Financial Performance - XTI Aerospace closed a $18.5 million net public offering in September 2025, significantly enhancing its balance sheet and liquidity for ongoing engineering work [2]. - Cash and cash equivalents increased to $32.2 million as of September 30, 2025, up from $4.1 million at December 31, 2024, primarily due to the proceeds from the public offering [6]. - Stockholders' equity grew to $10.5 million as of September 30, 2025, up from $6.6 million at December 31, 2024, reflecting new capital raised [6]. - A $25 million strategic investment from Unusual Machines was secured, strengthening the balance sheet and aligning with the domestic drone ecosystem [8]. - XTI's working capital position improved to $1.1 million, or $29.3 million excluding warrant liabilities [6]. Product Development - The company completed initial flight operations for the Sparrow and Kestrel prototypes, validating aerodynamic and stability models for the TriFan 600 [3]. - The TriFan 600 program is on track for a piloted demonstrator in 2027, with ongoing subscale aircraft testing and FAA engagement [10]. - The Valkyrie Vanguard Platform was announced, integrating AI and advanced materials into next-generation VTOL development, enhancing digital-twin capabilities [9]. - The company plans to advance supplier integration across avionics, propulsion, structures, and hybrid-electric components as part of its strategic priorities [10]. Strategic Acquisitions - XTI acquired Drone Nerds, adding a profitable business with over $100 million in revenue for 2024, enhancing its strategic posture in the drone industry [8].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Englewood, CO 80112 (Address of principal executive offices) (Zip Code) For the transition period from ______________ to _______________ Commission File Number: 001-36404 XTI AEROSPACE, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _______________ Commission File Number: 001-36404 XTI AEROSPACE, INC. (Exact name of registrant as specified in its charter) (State or other ...

Financial Performance - Revenues for Q1 2025 were $0.5 million, a 120% increase from $0.2 million in Q1 2024, driven by the Industrial IoT segment [248]. - Gross profit for Q1 2025 was $0.3 million, up 137.6% from $0.1 million in Q1 2024, with a gross margin of 69.2% compared to 64.1% in the prior year [251]. - Operating expenses increased to $10.7 million in Q1 2025 from $9.0 million in Q1 2024, with a significant portion attributed to R&D and consulting expenses [252]. - Net loss for Q1 2025 was $12.9 million, a 394.7% increase from a net loss of $2.6 million in Q1 2024 [248]. - Cash and cash equivalents as of March 31, 2025, were approximately $8 million, an increase of $3.9 million from $4.1 million at the end of 2024 [258]. - Net working capital improved to $12,000 as of March 31, 2025, compared to a deficit of $8.8 million at the end of 2024 [259]. - The company raised approximately $23.3 million in net proceeds during Q1 2025, which helped reduce debt and support the development of the TriFan 600 airplane [260]. - Customer deposits as of March 31, 2025, totaled approximately $1.4 million from non-binding aircraft purchase agreements and reservation deposits [264]. - The company raised approximately $21.7 million in net proceeds from public offerings during the first quarter of 2025, which was partially used to repay short-term obligations [268]. - The company's cash and cash equivalents increased to approximately $8 million as of March 31, 2025, up from $4.1 million as of December 31, 2024 [271]. - Net cash used in operating activities increased significantly from approximately $2.6 million in Q1 2024 to approximately $15.2 million in Q1 2025 [273][272]. - Net cash flows provided by financing activities were approximately $19.2 million for the three months ended March 31, 2025, compared to $1.4 million in the same period of 2024 [276][277]. - The company experienced a decrease in accrued expenses and other current liabilities of approximately $4.9 million, primarily due to cash payments for transaction bonuses and employee bonuses [272]. - The company reported a working capital of approximately $12,000 as of March 31, 2025, compared to a deficit of $8.84 million as of December 31, 2024 [271]. - Cash flows used in investing activities were approximately $45,000 for the three months ended March 31, 2025, compared to a net cash inflow of approximately $3 million in the same period of 2024 [274]. - The company became ineligible to use Form S-3 until August 2025, which may impair its ability to raise necessary capital [270]. Business Development - The company has not generated any revenue from aircraft sales as it is still in the design and development phase of the TriFan 600 airplane [208]. - The FAA accepted the company's type certification application for the TriFan 600 on March 17, 2025 [222]. - The company increased the wing fuel volume of the TriFan 600 from approximately 300 gallons to 400 gallons, enhancing its maximum range and mission length [221]. - The company is exploring strategic options to wind down and/or sell the hardware portions of its Industrial IoT business segment to focus on software products [210]. - The fair value of the Industrial IoT reporting unit exceeded its carrying value by 2.2% as of March 31, 2025, resulting in no goodwill impairment recognized for the quarter [232]. - The company is expanding into autonomous, remotely operated drones as part of its strategic focus to create new revenue-generating opportunities [214]. - The company is developing ancillary service offerings related to the TriFan 600, such as flight training and maintenance products [211]. - Research and development expenses are expected to increase significantly as the company expands staffing for aircraft engineering and software development [236]. - The company has authorized a share repurchase program to acquire up to $5 million of its common stock [218]. - The company has a commitment to pay $1.5 million in deferred consulting fees to Nadir Ali in three installments through 2025 [265]. - As of March 31, 2025, the company reported a net loss of approximately $12.9 million and used approximately $15.2 million in cash for operating activities [266][272].

Merger and Acquisition - The company completed a merger with Legacy XTI on March 12, 2024, resulting in a name change to XTI Aerospace, Inc.[18] - The merger is accounted for as a reverse acquisition, with Legacy XTI as the accounting acquirer, affecting the consolidated financial statements from the closing date through December 31, 2024[19] - XTI Aerospace completed a merger with Legacy XTI on March 12, 2024, with Legacy XTI as the accounting acquirer[18] - The merger is accounted for as a reverse acquisition, with the financial statements reflecting a continuation of Legacy XTI's results[19] Stock Split - A reverse stock split at a ratio of 1-for-100 was executed on March 12, 2024, to comply with Nasdaq Listing Rule 5550(a)(2)[21] - A subsequent reverse stock split of 1-for-250 is planned for January 10, 2025, also for compliance with Nasdaq Listing Rule 5550(a)(2)[21] Financial Performance and Challenges - The company has a history of losses and faces challenges in achieving profitability and delivering non-prototype aircraft to customers[13] - Future financial results are subject to uncertainties, and actual outcomes may differ from projections due to various risks[15] - Economic conditions, including inflation and supply chain challenges, may impact the company's performance and customer base[16] Development and Commercialization - The development and commercialization schedule for the TriFan 600 is critical, with necessary certifications still pending[13] - Conditional pre-orders for aircraft may be subject to cancellation or modification, impacting future cash flows[13] Competitive Landscape and Risks - The company is navigating a competitive landscape with emerging technologies that may outpace its developments[13] - The company faces risks related to long development cycles, quality control, and dependence on third-party suppliers[16] - The company is subject to potential lawsuits and regulatory investigations, including those from the SEC[16] - Future patent applications may face delays or rejections, incurring substantial costs for the company[16] - The company must manage risks associated with system failures and changes in tax regimes[16] Operational Focus - The company is focused on enhancing its brand reputation and expanding its customer base while managing manufacturing and supply chain relationships[16] - The ability to attract and retain qualified personnel is critical for the company's growth and operational success[16]

Core Insights - XTI Aerospace's business unit Inpixon has won the "RTLS Solution of the Year 2025" award at the IoT Breakthrough Awards, competing against over 40 entrants [1][2] - Inpixon's RTLS solutions enhance operational efficiency, safety, and decision-making across various industries [1][3] Company Overview - XTI Aerospace, Inc. is developing the TriFan 600, a fixed-wing business aircraft with VTOL capabilities, speeds of 345 mph, and a range of 700 miles [5] - Inpixon specializes in real-time location systems (RTLS) technology, providing solutions that optimize operations and enhance safety in sectors like manufacturing, logistics, and government [5][3] Industry Recognition - The IoT Breakthrough Awards recognize top companies and technologies in the global IoT market, highlighting Inpixon's leadership in RTLS technology [2] - The award reflects Inpixon's commitment to innovation and its role in advancing Industry 4.0 through AI-powered location-aware solutions [3]

Financial Performance and Liabilities - Total balance sheet liabilities as of December 31, 2024 were reduced compared to September 30, 2024[7] - The company's financial statements for the quarter ended December 31, 2024 are unaudited and subject to change, with final results potentially differing materially from preliminary information[8] Capital Raising and Stock Information - The company raised approximately $25,000,000 in gross proceeds from the sale of common stock under its "at-the-market" offering program since the end of the quarter ended March 31, 2024[7] - The company's common stock is traded under the symbol XTIA on the Nasdaq Capital Market[3] Business and Financial Updates - The press release dated January 23, 2025, provides updates on recent business and financial highlights[5]

Merger and Acquisition - The company completed its merger with Legacy XTI on March 12, 2024, structured as a reverse triangular merger[235]. - The XTI Merger was completed on March 12, 2024, with Legacy Inpixon as the legal acquirer and Legacy XTI as the accounting acquirer under GAAP[318]. - Legacy XTI's historical financial statements are considered the financial statements of the combined company[318]. - The integration of Legacy XTI into the company's system of disclosure controls and procedures is currently being evaluated by a third-party consulting firm[319]. Aircraft Development - The company is primarily focused on developing the TriFan 600, a VTOL aircraft, which is expected to offer speed, range, and comfort comparable to business aircraft while providing helicopter versatility[217]. - The company reported that the Commercial Aviation segment is currently pre-revenue as it is still in the development phase of the TriFan 600 aircraft[219]. - The company plans to seek FAA certification for the TriFan 600, with significant milestones including the critical design review and preliminary testing of a full-scale flight test aircraft[227][230]. - The company is pursuing additional capital to complete the development of the TriFan 600 and is exploring multiple funding alternatives[223]. Financial Performance - Revenue for the three months ended September 30, 2024, was $0.9 million, an increase of approximately $0.9 million compared to $0.0 million in the same period last year[271]. - Cost of revenues for the three months ended September 30, 2024, was $0.4 million, compared to $0.0 million for the same period in the prior year[272]. - Gross profit for the three months ended September 30, 2024, was $0.5 million, compared to $0.0 million in the prior year, with a decline of approximately $0.2 million from the previous quarter due to a one-time inventory impairment charge[273]. - Operating expenses for the three months ended September 30, 2024, were $4.7 million, an increase from $2.4 million in the same period last year, primarily due to increased expenditures related to the TriFan 600 aircraft development[274]. - Net loss for the three months ended September 30, 2024, was $4.4 million, compared to a net loss of $2.7 million in the prior year, reflecting an increase of 64%[268]. - Revenues for the nine months ended September 30, 2024, were $2.2 million, a significant increase from $0.0 million in the same period of 2023, attributed to the Industrial IoT segment post-XTI Merger[280]. - Cost of revenues for the same period was $0.8 million, compared to $0.0 million in the prior year, reflecting the operational results of the Industrial IoT segment[281]. - Gross profit for the nine months ended September 30, 2024, was $1.3 million, up from $0.0 million in the comparable period of 2023[282]. - Operating expenses increased to $28.3 million from $7.7 million year-over-year, primarily due to nonrecurring transaction bonuses and merger-related costs[283]. - Net loss for the nine months ended September 30, 2024, was approximately $21.7 million, compared to a net loss of $8.9 million in the same period of 2023, representing a 144% increase in losses[299]. - Other income for the nine months ended September 30, 2024, was a gain of $5.3 million, a turnaround from a loss of $1.2 million in the prior year, largely due to the remeasurement of convertible notes[285]. Cash Flow and Working Capital - As of September 30, 2024, the company had a working capital deficit of approximately $11.9 million and cash and cash equivalents of approximately $0.5 million[288]. - The company used approximately $14.3 million in cash for operating activities during the nine months ended September 30, 2024[299]. - The Company sold 3,190,727 shares of common stock under the ATM Offering, generating net proceeds of approximately $1.0 million during the three months ended September 30, 2024[301]. - The Company reported a net cash used in operating activities of approximately $14.3 million for the nine months ended September 30, 2024, compared to $3.0 million for the same period in 2023[304][310]. - Net cash provided by investing activities was approximately $2.9 million for the nine months ended September 30, 2024, compared to $0.0 million for the same period in 2023[313]. - Net cash provided by financing activities was $11.9 million for the nine months ended September 30, 2024, with $9.6 million from the ATM Offering and $2.0 million from promissory notes[314]. - The Company has a working capital deficit of $11.9 million as of September 30, 2024, compared to $13.0 million as of December 31, 2023[304]. Compliance and Governance - The company received a letter from Nasdaq on July 9, 2024, indicating it no longer meets the minimum bid price requirement of $1 per share, with a compliance period until January 6, 2025[236]. - The company is in the process of preparing a plan to regain compliance with Nasdaq listing rules following a Low Price Deficiency Letter received on November 7, 2024[237]. - The company is currently seeking additional financing to meet cash requirements, with potential actions including curtailing operations or seeking bankruptcy protection if unable to secure funding[303]. - The integration of Legacy XTI into the Company's disclosure controls and procedures is ongoing and being evaluated by a third-party consulting firm[318]. - As of September 30, 2024, the company concluded that its disclosure controls and procedures were not effective[318]. - There have been no material changes in internal control over financial reporting during the quarter ended September 30, 2024[320]. - The company has no material pending legal proceedings as defined by Item 103 of Regulation S-K[322]. Research and Development - Research and development expenses are expected to increase significantly as the company increases staffing to support aircraft engineering and software development[259]. - General and administrative expenses are anticipated to increase substantially in the future as the company expands its headcount to support continued research and development[263]. Industrial IoT Segment - The Industrial IoT segment has focused on building the Indoor Intelligence platform since 2019, positioning the company as a market leader in providing comprehensive solutions for data collection and insights[226]. - The company believes its RTLS products offer superior accuracy compared to competitors, which primarily rely on BLE or Wi-Fi technologies[234].

Financial Performance - Revenue for the three months ended June 30, 2024, was $1.0 million, an increase of approximately $1.0 million compared to $0.0 million in the same period of 2023[236]. - Operating expenses for the three months ended June 30, 2024, were $14.6 million, an increase of approximately $10.5 million from $4.0 million in the same period of 2023, primarily due to nonrecurring transaction bonus expenses and increased legal and accounting fees[239]. - Net loss for the three months ended June 30, 2024, was $14.7 million, compared to a net loss of $4.6 million in the same period of 2023, representing an increase of $10.1 million[234]. - Revenue for the six months ended June 30, 2024, was $1.3 million, compared to $0.0 million for the same period in 2023, reflecting the results of the Industrial IoT segment post-merger[245]. - Operating expenses for the six months ended June 30, 2024, were $23.6 million, an increase of approximately $18.3 million from $5.3 million in the same period of 2023[243]. - Gross profit for the three months ended June 30, 2024, was $0.7 million, compared to $0.0 million in the same period of 2023[238]. - Gross profit for the six months ended June 30, 2024, was $0.8 million, compared to $0.0 million for the same period in 2023[247]. - Other income for the six months ended June 30, 2024, was a gain of $5.5 million, compared to a loss of $0.9 million for the same period in 2023, reflecting a fluctuation of approximately $6.4 million[250]. - For the six months ended June 30, 2024, the company incurred a net loss of approximately $17.3 million and used approximately $8.2 million in cash for operating activities[273]. Cash Flow and Working Capital - As of June 30, 2024, the company had a working capital deficit of approximately $7.9 million and cash and cash equivalents of approximately $5.8 million[252]. - Net cash used by operating activities of $8.2 million for the six months ended June 30, 2024[252]. - Net cash used in operating activities for the six months ended June 30, 2024 was approximately $8.2 million, compared to $1.6 million for the same period in 2023[276][279]. - Net cash flows provided by investing activities during the six months ended June 30, 2024 were approximately $2.9 million, compared to $0.0 million in 2023[281]. - Net cash flows provided by financing activities during the six months ended June 30, 2024 were $11.1 million, significantly higher than $1.5 million in 2023[282]. Transaction Bonuses and Liabilities - The company accrued 100% of the transaction bonuses, recognizing approximately $6.7 million of transaction bonus expense for the three and six months ended June 30, 2024[180]. - As of June 30, 2024, approximately $6.7 million of accrued transaction bonuses remained outstanding, included in Accrued Expenses and Other Current Liabilities[180]. - As of June 30, 2024, the company has accrued 100% of the transaction bonuses, totaling $6.7 million, with $0.9 million paid during Q3 2024[269]. - As of June 30, 2024, the company has liabilities of approximately $0.5 million and $0.1 million related to deferred compensation and retention bonuses[272]. Legal Matters - The company is involved in litigation with Xeriant, which claims damages in excess of $500 million due to alleged breaches and fraudulent actions by Legacy XTI[184]. - There are no material pending legal proceedings involving the company, other than ordinary routine litigation[288]. - No adverse legal interests involving directors, officers, or significant shareholders were reported[288]. Mergers and Acquisitions - The XTI Merger was completed on March 12, 2024, with Legacy Inpixon as the legal acquirer and Legacy XTI as the accounting acquirer under GAAP[285]. - The historical financial statements of Legacy XTI will be considered the financial statements of the combined entity[285]. - The Transaction Value for the XTI Merger was assessed at $225 million, based on the enterprise value of Legacy XTI[260]. - The company issued 385,359 registered shares of XTI Aerospace common stock as part of the financial advisory fees in connection with the XTI Merger[255]. Development and Engineering - The company is developing the TriFan 600, a vertical takeoff and landing aircraft, and is currently in the pre-revenue stage for the Commercial Aviation segment[193][196]. - The company is focused on securing FAA certification for the TriFan 600, which is critical for generating revenues in the commercial aviation segment[200]. - The company completed its preliminary design review (PDR) for the TriFan 600 in 2022, setting the stage for further design development[203]. - The company has established a core engineering organization and retained consulting firms to enhance its engineering capabilities for the TriFan 600[202]. - The company aims to enhance its sales and marketing capabilities to increase awareness and customer orders for the TriFan 600[199]. - The company is pursuing multiple funding alternatives to complete the development of the series of Test Aircraft[199]. - Research and development expenses are expected to increase significantly as the company expands staffing to support aircraft engineering and software development[229]. Market Position and Products - The company’s Industrial IoT business is positioned as a market leader with a comprehensive suite of products aimed at enhancing workplace environments[201]. - The company’s RTLS Indoor Intelligence products compete with major players like Aruba and Cisco, but it believes its offerings are more comprehensive and accurate[208]. - The company is committed to ongoing research and development to maintain a competitive position in the rapidly changing technology landscape[206]. - The TriFan 600 is expected to offer lower direct operating costs and the ability to fly almost twice as many missions compared to competing helicopters[207]. Internal Controls and Governance - As of June 30, 2024, the company's disclosure controls and procedures were deemed ineffective by the Chief Executive Officer and Chief Financial Officer[285]. - The company began integrating Legacy XTI into its disclosure controls and procedures during the second quarter of 2024[285]. - A third-party consulting firm is being engaged to assist in evaluating and remediating internal controls over financial reporting for the combined entity[285]. - No changes in internal control over financial reporting were identified during the quarter ended June 30, 2024, that materially affected internal controls[286]. - Anticipated changes to the internal control environment are expected in the third quarter of 2024 due to integration efforts[286]. - The company acknowledges that no control system can provide absolute assurance that all control issues have been detected[286]. Future Outlook - The company expects revenues for the third and fourth quarters of 2024 to remain consistent with the second quarter of 2024[236]. - The company’s financial statements are prepared under the assumption of continuing as a going concern for the next twelve months, dependent on obtaining additional financing and improving operational efficiency[274].

Commercial Aviation Development - The company has not generated revenue from the Commercial Aviation segment as it is still in the design, development, and certification phase for the TriFan 600 aircraft [277]. - The company completed its preliminary design review (PDR) for the TriFan 600 in 2022, which set the stage for further design development [266]. - The current development design review (DDR) phase includes interactions with suppliers to mature major structures and systems of the TriFan 600, with ongoing communication with the FAA to ensure compliance [267]. - The company plans to seek FAA certification for the TriFan 600, with critical design review (CDR) and preliminary testing of a full-scale flight test aircraft as the next milestones [265]. - The company is pursuing multiple funding alternatives to complete the development of the TriFan 600 and its test aircraft [261]. Industrial IoT Segment - The Industrial IoT segment generates revenue through a "location as a service" (LaaS) model, which typically involves 3-5 year contracts and includes maintenance and hardware upgrades, creating a recurring revenue stream [278]. - The company believes it has positioned its Industrial IoT business as a market leader with a comprehensive suite of products and solutions [264]. - The company faces significant competition in both the Commercial Aviation and Industrial IoT markets, with larger competitors having better financial resources [270][271]. Financial Performance - Revenues for the three months ended March 31, 2024 were $0.2 million, a significant increase from $0.0 million in the same period of 2023, marking a change of approximately $0.2 million [291]. - Operating expenses for the same period increased to $9.0 million from $1.3 million, representing a substantial increase of approximately $7.7 million or 602% [294]. - Net loss for the three months ended March 31, 2024 was $2.6 million, compared to a net loss of $1.6 million in the prior year, reflecting an increase of 66% [289]. - Other income for the three months ended March 31, 2024 was a gain of $6.3 million, compared to a loss of $0.3 million in the same period last year, an increase of approximately $6.6 million [295]. - The company reported a working capital deficit of approximately $5.1 million as of March 31, 2024 [299]. - Cash and cash equivalents as of March 31, 2024 were approximately $1.8 million [299]. - Customer deposits received as of March 31, 2024 amounted to approximately $1.4 million, which will not be recognized as revenue until aircraft orders are delivered [301]. - The company incurred inducement losses on debt conversions of approximately $6.7 million during the three months ended March 31, 2024 [295]. - The increase in operating expenses was primarily due to a rise in non-cash stock-based compensation expense of approximately $5.7 million [294]. - The company recognized an income gain of approximately $12.9 million related to the remeasurement of convertible notes at fair value during the three months ended March 31, 2024 [295]. - For the three months ended March 31, 2024, the company had a net loss of approximately $2.6 million and used approximately $2.6 million of cash for operating activities [327]. - Net cash used in operating activities during the three months ended March 31, 2024 was approximately $2.6 million, with non-cash expenses totaling approximately $0.7 million [332]. - The company assessed the Transaction Value applicable to the XTI Merger at $225 million, based on the enterprise value of Legacy XTI [312]. Merger and Compensation - The company completed its merger with XTI Aircraft Company on March 12, 2024, which was structured as a reverse triangular merger [272]. - The company plans to pay Mr. Ali a total of $1.5 million three months following the closing of the XTI Merger, plus $4.5 million in 12 equal monthly installments of $375,000 each [319]. - As of March 31, 2024, liability amounts of approximately $0.7 million and $0.1 million are included in Accrued Expenses and Other Current Liabilities and Related Party Payables, respectively, related to deferred compensation and retention bonuses [325]. - The company restored the salaries of all employees to the original amount effective March 31, 2023, following additional financing received in the first quarter of 2023 [326]. - The company has implemented a cost savings plan effective July 1, 2022, which includes a compensation reduction directive and retention bonus program [323]. Cash Flow and Going Concern - The company’s condensed consolidated financial statements for the three months ended March 31, 2024, have been prepared under the assumption of continuing as a going concern for the next twelve months [329]. - Net cash used in operating activities for the three months ended March 31, 2023 was approximately $0.5 million, with a net loss of $1.565 million [333]. - Non-cash expenses totaled approximately $0.315 million, primarily due to stock-based compensation expense of $0.141 million [333]. - Net cash flows used in investing activities for the three months ended March 31, 2024 was approximately $3.0 million, compared to $0.0 million in the same period of 2023 [334]. - Net cash flows provided by financing activities for the three months ended March 31, 2024 was $1.4 million, including $1.0 million from an existing promissory note arrangement [335]. - In the three months ended March 31, 2023, net cash flows provided by financing activities was $0.7 million, with $0.3 million from the issuance of a convertible note [336]. - The net change in operating assets and liabilities for the three months ended March 31, 2023 resulted in a cash use of approximately $0.793 million, primarily due to an increase in accounts payable of $0.496 million [333]. - The company does not have any off-balance sheet guarantees or trading activities involving non-exchange traded contracts [337]. - There were no applicable quantitative and qualitative disclosures about market risk [339].