Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 133

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 133
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 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 $41.8 million
during the six months ended June 30, 2025, along with repaying and settling certain debt and other obligations during March 2025. Subsequent
to June 30, 2025 and through the date of this filing, the Company raised approximately $2.5 million in net proceeds from a combination
of warrant exercises and the exercise of an over-allotment option granted to the underwriter of its June Offering of common stock and
warrants (see Note 9). 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), Inpixon GmbH (formerly known as Nanotron Technologies GmbH),
Inpixon Holding UK Limited, and Intranav GmbH. All material inter-company balances and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
each of the reporting periods. Actual results could differ from those estimates. The Company’s significant estimates consist of:

    ●
    the valuation of stock-based
    compensation;

    ●
    the valuation of the Company’s
    common stock issued and assets acquired in transactions, including acquisitions;

    ●
    the valuation of convertible
    notes receivable;

    ●
    the valuation of convertible
    notes payable, at fair value;

●the valuation of goodwill and intangible assets;

    ●
    the valuation of warrant
    liabilities; and

    ●
    the valuation allowance