Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 89

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 89
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 operating activities 
    $(30,356)

The non-cash income and expense
of approximately $23.1 million consisted primarily of the following (in thousands):

    $103  
    Depreciation and amortization
  
     206  
    Amortization of intangible assets
  
     100  
    Amortization of right-of-use asset
  
     145  
    Non-cash interest expense, net of interest income
  
     7,527  
    Stock-based compensation
  
     4,049  
    Impairment of goodwill
  
     631  
    Impairment of intangible assets
  
     421  
    Loss on extinguishment of debt
  
     6,580  
    Warrant issuance expense
  
     3,280  
    Change in fair value of warrant liability
  
     20  
    Unrealized gain on foreign currency transactions and other income and expense
    items
  
    $23,062  
    Total non-cash expenses

The net cash used in the
change in operating assets and liabilities aggregated approximately $6.2 million and consisted primarily of the following (in thousands):

    $(1,293) 
    Increase in accounts receivable and other receivables
  
     1,016  
    Decrease in inventories
  
     388  
    Decrease in prepaid expenses and other current assets and other assets
  
     (1,991) 
    Decrease in accounts payable and related party payables
  
     (4,667) 
    Decrease in accrued expenses and other current liabilities
  
     67  
    Increase in accrued interest
  
     336  
    Increase in deferred revenue
  
     (98) 
    Decrease in operating lease obligation
  
    $(6,242) 
    Net cash used in the changes in operating assets and liabilities

The increase in accounts receivable
and corresponding decrease in inventories primarily reflect higher Nanotron hardware sales occurring during the latter stages of the quarter
ending September 30, 2025. Cash proceeds from the public offerings completed during 2025 allowed the Company to significantly reduce obligations
including accounts payable and accrued expenses. The decrease in accrued expenses and other current liabilities of approximately $4.7
million was mainly attributable to (i) cash payments to settle the remaining accrued transaction bonuses and consulting fees owed to prior
Legacy Inpixon executives, and (ii) payment of accrued employee bonuses.

50

Operating Activities for