Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 205

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 205
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 $3.8 million from the exercise of warrants issued in connection with the public offerings. During the
six months ended June 30, 2025, the Company paid $2.7 million to fully settle the two outstanding promissory note obligations with Streeterville
and $1.4 million to redeem the remaining outstanding Series 9 Preferred Stock.

Net cash flows provided by
financing activities during the six months ended June 30, 2024 was approximately $11.1 million. During the six months ended June 30, 2024,
the Company received incoming cash flows of $8.5 million from the now expired ATM, $2.0 million from promissory notes issued to Streeterville,
and $1.0 million in proceeds from an existing promissory note arrangement with Legacy Inpixon. During the six months ended June 30, 2024,
the Company repaid $0.5 million towards outstanding promissory notes.

Off-Balance Sheet Arrangements

We do not have any off-balance
sheet guarantees, interest rate swap transactions or foreign currency contracts. We do not engage in trading activities involving non-exchange
traded contracts.

Recently Issued Accounting Standards

For a discussion of recently
issued accounting pronouncements, please see Note 3 of the Notes to Condensed Consolidated Financial Statements included in Part I, Item
1 of this report.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.

Item 4. Controls and Procedures

Disclosure Controls and Procedures

Disclosure controls are procedures
that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act,
such as this Form 10-Q, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and
forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our
management, including the Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding
required disclosure. Internal controls are procedures which are designed with the objective of providing reasonable assurance that (1)
our transactions are properly authorized, recorded and reported; and (2) our assets are safeguarded against unauthorized or improper use,
to permit the preparation of our condensed consolidated financial statements in conformity with GAAP.

We conducted an evaluation, under the supervision
and with the participation of our Chief Executive Officer and Chief Financial Officer, of our disclosure controls and procedures (as defined