Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 107

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 107
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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 (“Merger Sub”), 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. 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.
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 the TriFan 600, and to eventually engage
in commercial production and sale of the TriFan 600 airplane.

The Company’s RTLS solutions leverage cutting-edge technologies
such as IoT, AI, and big data analytics to provide real-time tracking and monitoring of assets, machines, and people within industrial
environments. With the Company’s RTLS solutions, businesses can achieve improved operational efficiency, enhanced safety and reduced
costs. By having real-time visibility into operations, industrial organizations can make informed, data-driven decisions, minimize downtime,
and ensure compliance with industry regulations.

Note 2 - Basis of Presentation

The accompanying unaudited condensed consolidated
financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States
of America (“GAAP”) for interim financial information and the rules and regulations of the Securities and Exchange Commission
(“SEC”). Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements.
In the opinion of management, all adjustments (cons