Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 158

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 158
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As of September 30, 2025, the Company’s net working capital was approximately $1.1 million, representing an increase of approximately
$9.9 million from December 31, 2024.

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 supplemented the revenues it earned with proceeds from the sale of its equity securities and proceeds from loans.

The Company’s recurring losses and utilization
of cash in its operations are indicators of going concern issues. However, the Company’s current liquidity position was favorably
impacted by the cash raised through equity offerings and cash received from warrant exercises aggregating approximately $62.8 million
during the nine months ended September 30, 2025, along with repaying and settling certain debt and other obligations during March 2025.
The impact of these financings and warrant exercises to the Company’s cash position and overall net working capital position, along
with the Company’s ability to defer or eliminate certain operating expenses that are under its control and the revenues expected
to be generated by the Industrial IoT segment lead the Company to believe it has the ability to mitigate such concerns for a period of
at least one year from the date these financial statements are issued.

Consolidations

The condensed consolidated financial statements have been prepared
using the accounting records of Legacy XTI and as of March 12, 2024 (the effective date of the XTI Merger) and forward, the accounting
records of XTI Aerospace, Inc. (formerly known as Inpixon) and its subsidiaries, including Inpixon GmbH (formerly known as Nanotron Technologies
GmbH), Inpixon Holding UK Limited, and Intranav GmbH. All material inter-company balances and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity
with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during
each of the reporting periods. Actual results could differ from those estimates. The Company’s significant estimates consist of:

    ●
    the valuation of stock-based
    compensation;

    ●
    the valuation of the Company’s
    common stock issued and assets acquired in transactions, including acquisitions;

    ●
    the valuation of convertible
    notes receivable;

    ●