Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 220

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 2
Chunk 220
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 10-K for the year ended December 31, 2024 on
April 15, 2025, we became ineligible to use Form S-3 until August 2025 at the earliest. Our inability to use Form S-3 may significantly
impair our ability to raise the necessary capital to fund our operations and execute our strategy. If we seek to access the capital markets
through a registered offering during the period of time that we are unable to use Form S-3, we may be required to publicly disclose the
proposed offering and the material terms thereof before the offering commences, we may experience delays in the offering process due to
SEC review of a Form S-1 registration statement and we may incur increased offering and transaction costs and other considerations.

Liquidity and Capital Resources 

The Company’s net cash
flows used in operating, investing and financing activities for the three months ended March 31, 2025 and 2024 and certain balances as
of the end of those periods are as follows (in thousands):

    For the Three Months Ended March 31, 

    2025  
    2024 
  
    Net cash used in operating activities 
    $(15,242) 
    $(2,551)
  
    Net cash (used in) provided by investing activities 
     (45) 
     2,958 
  
    Net cash provided by financing activities 
     19,173  
     1,390 
  
    Effect of foreign exchange rate changes on cash 
     17  
     (1)
  
    Net increase in cash and cash equivalents 
    $3,903  
    $1,796 

    As of
March 31,
2025  
    As of
December 31,
2024 
  
    Cash and cash equivalents 
    $8,008  
    $    4,105 
  
    Working capital (deficit) 
    $12  
    $(8,840)

46

Operating Activities for the three months ended
March 31, 2025

Net cash used in operating activities during the
three months ended March 31, 2025 was approximately $15.2 million. The cash flows related to the three months ended March 31, 2025 consisted
of the following (in thousands):

    Net loss 
    $(12,872)
  
    Non-cash income and expenses 
     3,244