Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 82

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 82
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, 2025 were $38.2 million, compared to $28.3 million for the nine months ended September 30, 2024, an increase
of $9.9 million. We expect operating expenses to continue to increase as we increase our headcount to accommodate our growth. The increase
was primarily attributable to:

●Research
                                            and development expenses, which increased by $2.8 million, primarily related to continued
                                            development of the TriFan 600 program.

●Sales
                                            and marketing expenses, which increased by $3.1 million, as the Company expanded
                                            investments in brand development and awareness, trade show participation, and business development
                                            initiatives.

●Non-cash
                                            impairment charges, which increased by $4.7 million, relating to goodwill and intangible
                                            assets within the Industrial IoT segment.

●General
                                            and administrative expenses, which increased by $6.0 million, primarily due to higher
                                            legal and accounting fees associated with capital-raising activities during 2025, increased
                                            administrative headcount to support operational growth, and higher public company-related
                                            professional fees. The 2024 period reflects the operations of Legacy XTI, a private company,
                                            from January 1, 2024 through the March 12, 2024 closing of the XTI Merger.

These increases were partially
offset by a $6.5 million decrease in acquisition-related costs incurred during the nine months ended September 30, 2024, associated with
the closing of the XTI Merger.

Other (Expense) Income

Other (expense) income for
the nine months ended September 30, 2025 was a loss of $10.8 million compared to a gain of $5.3 million for the comparable period
ended September 30, 2024. The loss during the nine months ended September 30, 2025 was primarily driven by (i) $6.6 million of financing
costs incurred relating to the issuance of warrants in connection with the March Offering, June Offering and September Offering, (ii)
the recognition of a $3.3 million loss related to the change in fair value of a warrant liability, and (iii) a loss on extinguishment
of debt of $0.4 million.

The gain of approximately
$5.3 million for the nine months ended September 30, 2024 was primarily driven by the Company recognizing an income gain of approximately
$12.9