Core Viewpoint - XTI Aerospace has made significant progress in overcoming financial obligations and advancing its TriFan 600 VTOL aircraft development, while also addressing shareholder concerns regarding stock-based financing obligations and market valuation [2][3][8]. Financial Obligations and Market Performance - Upon listing on Nasdaq, XTI assumed approximately $30 million in obligations related to equity-based financing, which limited access to capital [3]. - In January 2025, XTI sold $20 million in common stock, but after using 20% of the proceeds to meet obligations, over $7 million remained outstanding [4]. - A reverse stock split was executed to comply with Nasdaq standards, resulting in an effective share price of $13.75 [4]. - Following a significant drop in share price, a share repurchase program was authorized to buy back stock in the open market [6]. Milestones and Achievements - On March 17, 2025, XTI achieved a major regulatory milestone with the FAA's acceptance of its Type Certification application, crucial for commercial launch [7]. - The company raised an additional $4 million in a public offering to fully repay secured promissory notes and eliminate remaining equity-based financing obligations [7][8]. - As of now, XTI has no stock-based financing obligations and maintains over $8 million in cash, sufficient to sustain operations into Q4 2025 [8]. Future Outlook and Investor Engagement - XTI believes its shares are undervalued and is launching a non-deal roadshow targeting 100 investor meetings to increase awareness among institutional investors [9]. - The company aims to present a new investor deck that outlines its vision and potential for growth in the aerospace sector [9].
XTI Aerospace CEO Letter to Shareholders