Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 85

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 85
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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 $4.4 million decline in accrued expenses and other current liabilities from December 31, 2024 to September 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 $0.5 million is still owed to Nadir Ali, the Company’s former Chief Executive Officer, which is payable on December 31,
    2025.

We believe the Company’s
ability to raise capital has been favorably impacted by the reduction of obligations either assumed from Legacy Inpixon or created by
the XTI Merger closing and the elimination of the Streeterville secured debt and equity instruments with fundraising restrictions.

47

Contractual Obligations and Commitments

Contractual obligations are
cash that we are obligated to pay as part of certain contracts that we have entered during our course of business. Our contractual obligations
consist of operating lease liabilities and merger-related transaction liabilities that are included in our condensed consolidated balance
sheet and vendor commitments associated with agreements that are legally binding. As of September 30, 2025, the total obligation for
capitalized operating leases was approximately $0.3 million, of which approximately $0.1 million is expected to be paid in the next twelve
months.

Customer Deposits

As of September 30, 2025,
we received conditional pre-orders under a combination of non-binding aircraft purchase agreements, reservation deposit agreements, options
and letters of intent for aircraft, which generated approximately $1.4 million of cash from customer deposits. These funds from customer
reservation deposits will not be recorded as revenue until the orders for aircraft are delivered, which may not be for many years or
at all if we do not deliver the aircraft. The deposits prioritize orders when the aircraft becomes available for delivery. Customers
making deposits are not obligated to purchase aircraft until they execute a definitive purchase agreement. Customers may request a return
of their refundable deposit any time up until the execution of a purchase agreement. Customers’ request for a return of their refundable
deposits could adversely affect our liquidity resources, and we may be financially unable to return such deposits.

Commitment to Nadir Ali

As disclosed in Note