Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 198

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 198
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    $11,215 

Balance Sheet Improvement

During the six months ended
June 30, 2025, we raised approximately $41.8 million in net proceeds through (i) our now expired ATM with Maxim, (ii) public offerings
of our securities placed and underwritten by ThinkEquity LLC, and (iii) the exercise of warrants issued in connection with the March Offering
and the June Offering. The proceeds from these capital raises and warrant exercises allowed us to significantly reduce debt and other
obligations, while progressing the development of the TriFan 600 airplane. The following summarizes the improvements to our balance sheet
from December 31, 2024 to June 30, 2025:

    ●
    Cash and cash equivalents increased by approximately $15.9 million primarily due to the net proceeds received from the June Offering.

    ●
    Net working capital increased by approximately $11.2 million or by approximately $25.8 million when excluding derivative warrant liabilities.

    ●
    In March 2025, we repaid in full the outstanding secured promissory
notes issued to Streeterville, which resulted in the release of Streeterville’s security interest in the assets of XTI Aircraft
Company. As of June 30, 2025, we had less than $0.1 million of interest-bearing debt outstanding, which matures in 2050. 

    ●
    In March 2025, we redeemed the remaining outstanding shares of Series
9 Preferred Stock, leaving zero shares of Series 9 Preferred Stock issued and outstanding as of June 30, 2025. The Series 9 Preferred
Stock had restricted our ability to raise capital, as we were prohibited from taking certain actions without prior written consent from
the holders of the Series 9 Preferred Stock.

    ●
    In March 2025, we repaid the remaining Strategic Transaction Bonus
Plan obligation to prior Legacy Inpixon management, which was the primary driver for the approximate $4.9 million decline in accrued expenses
and other current liabilities from December 31, 2024 to June 30, 2025.

    ●
    In March 2025, we repaid the accounts payable and most commitments
that were inherited from Legacy Inpixon. A remaining deferred consulting fee commitment of $1.0 million is still owed to Nadir Ali, the
Company’s former Chief Executive Officer, which is payable in two $500,000 installments during the remaining