Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 274

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 274
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,
the Company repaid $0.5 million towards outstanding promissory notes.

Off-Balance Sheet Arrangements

We do not have any off-balance
sheet guarantees, interest rate swap transactions or foreign currency contracts. We do not engage in trading activities involving non-exchange
traded contracts.

Recently Issued Accounting Standards

For a discussion of recently
issued accounting pronouncements, please see Note 3 of the Notes to Condensed Consolidated Financial Statements included in Part I, Item
1 of this report.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Disclosure controls are procedures
that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act,
such as this Form 10-Q, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and
forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our
management, including the Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding
required disclosure. Internal controls are procedures which are designed with the objective of providing reasonable assurance that (1)
our transactions are properly authorized, recorded and reported; and (2) our assets are safeguarded against unauthorized or improper use,
to permit the preparation of our condensed consolidated financial statements in conformity with GAAP.

We conducted an evaluation, under the supervision
and with the participation of our Chief Executive Officer and Chief Financial Officer, of our disclosure controls and procedures (as defined
in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation, our Chief Executive Officer and Chief Financial
Officer concluded that our disclosure controls and procedures were effective as of June 30, 2025.

Changes in Internal Controls

There have been no changes
in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15
or 15d-15 under the Exchange Act that occurred during the quarter ended June 30, 2025 that has materially affected, or is reasonably likely
to materially affect, our internal control over financial reporting.

Limitations of the Effectiveness of Control

A control system, no matter
how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.
Because