments have been omitted pursuant to Item 601 of Regulation S-K and the registrant undertakes to furnish supplemental copies of any of the omitted exhibits and schedules upon request by the SEC.

# Certain confidential portions of this Exhibit were omitted by means of marking such portions with brackets (“[****]”) because the identified confidential portions (i) are not material and (ii) would be competitively harmful if publicly disclosed.

## This certification is deemed not filed for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section, nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.

XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within

the Inline XBRL document)

XBRL Taxonomy Extension Schema Document

XBRL Taxonomy Extension Calculation Linkbase Document

XBRL Taxonomy Extension Definition Linkbase Document

XBRL Taxonomy Extension Label Linkbase Document

XBRL Taxonomy Extension Presentation Linkbase Document

Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

a management contract or compensatory plan.

schedules and similar attachments have been omitted pursuant to Item 601 of Regulation S-K and the registrant undertakes to furnish

supplemental copies of any of the omitted exhibits and schedules upon request by the SEC.

Certain confidential portions of this Exhibit were omitted by means

of marking such portions with brackets (“[****]”) because the identified confidential portions (i) are not material and (ii)

would be competitively harmful if publicly disclosed.

certification is deemed not filed for purposes of Section 18 of the Exchange Act or otherwise subject to the liability of that section,

nor shall it be deemed incorporated by reference into any filing under the Securities Act or the Exchange Act.

to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed

on its behalf by the undersigned, thereunto duly authorized.

XTI AEROSPACE,

April 15, 2025

Scott Pomeroy

Executive Officer

person whose signature appears below constitutes and appoints Scott Pomeroy and Brooke Turk, and each of them, as his or her true and

lawful attorney-in-fact and agent, with full power of substitution and resubstitution, for him or her and in his or her name, place and

stead, in any and all capacities, to sign any and all amendments to this Annual Report on Form 10-K, and to file the same, with all exhibits

thereto, and other documents in connection therewith, with the Securities and Exchange Commission, granting unto said attorneys-in-fact

and agents, and each of them, full power and authority to do and perform each and every act and thing requisite and necessary to be done

in connection therewith, as fully to all intents and purposes as he or she might or could do in person, hereby ratifying and confirming

all that said attorneys-in-fact and agents, or any of them, or their or his substitutes, may lawfully do or cause to be done by virtue

to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the

registrant and in the capacities and on the dates indicated:

/s/ Scott Pomeroy

Chief Executive Officer, Chairman and Director

April 15, 2025

Scott Pomeroy

(Principal Executive Officer)

/s/ Brooke Turk

Chief Financial Officer

April 15, 2025

(Principal Financial and Accounting Officer)

/s/ David Brody

April 15, 2025

/s/ Soumya Das

April 15, 2025

/s/ Kareem Irfan

April 15, 2025

/s/ Tensie Axton

April 15, 2025

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 9A. Controls and Procedures