Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 209

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 209
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 so issuable upon such exercise and, on the shareholder approval date, the Company will issue
such shares to such holder.

37

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 focused on the design and commercialization of vertical takeoff and landing (“VTOL”) aircraft. We also
provide real-time location systems (“RTLS”) for industrial applications and, through our wholly-owned subsidiary, XTI Drones,
LLC, offer drone distribution and technology solutions via our recent acquisitions of Drone Nerds, LLC and Anzu Robotics, LLC (see “Recent
Events”).

Headquartered in Englewood,
Colorado, the Company is developing a 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 category of VTOL that we term 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, we have been engaged primarily in developing the aerodynamic performance and top-level engineering
design of the TriFan 600, building and testing a two