Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 86

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 86
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 16 of
the condensed consolidated financial statements, as of September 30, 2025, the Company has a remaining commitment to pay Nadir Ali deferred
consulting fees of $500,000 due on December 31, 2025.

Risks and Uncertainties;
Sources of Liquidity; Long-Term Liquidity Requirements

As of September 30, 2025,
the Company has working capital of approximately $1.1 million, adjusted to $29.3 million when excluding derivative warrant liabilities,
and cash and cash equivalents of approximately $32.2 million. For the nine months ended September 30, 2025, the Company had a net loss
of approximately $47.2 million. During the nine months ended September 30, 2025, the Company used approximately $30.4 million of cash
for operating activities.

On November 10, 2025, the
Company acquired 100% of the issued and outstanding equity interests of two enterprise drone solutions providers, Drone Nerds  and
Anzu Robotics for total purchase consideration of $40.0 million, which was comprised of $20.0 million in cash, $11.9 million in the form
of two promissory notes (including approximately $1.6 million in working capital adjustments), and $9.7 million in the form of equity
consideration.

On November 12, 2025, the
Company closed the PIPE Offering pursuant to which the Company issued Unusual Machines 25,000 shares of Series 10 Convertible Preferred
Stock for gross proceeds of $25.0 million and net proceeds of $23.1 million after deducting the placement agent fees and other expenses
payable by the Company of approximately $1.9 million.

There can be no assurances
that the Company will ever earn revenues sufficient to support its operations, or that it will ever be profitable. In order to continue
its operations, the Company has historically supplemented the revenues it earned with proceeds from the sale of our equity and debt securities
and proceeds from loans and bank credit lines. The Company has incurred net losses and negative operating cash flows from operations since
the XTI Merger completed on March 12, 2024, and the Company expects to continue to incur losses and negative operating cash flows for
the foreseeable future until it commences sustainable commercial operations of the TriFan 600 airplane. Since the XTI Merger, the Company
has funded its operations primarily with proceeds from equity financings