Core Insights - XTI Aircraft Company has appointed Steve Zohrabian as Executive Vice President to lead the development of the TriFan 600, marking a significant step towards the aircraft's first flight, certification, and commercialization [1][6]. Company Leadership and Strategy - Zohrabian will provide strategic leadership across engineering and flight programs, focusing on building relationships with regulators and industry stakeholders [2]. - His extensive experience in rotorcraft and fixed-wing platforms will guide the TriFan 600's path to type certification, positioning it as a disruptive force in advanced air mobility [2][3]. Background of Steve Zohrabian - Zohrabian previously served as COO at Piasecki Aircraft Corporation, where he played a key role in developing next-generation VTOL aircraft and acquiring critical infrastructure [3][4]. - He has over 17 years of experience at Boeing, holding senior leadership roles in program management and engineering, contributing to programs like the V-22 Osprey and CH-47 Chinook [4]. Product Development and Market Position - The TriFan 600 is designed to combine the range and speed of an aircraft with the vertical flight capabilities of a helicopter, targeting business, disaster recovery, and military applications [6][7]. - XTI Aircraft aims to transition from design to full-scale development and certification, reinforcing its position as a pioneer in the emerging Vertical Economy [6].

Core Insights - XTI Aerospace, Inc. supports the FAA's newly announced Electric Vertical Takeoff and Landing Integration Pilot Program (eIPP) [1] Company Summary - XTI Aerospace is recognized as a pioneer in vertical takeoff and landing aircraft, focusing on regional and mission-critical aviation [1]

Core Points - XTI Aerospace, Inc. has successfully closed a public offering of 12,500,000 shares of common stock and warrants, raising total gross proceeds of $20 million at a public offering price of $1.60 per share [1][2]. Group 1: Offering Details - The offering included pre-funded warrants and common warrants, with the common warrants having an exercise price of $2.00 per share and being immediately exercisable for five years [1]. - The securities were offered under a shelf registration statement filed with the SEC, which became effective on August 12, 2025 [3]. Group 2: Use of Proceeds - The net proceeds from the offering will be used for working capital and general corporate purposes, including the development of the TriFan 600 airplane [2]. - The company may also consider investing in or acquiring businesses or technologies, although there are no current commitments [2]. Group 3: Company Overview - XTI Aerospace is developing the TriFan 600, a fixed-wing business aircraft with vertical takeoff and landing capabilities, maximum cruising speeds over 300 mph, and a range of up to 1,000 miles [5]. - The company also has a business unit, Inpixon, that specializes in real-time location systems technology for industrial applications [5].

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential trading opportunities before the market opens [1] Premarket Gainers - Vestand Inc. (VSTD) is up 96% at $2.53 - GlucoTrack, Inc. (GCTK) is up 86% at $9.09 - HCW Biologics Inc. (HCWB) is up 71% at $5.68 - Millennium Group International Holdings Limited (MGIH) is up 31% at $2.87 - IBEX Limited (IBEX) is up 27% at $38.74 - BGSF, Inc. (BGSF) is up 27% at $8.19 - Apimeds Pharmaceuticals US, Inc (APUS) is up 23% at $2.40 - Asset Entities Inc. (ASST) is up 16% at $10.39 - HUB Cyber Security Ltd. (HUBC) is up 10% at $2.71 - BioNexus Gene Lab Corp. (BGLC) is up 9% at $4.70 [3] Premarket Losers - Rent the Runway, Inc. (RENT) is down 21% at $6.17 - XTI Aerospace, Inc. (XTIA) is down 19% at $1.64 - RH (RH) is down 9% at $206.00 - Frequency Electronics, Inc. (FEIM) is down 9% at $30.96 - Global Mofy AI Limited (GMM) is down 9% at $1.99 - Jeffs' Brands Ltd (JFBR) is down 8% at $4.33 - Kindly MD, Inc. (NAKA) is down 8% at $3.60 - Empro Group Inc. (EMPG) is down 7% at $12.38 - Rezolve AI PLC (RZLV) is down 6% at $6.32 - NLS Pharmaceutics AG (NLSP) is down 5% at $2.03 [4]

Core Viewpoint - XTI Aerospace, Inc. has announced a public offering of 12,500,000 shares of common stock at a price of $1.60 per share, aiming to raise approximately $20 million in gross proceeds for working capital and the development of the TriFan 600 airplane [1][2]. Group 1: Offering Details - The offering includes pre-funded warrants and common warrants, with the common warrants having an exercise price of $2.00 per share and being immediately exercisable for five years [1]. - The offering is expected to close on September 15, 2025, pending customary closing conditions [1]. Group 2: Use of Proceeds - The net proceeds from the offering will be utilized for working capital and general corporate purposes, including the development of the TriFan 600 airplane [2]. - The company may also consider investing in or acquiring businesses or technologies, although there are no current commitments [2]. Group 3: Regulatory Information - The securities will be offered under a shelf registration statement on Form S-3, which was filed with the SEC on August 1, 2025, and declared effective on August 12, 2025 [3]. - A prospectus supplement detailing the terms of the offering will be filed with the SEC [3]. Group 4: Company Overview - XTI Aerospace is developing the TriFan 600, a fixed-wing business aircraft with vertical takeoff and landing capabilities, cruising speeds over 300 mph, and a range of up to 1,000 miles [5]. - The company also has a business unit, Inpixon, specializing in real-time location systems technology for industrial applications [5].

Core Insights - XTI Aerospace has successfully completed initial flight operations for its Sparrow and Kestrel subscale aircraft programs, marking significant progress towards the development of the full-scale TriFan 600 demonstrator [1][3][5] Subscale Aircraft Program Overview - The subscale aircraft program aims to develop smaller versions of the anticipated TriFan 600 to test new technologies and designs in a cost-effective manner, validating flight dynamics before full-scale development [3][5] - The Sparrow and Kestrel prototypes have demonstrated key design elements' viability under flight conditions, which is crucial for the TriFan 600's development [3][6] Next Development Phase - The next phase involves the TriHawk subscale aircraft, which will be larger than Sparrow and Kestrel, aimed at gaining deeper insights into VTOL dynamics [4][6] - Initial flight operations for the TriHawk are expected in Q4 2025 [4] Market Positioning - XTI's subscale program is strategically designed to reduce risk while positioning the company to capture the emerging market for mid-range VTOL aircraft, driven by increasing global demand for efficient air mobility solutions [5][6] - The TriFan 600 is anticipated to cater to various markets, including business aviation, regional transport, and special missions [5] Technical Validation - Over the past six months, XTI has conducted a series of flight tests with the Sparrow and Kestrel prototypes, validating critical aerodynamic performance and flight control logic [6] - The results from these tests are expected to accelerate the TriFan 600 program's advancement on schedule and within its capital plan [6]

Core Insights - The article emphasizes that VTOL technology is transitioning from concept to reality due to supportive U.S. policies, FAA certification progress, and global investment trends [1][2][3] - VTOL is positioned as a viable solution to address urgent needs in both commercial and government sectors, particularly in light of current challenges facing the aviation industry [2][4] Industry Perspective - The U.S. aviation policy has shifted to support next-generation aviation systems, with ongoing FAA certification pathways and infrastructure planning [2][4] - VTOL technology offers a distributed and resilient alternative to traditional aviation, addressing issues such as staffing shortages and outdated control systems [4] - The alignment of innovation, policy, and market demand presents a strategic opportunity for the U.S. to lead in VTOL and advanced air mobility [5] Company Overview - XTI Aerospace is focused on integrating manned and unmanned VTOL systems, advanced materials, and distributed airspace management to create a more accessible and transformative air mobility future [6] - The company is developing the TriFan 600, a fixed-wing business aircraft with VTOL capabilities, maximum cruising speeds exceeding 300 mph, and a range of up to 1,000 miles [7]

Core Insights - The Garmin G700 TXi system is integrated into the TriFan 600, enhancing its operational capabilities for business aviation, including reliability and innovative pilot features [1][3] - The TriFan 600 is a fixed-wing aircraft with vertical lift capability, designed to combine the speed and comfort of a business jet with the flexibility of a helicopter, featuring efficient twin turbo-shaft engines [1][4] - XTI Aerospace is progressing towards FAA certification with developmental flight tests scheduled for 2027, indicating strong interest in the TriFan 600 across various sectors [3][4] Company Overview - XTI Aerospace, based near Denver, Colorado, is developing the TriFan 600, which has a maximum cruising speed of 311 mph and a range of 985 miles, creating a new category of xVTOL aircraft [4] - The company also has a business unit, Inpixon, that specializes in real-time location systems technology, optimizing operations in industrial facilities [4] Technological Features - The Garmin G700 XTi flight deck provides pilots with advanced navigation, communication, surveillance, and situational awareness capabilities [2][6] - The avionics suite includes features such as synthetic vision technology, dynamic maps, satellite weather, and smart autopilot integration [6]

[Special Note Regarding Forward-Looking Statements and Other Information Contained in this Report](index=4&type=section&id=Special%20Note%20Regarding%20Forward-Looking%20Statements%20and%20Other%20Information%20Contained%20in%20this%20Report) This section cautions that forward-looking statements are subject to risks, and actual results may differ materially - Forward-looking statements are identified by words like 'expects,' 'anticipates,' 'estimates,' and relate to future actions, products, performance, expenses, and financial results[7](index=7&type=chunk) - Key risk factors include a history of losses, ability to achieve profitability, limited operating history, delays in TriFan 600 development and certification, regulatory complexities, cancellation of pre-orders, ability to obtain financing, emerging competition, and general economic conditions[7](index=7&type=chunk)[10](index=10&type=chunk) [Explanatory Note](index=6&type=section&id=EXPLANATORY%20NOTE) This section clarifies corporate changes post-XTI Merger, detailing Legacy XTI as acquirer and two reverse stock splits for Nasdaq compliance - On March 12, 2024, XTI Aerospace, Inc. (formerly Inpixon) completed a merger with XTI Aircraft Company (Legacy XTI), with Legacy XTI surviving as a wholly-owned subsidiary and being treated as the accounting acquirer[12](index=12&type=chunk)[13](index=13&type=chunk) - The Company effected a **1-for-100** reverse stock split on March 12, 2024, and a **1-for-250** reverse stock split on January 10, 2025, both to comply with Nasdaq Listing Rule 5550(a)(2)[15](index=15&type=chunk) [PART I - FINANCIAL INFORMATION](index=7&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This part presents the Company's unaudited condensed consolidated financial statements, including balance sheets, statements of operations, cash flows, and detailed notes on accounting policies and financial performance [Item 1. Financial Statements](index=7&type=section&id=Item%201.%20Financial%20Statements) This section presents unaudited condensed consolidated financial statements, including balance sheets, income statements, cash flows, and detailed notes on accounting policies [Condensed Consolidated Balance Sheets](index=7&type=section&id=Condensed%20Consolidated%20Balance%20Sheets%20as%20of%20June%2030%2C%202025%20%28Unaudited%29%20and%20December%2031%2C%202024) Balance sheets show significant increases in cash and total assets, with total liabilities rising due to warrant liabilities, reflecting recent financing | Metric | June 30, 2025 (Unaudited) (in thousands) | December 31, 2024 (in thousands) | Change (in thousands) | Percentage Change | | :-------------------------------- | :--------------------------------------- | :------------------------------- | :-------------------- | :---------------- | | Cash and cash equivalents | $20,046 | $4,105 | $15,941 | 388.3% | | Total Current Assets | $24,212 | $8,581 | $15,631 | 182.2% | | Total Assets | $35,448 | $24,291 | $11,157 | 45.9% | | Total Current Liabilities | $21,837 | $17,421 | $4,416 | 25.3% | | Warrant liability | $14,564 | $— | $14,564 | N/A | | Total Liabilities | $22,083 | $17,717 | $4,366 | 24.6% | | Total Stockholders' Equity | $12,405 | $6,574 | $5,831 | 88.7% | [Unaudited Condensed Consolidated Statements of Operations](index=9&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Operations%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Statements of operations show decreased revenue and gross profit, increased net losses for Q2 and H1 2025, driven by higher operating and warrant-related expenses | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :------------------------------- | :------------------------------- | :--------- | :--------- | | Revenues | $600 | $1,031 | $(431) | (41.8)% | | Gross Profit | $483 | $662 | $(179) | (27.0)% | | Operating Expenses | $11,613 | $14,589 | $(2,976) | (20.4)% | | Loss from Operations | $(11,130) | $(13,927) | $2,797 | (20.1)% | | Other (Expense) Income | $(9,719) | $(771) | $(8,948) | 1,160.6% | | Net Loss | $(20,858) | $(14,710) | $(6,148) | 41.8% | | Net Loss Per Share - Basic and Diluted | $(2.93) | $(261.99) | N/A | N/A | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | Change ($) | Change (%) | | :-------------------- | :----------------------------- | :----------------------------- | :--------- | :--------- | | Revenues | $1,084 | $1,251 | $(167) | (13.3)% | | Gross Profit | $818 | $803 | $15 | 1.9% | | Operating Expenses | $22,350 | $23,607 | $(1,257) | (5.3)% | | Loss from Operations | $(21,532) | $(22,804) | $1,272 | (5.6)% | | Other (Expense) Income | $(12,204) | $5,508 | $(17,712) | (321.6)% | | Net Loss | $(33,730) | $(17,312) | $(16,418) | 94.8% | | Net Loss Per Share - Basic and Diluted | $(6.41) | $(448.98) | N/A | N/A | [Unaudited Condensed Consolidated Statements of Comprehensive Loss](index=10&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Loss%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Statements of comprehensive loss present net loss adjusted by unrealized foreign exchange gains/losses, resulting in the total comprehensive loss | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | | Net Loss | $(20,858) | $(14,710) | | Unrealized foreign exchange gain / (loss) | $1,039 | $(32) | | Comprehensive Loss | $(19,819) | $(14,683) | | Metric (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------- | :----------------------------- | :----------------------------- | | Net Loss | $(33,730) | $(17,312) | | Unrealized foreign exchange gain / (loss) | $884 | $(198) | | Comprehensive Loss | $(32,846) | $(17,451) | [Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity](index=11&type=section&id=Unaudited%20Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity%20for%20the%20three%20and%20six%20months%20ended%20June%2030%2C%202025%20and%202024) Statements detail changes in stockholders' equity, reflecting common stock issuances, warrant exercises, preferred stock redemption, net losses, and translation adjustments | Metric (in thousands, except shares) | January 1, 2025 Balance | June 30, 2025 Balance | | :----------------------------------- | :---------------------- | :-------------------- | | Common Stock Shares | 1,685,021 | 17,915,340 | | Common Stock Amount | $2 | $18 | | Additional Paid-In Capital | $99,425 | $138,795 | | Accumulated Other Comprehensive Income (Loss) | $(622) | $884 | | Accumulated Deficit | $(93,562) | $(127,292) | | Total Stockholders' Equity | $6,574 | $12,405 | - During the six months ended June 30, 2025, the Company issued common shares for net cash proceeds from ATM offerings (**$1.7 million**), public offerings (**$17.9 million**), conversion of debt (**$0.8 million**), and exercise of liability classified warrants (**$18.0 million**)[26](index=26&type=chunk) - The Company redeemed Series 9 preferred stock, resulting in a decrease of **$1.4 million** in equity, and recognized stock-based compensation of **$1.2 million**[26](index=26&type=chunk)[

Core Insights - XTI Aerospace is making significant progress in the development of the TriFan 600, aiming to position it as a transformative aircraft for commercial and defense applications [2][3] - The company has strengthened its balance sheet by raising $18.4 million through a public offering, enhancing liquidity for engineering and certification activities [2][5] - Strategic partnerships have been expanded, including a memorandum of understanding with VerdeGo Aero to explore hybrid-electric propulsion solutions [2][6] Development Milestones - The Global Finite Element Model (GFEM) for configuration C211.2 has been finalized, a crucial step for FAA type certification [6] - Key drivetrain suppliers have been selected, including Triumph Geared Solutions and Kamatics Corporation, to provide essential components [6] - Over 1,500 computational fluid dynamics simulations have been conducted using the U.S. Department of Energy's Frontier supercomputer to optimize aerodynamic design [6] Strategic and Market Expansion Initiatives - The corporate advisory board has been expanded with leaders from aerospace, defense, and AI sectors to enhance navigation through certification and market entry [2][6] - A dedicated prototyping and innovation lab has been opened to accelerate testing of subscale models and flight control systems [2][6] - Technical familiarization sessions with the FAA are ongoing to streamline certification pathways [6] Financial Highlights - Cash and cash equivalents increased to $20.0 million as of June 30, 2025, up from $4.1 million at year-end 2024, primarily due to the public offering [12] - Stockholders' equity grew to $12.4 million as of June 30, 2025, reflecting new capital raised [12] - The company maintains a debt-free position, having repaid all short-term borrowings in Q1 2025 [12] Strategic Outlook - The company is focused on advancing the TriFan 600 through continued engineering and certification efforts, with key priorities for the second half of 2025 [8] - The TriFan 600 is designed to redefine regional air mobility, offering speed, range, and flexibility without traditional infrastructure constraints [8] - The market opportunity for the TriFan 600 is considered substantial, supported by a strengthened balance sheet and clear certification path [8]