Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 218

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 2
Chunk 218
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 leaving 0 shares of Series 9 Preferred Stock issued and outstanding as of March 31, 2025. The Series 9 Preferred Stock had restricted our ability to raise capital, as we were prohibited from taking certain actions without prior written consent from the holders of the Series 9 Preferred Stock.

●We repaid the remaining Strategic Transaction Bonus Plan obligation
to prior Legacy Inpixon management, which was the primary driver for the approximate $5.1 million decline in accrued expenses and other
current liabilities from December 31, 2024 to March 31, 2025.

●We repaid the accounts payable and most commitments that were inherited
from Legacy Inpixon. A remaining deferred consulting fee commitment of $1.5 million is still owed to Nadir Ali, the Company’s former
Chief Executive Officer, which is payable in three $500,000 installments during the remaining fiscal year 2025.

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

44

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 March 31, 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 March 31, 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