Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 12

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 12
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s) considered necessary for a fair presentation
have been included. Interim results for the three and six months ended June 30, 2025 are not necessarily indicative of the results for
the full year ending December 31, 2025. These interim unaudited condensed consolidated financial statements should be read in conjunction
with the Company’s audited financial statements and notes for the years ended December 31, 2024 and 2023 included in the annual
report on Form 10-K for the year ended December 31, 2024, filed with the SEC on April 15, 2025.

8

XTI AEROSPACE, INC. AND
SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 3 - Summary of Significant Accounting
Policies

The Company’s complete accounting policies
are described in Note 3 to the Company’s audited consolidated financial statements and notes for the year ended December 31,
2024.

Liquidity 

As of June 30, 2025, the Company had cash and
cash equivalents of approximately $20.0 million. For the three and six months ended June 30, 2025, the Company had a net loss of approximately
$20.9 million and $33.7 million, respectively. During the six months ended June 30, 2025, the Company used approximately $22.0 million
of cash for operating activities.

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 supplemented the revenues it earned with proceeds from the sale of its equity securities and proceeds from loans.

The Company’s recurring losses and utilization
of cash in its operations are indicators of going concern issues. However, the Company’s current liquidity position was favorably
impacted by the cash raised through equity offerings and cash received from warrant exercises aggregating approximately $41.8 million
during the six months ended June 30, 2025, along with repaying and settling certain debt and other obligations during March 2025. Subsequent
to June 30, 2025 and through the date of this filing, the Company raised approximately $2.5 million in net proceeds from a combination
of warrant exercises and the exercise of an over-allotment option granted to the underwriter of its June Offering of common stock and
w