Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 185

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 185
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 Warrants and 56,700 Common Warrants outstanding from the March Offering.

During the nine months ended September 30, 2025,
2,911,800 Pre-funded Warrants from the June Offering were exercised at an exercise price per share of $0.001, resulting in the issuance
of 2,911,800 shares of common stock and cash proceeds to the Company of $2,912. During the nine months ended September 30, 2025,
66,700 Common Warrants from the June Offering were exercised at an exercise price per share of $2.00, resulting in the issuance of 66,700
shares of common stock and cash proceeds to the Company of approximately $0.1 million. As of September 30, 2025, there were no Pre-funded
Warrants and 10,447,330 Common Warrants outstanding from the June Offering.

Note 13 - Segments

The Company’s Chief Executive Officer,
acting as the Chief Operating Decision Maker (“CODM”), regularly reviews and manages certain areas of its businesses, resulting
in the Company identifying two reportable segments: Industrial IoT and Commercial Aviation. The Company manages and reports its operating
results through these two reportable segments. This allows the Company to enhance its customer focus and better align its business models,
resources, and cost structure to the specific current and future growth drivers of each business, while providing increased transparency
to the Company’s shareholders.

The Commercial Aviation segment is currently in
the pre-revenue development stage and its primary activity is the development of the TriFan 600 airplane. The Industrial IoT segment generates
revenue primarily from the sale of real-time location system solutions for the industrial sector and its customers are primarily located
in Germany and the U.S. As it relates to the Industrial IoT segment, the results disclosed in the table below only reflect activity following
the XTI Merger closing through the September 30, 2025 reporting date.

Information on each of our reportable segments
and reconciliation to consolidated loss from operations is presented in the table below. We have assigned certain previously reported
expenses to each segment to conform to the way we internally manage and monitor our business. Unallocated operating expenses include
costs that are not specific to a particular segment but are general to the group; included expenses incurred for administrative and accounting
staff, general liability and other insurance, accrued consulting fees and transaction bonuses relating to former Legacy Inpixon executives,
professional fees and other similar corporate expenses.

The following tables