Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 157

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 157
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 the TriFan 600, and to eventually engage in commercial production and sale of the TriFan 600 airplane.

The Company’s RTLS solutions leverage cutting-edge technologies
such as Internet of Things (“IoT”), AI, and big data analytics to provide real-time tracking and monitoring of assets, machines,
and people within industrial environments. With the Company’s RTLS solutions, businesses can achieve improved operational efficiency,
enhanced safety and reduced costs. By having real-time visibility into operations, industrial organizations can make informed, data-driven
decisions, minimize downtime, and ensure compliance with industry regulations.

Note 2 - Basis of Presentation

The accompanying unaudited condensed consolidated
financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States
of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission
(“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation
have been included. Interim results for the three and nine months ended September 30, 2025 are not necessarily indicative of the results
for the full year ending December 31, 2025. These interim unaudited condensed consolidated financial statements should be read in conjunction
with the Company’s audited financial statements and notes for the years ended December 31, 2024 and 2023 included in the annual
report on Form 10-K for the year ended December 31, 2024, filed with the SEC on April 15, 2025.

8

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 3 - Summary of Significant Accounting
Policies

The Company’s complete accounting policies
are described in Note 3 to the Company’s audited consolidated financial statements and notes for the year ended December 31,
2024.

Liquidity 

As of September 30, 2025, the Company had 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