Press Release: XTI Aerospace Reports Fourth Quarter and Full Year 2025 Results

Dow Jones04-15

DALLAS, April 15, 2026 /PRNewswire/ -- XTI Aerospace, Inc. (Nasdaq: XTIA) ("XTI Aerospace," "XTI," or the "Company"), a publicly traded aerospace and defense company operating across drone distribution, unmanned systems, and advanced manufacturing markets through three dedicated divisions, and parent company of Drone Nerds, LLC, a leading drone solutions platform serving enterprise and government customers, today announced financial results for its fourth quarter and full year ended December 31, 2025, and provided the Company's outlook for 2026.

2025 fourth quarter and full year highlights (includes the acquisition of Drone Nerds, LLC and Anzu Robotics, LLC (together, "Drone Nerds") in November 2025, Inpixon results excluded and reflected in discontinued operations):

   -- Revenue of $22.5 million 
 
   -- Gross profit of $4.9 million 
 
   -- Gross profit as a percentage of revenue of 21.9 percent 

For purposes of this release, the Company defines "pro forma" as unaudited supplemental combined financial information.

2025 pro forma fourth quarter XTI highlights(1) (includes Drone Nerds as if the acquisition had occurred as of January 1, 2024):

   -- Revenue of $41.7 million 
 
   -- Gross profit of $8.1 million 
 
   -- Gross profit as a percentage of revenue of 19.5 percent 
 
   -- Net loss from continuing operations of $7.6 million 

2025 full year pro forma, XTI reported the following highlights(1) (includes Drone Nerds as if the acquisition had occurred as of January 1, 2024):

   -- Revenue of $121.6 million 
 
   -- Gross profit of $26.8 million 
 
   -- Gross profit as a percentage of revenue of 22.0 percent 
 
   -- Net loss from continuing operations of $39.0 million 

Company guidance:

   -- Expecting full year 2026 revenue of $160 million or greater 

2025 fourth quarter events:

   -- Completed approximately $40 million acquisition of Drone Nerds, a leading 
      U.S. drone solutions provider, and secured a concurrent $25 million 
      strategic investment from Unusual Machines, Inc. (Nasdaq: UMAC) 
 
   -- Formed strategic alliance with Valkyrie Intelligence LLC ("Valkyrie 
      Sciences"), including an investment and services agreement, to harness 
      the intelligence derived from the sizable drone industry data set built 
      by Drone Nerds 

Recent events:

   -- Completed the divestiture of the Inpixon RTLS business to streamline the 
      Company's focus on its drone platform 
 
   -- Secured $20 million Asset-Based Lending ("ABL") credit facility with 
      JPMorgan to support growth and liquidity, subject to customary borrowing 
      conditions, covenants and availability 
 
   -- The Autonomous Defense Systems ("ADS") division, formed through the 
      reorganization and redesignation of the Company's XTI Aircraft division, 
      and the Advanced Technology and Manufacturing ("ATM") division, which the 
      Company is in the process of establishing and which has not yet generated 
      revenue 
 
   -- Strengthened the composition of XTI's Board of Directors with aviation 
      and unmanned systems expertise through the appointments of Clinton Weber 
      and Jonathan Ornstein 
 
(1)  For information on unaudited supplemental combined financial information 
     presented, see the section titled "Unaudited Supplemental Combined 
     Financial Information" in this press release. 
 

"The acquisition of Drone Nerds transformed XTI Aerospace into a scaled, revenue-generating platform," said Scott Pomeroy, Chief Executive Officer of XTI Aerospace. "Drone Nerds is a leading enterprise-focused UAS solutions provider with deep customer relationships and a proven operating model that continues to deliver strong performance. Its OEM-agnostic approach and broad supplier network position us to participate in a rapidly evolving market. Just as important, the platform provides real-time data and market intelligence that informs where we invest, build, and expand. We believe this foundation positions us to support growth and support our expansion into new markets and higher-value opportunities across the business."

"XTI Drones continues to scale as a cash-generating commercial engine. Our Advanced Technology and Manufacturing division strengthens our ability to expand our participation in the value chain through U.S.-based manufacturing. Our Autonomous Defense Systems initiative is building a pipeline of potential military and defense contract opportunities in a large and growing market. Together, these elements create a flywheel that we believe is designed to support growth, margin expansion, and long-term value creation. In 2026, our focus is execution."

Liquidity and Capital Resources

At December 31, 2025, the Company had $16.7 million of unrestricted cash and cash equivalents. An additional $0.2 million of cash is included in current assets of discontinued operations and is not included in unrestricted cash balances.

The Company does not currently expect to require additional capital to support the ordinary-course operating needs of the Drone Nerds business. However, the Company may seek additional capital in the future to support strategic acquisitions and the development of its advanced systems and domestic manufacturing initiatives.

Subsequent to December 31, 2025 and through the date of this filing, holders of certain warrants issued in connection with our 2025 public offerings exercised warrants to purchase 3,963,408 shares of the Company's common stock. These exercises resulted in aggregate cash proceeds to us of approximately $7.9 million. We engaged ThinkEquity LLC as our exclusive advisor in connection with the solicitation of these warrants for which we paid cash compensation of 3% of the gross proceeds, or approximately $0.2 million. After deducting such commissions, the net proceeds we received from these warrant exercises was approximately $7.7 million.

Unaudited Supplemental Combined Financial Information

The Company has provided unaudited supplemental financial information of the combined company in this press release. The following financial information combines XTI and Drone Nerds historical operating results as if the businesses had been operated together on a combined basis during prior periods. This financial information is intended to illustrate the current operating footprint of the Company following the acquisition of Drone Nerds and divestiture of the Company's Industrial IoT / Real-Time Location Systems business.

For the avoidance of doubt, the unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and differs from the unaudited pro forma condensed combined financial information included in the Pro Forma 8-K/A filing dated February 9, 2026 filed with the SEC (the "Pro Forma 8-K Filing"), which was prepared in accordance with Article 11 of Regulation S-X. Accordingly, the unaudited supplemental combined financial information was not prepared in accordance with Article 11 of Regulation S-X and is presented for illustrative purposes to assist investors in understanding the operational performance of the combined business, timing and operational impact of the acquisition, and integration of the combined business, and should not be considered a substitute for the pro forma financial information included in the Company's prior filings prepared in accordance with Article 11 of Regulation S-X.

Consequently, the unaudited supplemental combined financial information is intentionally different from, but does not supersede, the pro forma financial information set forth in the Pro Forma 8-K Filing or the pro forma financial information set forth in the Company's most recent annual report on Form 10-K

In addition, the unaudited supplemental combined financial information does not purport to indicate the results that actually would have been obtained had the companies been operated together during the periods presented, or which may be realized in the future. The unaudited supplemental combined financial information has no impact on XTI or Drone Nerds previously reported consolidated balance sheets or statements of operations, cash flows or equity.

 
                   XTI Aerospace, Inc. and Subsidiaries 
                    Pro Forma(1) Combined Financial Data 
                                (Unaudited) 
 
                    For the Three Months 
                     Ended December 31, 
                  ------------------------ 
                    2025           2024 
                  ---------      --------- 
(in thousands, 
except 
percentages)       Amount         Amount        $ Change       % Change 
---------------   ---------      ---------      ---------      -------- 
Revenues          $  41,709      $  26,832      $  14,877            55% 
Gross profit          8,149          3,694          4,455           121% 
   Gross profit 
    %                  19.5%          13.8%           5.7%           41% 
Net loss from 
 continuing 
 operations         (7,599)        (9,045)          1,446          (16)% 
 
                    For the Years Ended 
                  ------------------------ 
                    2025           2024 
                  ---------      --------- 
(in thousands, 
except 
percentages)       Amount         Amount        $ Change       % Change 
---------------   ---------      ---------      ---------      -------- 
Revenues          $ 121,590      $ 111,201      $  10,389             9% 
Gross profit         26,784         17,333          9,451            55% 
   Gross profit 
    %                  22.0%          15.6%           6.4%           41% 
Net loss from 
 continuing 
 operations        (39,042)       (23,948)       (15,094)            63% 
 
 
 
(1)  For information on unaudited supplemental combined financial information 
     presented, see the section titled "Unaudited Supplemental Combined 
     Financial Information" in this press release. 
 

The unaudited supplemental combined financial information excludes non-recurring transaction-related costs associated with the Drone Nerds acquisition.

Conference Call and Webcast (Live Q&A Format)

The Company will post prepared remarks to the Investor Relations section of its website before the market opens on April 15, 2026. These remarks are intended to provide additional detail and context regarding the Company's financial results and business update.

The Company will host a live webcast on April 15, 2026 at 3:30 PM CT (4:30 PM ET), which will consist of a video-based question and answer session with Scott Pomeroy, Chief Executive Officer, and Brooke Turk, Chief Financial Officer. As part of this format, prepared remarks will not be read but will be available in the Investor Relations section of the Company's website at xtiaerospace.com under "IR News & Events."

Investors and analysts are invited to participate and may register in advance using this link: XTI Aerospace April 15 Earnings Webcast. The registration link is also available in the "Investor Relations" section of the Company's website under "IR News & Events." Dial-in information will be included upon registration.

The replay of the event will be publicly available to all investors in the Investor Relations section, under "IR News & Events" section of the Company's website at xtiaerospace.com following the conclusion of the question and answer session and will remain available for 30 days.

About XTI Aerospace, Inc.

XTI Aerospace, Inc. (Nasdaq: XTIA) is a publicly traded aerospace and defense company operating across unmanned systems, advanced manufacturing, and drone distribution markets through three dedicated divisions.

The Company's Commercial division - XTI Drones, anchored by its Drone Nerds subsidiary, LLC, is one of the nation's leading drone solutions platforms, serving enterprise and government customers across sales, service, and support. The Commercial Division's market reach and transaction data provide XTI with unparalleled visibility into purchasing behavior across the unmanned systems industry -- a strategic intelligence asset the Company may leverage to support future data and analytics initiatives.

The Company's Autonomous Defense Systems ("ADS") division is focused on the design, development, and integration of unmanned platforms for defense and commercial applications, with an emphasis on serving U.S. government customers and supporting domestic procurement initiatives aligned with national security priorities.

The Company's Advanced Technology and Manufacturing (ATM) division is developing a U.S.-based production platform for NDAA-compliant and Department of War ("DoW") Blue List-eligible unmanned systems components and technologies, designed to support domestic manufacturing and supply chain requirements and serve the growing demand for domestically sourced unmanned systems across defense and enterprise markets.

XTI Aerospace is headquartered in Addison, Texas.

For more information about XTI, please visit xtiaerospace.com and follow XTI on LinkedIn, Instagram, X, and YouTube.

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 of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact contained in this press release are forward-looking statements.

Forward-looking statements may be identified by words such as "believe," "continue," "could," "would," "will," "expect," "intend," "plan," "target," "estimate," "project," or similar expressions. These statements are subject to risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied. Such risks include, but are not limited to, market adoption, regulatory requirements, supply chain conditions, technological development, integration of the acquired businesses, availability of capital and liquidity, and changes in applicable laws or regulations as well as the other risks and uncertainties described in the Company's filings with the U.S.

165 Securities and Exchange Commission. XTI undertakes no obligation to update any forward-looking statements to reflect subsequent events or circumstances, except as required by applicable law. Readers are encouraged to review the risk factors described in XTI's filings with the U.S. Securities and Exchange Commission, including its most recent Annual Report on Form 10-K and subsequent filings.

Contacts:

General inquiries:

Email: contact@xtiaerospace.com

Web: https://xtiaerospace.com/contact

Investor Relations:

Dave Gentry, CEO

RedChip Companies, Inc.

Phone: 1-407-644-4256

Email: XTIA@redchip.com

 
                   XTI Aerospace, Inc. and Subsidiaries 
                   Consolidated Statements of Operations 
                   (In thousands, except per share data) 
                                (Unaudited) 
 
                              For the Three 
                          Months Ended December     For the Year Ended 
                                   31,                  December 31, 
                         -----------------------   --------------------- 
                            2025         2024         2025        2024 
                         ----------   ----------   ----------   -------- 
Revenues                $    22,490  $        --  $    22,490  $      -- 
Cost of Revenues             17,569           --       17,569         -- 
                         ----------   ----------   ----------   -------- 
Gross Profit                  4,921           --        4,921         -- 
 
Operating Expenses 
   Research and 
    development               1,287          491        5,240      1,970 
   Sales and marketing        2,323          545        5,604      1,517 
   General and 
    administrative           12,719        4,505       32,845     19,660 
   Merger-related 
    transaction costs         3,429           --        3,887      6,490 
   Amortization of 
    intangible assets           142            8          166         30 
                         ----------   ----------   ----------   -------- 
Total Operating 
 Expenses                    19,900        5,549       47,742     29,667 
                         ----------   ----------   ----------   -------- 
 
Loss from Operations       (14,979)      (5,549)     (42,821)   (29,667) 
 
Other (Expense) 
Income 
   Interest expense, 
    net                        (51)        (229)        (270)      (782) 
   Amortization of 
    deferred loan 
    costs                        --           --           --       (17) 
   Loss on conversion 
    of note receivable 
    to equity 
           instrument            --      (2,630)           --    (2,630) 
   Loss on 
    extinguishment of 
    debt                         --           --        (421)    (6,732) 
       Provision for 
        expected 
        credit losses 
        on convertible 
               note 
        investment          (2,039)           --      (2,039)         -- 
   Change in fair 
    value of 
    convertible notes 
    payable                      --           --           --     12,882 
   Change in fair 
    value of equity 
    securities                   --      (1,068)        (349)    (1,068) 
   Change in fair 
    value of warrant 
    liability                 2,684           --        (596)      (281) 
   Warrant issuance 
   expense                       --           --      (6,580)         -- 
   Other income, net             30           24           30         42 
Total Other (Expense) 
 Income                         624      (3,903)     (10,225)      1,414 
 
Loss from continuing 
 operations before 
 income    taxes           (14,355)      (9,452)     (53,046)   (28,253) 
Income tax benefit 
 (provision)                      4           --           10       (16) 
                                                   ----------   -------- 
Net loss from 
 continuing 
 operations, net of 
 tax                       (14,351)      (9,452)     (53,036)   (28,269) 
Loss from discontinued 
 operations, net of 
 tax                        (6,964)      (4,404)     (15,455)    (7,334) 
Net loss                   (21,315)     (13,856)     (68,491)   (35,603) 
Net loss attributable 
 to noncontrolling 
 interest                     (270)           --        (270)         -- 
Net loss attributable 
 to XTI Aerospace, 
 Inc.                      (21,585)     (13,856)     (68,761)   (35,603) 
 
Preferred stock 
 dividends                    (408)        (110)        (437)      (606) 
Deemed dividends                 --        (258)           --      (772) 
                                                   ----------   -------- 
Net Loss Attributable 
 to Common 
 Stockholders           $  (21,993)  $  (14,224)  $  (69,198)  $(36,981) 
                         ==========   ==========   ==========   ======== 
 
Net loss per share - 
basic and diluted: 
   Continuing 
    operations          $    (0.45)  $   (14.28)  $    (3.28)  $(129.24) 
   Discontinued 
    operations          $    (0.21)  $    (6.41)  $    (0.96)  $ (33.54) 
   Net loss             $    (0.66)  $   (20.69)  $    (4.24)  $(162.78) 
 
Weighted Average 
 Shares Outstanding, 
 Basic and    Diluted    32,744,968      687,471   16,337,782    227,193 
 

Net loss per share from continuing and discontinued operations is calculated based on net loss attributable to common stockholders. Preferred stock dividends and deemed dividends are allocated to continuing and discontinued operations on a proportional basis.

 
             XTI Aerospace, Inc. And Subsidiaries 
                  Consolidated Balance Sheets 
                         (In thousands) 
                          (Unaudited) 
 
                                As of             As of 
                             December 31,      December 31, 
                                 2025              2024 
                          -----------------  ---------------- 
Assets 
Current Assets 
   Cash and cash 
    equivalents                $     16,696       $     3,972 
   Accounts 
   receivable, net of 
   allowance for 
   credit losses                     12,093                -- 
   Other receivables                     --               513 
   Inventories                       15,400                -- 
   Prepaid expenses 
    and other current 
    assets                            3,989               888 
   Current assets of 
    discontinued 
    operations                        3,645             3,208 
                          ------  ---------  ------  -------- 
Total Current Assets                 51,823             8,581 
Property and 
 equipment, net                         385                72 
Operating lease 
 right-of-use asset, 
 net                                  2,965               310 
Intangible assets, net                9,338               284 
Goodwill                             11,544                -- 
Other assets                            403             1,095 
Non-current assets of 
 discontinued 
 operations                           4,788            13,949 
                          ------  ---------  ------  -------- 
       Total Assets            $     81,246       $    24,291 
                          ======  =========  ======  ======== 
 
Liabilities 
Current Liabilities 
   Accounts payable            $      5,212       $     5,190 
   Related party 
    payables                             --                51 
   Accrued expenses and 
    other current 
    liabilities                       6,165             6,071 
   Accrued interest                     391               522 
   Customer deposits                  3,071             1,350 
   Warrant liability                 22,561                -- 
   Operating lease 
    obligation, current                 550                88 
   Short-term debt                    7,931             2,657 
   Current liabilities 
    of discontinued 
    operations                        1,722             1,492 
                          ------  ---------  ------  -------- 
Total Current 
 Liabilities                         47,603            17,421 
Long Term Liabilities 
   Long-term debt                       450                65 
   Operating lease 
    obligation, 
    noncurrent                        2,427               231 
   Non-current 
   liabilities of 
   discontinued 
   operations                           322                -- 
                         -------  ---------  ------  -------- 
       Total Liabilities             50,802            17,717 
 
Commitments and 
Contingencies 
 
Representative and 
placement agent 
warrants, net of 
issuance costs                        2,701                -- 
 
Stockholders' Equity 
   Preferred Stock                       --                -- 
   Series 4 
   Convertible 
   Preferred Stock                       --                -- 
   Series 5 
   Convertible 
   Preferred Stock                       --                -- 
   Series 9 Preferred 
    Stock                                --             1,331 
   Series 10 
   Convertible 
   Preferred Stock                   21,793                -- 
   Common Stock                          33                 2 
   Additional paid-in 
    capital                         157,354            99,425 
   Accumulated other 
    comprehensive 
    income                              881             (622) 
   Accumulated deficit            (162,323)          (93,562) 
                          ------  ---------  ------  -------- 
       Total 
        Stockholders' 
        Equity                       17,738             6,574 
   Noncontrolling 
   interest                          10,005                -- 
                         -------  ---------  ------  -------- 
       Total Equity                  27,743             6,574 
                          ------  ---------  ------  -------- 
Total Liabilities, 
 Mezzanine Equity and 
 Equity                        $     81,246       $    24,291 
                         =======  =========  ======  ======== 
 
 
                 XTI Aerospace, Inc. and Subsidiaries 
                 Consolidated Statements of Cash Flows 
                            (In thousands) 
                              (Unaudited) 
 
                                               For the Years Ended 
                                                   December 31, 
                                             ----------------------- 
                                                 2025        2024 
                                             ------------  --------- 
Cash Flows Used in Operating Activities 
Net loss                                      $  (68,491)  $(35,603) 
Adjustment to reconcile net loss to net 
cash used in operating activities: 
   Depreciation and amortization                      148        113 
   Amortization of intangible assets                  387        622 
   Amortization of right-of-use asset                 114        237 
   Non-cash interest expense, net                     145        417 
   Stock-based compensation                        12,046      4,121 
   Impairment of goodwill                           9,895         -- 
   Impairment of intangible assets                    631      2,507 
   Provision for credit losses                      2,129         -- 
   Loss on conversion of note receivable to 
    equity investment                                  --      2,630 
   Unrealized loss on equity investment                --        628 
   Change in fair value of convertible 
    notes payable                                      --   (12,882) 
   Loss on extinguishment of debt                     421      6,732 
   Warrant issuance expense                         6,580         -- 
   Change in fair value of warrant 
    liability                                         596        281 
   Other                                                4        359 
   Changes in operating assets and 
   liabilities: 
       Accounts receivable and other 
        receivables                               (1,993)       (18) 
       Inventories                                  2,618        611 
       Prepaid expenses and other current 
        assets                                      4,572        922 
       Other assets                                   311         40 
       Accounts payable                           (2,543)        346 
       Related party payables                        (51)         -- 
       Accrued expenses and other current 
        liabilities                               (3,696)      6,039 
       Accrued interest                               116        259 
       Customer deposits                            (271)         -- 
       Deferred revenue                             (167)      (435) 
       Operating lease obligation                   (112)      (233) 
                                                 --------   -------- 
Net Cash Used in Operating Activities            (36,611)   (22,307) 
Cash Flows (Used in) Provided by Investing 
Activities 
Purchase of property and equipment                  (215)       (68) 
Cash received in purchase of Inpixon                   --      2,968 
Investment in convertible note receivable         (2,000)         -- 
Acquisition of Drone Nerds, net of cash 
acquired                                         (16,547)         -- 
Purchase of intangible asset                           --       (47) 
                                                 --------   -------- 
Net Cash (Used in) Provided by Investing 
 Activities                                      (18,762)      2,853 
Cash Flows Provided by Financing 
Activities 
Net proceeds from sale of common stock and 
pre-funded warrants via public offerings           57,051         -- 
Net proceeds from ATM stock offerings               1,667     22,213 
Net proceeds from issuance of Series 10 
Convertible Preferred Stock                        22,750         -- 
Net proceeds from the exercise of equity 
 classified warrants                                   --          2 
Net proceeds from the exercise of 
liability classified warrants                       4,061         -- 
Net proceeds from issuance of promissory 
 notes                                                 --      2,000 
Net proceeds from loan from Inpixon (prior 
 to merger)                                            --      1,012 
Redemptions of Series 9 Preferred Stock           (1,427)      (795) 
Repayments of debt                               (15,892)      (868) 
                                                 --------   -------- 
Net Cash Provided by Financing Activities          68,210     23,564 
Effect of Foreign Exchange Rate on Changes 
 on Cash                                             (23)       (10) 
                                                 --------   -------- 
Net Increase in Cash and Cash Equivalents          12,814      4,100 
Cash and Cash Equivalents -- Beginning of 
 year                                               4,105          5 
                                                 --------   -------- 
Cash and Cash Equivalents -- End of year      $    16,919  $   4,105 
                                                 ========   ======== 
 
 
                  XTI Aerospace, Inc. and Subsidiaries 
              Reconciliation of Non-GAAP Financial Measures 
                             (In thousands) 
                               (Unaudited) 
 
                               For the Three Months Ended 
                                    December 31, 2025 
                  ---------------------------------------------------- 
                                Drone Nerds     Transaction 
                              Pre-Acquisition   Accounting 
(in thousands)      GAAP          Activity      Adjustments   Proforma 
---------------   ---------  -----------------  -----------   -------- 
Revenues          $  22,490   $         19,219  $         -     41,709 
Cost of revenues     17,569             15,991            -     33,560 
                   --------      -------------   ----------    ------- 
Gross profit          4,921              3,228            -      8,149 
Operating 
 expenses            19,900              1,254      (5,221)  a  15,933 
                   --------      -------------   ----------    ------- 
Loss from 
 operations        (14,979)              1,974        5,221    (7,784) 
Other (expense) 
 income                 624              (263)        (180)  b     181 
                   --------      -------------   ----------    ------- 
Net income 
 (loss), before 
 tax               (14,355)              1,711        5,041    (7,603) 
Income tax 
 benefit                  4                  -            -          4 
                   --------      -------------   ----------    ------- 
Net income 
 (loss)           $(14,351)   $          1,711  $     5,041   $(7,599) 
                   ========      =============   ==========    ======= 
 
 
 
a)  Non-recurring transaction costs associated with Drone Nerds acquisition 
    (less $5,442) and amortization of the purchase price allocation for 
    intangible assets identified for Drone Nerds (plus $221) 
b)  Interest on the promissory notes issued as part of the Drone Nerds 
    acquisition consideration 
 
 
                              For the Three Months Ended 
                                   December 31, 2024 
                  --------------------------------------------------- 
                               Drone Nerds     Transaction 
                             Pre-Acquisition   Accounting 
(in thousands)      GAAP         Activity      Adjustments   Proforma 
---------------   --------  -----------------  -----------   -------- 
Revenues          $      -   $         26,832  $         -     26,832 
Cost of revenues         -             23,138            -     23,138 
                   -------      -------------   ----------    ------- 
Gross profit             -              3,694            -      3,694 
Operating 
 expenses            5,549              2,695          221  a   8,465 
                   -------      -------------   ----------    ------- 
Loss from 
 operations        (5,549)                999        (221)    (4,771) 
Other (expense) 
 income            (3,903)              (191)        (180)  b (4,274) 
                   -------      -------------   ----------    ------- 
Net income 
 (loss), before 
 tax               (9,452)                808        (401)    (9,045) 
Income tax 
benefit                  -                  -            -          - 
                   -------      -------------   ----------    ------- 
Net income 
 (loss)           $(9,452)   $            808  $     (401)   $(9,045) 
                   =======      =============   ==========    ======= 
 
 
 
a)  Amortization of the purchase price allocation for intangible assets 
    identified for Drone Nerds 
b)  Interest on the promissory notes issued as part of the Drone Nerds 
    acquisition consideration 
 
 
                               For the Twelve Months Ended 
                                    December 31, 2025 
                  ----------------------------------------------------- 
                                Drone Nerds     Transaction 
                              Pre-Acquisition   Accounting 
(in thousands)      GAAP          Activity      Adjustments   Proforma 
---------------   ---------  -----------------  -----------   --------- 
Revenues          $  22,490   $         99,100  $         -     121,590 
Cost of revenues     17,569             77,237            -      94,806 
                   --------      -------------   ----------    -------- 
Gross profit          4,921             21,863            -      26,784 
Operating 
 expenses            47,742             11,311      (4,763)  a   54,290 
                   --------      -------------   ----------    -------- 
Loss from 
 operations        (42,821)             10,552        4,763    (27,506) 
Other (expense) 
 income            (10,225)              (601)        (720)  b (11,546) 
                   --------      -------------   ----------    -------- 
Net income 
 (loss), before 
 tax               (53,046)              9,951        4,043    (39,052) 
Income tax 
 benefit                 10                  -            -          10 
                   --------      -------------   ----------    -------- 
Net income 
 (loss)           $(53,036)   $          9,951  $     4,043   $(39,042) 
                   ========      =============   ==========    ======== 
 
 
 
a)  Non-recurring transaction costs associated with Drone Nerds acquisition 
    (less $5,442), Drone Nerds amortization (less $206), amortization of the 
    purchase price allocation for intangible assets identified for Drone Nerds 
    (plus $885) 
b)  Interest on the promissory notes issued as part of the Drone Nerds 
    acquisition consideration 
 
 
                              For the Twelve Months Ended 
                                   December 31, 2024 
                  --------------------------------------------------- 
                               Drone Nerds    Transaction 
                             Pre-Acquisition  Accounting 
(in thousands)      GAAP        Activity      Adjustments   Proforma 
---------------   ---------  ---------------  -----------   --------- 
Revenues          $       -  $       111,201  $         -     111,201 
Cost of revenues          -           93,868            -      93,868 
                   --------   --------------   ----------    -------- 
Gross profit              -           17,333            -      17,333 
Operating 
 expenses            29,667           13,401      (5,605)  a   37,463 
                   --------   --------------   ----------    -------- 
Loss from 
 operations        (29,667)            3,932        5,605    (20,130) 
Other (expense) 
 income               1,414            (952)      (4,264)  b  (3,802) 
                   --------   --------------   ----------    -------- 
Net income 
 (loss), before 
 tax               (28,253)            2,980        1,341    (23,932) 
Income tax 
 provision             (16)                -            -        (16) 
                   --------   --------------   ----------    -------- 
Net income 
 (loss)           $(28,269)  $         2,980  $     1,341   $(23,948) 
                   ========   ==============   ==========    ======== 
 
 
 
a)  Non-recurring transaction costs associated with Drone Nerds acquisition 
    (less $6,490) and amortization of the purchase price allocation for 
    intangible assets for Drone Nerds (plus $885) 
b)  Interest on the promissory notes issued as part of the Drone Nerds 
    acquisition consideration (less $744). The pro forma results for the year 
    ended December 31, 2024 exclude nonrecurring merger-related transaction 
    costs and losses recognized in connection with the conversion and 
    extinguishment of convertible notes, including related fair value 
    adjustments and inducement expenses, as these items are directly 
    attributable to prior recapitalization transactions and do not have a 
    continuing impact on the combined company (less $3,520). 
 

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SOURCE XTI Aerospace, Inc.

 

(END) Dow Jones Newswires

April 15, 2026 08:50 ET (12:50 GMT)

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