Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 196

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 196
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 27, 2025 pursuant to the Settlement Agreement, (v) an increase in the Industrial IoT segment’s general and administrative
expenses of $0.4 million as the results for the six months ended June 30, 2024 only reflect the activity of the segment since the closing
of the XTI Merger on March 12, 2024, and (vi) an aggregate increase of approximately $3.6 million due to (a) increases in legal and accounting
fees relating to capital raising activities during the first half of 2025, (b) increase in administrative headcount to support operations
growth, and (c) increases in public company-related professional fees as the 2024 historical results reflect the operations of a private
company, Legacy XTI, from January 1, 2024 through the March 12, 2024 closing date of the XTI Merger.

Other (Expense) Income

Other (expense) income for
the six months ended June 30, 2025 was a loss of $12.2 million compared to a gain of $5.5 million for the comparable period ended
June 30, 2024. The loss during the six months ended June 30, 2025 was primarily driven by (i) $5.8 million of financing costs incurred
relating to the issuance of warrants in connection with the March Offering and June Offering, (ii) the recognition of a $5.4 million loss
related to the change in fair value of a warrant liability, and (iii) a loss on extinguishment of debt of $0.4 million.

The gain during the six months
ended June 30, 2024 was primarily attributable to the Company recognizing income of approximately $12.9 million relating to the remeasurement
of convertible notes at fair value during the six months ended June 30, 2024, partially offset by inducement losses on debt conversions
of approximately $6.7 million incurred during the six months ended June 30, 2024. 

Income Tax Benefit (Provision)

The income tax benefit (provision) for the six months ended June 30,
2025 and 2024 was immaterial.

Liquidity and Capital Resources

Our current capital resources
and operating results as of and through June 30, 2025, consist of:

    1)
    working capital of approximately $2.4 million, adjusted to approximately $16.9