Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 555

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 555
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 in May
2024, resulting in aggregate cash proceeds to the Company of $2.0 million. 

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. However, the Company’s current liquidity position was favorably impacted by the cash
raised under public offerings aggregating approximately $23.3 million subsequent to December 31, 2024, along with repaying and settling
certain debt and other obligations during March 2025 (refer to Note 23). 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. 

Use
of Estimates

The
preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported
amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during each of the reporting periods. Actual results could differ from those estimates. The
Company’s significant estimates consist of:

    ●
    the
    valuation of stock-based compensation;

    ●
    the
    valuation of the Company’s common stock issued and assets acquired in transactions, including acquisitions;

    ●
    
    the
    valuation of equity securities; 

    ●
    
    the
    valuation of convertible notes receivable; 

    ●
    
    the
    valuation of warrant liabilities and assets; 

    ●

    the valuation of convertible notes payable, at fair value;

    ●
    
    the
    valuation of loan conversion derivatives; and 

    ●
    
    the
    valuation allowance for deferred tax assets. 

F-12

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

Cash
and Cash Equivalents

Cash
consists primarily of demand deposit bank accounts,