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]

Core Perspective - The FAA's Notice of Proposed Rulemaking (NPRM) for "Normalizing UAS BVLOS Operations" aims to enhance American drone operations and establish a regulatory framework for commercial drone applications, responding to the Executive Order from June 6, 2025 [1] Group 1: Regulatory Developments - The proposed rules allow drones weighing up to 1,320 pounds to operate Beyond Visual Line of Sight (BVLOS) without traditional airworthiness certificates, facilitating a wider range of industrial and commercial missions [2] - The FAA's initiative introduces third-party Automated Data Service Providers (ADSPs) to manage traffic and situational awareness between crewed and uncrewed aircraft, which is essential for future autonomous flight corridors [2] Group 2: Industry Impact - The release of Part 108 is seen as a pivotal moment that will accelerate the Vertical Economy, unlocking the potential of advanced UAS and moving towards a fully integrated air mobility ecosystem [2] - XTI Aerospace emphasizes its commitment to safe and efficient air mobility, indicating that the FAA's actions signal a strong commitment to innovation and leadership in aviation [4] Group 3: Company Overview - XTI Aerospace is developing the TriFan 600, a fixed-wing business aircraft with vertical takeoff and landing (VTOL) capabilities, maximum speeds over 300 mph, and a range of up to 1,000 miles, creating a new category known as xVTOL [5] - The Inpixon business unit of XTI Aerospace specializes in real-time location systems (RTLS) technology, providing solutions that optimize operations and enhance safety in industrial settings [5]

Core Insights - XTI Aerospace is partnering with IDEO to enhance the customer experience for its TriFan 600 and future xVTOL aircraft, focusing on a human-centered design approach [1][3][4] - The collaboration will involve extensive market research, product validation, and design of user interfaces and service models to create a seamless travel experience [2][4] Company Overview - XTI Aerospace is developing the TriFan 600, a fixed-wing business aircraft with vertical takeoff and landing (VTOL) capabilities, cruising speeds over 300 mph, and a range of up to 1,000 miles, creating a new category of xVTOL aircraft [5] - The company also has a business unit, Inpixon, specializing in real-time location systems (RTLS) technology, enhancing operational efficiency and safety for industrial clients [5] Partnership Details - IDEO will apply its methodologies, including ethnographic research and systems-level design, to improve the aesthetics and functionality of XTI's aircraft, as well as the overall customer experience [2][4] - The partnership aims to refine aircraft interiors and exteriors, design mission-specific cabin environments, and overhaul digital experiences related to booking and ownership [7]

Core Viewpoint - XTI Aerospace is positioning itself as a leader in the xVTOL and powered-lift aircraft market, with significant pre-orders and a vision for transforming regional air mobility through its TriFan 600 aircraft [2][5]. Group 1: Company Overview - XTI Aerospace, Inc. is developing the TriFan 600, a fixed-wing business aircraft with vertical takeoff and landing (VTOL) capabilities, maximum cruising speeds exceeding 300 mph, and a range of nearly 1,000 miles [5]. - The company has approximately $3 billion in conditional pre-orders and reservations for the TriFan 600, indicating strong market interest [2]. - XTI Aerospace's Inpixon business unit specializes in real-time location systems (RTLS) technology, enhancing operational efficiency and safety for industrial clients [5]. Group 2: Market Potential - The regional air mobility market is projected to reach a valuation of $9 trillion by 2050, according to Morgan Stanley, highlighting the growth potential for xVTOL solutions [2]. - XTI Aerospace aims to bridge the gap between helicopters and business airplanes, positioning the TriFan 600 as a category-defining aircraft for regional travel [2][3]. Group 3: Upcoming Events - A webinar featuring XTI Aerospace's Chairman and CEO, Scott Pomeroy, is scheduled for July 31, 2025, to discuss the company's vision and the TriFan 600 [1][4]. - The webinar will include a live Q&A session, allowing investors to engage directly with company leadership [1][3].

Core Insights - XTI Aircraft Company is progressing towards FAA certification for its TriFan 600 aircraft, which is designed for vertical takeoff and landing (VTOL) and aims to transform regional air travel [1][2] - The FAA's new Advisory Circular 21-17-4, released on July 18, 2025, is a significant regulatory milestone for XTI as it works on the certification process [1] Company Overview - XTI Aerospace, the parent company of XTI Aircraft 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, creating a new category known as xVTOL [2] - The Inpixon business unit of XTI Aerospace specializes in real-time location systems (RTLS) technology, providing solutions that enhance operational efficiency and safety in industrial settings [2] Regulatory Engagement - XTI has been collaborating with the FAA, utilizing draft versions of the new Advisory Circular to refine the TriFan 600's design and ensure compliance with certification requirements [1] - The company emphasizes the importance of FAA's involvement in the development of its systems and structural design [1]

Core Viewpoint - XTI Aerospace is positioning itself as a leader in the xVTOL and powered-lift aircraft market, with a focus on the TriFan 600 aircraft, which aims to transform regional air mobility and capture a significant share of a projected $9 trillion market by 2050 [2][3]. Company Overview - XTI Aerospace, Inc. is developing the TriFan 600, a fixed-wing business aircraft with vertical takeoff and landing (VTOL) capabilities, maximum cruising speeds exceeding 300 mph, and a range of nearly 1,000 miles, creating a new category known as xVTOL [5]. - The company has approximately $3 billion in conditional pre-orders and reservations for the TriFan 600, indicating strong market interest and potential demand [2]. Industry Context - The regional air mobility market is expected to grow significantly, with Morgan Stanley estimating its value to reach $9 trillion by 2050, highlighting the vast opportunities for companies like XTI Aerospace [2]. - XTI Aerospace aims to bridge the gap between helicopters and business airplanes, positioning the TriFan 600 as a category-defining aircraft for regional travel [2][3]. Upcoming Events - XTI Aerospace will host a webinar on July 31, 2025, to discuss its vision for regional air mobility and the TriFan 600, featuring insights from Chairman and CEO Scott Pomeroy [1][3].

Core Insights - XTI Aerospace has appointed Charlie Burgoyne, CEO of Valkyrie, to its Corporate Advisory Board, enhancing its capabilities in designing advanced aircraft systems for defense and unmanned aircraft applications [1][2][4] - The appointment aims to leverage Burgoyne's expertise in AI and decision intelligence to improve XTI's strategic focus on national security and advanced aerial technologies [4][6] Company Developments - XTI is expanding its advisory team with notable figures from the defense and technology sectors, including former leaders from Palantir and the U.S. Space Force, to strengthen its strategic initiatives [5] - The company is advancing its flagship product, the TriFan 600, which is designed for high performance with vertical takeoff and landing capabilities, targeting both manned and unmanned applications [5][7] Strategic Alignment - XTI's strategic priorities align with the U.S. government's focus on domestic drone production and air dominance, as outlined in the June 2025 Presidential Executive Order [6] - The company aims to position itself at the intersection of autonomy, aerial mobility, and defense readiness, reflecting a commitment to developing intelligent platforms that integrate advanced software and data systems [6]

Group 1 - XTI Aircraft Company, a subsidiary of XTI Aerospace, is developing the TriFan 600, a fixed-wing business aircraft with vertical takeoff and landing (VTOL) capabilities, maximum cruising speeds over 300 mph, and a range of up to 1,000 miles [3] - The recent Tech Fam meeting with the FAA focused on the TriFan 600's propulsion system and compliance in key certification areas such as engine fire containment, bird strike impact, and cabin occupant safety [1][2] - XTI's engineering team emphasizes a collaborative approach with the FAA to ensure a safe and reliable aircraft, highlighting the importance of open dialogue during the certification process [2] Group 2 - XTI Aerospace also operates the Inpixon business unit, which specializes in real-time location systems (RTLS) technology, providing solutions that optimize operations and enhance safety in industrial facilities [3] - The company aims to create a new category of aircraft, termed xVTOL, which combines the advantages of fixed-wing and helicopter capabilities [3]