Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 156

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 156
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XTI AEROSPACE, INC. AND
SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 1 - Nature of Business

On March 12, 2024 (the “Closing Date”), XTI Aerospace,
Inc., the “Company”, formerly known as Inpixon (“Legacy Inpixon”), Superfly Merger Sub Inc., a Delaware corporation
and a wholly owned subsidiary of Legacy Inpixon, and XTI Aircraft Company, a Delaware corporation (“Legacy XTI”), completed
their previously announced merger transaction (the “XTI Merger”).

The Company is primarily an aircraft development
company. As of November 10, 2025, and through the Company’s wholly-owned subsidiary, XTI Drones, LLC, the Company offers drone distribution
and technology solutions via its recent acquisitions of Drone Nerds, LLC and Anzu Robotics, LLC (see Note 19 “Subsequent Events”).
The Company also provides 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. The Company believes its 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 category of VTOL that the Company terms the “xVTOL.” The TriFan 600 is a seven-occupant
airplane intended to provide point-to-point air travel over distances of over 1,000 miles, fly at twice the speed and three times the
range of competing helicopters and cruise at altitudes of up to 25,000 feet. Since 2013, the Company has 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