XTI Aerospace Faces Compliance Challenges with Nasdaq After Late Filing Notice

On August 31, 2026, XTI Aerospace, Inc., a prominent player in the aerospace and advanced technology sector, announced that it had received a deficiency notification from the Listing Qualifications Department of the Nasdaq Stock Market. This news was highlighted in a press release shared via PR Newswire and raises significant questions regarding the company's compliance with Nasdaq's listing requirements.

The notice, received on August 26, 2026, stated that XTI Aerospace failed to adhere to Nasdaq Listing Rule 5250(c)(1) due to the untimely submission of its Quarterly Report on Form 10-Q for the quarter that ended on June 30, 2026. This ruling mandates that all Nasdaq-listed companies must file their periodic financial reports with the SEC without delay. The failure to meet this deadline puts XTI Aerospace in a precarious situation with regard to its listing status on the Nasdaq Exchange.

Previously, on August 17, 2026, the company had filed a Notification of Late Filing on Form 12b-25 with the SEC, expressing its inability to deliver the requisite Form 10-Q on time. The delay was attributed to the ongoing internal review concerning the company’s former CEO, who resigned from his position the same day. This review also encompasses other essential corporate governance matters that the company is currently navigating.

XTI Aerospace is diligently working to conclude this internal review, planning to submit the Form 10-Q as soon as it is practical to do so. However, the company has refrained from providing a definitive timeline for when this review will be completed, and consequently, when the Form 10-Q will be filed.

The Nasdaq notice grants XTI Aerospace a period of 60 calendar days from its issuance to propose a plan aimed at restoring compliance with the continued listing requirements of the Nasdaq. This timeline extends until October 26, 2026. Should the company fail in filing the Form 10-Q by this date, it must outline a strategy for regaining compliance. If Nasdaq approves this plan, the company may receive up to 180 additional days, until February 22, 2027, to meet its filing obligations. However, during this extended period, any additional required reports, including the upcoming Form 10-Q for the quarter ending September 30, 2026, must also be submitted timely.

If Nasdaq does not accept the proposed plan, XTI Aerospace retains the right to appeal its decision to a Nasdaq Hearings Panel, which provides a potential avenue for the company to address compliance issues.

Currently, the notice does not affect the listing of XTI Aerospace’s shares on the Nasdaq Capital Market. Despite this momentary reprieve, uncertainty looms regarding whether the company will manage to file the Form 10-Q within the designated period, secure approval for its compliance plan, or even successfully appeal should it face adverse rulings.

About XTI Aerospace, Inc.

XTI Aerospace operates as a leading aerospace firm specializing in unmanned aircraft systems (UAS) through its celebrated commercial drone solutions division, operated under the name Drone Nerds, LLC. The company delivers innovative solutions to a range of clients, including enterprises, governmental bodies, and public safety organizations. Also, XTI is engaged in developing autonomous defense systems and the domestic manufacturing of components for unmanned systems tailored to meet federal procurement and sourcing requirements.

Headquartered in Dallas, Texas, XTI Aerospace endeavors to empower its customers with advanced drone solutions and lifecycle support. As they strive to overcome these compliance challenges, all eyes remain on their next steps in terms of organizational management, internal reviews, and timely submissions to regulatory bodies.