Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 193

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 193
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Operating expenses for the
three months ended June 30, 2025 were $11.6 million and $14.6 million for the comparable period ended June 30, 2024, a decrease of $3.0
million. Excluding nonrecurring expenses incurred during the three months ended June 30, 2024 including (i) transaction bonus expense
of $6.7 million, (ii) advisory compensation expense of $1.3 million, which related to consulting arrangements entered into with prior
executives of Legacy Inpixon, and (iii) professional fees of $0.6 million relating to post-XTI Merger integration efforts including regulatory
filings triggered by the merger, operating expenses increased by $5.6 million.

This increase of $5.6 million
was driven by the Company’s efforts to secure additional financing during the first half of 2025 leading to (i) an increase in sales
and marketing expenses of $0.7 million as the Company invested more in brand development and awareness, trade show participation, and
business development initiatives and (ii) an increase in research and development expenses of $0.8 million mainly to advance the development
of the TriFan 600 airplane. The Company also recognized $4.1 million of goodwill and intangibles impairment during the three months ended
June 30, 2025 relating to its Industrial IoT segment.

Other (Expense) Income

Other (expense) income for
the three months ended June 30, 2025 was a loss of $9.7 million compared to a loss of $0.8 million for the comparable period in the prior
year.

The loss of $9.7 million for
the three months ended June 30, 2025 was primarily attributable to (i) the recognition of a $5.9 million loss related to the change in
fair value of a warrant liability, and (ii) $3.8 million of financing costs incurred relating to the issuance of warrants in connection
with the June Offering. The loss of $0.8 million for the three months ended June 30, 2024 was primarily attributable to the recognition
of a $0.7 million loss related to the change in fair value of a warrant liability.

Income Tax Benefit (Provision)

The income tax benefit (provision) for the three months ended June
30, 2025 and 2024 was immaterial.

Six Months Ended June 30,