Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 267

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 267
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 Net working capital increased by approximately $11.2 million or by approximately $25.8 million when excluding derivative warrant liabilities.

    ●
    In March 2025, we repaid in full the outstanding secured promissory
notes issued to Streeterville, which resulted in the release of Streeterville’s security interest in the assets of XTI Aircraft
Company. As of June 30, 2025, we had less than $0.1 million of interest-bearing debt outstanding, which matures in 2050. 

    ●
    In March 2025, we redeemed the remaining outstanding shares of Series
9 Preferred Stock, leaving zero shares of Series 9 Preferred Stock issued and outstanding as of June 30, 2025. The Series 9 Preferred
Stock had restricted our ability to raise capital, as we were prohibited from taking certain actions without prior written consent from
the holders of the Series 9 Preferred Stock.

    ●
    In March 2025, we repaid the remaining Strategic Transaction Bonus
Plan obligation to prior Legacy Inpixon management, which was the primary driver for the approximate $4.9 million decline in accrued expenses
and other current liabilities from December 31, 2024 to June 30, 2025.

    ●
    In March 2025, we repaid the accounts payable and most commitments
that were inherited from Legacy Inpixon. A remaining deferred consulting fee commitment of $1.0 million is still owed to Nadir Ali, the
Company’s former Chief Executive Officer, which is payable in two $500,000 installments during the remaining fiscal year 2025.

We believe the Company’s
ability to raise capital has been favorably impacted by (i) the reduction of obligations either assumed from Legacy Inpixon or created
by the XTI Merger closing and (ii) the elimination of the Streeterville secured debt and equity instruments with fundraising restrictions.

45

Contractual Obligations and Commitments

Contractual obligations are
cash that we are obligated to pay as part of certain contracts that we have entered during our course of business. Our contractual 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 June 30, 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