Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 83

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 83
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million relating to the remeasurement of convertible notes at fair value, partially offset by inducement losses on debt
conversions of approximately $6.7 million.

Income Tax Benefit (Provision)

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

Liquidity and Capital Resources

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

    1)
    working capital of approximately
    $1.1 million, adjusted to approximately $29.3 million when excluding derivative warrant liabilities;

    2)
    cash and cash equivalents
    of approximately $32.2 million; and

    3)
    net cash used by operating
    activities for the nine months ended September 30, 2025 of $30.4 million.

46

The breakdown of our working
capital as of the periods indicated below is as follows (in thousands):

    Working Capital 
    September 30, 2025  
    December 31, 2024  
    $ Change 
  
    Current Assets 

    Cash and cash equivalents 
    $32,198  
    $4,105  
    $28,093 
  
    Accounts receivable, net 
     2,095  
     706  
     1,389 
  
    Other receivables 
     38  
     538  
     (500)
  
    Inventories 
     1,433  
     2,214  
     (781)
  
    Prepaid expenses and other current assets 
     918  
     1,018  
     (100)

    Total Current Assets 
     36,682  
     8,581  
     28,101 

    Current Liabilities 

    Accounts payable and related party payables 
     2,560  
     5,538  
     (2,978)
  
    Accrued expenses and other current liabilities 
     2,263  
     6,703  
     (4,440)
  
    Accrued interest 
     342  
     522  
     (180)
  
    Customer deposits 
     1,350  
     1,350  
     — 
  
    Warrant liability