Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 66

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 66
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 development of the TriFan 600. Below are key development milestones that
were achieved during the quarter:

●We
                                            finalized the Global Finite Element Model (GFEM) for the latest aircraft configuration (C211.2),
                                            a foundational engineering step toward validating structural performance as part of the type
                                            certification process.

●We
                                            selected Triumph Group Inc.’s gear systems, Kamatics Corporation, and Formsprag LLC’s
                                            Formsprag Clutch products to support the development efforts of the drivetrain system.

    ●
    The FAA formally assigned the Fort Worth Certification Branch Office (CBO) to oversee TriFan 600 certification activities, an administrative step that establishes our primary FAA point of contact as we continue the type certification process.

●Through a collaboration with Oak Ridge National Laboratory, we continued
running Computational Fluid Dynamics (CFD) simulations to support refinement of the updated aircraft configuration’s aerodynamic
performance as part of the ongoing design and certification process. 

●We held a Technical Familiarization (“Tech Fam”) session
with the FAA on aircraft structures, an important step in preparing for the detailed compliance reviews required in the type certification
process.

●We
opened a Prototyping & Innovation Lab at The HIVE in Grand Forks, North Dakota, to test subscale models of the TriFan 600, including
“Sparrow” and “Kestrel,” and to advance flight control systems.

●We
entered into a non-binding memorandum of understanding with VerdeGo Aero to explore hybrid-electric propulsion solutions for future aircraft
variants, which remains subject to the parties’ execution of a definitive agreement.

In
parallel, the development team continued to optimize core elements of the TriFan 600 design, including:

●Ducted
                                            fan enhancements to improve cruise performance and efficiency,

●Structural
                                            design refinements based on updated loads and material analysis,

●Aerodynamic performance enhancements to the wing and tail surfaces,

●Stability and control improvements aligned with certification objectives,
and

●Updates to weight and Center of Gravity (CG) assessments.

We
maintain active monthly engagement with the FAA, including ongoing support for Tech Fam sessions with agency subject matter experts.
These interactions support continued progress in development and help confirm that our approach remains consistent with applicable regulatory
requirements.

We remain focused on advancing the TriFan 600
toward certification and commercialization, with Q2 marking notable progress in both engineering development and regulatory engagement
activities.

39

Critical Accounting Policies and Estimates