XTI Aerospace, Inc. Q3 FY2023 earnings call

Nadir's Remarks

• Inpixon is in a transformational year with two key transactions: a merger with XTI Aircraft (resulting in Inpixon being renamed XTI Aerospace and trading under XTIA) and a planned spin-off of Grafiti Holding leading to a business combination with Damon Motors.
• XTI is developing the TriFan 600 fixed-wing vertical lift crossover plane, and the combined company will continue Inpixon's real-time location system products.
• The spin-off of Grafiti Holding will transfer Inpixon Limited's UK SAVES business, and Grafiti will combine with Damon Motors, expected to list on Nasdaq.

Jay's Remarks

• Damon Motors is focused on revolutionizing motorcycling with the HyperSport electric motorcycle, which has over $85 million in pre-production reservations.
• Features include 200 horsepower, 200 miles of range, CoPilot collision warning system, and adjustable ergonomics.
• Damon has a diverse team with automotive and EV experience, significant patents, and plans to start production in 2024.

No detailed financial performance for product segments was provided in the transcript.

XTI Merger

• Expected to close during the current quarter, subject to stockholder approval and Nasdaq listing approval.

Grafiti Spin-off and Damon Combination

• Expected to close in Q1 2024, subject to SEC registration clearance and Nasdaq listing approval.
• Inpixon shareholders as of the record date will retain Inpixon shares and receive Grafiti Holding shares, with ownership in the combined Grafiti-Damon company.

Risks

• Forward-looking statements involve uncertainties and may differ from actual results.
• Transactions are subject to closing conditions such as SEC clearance, Nasdaq listing approval, and other regulatory requirements.

Q: Why is Inpixon pursuing these transactions?

A: Inpixon isn't being adequately valued in the market, and these strategic transactions are intended to maximize shareholder value by allowing participation in two separate publicly traded companies.

Q: Will my Inpixon shares be automatically converted into shares of the new companies?

A: Inpixon shareholders in the XTI merger will become shareholders of XTI Aerospace. For the Grafiti spin-off, shareholders retain Inpixon shares and receive Grafiti Holding shares, with Grafiti and Damon combining later.

Q: How do you plan to service the bikes?

A: Predominantly software-related, with a nationwide EV servicing partner for initial states like California, Florida, and Texas.

Q: Isn't it true that the EV supply chain is challenged right now?

A: There's a surplus in EV components, which benefits Damon with better pricing advantages.

Q: Do motorcycle manufacturers have as many production and regulatory hurdles to deal with as automotive manufacturers do?

A: Fewer hurdles; motorcycle assembly uses pre-made components, no need for half-mile robots or crash testing, and self-certification for DOT approval.