Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 202

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 202
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 terms, it could limit our ability to innovate, develop, and compete
effectively—ultimately affecting our business performance and financial condition. In such a case, we may be forced to reduce or
delay investments in manufacturing, infrastructure, and R&D, or adjust our expansion plans—any of which could have a material
adverse impact on our operations and long-term prospects.

Cash Flows

The Company’s net cash
flows used in operating, investing and financing activities for the three months ended June 30, 2025 and 2024 and certain balances as
of the end of those periods are as follows (in thousands):

    For the Six Months Ended
 June 30, 

    2025  
    2024 
  
    Net cash used in operating activities 
    $(21,983) 
    $(8,190)
  
    Net cash (used in) provided by investing activities 
     (103) 
     2,911 
  
    Net cash provided by financing activities 
     37,688  
     11,059 
  
    Effect of foreign exchange rate changes on cash 
     339  
     (6)
  
    Net increase in cash and cash equivalents 
    $15,941  
    $5,774 

    As of June 30, 2025  
    As of December 31, 2024 
  
    Cash and cash equivalents 
    $20,046  
    $4,105 
  
    Working capital (deficit) 
    $2,375  
    $(8,840)

47

Operating Activities for the six months ended
June 30, 2025

Net cash used in operating activities during the
three months ended June 30, 2025 was approximately $22.0 million. The cash flows related to the three months ended June 30, 2025 consisted
of the following (in thousands):

    Net loss 
    $(33,730)
  
    Non-cash income and expenses 
     17,654 
  
    Net change in operating assets and liabilities 
     (5,907)
  
    Net cash used in operating activities 
    $(21,983)

The non-cash income and expense
of approximately $17.7 million consisted primarily of the following (in thousands):

    $68  
    Depreciation and amortization
  
     152  
    Amortization of intangible assets