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

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 11
---
    Common shares issued in exchange of series 9 Preferred Stock 
    $—  
    $4,625 
  
    Issuance of common shares for merger consideration, net of cash received 
    $—  
    $22,637 
  
    Right-of-use asset obtained in exchange for lease liability 
    $—  
    $394 
  
    Capital contribution - forgiveness of related party payable 
    $—  
    $380 
  
    Deemed dividend related to series 9 Preferred Stock exchange 
    $—  
    $231 
  
    ATM proceeds withheld as payment towards accounts payable 
    $—  
    $128 
  
    Series 9 Preferred Stock dividend accrued 
    $—  
    $496 

The accompanying notes are an integral part of
these Condensed Consolidated Financial Statements.

7

XTI AEROSPACE, INC. AND
SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - Nature of Business

On March 12, 2024 (the “Closing Date”), XTI Aerospace,
Inc., the “Company”, formerly known as Inpixon (“Legacy Inpixon”), Superfly Merger Sub Inc., a Delaware corporation
and a wholly owned subsidiary of Legacy Inpixon, and XTI Aircraft Company, a Delaware corporation (“Legacy XTI”), completed
their previously announced merger transaction (the “XTI Merger”).

The Company is primarily an aircraft development
company. As of November 10, 2025, and through the Company’s wholly-owned subsidiary, XTI Drones, LLC, the Company offers drone distribution
and technology solutions via its recent acquisitions of Drone Nerds, LLC and Anzu Robotics, LLC (see Note 19 “Subsequent Events”).
The Company also provides real-time location systems (“RTLS”) for the industrial sector, which was Legacy Inpixon’s
focus prior to the closing of the XTI Merger.

Headquartered in Englewood, Colorado, the Company
is developing a vertical takeoff and landing (“VTOL”) airplane that is designed to take off and land like a helicopter and
cruise like a fixed-wing business airplane. The Company believes its initial configuration, the TriFan 600 airplane, will be one of the
first civilian fixed-wing VTOL airplanes that offers the speed and comfort of a business airplane and the range and versatility of VTOL
for a wide range of