Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 65

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 65
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3 million in net proceeds through (i) our now expired ATM with Maxim and (ii) public offerings
of our securities placed and underwritten by ThinkEquity LLC. The proceeds from these capital raises allowed us to significantly reduce
debt and other obligations, while progressing the development of the TriFan 600 airplane. The following summarizes the improvements to
our balance sheet from December 31, 2024 to March 31, 2025:

●Cash and cash equivalents increased by approximately $3.9 million.

    ●
    Net working capital increased by approximately $8.9 million.

    ●
    We repaid in full the outstanding secured promissory notes issued to Streeterville, which resulted in the release of Streeterville’s security interest in the assets of XTI Aircraft Company. As of March 31, 2025, we had less than $0.1 million of interest-bearing debt outstanding, which matures in 2050. 

    ●
    We redeemed the remaining outstanding shares of Series 9 Preferred Stock, 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