Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 186

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 186
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 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.

Expansion of Corporate Advisory Board 

During the six months ended
June 30, 2025, the Company expanded its corporate advisory board, which is now comprised of ten advisory board members led by Michael
Tapp, who are helping the Company evaluate strategic opportunities to capitalize on the anticipated demand for the TriFan 600.

TriFan 600 Engineering Update

During the quarter ended
June 30, 2025, we continued to advance the development of the TriFan 600. Below are key development milestones that
were achieved during the quarter:

●We
                                            finalized the Global Finite Element Model (GFEM) for the latest aircraft configuration (C211.2),
                                            a foundational engineering step toward validating structural performance as part of the type
                                            certification process.

●We
                                            selected Triumph Group Inc.’s gear systems, Kamatics Corporation, and Formsprag LLC’s
                                            Formsprag Clutch products to support the development efforts of the drivetrain system.

    ●
    The FAA formally assigned the Fort Worth Certification Branch Office (CBO) to oversee TriFan 600 certification activities, an administrative step that establishes our primary FAA point of contact as we continue the type certification process.

●Through a collaboration with Oak Ridge National Laboratory, we continued
running Computational Fluid Dynamics (CFD) simulations to support refinement of the updated aircraft configuration’s aerodynamic
performance as part of the ongoing design and certification process. 

●We held a Technical Familiarization (“Tech Fam”) session
with the FAA on aircraft structures, an important step in preparing for the detailed compliance reviews required in the type certification
process.

●We
opened a Prototyping & Innovation Lab at The HIVE in Grand Forks, North Dakota, to test subscale models of the TriFan 600, including
“Sparrow” and “Kestrel,” and to advance flight control systems.

●We
entered into a non-binding memorandum of understanding with VerdeGo Aero to explore hybrid-electric propulsion solutions for future aircraft
variants, which remains subject to the parties’ execution of a definitive agreement.

In
parallel, the development team continued to optimize core elements of the TriFan 600 design, including:

●Ducted
                                            fan enhancements to improve cruise performance and efficiency