Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 67

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 67
---
 areas
presents significant opportunities for us, they also pose material challenges and risks that we must successfully address to achieve
FAA certification of the TriFan 600 and further reach our current aircraft delivery forecasts.

Corporate Strategy Update

Our primary focus is to power
what we term the Vertical Economy™ by delivering high-performance xVTOL solutions that scale from aircraft to innovative technologies
and infrastructure. We identify seven areas that comprise the Vertical Economy: manned aircraft, unmanned aircraft, power technology,
airspace and infrastructure management, artificial intelligence, aircraft advanced materials and next gen manufacturing. The term “xVTOL”
is intended to encompass the broad spectrum of vertical lift technologies within the Vertical Economy, including various aircraft types
(e.g., electric VTOL, regional VTOL and drones), operational models (manned and unmanned), supporting technologies (e.g., propulsion systems
and aerospace-related artificial intelligence technologies) and customer applications. With the TriFan 600 as our flagship commercial
aviation product, we are laying the groundwork for an innovative family of versatile aircraft and solutions addressing passenger travel,
logistics, autonomous operations and defense missions that we believe will unlock significant growth and market leadership.

Expanding into autonomous,
remotely operated drones via the acquisition of Drone Nerds was key to our strategic focus. By combining drone technology with VTOL innovation,
we believe we are positioning the Company to accelerate the development of both unmanned aerial vehicles and VTOL solutions, expand its
market presence, and create new revenue-generating opportunities across multiple industries. We will also be opportunistic and may consider
other strategic transactions, which may include, but not be limited to, other alternative investment opportunities, such as minority investments
and joint ventures. If we make any acquisitions in the future, we expect that we may pay for such acquisitions with cash, equity securities
and/or debt in combinations appropriate for each acquisition.

Recent Events

Acquisitions of Drone Nerds and Anzu Robotics

On November 10, 2025, XTI Drones Holdings, LLC,
a Texas limited liability company (“XTI Drones Holdings”) and a subsidiary of our wholly-owned subsidiary, XTI Drones, LLC,
acquired 100% of the issued and outstanding equity interests of two enterprise drone solutions providers, Drone Nerds (as defined above)
and Anzu Robotics, LLC, a Delaware limited liability company (“Anzu Robotics”), pursuant to the terms of two separate membership
interest purchase agreements (such transactions, respectively, the “Drone Nerds Acquisition” and the “An