Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 216

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 2
Chunk 216
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5 million compared to a gain of $6.3 million for the comparable period in the prior year.

The loss of $2.5 million for
the three months ended March 31, 2025 was primarily attributable to (i) $0.4 million loss on extinguishment of debt due to the full repayment
of the Streeterville promissory notes before the maturity date, and (ii) $2.0 million of financing costs incurred relating to the issuance
of warrants in connection with the March Offering.

The gain of $6.3 million for
the three months ended March 31, 2024 was primarily attributable to the Company recognizing a gain of approximately $12.9 million relating
to the remeasurement of convertible notes payable at fair value. This gain was partially offset by inducement losses on debt conversions
of approximately $6.7 million, which is included in “loss on extinguishment of debt” on the condensed consolidated statements
of operations.

Provision for Income Taxes

The provision for income tax
for the three months ended March 31, 2025 and 2024 was immaterial.

Liquidity and Capital Resources as of March 31, 2025

Our current capital resources
and operating results as of and through March 31, 2025, consist of:

1)working capital of approximately $12,000;

2)cash and cash equivalents of approximately $8 million; and

3)net cash used by operating activities for the three months ended March 31, 2025 of $15.2 million.

43

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

    Working Capital 
    March
31,
2025  
    December 31, 2024  
    $ Change 
  
    Current Assets 

    Cash and cash equivalents 
    $8,008  
    $4,105  
    $3,903 
  
    Accounts receivable, net 
     573  
     706  
     (133)
  
    Other receivables 
     21  
     538  
     (517)
  
    Inventories 
     2,318  
     2,214  
     104 
  
    Prepaid expenses and other current assets 
     1,607  
     1,018  
     589 

    Total Current Assets 
     12,527