XTI Aerospace (XTIA) Q2 2024 earnings summary

Executive summary

• Completed a reverse merger with Inpixon on March 12, 2024, resulting in a new focus on aircraft development and continued Industrial IoT operations.

• TriFan 600 VTOL aircraft remains in development, with focus on C211.2 configuration to optimize aerodynamics; no commercial aviation revenue yet.

• Signed letter of intent with AVX Aircraft for design, development, and certification services, aiming to reduce commercialization costs and accelerate first flight.

• Announced conditional preorders for 100 TriFan 600 aircraft from Mesa Air Group, representing potential $1 billion in revenue if fully exercised.

• Company effected a 1-for-100 reverse stock split to maintain Nasdaq listing compliance.

Financial highlights

• For Q2 2024, revenue was $1.0 million, all from Industrial IoT, compared to $0 in Q2 2023.

• Gross profit for Q2 2024 was $0.7 million; operating expenses rose to $14.6 million, mainly due to $6.7 million in nonrecurring transaction bonuses.

• Net loss attributable to common stockholders for Q2 2024 was $15.4 million, compared to $4.6 million in Q2 2023.

• Cash and cash equivalents as of June 30, 2024 were $5.8 million; working capital deficit was $7.9 million.

• For the six months ended June 30, 2024, revenue was $1.3 million, net loss was $18.1 million.

Outlook and guidance

• Revenues for the Industrial IoT segment expected to remain consistent in the second half of 2024.

• Commercial aviation segment will not generate revenue until TriFan 600 certification and production are achieved.

• Key milestones include finalizing AVX agreement in Q3 2024, establishing engineering offices and selecting suppliers in Q4 2024, and completing preliminary design review by Q4 2025.

• Commercialization timeline for TriFan 600 expected to advance upon closing of FC Imperial investment.

• Additional capital is required to complete aircraft development and certification.