Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 324

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 324
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 solutions providers, Drone Nerds  and
Anzu Robotics for total purchase consideration of $40.0 million, which was comprised of $20.0 million in cash, $11.9 million in the form
of two promissory notes (including approximately $1.6 million in working capital adjustments), and $9.7 million in the form of equity
consideration.

On November 12, 2025, the
Company closed the PIPE Offering pursuant to which the Company issued Unusual Machines 25,000 shares of Series 10 Convertible Preferred
Stock for gross proceeds of $25.0 million and net proceeds of $23.1 million after deducting the placement agent fees and other expenses
payable by the Company of approximately $1.9 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 historically supplemented the revenues it earned with proceeds from the sale of our equity and debt securities
and proceeds from loans and bank credit lines. The Company has incurred net losses and negative operating cash flows from operations since
the XTI Merger completed on March 12, 2024, and the Company expects to continue to incur losses and negative operating cash flows for
the foreseeable future until it commences sustainable commercial operations of the TriFan 600 airplane. Since the XTI Merger, the Company
has funded its operations primarily with proceeds from equity financings, including through our now expired ATM with Maxim and four public
offerings completed in January 2025, March 2025, June 2025 and September 2025 (collectively, the “Offerings”), and through
the issuance of promissory notes. We believe that our current revenue, as supplemented by proceeds from our financings, including the
approximately $57.1 million net proceeds we raised in the Offerings, a portion of which was used to fully repay short-term obligations
including the outstanding Streeterville promissory note balances, along with our ability to defer or eliminate certain operating expenses
that are under our control, will provide us with liquidity to fund our planned operating needs for at least the next twelve months.

According to our current development
schedule, we do not expect to obtain FAA type certification and other necessary regulatory approvals and commence deliveries of the TriFan
600 until 2030 at the earliest. We expect to fund our operations primarily through equity and/or debt financ