Definitive Agreement is Expected to Shorten
Timeline and Reduce Costs Related to Design, Development and
Certification of XTI's TriFan 600
ENGLEWOOD, Colo., June 4, 2024
/PRNewswire/ -- XTI Aerospace, Inc. (NASDAQ: XTIA) ("XTI
Aerospace", or the "Company") today announced that its subsidiary,
XTI Aircraft Company ("XTI Aircraft"), has signed a Letter of
Intent ("LOI") with AVX Aircraft Company ("AVX"), a leader in
advanced vertical lift solutions, to provide development, design,
and certification services to support XTI Aircraft's proprietary
and patented TriFan 600, a fixed-wing aircraft with vertical
takeoff and landing ("VTOL") capability. The definitive agreements
are expected to be signed in the coming weeks.
"The relationship with AVX provides XTI Aircraft with seasoned
engineering talent and a company highly experienced in designing
and developing vertical lift aircraft technology," said
Scott Pomeroy, chairman and chief
executive officer of XTI Aerospace. "AVX will help refine our
current design, which we expect will accelerate the TriFan 600
development program while significantly reducing expenses for
certain engineering capabilities and services."
Under the proposed terms of the definitive agreement, XTI
Aircraft, led by XTI Aerospace Senior Vice President of Business
and Program Development Don Purdy,
will provide management, direction, and oversight of the TriFan 600
program. AVX will become the prime contractor including detailed
design, program management, subcontract management and
certification support services.
Kendall Goodman, president of
AVX, said, "The AVX team is delighted to work with XTI on this
development program and apply our decades of rotorcraft engineering
experience to the TriFan 600. We look forward to working
hand-in-hand with the XTI leadership team to deliver this
market-driven solution for their customers."
The TriFan 600 vertical lift crossover airplane ("VCLA") is
expected to revolutionize point-to-point air travel by combining
the comfort, speed, and range of similar size conventional business
aircraft with the flexibility, convenience, and pinpoint
transportation only achievable with a vertical takeoff and landing
aircraft.
Don Purdy commented, "There are
numerous use cases for the TriFan 600 within the Part 91 business,
Part 135 charter service, and Part 121 scheduled service
operations, in addition to special mission roles such as medevac
and rescue where time is so critical. We look forward to working
closely with AVX in the coming months."
A computer graphics simulation video is available at XTI
Aircraft simulation video.
About AVX Aircraft Company
AVX Aircraft Company, based in Fort
Worth, Texas, was founded with a vision of bringing advanced
vertical lift solutions to the civilian aircraft market. In
2010, the company began applying its unique patented coaxial rotor
design technology to the military marketplace, and refined and
matured that technology as it competed in numerous U.S. military
aircraft development programs. That was followed by the
company expanding its Unmanned Air Vehicle designs and other
engineering services for commercial and military applications under
AVX's current ongoing series of contracts with the U.S. military.
The company's highly experienced engineers and professionals
have created innovative designs that use modern technology to
deliver visionary performance in the vertical lift
environment. For more information about AVX, please visit
avxaircraft.com.
About XTI Aerospace, Inc.
XTI Aerospace (XTIAerospace.com) is the parent company of XTI
Aircraft Company (XTIAircraft.com), an aviation business based near
Denver, Colorado, currently
developing the TriFan 600, a fixed-wing business aircraft
designed to have the vertical takeoff and landing (VTOL) capability
of a helicopter, speeds of 345 mph and a range of 700 miles,
creating an entirely new category – the vertical lift crossover
airplane (VLCA). Additionally, the Inpixon (inpixon.com) business
unit of XTI Aerospace is a leader in real-time location systems
(RTLS) technology with customers around the world who use the
Company's location intelligence solutions in factories and other
industrial facilities to help optimize operations, increase
productivity, and enhance safety. For more information about XTI
Aerospace, please visit XTIAerospace.com.
Cautionary Statement Regarding Forward-Looking
Statements
This press release contains certain "forward-looking statements"
within the meaning of the United States Private Securities
Litigation Reform Act of 1995, Section 27A of the Securities Act,
and Section 21E of the Exchange Act. All statements other than
statements of historical fact contained in this press release,
including without limitation, statements about XTI Aerospace and
AVX successfully negotiating and entering into the definitive
agreement on the terms set forth in the Letter of Intent or
otherwise, the products under development by XTI Aerospace and the
markets in which it plans to operate, the advantages of XTI
Aerospace's technology, XTI Aerospace's competitive landscape and
positioning, XTI Aerospace's growth plans and strategies, the
ability of XTI Aerospace's patents to help XTI Aerospace protect
the TriFan 600 from infringement, the benefits of XTI Aerospace's
patent portfolio, and XTI Aerospace's customers, plans and
strategies are forward-looking statements.
Some of these forward-looking statements can be identified by
the use of forward-looking words, including "believe," "continue,"
"could," "would," "estimate," "will," "expect," "intend," "plan,"
"target," "projects," or the negatives of these terms or variations
of them or similar expressions. All forward-looking statements are
subject to risks, uncertainties, and other factors which could
cause actual results to differ materially from those expressed or
implied by such forward-looking statements. All forward-looking
statements are based upon estimates, forecasts, and assumptions
that, while considered reasonable by XTI Aerospace and its
management, are inherently uncertain, and many factors may cause
the actual results to differ materially from current expectations,
which include, but are not limited to:
- the inability to implement business plans, forecasts, and other
expectations, and identify and realize additional opportunities,
including the inability to successfully negotiate and enter into a
definitive agreement with AVX or to raise the capital necessary for
AVX to commence work under such definitive agreement;
- variations in performance across competitors, changes in laws,
regulations, technologies that may impose additional costs and
compliance burdens on XTI Aerospace's operations, global
supply chain disruptions and shortages;
- national security tensions, and macro-economic and social
environments affecting XTI Aerospace's business and changes in
XTI Aerospace's capital structure;
- the risk that XTI Aerospace has a limited operating
history, has not yet manufactured any non-prototype aircraft or
delivered any aircraft to a customer, and XTI Aerospace and its
current and future collaborators may be unable to successfully
develop and market XTI Aerospace's aircraft or solutions, or may
experience significant delays in doing so;
- the risk that XTI Aerospace is subject to the
uncertainties associated with the regulatory approvals of its
aircraft including the certification by the Federal Aviation
Administration, which is a lengthy and costly process;
- the risk that the XTI Aerospace may never achieve or
sustain profitability;
- the risk that XTI Aerospace may be unable to raise
additional capital on acceptable terms to finance its operations
and remain a going concern;
- the risk that XTI Aerospace experiences difficulties in
managing its growth and expanding operations;
- the risk that XTI Aerospace's conditional pre-orders
(which include conditional aircraft purchase agreements,
non-binding reservations, and options) are canceled, modified,
delayed or not placed and that XTI Aerospace must return the
refundable deposits;
- the risks relating to long development and sales
cycles, XTI Aerospace's ability to satisfy the conditions and
deliver on the orders and reservations, its ability to maintain
quality control of its aircraft, and XTI Aerospace's dependence on
third parties for supplying components and potentially
manufacturing the aircraft;
- the risk that other aircraft manufacturers develop competitive
VTOL aircraft or other competitive aircraft that adversely
affect XTI Aerospace's market position;
- the risk that XTI Aerospace's future patent applications
may not be approved or may take longer than expected, and XTI
Aerospace may incur substantial costs in enforcing and protecting,
or may not have adequate resources to effectively enforce and
protect, its intellectual property;
- the risk that the scope of XTI Aerospace's patents is not
broad enough to deter competition;
- the risk that XTI Aerospace's estimates of market demand
may be inaccurate;
- the risk that XTI Aerospace's ability to sell its aircraft
may be limited by circumstances beyond its control, such as a
shortage of pilots and mechanics who meet the training standards,
high maintenance frequencies and costs for the sold aircraft, and
any accidents or incidents involving VTOL aircraft that may harm
customer confidence; and
- other risks and uncertainties set forth in the sections
entitled "Risk Factors" and "Special Note Regarding Forward-Looking
Statements and Other Information Contained in this Report"
in XTI Aerospace's Annual Report on Form 10-K for the year
ended December 31, 2023, which was
filed with the Securities and Exchange Commission (the "SEC") on
April 16, 2024, and the Quarterly
Report on Form 10-Q for the quarterly period ended March 31, 2024, which was filed with the SEC on
May 20, 2024, as such factors may be
updated from time to time in XTI Aerospace's filings with the SEC.
These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking
statements.
Nothing in this press release should be regarded as a
representation by any person that the forward-looking statements
set forth herein will be achieved or that any of the contemplated
results of such forward-looking statements will be achieved. You
should not place undue reliance on forward-looking statements,
which speak only as of the date they are made. XTI Aerospace does
not give any assurance that it will achieve its expected results.
XTI Aerospace does not undertake any duty to update these
forward-looking statements, except as otherwise required by
law.
Contacts
General inquiries:
Email: contact@xtiaerospace.com
Web: https://xtiaerospace.com/contact/
Investor Relations:
Crescendo Communications
Tel: +1 212-671-1020
Email: XTIA@crescendo-ir.com
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SOURCE XTI Aerospace, Inc.