Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 76

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 76
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 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 million when excluding derivative warrant liabilities;

    2)
    cash and cash equivalents of approximately $20.0 million; and

    3)
    net cash used by operating activities for the six months ended June 30, 2025 of $22 million.

44

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

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

    Cash and cash equivalents 
    $20,046  
    $4,105  
    $15,941 
  
    Accounts receivable, net