Related Party Transactions |
12 Months Ended |
|---|---|
Dec. 31, 2025 | |
| Related Party Transactions [Abstract] | |
| Related Party Transactions | Note 14 - Related Party Transactions
Agreements with Nadir Ali and Affiliated Entities
On March 27, 2025, the Company entered into a Settlement Agreement with Nadir Ali, the Company’s former Chief Executive Officer prior to the XTI Merger, and certain of his affiliated entities. The Settlement Agreement terminated a prior consulting agreement with Mr. Ali and resolved outstanding obligations relating to a previously adopted strategic transaction bonus plan that was triggered by the XTI Merger, Series 9 Preferred Stock arrangements, and a prior equity purchase agreement with an affiliated entity.
During the year ended December 31, 2025, pursuant to the Settlement Agreement, the Company (i) paid approximately $1.1 million of remaining transaction bonus and former management payment obligations (including approximately $0.5 million paid to Mr. Ali), (ii) paid $60,000 and three installments totaling $1.5 million in settlement of amounts due under the terminated consulting agreement, (iii) redeemed the remaining outstanding shares of Series 9 Preferred Stock held by Mr. Ali for approximately $1.4 million, and (iv) deemed satisfied in full a $1.0 million receivable previously recorded under an equity purchase agreement with an affiliated entity, resulting in the elimination of the related receivable.
During 2025 and prior to the Settlement Agreement, the Company paid Mr. Ali approximately $1.6 million in transaction bonus payments.
The Company recognized approximately $2.3 million of expense during the year ended December 31, 2025 related to transactions with Mr. Ali and his affiliated entities, primarily associated with the settlement of consulting, bonus and related obligations described above.
As of December 31, 2025, no material amounts were payable to Mr. Ali or his affiliated entities. The Settlement Agreement also included mutual releases among the parties with respect to the matters resolved therein.
Transactions with AVX Aircraft Company
During 2024, the Company paid approximately $0.9 million to AVX Aircraft Company (“AVX”) for consulting and advisory services related to aircraft development. A deposit of approximately $0.5 million outstanding at December 31, 2024 was returned to the Company in April 2025.
During the year ended December 31, 2025, the Company did not accrue or pay material consulting fees to AVX. Certain members of the Company’s Board have ownership interests in, or serve on the board of, AVX. As of December 31, 2025, neither such individual received compensation from AVX in connection with services provided by AVX to the Company.
Former Consulting Arrangements
Prior consulting arrangements with David Brody and Scott Pomeroy terminated in connection with the XTI Merger in March 2024. During the year ended December 31, 2025, the Company paid Mr. Pomeroy the remaining $400,000 transaction bonus that was earned in connection with the XTI Merger. No consulting compensation was paid to Mr. Brody or Mr. Pomeroy during the year ended December 31, 2025. |