Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 230

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 230
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 by
the XTI Merger closing and the elimination of the Streeterville secured debt and equity instruments with fundraising restrictions.

47

Contractual Obligations and Commitments

Contractual obligations are
cash that we are obligated to pay as part of certain contracts that we have entered during our course of business. Our contractual obligations
consist of operating lease liabilities and merger-related transaction liabilities that are included in our condensed consolidated balance
sheet and vendor commitments associated with agreements that are legally binding. As of September 30, 2025, the total obligation for
capitalized operating leases was approximately $0.3 million, of which approximately $0.1 million is expected to be paid in the next twelve
months.

Customer Deposits

As of September 30, 2025,
we received conditional pre-orders under a combination of non-binding aircraft purchase agreements, reservation deposit agreements, options
and letters of intent for aircraft, which generated approximately $1.4 million of cash from customer deposits. These funds from customer
reservation deposits will not be recorded as revenue until the orders for aircraft are delivered, which may not be for many years or
at all if we do not deliver the aircraft. The deposits prioritize orders when the aircraft becomes available for delivery. Customers
making deposits are not obligated to purchase aircraft until they execute a definitive purchase agreement. Customers may request a return
of their refundable deposit any time up until the execution of a purchase agreement. Customers’ request for a return of their refundable
deposits could adversely affect our liquidity resources, and we may be financially unable to return such deposits.

Commitment to Nadir Ali

As disclosed in Note 16 of
the condensed consolidated financial statements, as of September 30, 2025, the Company has a remaining commitment to pay Nadir Ali deferred
consulting fees of $500,000 due on December 31, 2025.

Risks and Uncertainties;
Sources of Liquidity; Long-Term Liquidity Requirements

As of September 30, 2025,
the Company has working capital of approximately $1.1 million, adjusted to $29.3 million when excluding derivative warrant liabilities,
and cash and cash equivalents of approximately $32.2 million. For the nine months ended September 30, 2025, the Company had a net loss
of approximately $47.2 million. During the nine months ended September 30, 2025, the Company used approximately $30.4 million of cash
for operating activities.