XTI Aerospace, Inc. (NASDAQ: XTIA) (“XTI Aerospace” or the “Company”) announces a business update and the filing of its quarterly report on Form 10-Q for the quarter ended June 30, 2024.

“We continue to advance the development of the TriFan 600, a fixed-wing, vertical lift crossover aircraft uniquely designed to meet the needs of the evolving aviation industry and its customers,” said Scott Pomeroy, CEO of XTI Aerospace. “In the second quarter, XTI Aerospace and AVX Aircraft Company (“AVX”), a leader in advanced vertical lift solutions, announced the signing of a letter of intent, and are currently progressing towards a definitive agreement, whereby AVX’s experienced engineers will provide design, development and certification services to XTI Aerospace, reducing overall commercialization costs and potentially accelerating the timeline to first flight.”

Don Purdy, SVP business & program development, added, “XTI Aircraft continues to progress the TriFan 600 design. Specifically, the team is focused on the C211.2 configuration update which will further optimize the aerodynamic performance of the aircraft. Also, XTI Aerospace and AVX, under an interim engineering services agreement, are collaborating on several ‘trade studies,’ such as the use of full digital control of actuators to direct the aircraft – known as ‘fly-by-wire’ – and the use of composite materials versus aluminum for various aircraft structures and surfaces. These trade studies will further refine the revolutionary design of the TriFan 600 – a category-defining aircraft.”

“In the second quarter, XTI Aerospace also announced conditional preorders for 100 TriFan 600 aircraft from Mesa Air Group,” said Mr. Pomeroy. “Assuming the order is fully exercised, it would represent approximately $1 billion in revenue for XTI Aerospace, validating the interest and support we are witnessing in the market. Additionally, XTI Aerospace executed a capital distribution agreement with FC Imperial Limited for a proposed strategic equity investment of up to $55 million at a post-money valuation of $275 million, following more than one year of negotiations and due diligence. The time to commercialization of the TriFan 600 would be advanced upon closing of this transaction.”

Visit the recently redesigned website at XTIAerospace.com which includes a video from the Company’s founder, David Brody, sharing the Company’s story and how the TriFan vertical lift crossover airplane is positioned to transform the aviation market.

Key Expected Milestones

Q3 2024:

Finalize definitive agreement with AVX for further design and development of the TriFan 600 Vertical Lift Crossover Airplane

Q4 2024:

Establish Alliance Perot Field (Fort Worth, TX) engineering offices
Select engine supplier, cabin integrator and drivetrain suppliers

Q1 2025:

Complete key engineering hires
Select avionics supplier

Q2 2025:

Complete engineering facilities expansion
Complete marketing demonstrator

Q3 2025:

Complete virtual/augmented reality cabin experience

Q4 2025:

Complete preliminary design review (PDR)
The Company’s quarterly report on Form 10-Q for the quarterly period ended June 30, 2024, is scheduled to be filed with the U.S. Securities and Exchange Commission today. The Form 10-Q will also be available on the Company’s website.

The preceding information is a portion of the announcement. You are advised to read the complete press release for additional information and disclaimers.