Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 219

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 2
Chunk 219
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 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 18 of the condensed consolidated
financial statements, the Company has a commitment to pay Nadir Ali deferred consulting fees of $1,500,000 by wire transfer of immediately
available funds in three equal installments of $500,000 each on June 30, 2025, September 30, 2025, and December 31, 2025.

Risks and Uncertainties

As of March 31, 2025, the
Company has working capital of approximately $12,000 and cash and cash equivalents of approximately $8 million. For the three months ended
March 31, 2025, the Company had a net loss of approximately $12.9 million. During the three months ended March 31, 2025, the Company used
approximately $15.2 million of cash for operating activities.

45

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 historically supplemented the revenues it earned with proceeds from the sale of our equity, including
through our now expired ATM with Maxim, and debt securities and proceeds from loans and bank credit lines. We believe that our current
revenue, as supplemented by proceeds from our financings, including the approximately $21.7 million net proceeds we raised in various
public offerings of our securities placed and underwritten by ThinkEquity during the first quarter of 2025, a portion of which was used
to fully repay short-term obligations including the outstanding Streeterville promissory note balances, along with our ability to defer
or eliminate certain operating expenses that are under our control, will provide us with liquidity to fund our planned operating needs
for at least the next twelve months.

According to our current development
schedule, we do not expect to obtain FAA type certification and other necessary regulatory approvals and commence deliveries of the TriFan
600 until 2030 at the earliest. Therefore, we intend to raise additional capital through debt or equity financings as we continue to advance
the design and certification of the TriFan 600.

As a result of our failure
to timely file a Current Report on Form 8-K, upon the filing of our Annual Report on Form