Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 108

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 108
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isting of normal recurring accruals) considered necessary for a fair presentation have
been included. Interim results for the three months ended March 31, 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 March 31, 2025, the Company had cash of
approximately $8.0 million. For the three months ended March 31, 2025, the Company had a net loss of approximately $12.9 million. During
the three months ended March 31, 2025, the Company used approximately $15.2 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 under its now expired ATM and via two public offerings aggregating approximately $23.3 million during the
three months ended March 31, 2025, along with repaying and settling certain debt and other obligations during March 2025. This, along
with the Company’s ability to defer or eliminate certain operating expenses that are under its control and the revenues expected
to be generated by the Industrial IoT segment lead the Company to believe it has the ability to mitigate such concerns for a period of
at least one year from the date these financial statements are issued.

Consolidations

The condensed