Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 260

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 260
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 the Company fully repaid
the Streeterville promissory notes before the maturity date, and (ii) inducement losses on debt conversions incurred by Legacy XTI when
it entered into voluntary note conversion letter agreements with several note holders during the first quarter of 2024.

Change in fair value of convertible
notes payable represents the remeasurement of certain Legacy XTI convertible notes to fair value. These notes were converted to equity
prior to the closing of XTI Merger.

Change in fair value of warrant
liability represents the remeasurement of certain outstanding warrants to fair value.

Other consists of miscellaneous
income and expense items.

RESULTS OF OPERATIONS

Three Months Ended June 30, 2025 compared
to the Three Months Ended June 30, 2024

The following table sets forth
selected consolidated financial data and as a percentage of period-over-period change:

    Three Months Ended June 30,  

    2025  
    2024  
    $  
    % 
  
    (in thousands, except percentages) 
    Amount  
    Amount  
    Change*  
    Change* 
  
    Revenues 
    $600  
    $1,031  
    $(431) 
     (41.8)%
  
    Cost of revenues 
    $117  
    $369  
    $(252) 
     (68.3)%
  
    Gross profit 
    $483  
    $662  
    $(179) 
     (27.0)%
  
    Operating expenses 
    $11,613  
    $14,589  
    $(2,976) 
     (20.4)%
  
    Loss from operations 
    $(11,130) 
    $(13,927) 
    $2,797  
     (20.1)%
  
    Other (expense) income 
    $(9,719) 
    $(771) 
    $(8,948) 
     1,160.6%
  
    Income tax benefit (provision) 
    $(9) 
    $(12) 
    $3  
     (25.0)%
  
    Net loss 
    $(20,858) 
    $(14,710) 
    $(6,148) 
     41.8%

    *
    Amounts used to calculate dollar and percentage changes are based on numbers in the thousands