Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 132

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 132
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 businesses can achieve improved operational efficiency, enhanced safety
and reduced costs. By having real-time visibility into operations, industrial organizations can make informed, data-driven decisions,
minimize downtime, and ensure compliance with industry regulations.

Note 2 - Basis of Presentation

The accompanying unaudited condensed consolidated
financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States
of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission
(“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation
have been included. Interim results for the three and six months ended June 30, 2025 are not necessarily indicative of the results for
the full year ending December 31, 2025. These interim unaudited condensed consolidated financial statements should be read in conjunction
with the Company’s audited financial statements and notes for the years ended December 31, 2024 and 2023 included in the annual
report on Form 10-K for the year ended December 31, 2024, filed with the SEC on April 15, 2025.

8

XTI AEROSPACE, INC. AND
SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 3 - Summary of Significant Accounting
Policies

The Company’s complete accounting policies
are described in Note 3 to the Company’s audited consolidated financial statements and notes for the year ended December 31,
2024.

Liquidity 

As of June 30, 2025, the Company had cash and
cash equivalents of approximately $20.0 million. For the three and six months ended June 30, 2025, the Company had a net loss of approximately
$20.9 million and $33.7 million, respectively. During the six months ended June 30, 2025, the Company used approximately $22.0 million
of cash for operating activities.

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 supplemented the revenues it earned with proceeds from the sale of its equity securities and proceeds from loans.

The Company’s recurring losses and