Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 322

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 322
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 public offerings.
The proceeds from these capital raises and warrant exercises 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 September
30, 2025:

    ●
    Cash and cash equivalents increased by approximately $28.1 million primarily due to the net proceeds received from the January, March, June and September Offerings.

    ●
    Net working
    capital increased by approximately $9.9 million or increased by approximately $38.2 million when excluding derivative warrant liabilities.

    ●
    In March 2025, 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. In September 2025, we repaid in full Legacy XTI’s secured promissory note with the with the U.S. Small Business Administration. As of September 30, 2025, we had no interest-bearing debt outstanding. 

    ●
    In March 2025, we redeemed
    the remaining outstanding shares of Series 9 Preferred Stock, leaving zero shares of Series 9 Preferred Stock issued and outstanding
    as of September 30, 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.

    ●
    In March 2025, we repaid
    the remaining Strategic Transaction Bonus Plan obligation to prior Legacy Inpixon management, which was the primary driver for the
    approximate $4.4 million decline in accrued expenses and other current liabilities from December 31, 2024 to September 30, 2025.

    ●
    In March 2025, we repaid
    the accounts payable and most commitments that were inherited from Legacy Inpixon. A remaining deferred consulting fee commitment
    of $0.5 million is still owed to Nadir Ali, the Company’s former Chief Executive Officer, which is payable on December 31,
    2025.

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

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Contract