Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 227

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 227
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                                            and administrative expenses, which increased by $6.0 million, primarily due to higher
                                            legal and accounting fees associated with capital-raising activities during 2025, increased
                                            administrative headcount to support operational growth, and higher public company-related
                                            professional fees. The 2024 period reflects the operations of Legacy XTI, a private company,
                                            from January 1, 2024 through the March 12, 2024 closing of the XTI Merger.

These increases were partially
offset by a $6.5 million decrease in acquisition-related costs incurred during the nine months ended September 30, 2024, associated with
the closing of the XTI Merger.

Other (Expense) Income

Other (expense) income for
the nine months ended September 30, 2025 was a loss of $10.8 million compared to a gain of $5.3 million for the comparable period
ended September 30, 2024. The loss during the nine months ended September 30, 2025 was primarily driven by (i) $6.6 million of financing
costs incurred relating to the issuance of warrants in connection with the March Offering, June Offering and September Offering, (ii)
the recognition of a $3.3 million loss related to the change in fair value of a warrant liability, and (iii) a loss on extinguishment
of debt of $0.4 million.

The gain of approximately
$5.3 million for the nine months ended September 30, 2024 was primarily driven by the Company recognizing an income gain of approximately
$12.9 million relating to the remeasurement of convertible notes at fair value, partially offset by inducement losses on debt
conversions of approximately $6.7 million.

Income Tax Benefit (Provision)

The income tax benefit (provision)
for the nine months ended September 30, 2025 and 2024 was immaterial.

Liquidity and Capital Resources

Our current capital resources
and operating results as of and through September 30, 2025, consist of:

    1)
    working capital of approximately
    $1.1 million, adjusted to approximately $29.3 million when excluding derivative warrant liabilities;

    2)
    cash and cash equivalents
    of approximately $32.2 million; and

    3)
    net cash used by operating
    activities for the nine months ended September 30,