Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 232

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 232
---
 of the TriFan
600 until 2030 at the earliest. We expect to fund our operations primarily through equity and/or debt financings at least until we commence
sustainable commercial operations of the TriFan 600. We filed a shelf registration statement on Form S-3 on August 1, 2025, which was
declared effective by the SEC on August 12, 2025, pursuant to which we may offer and sell, from time to time, in one or more offerings,
up to $1 billion in any combination of common stock, preferred stock, depositary shares, debt securities, warrants, units and subscription
rights until such shelf registration statement expires in August 2028.

48

Equity financing may result
in dilution to the interests of our existing stockholders and could involve issuing securities with rights, preferences, or privileges
senior to those of existing common stockholders. Similarly, debt financing could involve instruments with terms that supersede those
of preferred or common stockholders and may include operational restrictions. It is important to note that capital markets have experienced
volatility in the past and may do so again, which could impact our ability to raise funds on favorable terms or at all.

We currently do not have
material cash obligations related to existing contracts. As a result, our future cash needs are closely tied to management’s strategic
decisions regarding the pace and priorities of short- and long-term initiatives. These requirements are subject to fluctuation based
on operational choices, including the timing and scale of infrastructure and development of sub-scale and full-scale test aircraft. Factors
influencing our future capital needs include revenue growth, aircraft pre-order deposit timing, expansion of sales and marketing efforts,
and the scope of development initiatives.

We may also pursue strategic
acquisitions or investments in complementary businesses, technologies, or products, which could necessitate additional financing. If
we are unable to raise additional capital when needed or on acceptable terms, it could limit our ability to innovate, develop, and compete
effectively—ultimately affecting our business performance and financial condition. In such a case, we may be forced to reduce or
delay investments in manufacturing, infrastructure, and R&D, or adjust our expansion plans—any of which could have a material
adverse impact on our operations and long-term prospects.

Cash Flows

The Company’s net cash
flows used in operating, investing and financing activities for the nine months ended September 30, 2025 and 2024 and certain