In a bold strategic move to accelerate its dominance in the vertical flight and unmanned aerial systems (UAS) sectors, XTI Aerospace, Inc. (NASDAQ: XTIA) — the developer of next-generation vertical takeoff and landing (VTOL) aircraft — announced the acquisition of Drone Nerds, LLC, one of the largest drone distributors and service providers in the United States.
This acquisition marks a significant milestone in XTI’s vision to lead the emerging “Vertical Economy™”, combining advanced VTOL technology with unmanned aircraft system solutions that span commercial and defense applications.
A Strategic $40 Million Acquisition
On November 10, 2025, XTI Aerospace completed the acquisition of Drone Nerds in a deal valued at approximately $40 million. The consideration included:
- $20 million in cash (from XTI’s existing funds)
- $11.9 million in promissory notes (including $1.6 million in working capital adjustments)
- $9.7 million in equity consideration, representing 19.9% of XTI’s common shares (exchangeable from May 2026, subject to lock-up until November 2026)
Drone Nerds, with over $100 million in 2024 annual revenue and a decade-long record of profitability, brings deep technical expertise and a strong operational footprint. By June 30, 2025, the company had already generated $55 million in revenue, underscoring its robust business performance.
A $25 Million Investment Boost from Unusual Machines
Immediately following the acquisition, XTI Aerospace closed a $25 million private placement from Unusual Machines, Inc. (NYSE American: UMAC) — a strategic investor and manufacturer of drones and drone components.
The investment was executed through 25,000 shares of Series 10 Convertible Preferred Stock, priced at $1,000 per share, convertible into XTI common stock at a conversion price of $1.492, pending shareholder approval under Nasdaq Listing Rule 5635. XTI intends to commence the shareholder approval process before the end of the year.
A Powerful Union of Innovation and Scale
According to Scott Pomeroy, CEO of XTI Aerospace, the acquisition represents a foundational step in the company’s growth trajectory.
“The acquisition of Drone Nerds is a foundational step as we advance our strategy to build the most comprehensive portfolio of vertical flight and UAS capabilities in the industry,” said Pomeroy. “The addition of Drone Nerds significantly expands XTI’s scale, recurring revenue base, and near-term operating footprint.”
Drone Nerds’ CEO Jeremy Schneiderman echoed this sentiment, highlighting how the merger strengthens their shared mission:
“As the largest drone distributor in the United States, Drone Nerds brings deep technical expertise, broad industry reach, and strong alignment with XTI’s advanced aviation vision,” Schneiderman said. “Together, we’re positioned to capture high-margin enterprise business, lead in autonomous flight, and expand across sectors like defense, logistics, and infrastructure.”
Strengthening the American Drone Ecosystem
Allan Evans, CEO of Unusual Machines, emphasized the strategic importance of this partnership in the context of growing national interest in U.S.-made drone technology:
“Drone Nerds has an unprecedented opportunity to define the domestic drone landscape as the U.S. intensifies its ban on Chinese drone companies,” Evans stated. “We’re proud to support XTI’s vision and help build the American aerospace ecosystem.”
This acquisition aligns with the June 6, 2025, White House Executive Order promoting domestic drone development, reinforcing XTI’s commitment to advancing U.S. leadership in aerospace and unmanned flight.
Future Outlook: Building the Vertical Economy
Drone Nerds’ integration into XTI Aerospace represents more than just a merger — it’s a convergence of two innovation leaders shaping the next phase of aviation’s evolution. Together, they aim to provide integrated drone and VTOL solutions across critical sectors including defense, logistics, emergency response, energy, agriculture, and infrastructure inspection.
“We believe joining XTI positions Drone Nerds at the center of aviation’s next transformation,” Schneiderman added. “Our combined solutions will enable customers to achieve cost efficiencies, operational speed, and a competitive edge in the rapidly evolving Vertical Economy.”
Advisors and Transaction Partners
ThinkEquity acted as the exclusive M&A advisor and placement agent for XTI Aerospace in connection with both the Drone Nerds acquisition and the $25 million private placement with Unusual Machines.
Summary
With this landmark $40 million acquisition and a strategic $25 million investment boost, XTI Aerospace is accelerating its vision to become a global leader in vertical flight and unmanned systems. The merger with Drone Nerds not only strengthens its commercial reach and technological capabilities but also signals a new era in American aerospace innovation — where VTOL and drone ecosystems converge to redefine the skies.
Key Highlights
- XTI Aerospace acquires Drone Nerds for $40 million (cash, notes, and equity).
- Drone Nerds: $100M+ 2024 revenue, 10 years of profitability.
- Unusual Machines invests $25 million via Series 10 Convertible Preferred Stock.
- Acquisition expands XTI’s vertical flight and UAS capabilities.
- Aligns with U.S. government push for domestic drone manufacturing.
- Marks a major step toward building the Vertical Economy™.
About XTI Aerospace, Inc.
XTI Aerospace, Inc. [Nasdaq: XTIA] serves as the parent organization of XTI Aircraft Company, an innovative aviation firm headquartered near Denver, Colorado. The company is currently pioneering the TriFan 600, a next-generation fixed-wing aircraft that combines the vertical takeoff and landing (VTOL) abilities of a helicopter with the speed and range of a jet. Designed to cruise at speeds exceeding 300 mph and cover distances of up to 1,000 miles, the TriFan 600 represents a breakthrough in aviation — a new hybrid class known as xVTOL aircraft.
Beyond aviation, XTI Aerospace also includes Inpixon (inpixon.com), a global leader in real-time location systems (RTLS) technology. Inpixon’s advanced location intelligence solutions are deployed across industrial and manufacturing environments worldwide, helping organizations optimize workflows, boost efficiency, and strengthen workplace safety through precision tracking and analytics.
About Drone Nerds, LLC.
Drone Nerds, LLC, founded in 2014, is a leading provider of end-to-end drone solutions catering to enterprise, commercial, and recreational users. The company specializes in helping clients identify and implement the ideal unmanned aerial system (UAS) to meet their specific operational goals. Through its signature Always Flying™ program, Drone Nerds ensures consistent performance, reliability, and support for large-scale drone deployments. Serving a wide range of sectors—including public safety, government, agriculture, construction, energy, and inspection—Drone Nerds stands out for its commitment to delivering tailored, dependable, and future-ready aerial solutions.
