Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 205

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 2
Chunk 205
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ITEM 2: MANAGEMENT’S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

You should read the following discussion of our financial condition and
results of operations in conjunction with the condensed consolidated financial statements and the related notes included elsewhere in
this Form 10-Q and with the audited consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31,
2024, as filed with the SEC. In addition to our historical condensed consolidated financial information, the following discussion contains
forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed
in the forward-looking statements. Factors that could cause or contribute to these differences include those discussed below and elsewhere
in this Form 10-Q, particularly in Part II, Item 1A, “Risk Factors.”

Overview of Our Business

We are primarily an aircraft
development company. We also provide real-time location systems (“RTLS”) for the industrial sector, which was Legacy Inpixon’s
focus prior to the closing of the XTI Merger.

Headquartered in Englewood,
Colorado, the Company is developing a vertical takeoff and landing (“VTOL”) airplane that is designed to take off and land
like a helicopter and cruise like a fixed-wing business airplane. We believe our initial configuration, the TriFan 600 airplane, will
be one of the first civilian fixed-wing VTOL airplane that offers the speed and comfort of a business airplane and the range and versatility
of VTOL for a wide range of customer applications, including private aviation for business and high net worth individuals, emergency medical
services, and regional charter air travel. Since 2013, we have been engaged primarily in developing the aerodynamic performance and top-level
engineering design of the TriFan 600, building and testing a two-thirds scale unmanned version of the TriFan 600, generating pre-orders
for the TriFan 600, and seeking funds from investors to enable the Company to advance the detailed design and certification of the TriFan
600, and to eventually engage in commercial production and sale of the TriFan 600.

We continue to work to optimize
our airplane design for both manufacturing and certification. The development of a VTOL airplane that meets our business requirements
demands significant design and development efforts on all facets of the airplane. We believe that by bringing together a mix of talent
with VTOL and traditional commercial aerospace backgrounds, we have built a team that enables us