Core Viewpoint - XTI Aerospace has divested its real-time location systems business to focus on its drone technology and aims for profitability by 2026 [1][3]. Group 1: Transaction Details - The sale of Inpixon GmbH was completed for EUR 4.64 million (approximately $5.48 million) effective February 3, 2026 [1]. - The divestiture is part of XTI's strategy to streamline its cost structure and sharpen its focus on drone technology [2][3]. Group 2: Strategic Focus - XTI's CEO emphasized the importance of making disciplined decisions to position the company for scale and profitability in markets with strong strategic opportunities [2]. - The company believes that the transaction aligns with its goal of establishing leadership in the drone sector and driving towards sustainable profitability [3]. Group 3: Inpixon's Future - Inpixon is expected to thrive under its new ownership, which brings technology experience and operational leadership to support its growth [3]. - Inpixon specializes in indoor positioning and real-time localization technologies, which are no longer aligned with XTI's strategic focus [2][3]. Group 4: Company Overview - XTI Aerospace is focused on advancing vertical flight and is a provider of unmanned aircraft systems through its Drone Nerds LLC business [4]. - The company is also engaged in developing advanced vertical takeoff and landing aircraft [4].

Core Viewpoint - The recent FCC action restricting certain foreign-made unmanned aircraft systems (UAS) presents a significant opportunity for the U.S. drone ecosystem, positioning XTI Aerospace and its subsidiary Drone Nerds to lead in this evolving market [2][3]. Company Overview - XTI Aerospace, Inc. is focused on building and scaling capabilities in the UAS sector, operating one of the largest enterprise drone platforms in the U.S. through its subsidiary Drone Nerds [6][9]. - Drone Nerds, acquired by XTI in November 2025, is a leading provider of enterprise UAS solutions, offering a full-stack solution that includes product selection, fleet management, training, and support [5][6]. Market Position and Strategy - The FCC's action is part of a national security framework that will influence the future authorization and procurement of foreign-made drones, creating a market for compliant UAS sourced from the U.S. and FCC-approved partners [3][4]. - XTI Aerospace aims to help U.S. commercial, enterprise, public safety, and government customers transition to compliant systems, leveraging its established customer base and technology partners [5][6]. Operational Capabilities - Drone Nerds supports customers with existing UAS fleets and assists in evaluating compliant options for future procurement as regulatory requirements evolve [4]. - The company has a national footprint and a reputation for reliability and operational assurance, particularly in mission-critical environments [7]. Future Developments - XTI Aerospace is also involved in advanced aviation initiatives, including the development of the TriFan 600, a next-generation aircraft that combines vertical takeoff and landing capabilities with the speed of conventional airplanes [8].

Core Insights - Drone Nerds LLC has announced a technology partnership with Shenzhen Creality 3D Technology Co., Ltd, enhancing its product offerings in the drone technology sector [1][4] - The collaboration allows Drone Nerds to provide Creality's advanced 3D printers, scanners, and laser engravers, expanding its portfolio for both consumer and enterprise applications [2][3] Group 1: Partnership Details - The partnership introduces Creality's advanced lineup, including the K2 Series, Ender-3 V3 SE, Hi Combo, Falcon A1, and Raptor Pro, to Drone Nerds' offerings [2] - This collaboration aims to empower creators, enabling them to design and personalize various products, including drone accessories and educational prototypes [2][3] Group 2: Impact on Enterprise Innovation - The integration of Creality's technology enhances Drone Nerds' capabilities in sectors such as engineering, prototyping, education, public safety, manufacturing, construction, and energy [3] - Organizations can utilize 3D printing and scanning for custom components, rapid iterations, and cost-effective in-house solutions [3][4] Group 3: Availability and Future Plans - Creality's products are now available through Drone Nerds' online store, with plans for expanded enterprise distribution and educational programs [5] - The partnership is expected to inspire creators and industries to adopt digital fabrication technologies [4]

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].

Revenue Generation and Financial Performance - The company has not generated any revenue from aircraft sales as it is still in the design and development phase of the xVTOL airplane, specifically the TriFan 600[230]. - The Company has not generated revenue from the Commercial Aviation segment as it continues to design and develop the TriFan 600 airplane[270]. - Revenues for Q3 2025 were $2.5 million, a 171% increase from $0.9 million in Q3 2024, primarily driven by a $1.3 million increase in hardware revenue due to improved supply chain conditions[284]. - For the nine months ended September 30, 2025, revenues were $3.6 million, a 64% increase from $2.2 million in the same period of 2024, with hardware revenue contributing $0.9 million and recurring software revenue increasing by $0.4 million[292]. - The company reported a net loss of approximately $47.2 million for the nine months ended September 30, 2025, with cash used in operating activities amounting to approximately $30.4 million[309][318]. - Net loss for Q3 2025 was $13.4 million, a 203% increase from a net loss of $4.4 million in Q3 2024[284]. - Other expense for the nine months ended September 30, 2025 was a loss of $10.8 million, compared to a gain of $5.3 million in the same period of 2024, primarily due to financing costs and changes in fair value of warrant liabilities[297]. Strategic Acquisitions and Investments - The company acquired Drone Nerds and Anzu Robotics for a total consideration of approximately $41.6 million, which includes $20 million in cash and $11.9 million in promissory notes[239]. - The Company made a strategic investment of $2 million in Valkyrie Sciences Holdings LLC through a convertible promissory note, with an interest rate of 10% per annum[252]. - The company acquired 100% of Drone Nerds and Anzu Robotics for a total purchase consideration of $40.0 million, which included $20.0 million in cash and $11.9 million in promissory notes[310]. Research and Development - Research and development expenses are expected to increase significantly as the Company builds aircraft prototypes and develops technologies for the TriFan 600[273]. - The TriFan 600 program made notable progress in engineering development, completing initial flight operations for subscale prototypes during Q3 2025, with a full-scale demonstrator expected to be completed in 2027[258]. - The company is focused on developing a family of versatile aircraft and solutions within the Vertical Economy, which includes various aircraft types and supporting technologies[237]. Operational and Administrative Expenses - Operating expenses for Q3 2025 increased to $15.9 million from $4.7 million in Q3 2024, reflecting a 235% rise attributed to increased headcount and operational growth[288]. - Operating expenses for the nine months ended September 30, 2025 were $38.2 million, up 35% from $28.3 million in the prior year, driven by increases in research and development, sales and marketing, and general and administrative expenses[296]. - General and administrative expenses are anticipated to rise substantially as the Company increases headcount to support research and development and commercialization efforts[277]. Financing Activities and Cash Flow - The company raised $25 million through a private placement of Series 10 Convertible Preferred Stock, receiving net proceeds of approximately $23.1 million after expenses[242]. - The September Offering closed on September 15, 2025, resulting in net proceeds of approximately $18.5 million after deducting placement agent fees and expenses of about $1.5 million[254]. - Net cash flows provided by financing activities for the nine months ended September 30, 2025, were approximately $58.6 million, significantly higher than the $11.9 million reported for the same period in 2024[323][324]. - Cash and cash equivalents increased by approximately $28.1 million from December 31, 2024, primarily due to net proceeds from public offerings[305]. - Cash and cash equivalents as of September 30, 2025, were approximately $32.2 million, with working capital adjusted to $29.3 million excluding derivative warrant liabilities[309]. Future Plans and Certifications - The company aims to achieve FAA certification for the TriFan 600, which is critical for future revenue generation and operational success[235]. - The company expects to commence deliveries of the TriFan 600 no earlier than 2030 and plans to fund operations primarily through equity and/or debt financings until then[313]. - The company plans to hold a shareholder meeting by January 31, 2026, to obtain approval for the removal of conversion limitations on the Series 10 Preferred Stock[245]. Compliance and Regulatory Engagement - The Company maintains active engagement with the FAA to ensure compliance with regulatory requirements during the development of the TriFan 600[259]. - The company does not have any off-balance sheet guarantees or trading activities involving non-exchange traded contracts[325].

Core Points - XTI Aerospace will participate in The ThinkEquity Conference on October 30, 2025, in New York, providing a platform for company presentations and investor meetings [1][3] - CEO Scott Pomeroy will present at 2:30 PM EST and management will hold one-on-one investor meetings throughout the day [2] - XTI Aerospace is developing the TriFan 600, a fixed-wing business aircraft with VTOL capabilities, maximum cruising speeds over 300 mph, and a range of up to 1,000 miles [4] Company Overview - XTI Aerospace, Inc. is the parent company of XTI Aircraft Company, focused on innovative aviation solutions [4] - The company is also involved in real-time location systems technology through its Inpixon business unit, which enhances operational efficiency in industrial settings [4] ThinkEquity Conference Details - The ThinkEquity Conference has previously featured over 70 company presentations, 700+ attendees, and 500+ one-on-one meetings, facilitating connections between companies and investors [3]

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].

Aircraft Development - The company is developing the TriFan 600, a vertical takeoff and landing (VTOL) airplane designed for various applications, including private aviation and emergency medical services, with a range of over 1,000 miles and speeds twice that of competing helicopters [223]. - The company achieved several key development milestones for the TriFan 600, including finalizing the Global Finite Element Model and selecting key components for the drivetrain system [239]. - The FAA has assigned the Fort Worth Certification Branch Office to oversee the TriFan 600 certification activities, marking a significant step in the certification process [239]. - The company is actively engaging with the FAA to ensure compliance with regulatory requirements as it advances the TriFan 600 toward certification and commercialization [240]. - The company is exploring hybrid-electric propulsion solutions for future aircraft variants through a collaboration with VerdeGo Aero [239]. - The company expects to commence deliveries of the TriFan 600 by 2030 at the earliest, funding operations primarily through equity and debt financings until then [296]. Financial Performance - Revenues for the three months ended June 30, 2025 were $0.6 million, a decrease of 41.8% compared to $1 million for the same period in 2024, primarily due to supply chain disruptions [266]. - Gross profit for the three months ended June 30, 2025 was $0.5 million, down from $0.7 million in the prior year, with a gross margin percentage of 80.5% compared to 64.2% [268]. - Operating expenses for the three months ended June 30, 2025 were $11.6 million, a decrease of $3 million from $14.6 million in the same period in 2024 [269]. - Revenues for the six months ended June 30, 2025 were $1.1 million, a decrease of 13.3% from $1.3 million in the prior year, also due to supply chain disruptions [275]. - Gross profit for the six months ended June 30, 2025 was $0.8 million, consistent with the prior year, with a gross margin percentage of 75.5% compared to 64.2% [277]. - Operating expenses for the six months ended June 30, 2025 were $22.4 million, a decrease of $1.2 million from $23.6 million in the same period in 2024 [278]. - The company recorded a loss of $9.7 million in other (expense) income for the three months ended June 30, 2025, compared to a loss of $0.8 million in the prior year [271]. - The company reported a net loss of approximately $33.7 million for the six months ended June 30, 2025, compared to a loss of $8.2 million for the same period in 2024 [293]. Capital and Funding - The company raised approximately $14.7 million in net proceeds from a public offering of 6,231,200 shares of common stock, which closed on June 26, 2025 [233]. - The company raised approximately $41.8 million in net proceeds through various public offerings and warrant exercises during the first half of 2025 [286]. - Cash and cash equivalents increased by approximately $15.9 million, primarily due to net proceeds from the June Offering, bringing total cash to approximately $20.0 million as of June 30, 2025 [288][284]. - Net working capital improved by approximately $11.2 million, reaching $2.4 million, adjusted to $16.9 million when excluding derivative warrant liabilities [285][293]. - The company filed a shelf registration statement on Form S-3, allowing it to offer up to $1 billion in securities until August 2028 [295]. Strategic Initiatives - The company is focused on expanding into autonomous, remotely operated drones as part of its strategic initiatives to create new revenue opportunities across multiple industries [231]. - The company has expanded its corporate advisory board to ten members to evaluate strategic opportunities related to the anticipated demand for the TriFan 600 [238]. - The company reported that during the quarter ended December 31, 2024, it began exploring strategic options to wind down and/or sell the hardware portions of its Industrial IoT business segment to focus on software sales [227]. Goodwill and Impairment - A goodwill impairment of $4.05 million was recognized for the three and six months ended June 30, 2025, attributed to the Industrial IoT reporting unit [249]. - The company will continue to monitor qualitative and quantitative factors for potential goodwill impairment during fiscal year 2025 [248]. Cash Flow and Expenses - The company incurred $22 million in net cash used by operating activities for the six months ended June 30, 2025 [284]. - Net cash used in operating activities for the three months ended June 30, 2025 was approximately $22.0 million, with a net loss of $33.7 million [301]. - Non-cash income and expenses for the three months ended June 30, 2025 totaled approximately $17.7 million, primarily due to stock-based compensation of $1.2 million and impairment of goodwill of $4.0 million [301]. - Net cash used in changes in operating assets and liabilities was approximately $5.9 million, mainly due to a decrease in accrued expenses of $4.9 million [301]. - Net cash used in investing activities for the six months ended June 30, 2025 was approximately $0.1 million, compared to $2.9 million provided in the same period of 2024 [304]. - Net cash flows provided by financing activities during the six months ended June 30, 2025 was approximately $37.7 million, including $36.4 million from the sale of common stock and warrants [305]. - The company received $1.7 million from the now expired ATM and $3.8 million from the exercise of warrants during the six months ended June 30, 2025 [305]. - The company repaid $0.5 million towards outstanding promissory notes during the six months ended June 30, 2024 [306]. - The decrease in accrued expenses and other current liabilities of approximately $4.9 million was mainly due to cash payments for accrued transaction bonuses and consulting fees [301]. - The company does not have any off-balance sheet guarantees or engage in trading activities involving non-exchange traded contracts [307].

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 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]