ENGLEWOOD, Colo. - XTI Aerospace, Inc. (NASDAQ: XTIA), an aviation technology company, announced Wednesday the establishment of its Corporate Advisory Board and the appointment of Michael Tapp as its Chairman. Tapp, an operating partner at Palingen Capital, will also serve as a Senior Advisor to the company.
The formation of the advisory board is part of XTI Aerospace's initiative to explore strategic opportunities amid what the company perceives as a strong market demand for its TriFan 600 aircraft. Scott Pomeroy, Chairman and CEO of XTI Aerospace, stated that the new advisory board would guide the company's board of directors in evaluating strategic directions.
Michael Tapp brings a wealth of experience to his new roles at XTI Aerospace. His background includes significant leadership roles at Interstate Battery and involvement with private equity firms and growth-stage companies. Tapp has also served on the boards of several organizations and is an active member of the Young Presidents' Organization and the National Association of Corporate Directors.
The TriFan 600, developed by XTI Aircraft Company, a subsidiary of XTI Aerospace, is a fixed-wing business aircraft with vertical takeoff and landing capabilities, designed to reach speeds of up to 345 mph and a range of approximately 700 miles.
XTI Aerospace also operates Inpixon (NASDAQ:XTIA), a business unit specializing in real-time location systems technology used in various industrial settings to enhance operations and safety.
This news comes as XTI Aerospace continues to focus on the development and commercialization of its innovative aircraft technologies. The press release from which this information is drawn contains forward-looking statements, including expectations about product development and strategic opportunities. However, these statements involve risks and uncertainties that could cause actual results to differ from those projected.
For more information about XTI Aerospace and its developments, please visit the company's website. This article is based on a press release statement from XTI Aerospace, Inc.
In other recent news, XTI Aerospace is facing an arbitration claim over a compensation dispute with Chardan Capital Markets LLC. The company is also involved in an equity transaction, resulting in a total of 34,242,861 shares of common stock outstanding. XTI Aerospace has extended its potential merger deadline with Damon Motors Inc. to September 30, 2024. In addition, the company has filed a non-provisional patent application for its TriFan 600 vertical takeoff and landing aircraft and secured a conditional purchase agreement with Mesa Air Group (NASDAQ:MESA), Inc. for up to 100 TriFan 600 aircraft, a deal that could potentially generate approximately $1 billion in revenue. XTI Aerospace has also announced a strategic partnership with AVX Aircraft Company and a tentative agreement for a strategic equity investment of up to $55 million from FC Imperial Limited. Lastly, the company has welcomed Tensie Axton, a finance expert, to its Board of Directors. These are the recent developments for XTI Aerospace.
InvestingPro Insights
XTI Aerospace, Inc. (NASDAQ: XTIA), while embarking on strategic initiatives and expanding its advisory board, faces financial challenges that investors should consider. According to InvestingPro data, the company's market capitalization stands at a modest $7.55 million. This small cap status reflects the company's current financial position and market perception.
InvestingPro Tips for XTIA reveal a mixed financial picture. The company holds more cash than debt, which is a positive indicator of its ability to manage financial obligations in the short term. However, it is also quickly burning through cash, which could raise concerns about its long-term financial sustainability. Additionally, the company's short-term obligations exceed its liquid assets, potentially indicating liquidity challenges ahead.
Reviewing the operational efficiency, XTI Aerospace's operating income margin for the last twelve months as of Q2 2024 is deeply negative at -1394.9%, which suggests the company is facing significant challenges in generating profit from its core business operations. Furthermore, the company has not been profitable over the last twelve months, and its price has fallen significantly, by 93.9%, over the last year.
InvestingPro offers additional insights into XTIA's financial health and market performance. For investors looking to delve deeper into XTI Aerospace's financial metrics and strategic positioning, InvestingPro has a total of 11 tips available that can provide a more comprehensive understanding of the company's prospects. To explore these insights, visit https://www.investing.com/pro/XTIA.
Investors considering XTI Aerospace as part of their portfolio should weigh these financial metrics and InvestingPro Tips carefully against the company's strategic initiatives, such as the formation of its Corporate Advisory Board and the development of the TriFan 600 aircraft.
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