Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 181

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 181
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to the Arbitration, and (ii) counsel for the parties executed a joint stipulation whereby Chardan and Aircraft agreed to dismiss with
prejudice all claims asserted against each other with respect to the Arbitration, which was filed in the Arbitration. None of the parties
made any payments in connection with the Chardan Settlement Agreement and, pursuant to the Chardan Settlement Agreement, the parties agreed
that none of the parties owes each other any amount or debt. Pursuant to the Chardan Settlement Agreement, the parties also agreed that
the Engagement Letter is terminated and is of no further force or effect.

Warrant Exercises

As disclosed in Note 12, certain of the Common Warrants and Pre-funded
Warrants issued in connection with the March Offering and June Offering were exercised for shares of common stock subsequent to June 30,
2025.

36

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.

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 airplanes 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, defining a new