Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 554

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 554
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testing a two-thirds scale unmanned version of the TriFan 600, generating pre-orders for the TriFan 600, and seeking funds from investors
to enable the Company to advance the detailed design and certification of the TriFan 600, and to eventually engage in commercial production
and sale of TriFan 600.

Our
RTLS solutions leverage cutting-edge technologies such as IoT, AI, and big data analytics to provide real-time tracking and monitoring
of assets, machines, and people within industrial environments. With our RTLS solutions, 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 – Consolidation

The
consolidated financial statements have been prepared using the accounting records of Legacy XTI and as of March 12, 2024 and forward
(the effective date of the XTI Merger) the accounting records of XTI Aerospace, Inc. (formerly known as Inpixon), Inpixon GmbH (formerly
known as Nanotron Technologies GmbH), Inpixon Holding UK Limited, and Intranav GmbH. All material inter-company balances and transactions
have been eliminated.

F-11

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

Note
3 - Summary of Significant Accounting Policies

Liquidity

As
of December 31, 2024, the Company has a working capital deficit of approximately $8.8 million, and cash of approximately $4.1 million.
For the year ended December 31, 2024, the Company had a net loss of approximately $35.6 million. During the year ended December 31, 2024,
the Company used approximately $22.3 million of cash for operating activities.

During the year ended December 31, 2024, the Company
sold 998,447 shares of common stock under the Equity Distribution Agreement at per share prices between approximately $10.02 and $337.36,
resulting in net proceeds to the Company of approximately $22.2 million.

During May 2024, the Company entered into a note purchase agreement
with Streeterville Capital, LLC, pursuant to which the Company issued two secured promissory notes to Streeterville Capital, LLC