Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 78

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 78
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 Company fully
repaid the Streeterville promissory notes before the maturity date, and (ii) inducement losses on debt conversions incurred by Legacy
XTI when it entered into voluntary note conversion letter agreements with several note holders during the first quarter of 2024.

Change in fair value of convertible
notes payable represents the remeasurement of certain Legacy XTI convertible notes to fair value. These notes were converted to equity
prior to the closing of XTI Merger.

Change in fair value of warrant
liability represents the remeasurement of certain outstanding warrants to fair value.

Other consists of miscellaneous
income and expense items.

RESULTS OF OPERATIONS

Three Months Ended September 30, 2025 compared
to the Three Months Ended September 30, 2024

The following table sets
forth selected consolidated financial data and as a percentage of period-over-period change:

    Three Months Ended September
    30,  

    2025  
    2024  
    $  
    % 
  
    (in thousands, except percentages) 
    Amount  
    Amount  
    Change*  
    Change* 
  
    Revenues 
    $2,484  
    $918  
    $1,566  
     171%
  
    Cost of revenues 
    $1,407  
    $398  
    $1,009  
     254%
  
    Gross profit 
    $1,077  
    $520  
    $557  
     107%
  
    Operating expenses 
    $15,886  
    $4,736  
    $11,150  
     235%
  
    Loss from operations 
    $(14,809) 
    $(4,216) 
    $(10,593) 
     251%
  
    Other (expense) income 
    $1,364  
    $(219) 
    $1,583  
     (723)%
  
    Income tax provision 
    $(1) 
    $—  
    $(1) 
     — 
  
    Net loss 
    $(13,446) 
    $(4,435) 
    $(9,011) 
     203%

    *
    Amounts used to calculate
    dollar and percentage changes are based on numbers in the thousands. Accordingly, calculations in this item, which may be rounded
    to the nearest hundred thousand, may