XTI Aerospace, Inc. (formerly Inpixon) reported significant financial developments in its latest 10-Q filing for the nine months ended September 30, 2024. The company, which focuses on the development of the TriFan 600 vertical takeoff and landing aircraft, completed a merger with Legacy XTI on March 12, 2024, resulting in a reverse stock split of 1-for-100 and a new ticker symbol "XTIA" on the Nasdaq Capital Market.

As of September 30, 2024, XTI Aerospace reported total revenues of $2.169 million for the nine-month period, a notable increase from $0 in the same period of 2023. The gross profit for this period was $1.323 million. However, the company faced substantial operating expenses of $28.343 million, leading to a loss from operations of $27.020 million, compared to a loss of $7.702 million in the prior year. The net loss for the nine months ended September 30, 2024, was $21.747 million, up from $8.897 million in 2023.

The company’s total current assets increased significantly to $10.132 million as of September 30, 2024, from $231,000 at the end of 2023, primarily due to cash and cash equivalents rising to $511,000 from $5,000. Total liabilities also increased to $22.037 million from $13.259 million, with accounts payable rising sharply to $7.625 million from $2.495 million. Despite these liabilities, total stockholders’ equity improved to $6.865 million from a deficit of $(31.629 million) at the end of 2023.

XTI Aerospace's operational expenses surged, with research and development costs for the nine months reaching $2.840 million, up from $1.299 million in the previous year. Sales and marketing expenses also rose significantly to $2.160 million from $486,000. The increase in expenses is attributed to the ongoing development of the TriFan 600 and the integration of the Industrial IoT segment following the merger.

The company has been actively raising capital, generating approximately $9.6 million from an At-the-Market (ATM) stock offering during the nine months ended September 30, 2024. However, it reported a working capital deficit of approximately $11.9 million and a cash utilization of $14.3 million for operating activities during the same period.

XTI Aerospace is currently navigating challenges related to compliance with Nasdaq's minimum bid price requirement, having received notifications regarding potential delisting due to its stock price falling below $1. The company is preparing a compliance plan and has requested a hearing to appeal the delisting determination.

Overall, XTI Aerospace is in a critical phase of development and financial restructuring, with a focus on advancing its aircraft technology while managing significant operational losses and capital needs.