Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 88

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 88
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 growth, aircraft pre-order deposit timing, expansion of sales and marketing efforts,
and the scope of development initiatives.

We may also pursue strategic
acquisitions or investments in complementary businesses, technologies, or products, which could necessitate additional financing. If
we are unable to raise additional capital when needed or on acceptable terms, it could limit our ability to innovate, develop, and compete
effectively—ultimately affecting our business performance and financial condition. In such a case, we may be forced to reduce or
delay investments in manufacturing, infrastructure, and R&D, or adjust our expansion plans—any of which could have a material
adverse impact on our operations and long-term prospects.

Cash Flows

The Company’s net cash
flows used in operating, investing and financing activities for the nine months ended September 30, 2025 and 2024 and certain balances
as of the end of those periods are as follows (in thousands):

    For the Nine Months Ended
    September 30, 

    2025  
    2024 
  
    Net cash used in operating activities 
    $(30,356) 
    $(14,305)
  
    Net cash (used in) provided by investing activities 
     (126) 
     2,875 
  
    Net cash provided by financing activities 
     58,568  
     11,928 
  
    Effect of foreign exchange rate changes on cash 
     7  
     8 
  
    Net increase in cash and cash equivalents 
    $28,093  
    $506 

    As of September 30, 2025  
    As of December 31, 2024 
  
    Cash and cash equivalents 
    $32,198  
    $4,105 
  
    Working capital (deficit) 
    $1,104  
    $(8,840)

49

Operating Activities for the nine months ended
September 30, 2025

Net cash used in operating
activities during the nine months ended September 30, 2025 was approximately $30.4 million. The cash flows related to the nine months
ended September 30, 2025 consisted of the following (in thousands):

    Net loss 
    $(47,176)
  
    Non-cash income and expenses 
     23,062 
  
    Net change in operating assets and liabilities 
     (6,242)
  
    Net cash used in