Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 13

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 13
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 SEC on April 15, 2025.

8

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 3 - Summary of Significant Accounting
Policies

The Company’s complete accounting policies
are described in Note 3 to the Company’s audited consolidated financial statements and notes for the year ended December 31,
2024.

Liquidity 

As of September 30, 2025, the Company had cash
and cash equivalents of approximately $32.2 million. For the nine months ended September 30, 2025, the Company had a net loss of approximately
$47.2 million. During the nine months ended September 30, 2025, the Company used approximately $30.4 million of cash for operating activities.
As of September 30, 2025, the Company’s net working capital was approximately $1.1 million, representing an increase of approximately
$9.9 million from December 31, 2024.

There can be no assurances that the Company will
ever earn revenues sufficient to support its operations, or that it will ever be profitable. In order to continue its operations, the
Company has supplemented the revenues it earned with proceeds from the sale of its equity securities and proceeds from loans.

The Company’s recurring losses and utilization
of cash in its operations are indicators of going concern issues. However, the Company’s current liquidity position was favorably
impacted by the cash raised through equity offerings and cash received from warrant exercises aggregating approximately $62.8 million
during the nine months ended September 30, 2025, along with repaying and settling certain debt and other obligations during March 2025.
The impact of these financings and warrant exercises to the Company’s cash position and overall net working capital position, along
with the Company’s ability to defer or eliminate certain operating expenses that are under its control and the revenues expected
to be generated by the Industrial IoT segment lead the Company to believe it has the ability to mitigate such concerns for a period of
at least one year from the date these financial statements are issued.

Consolidations

The condensed consolidated financial statements have been prepared
using the accounting records of Legacy XTI and as of March 12, 2024 (the effective date of the XTI Merger) and forward, the accounting
records of XTI Aerospace, Inc. (formerly known as Inpixon