Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 164

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 164
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 obligations
consist of operating lease liabilities and merger-related transaction liabilities that are included in our condensed consolidated balance
sheet and vendor commitments associated with agreements that are legally binding. As of March 31, 2025, the total obligation for capitalized
operating leases was approximately $0.3 million, of which approximately $0.1 million is expected to be paid in the next twelve months.

Customer Deposits

As of March 31, 2025, we received
conditional pre-orders under a combination of non-binding aircraft purchase agreements, reservation deposit agreements, options and letters
of intent for aircraft, which generated approximately $1.4 million of cash from customer
deposits. These funds from customer reservation deposits will not be recorded as revenue until the orders for aircraft are delivered,
which may not be for many years or at all if we do not deliver the aircraft. The deposits prioritize orders when the aircraft becomes
available for delivery. Customers making deposits are not obligated to purchase aircraft until they execute a definitive purchase agreement.
Customers may request a return of their refundable deposit any time up until the execution of a purchase agreement. Customers’ request
for a return of their refundable deposits could adversely affect our liquidity resources, and we may be financially unable to return such
deposits.

Commitment to Nadir Ali

As disclosed in Note 18 of the condensed consolidated
financial statements, the Company has a commitment to pay Nadir Ali deferred consulting fees of $1,500,000 by wire transfer of immediately
available funds in three equal installments of $500,000 each on June 30, 2025, September 30, 2025, and December 31, 2025.

Risks and Uncertainties

As of March 31, 2025, the
Company has working capital of approximately $12,000 and cash and cash equivalents of approximately $8 million. For the three months ended
March 31, 2025, the Company had a net loss of approximately $12.9 million. During the three months ended March 31, 2025, the Company used
approximately $15.2 million of cash for operating activities.

45

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 historically supplemented the revenues it earned with proceeds from the sale of our equity, including
through our now expired ATM with Maxim, and debt