Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 7

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 7
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 has established a baseline bill-of-materials.

Following
a series of scaled model tests and Computational Fluid Dynamic (CFD) analysis, the engineering team further enhanced the aerodynamic
performance and stability of the TriFan 600 and released its latest configuration, C211.2, and included a larger vertical stabilizer,
enhanced duct and stator designs, new engine air inlets and exhaust, an updated drive train, and additional system design. The C211.2
configuration is currently undergoing CFD analysis at Oak Ridge National Laboratory. In addition, the engineering team continues to evolve
the Digital Mockup (DMU), mass properties (i.e., weight) and Global Finite Element Modeling (GFEM) analysis.

In 2024, the Company engaged
the FAA in a General Familiarization (Gen Fam) briefing for the TriFan 600. Follow-up meetings with FAA Subject Matter Experts (SME) began
in early 2025 and will continue throughout the year to help assess safety, certification standards and potential certification challenges
and obstacles. In March 2025, the Company submitted its TriFan 600 Type Certification application and G-1 “basis of certification”
to the FAA for review. The G-1 addresses the latest draft Powered Lift Category guidelines and identifies areas unique to the TriFan 600
and intended means of safety and compliance.

The
Company is currently working through the TriFan 600’s Preliminary Design Review (“PDR”) update, which we expect to
complete in early 2026. During this PDR update, the Company will be refreshing the TriFan 600 vendor / supplier list. For critical suppliers,
we will begin signing phased contracts during the first half of 2025. Once the PDR phase is completed, we expect that almost all suppliers
for the TriFan 600 will have been identified and most under contract. Supplier systems and subsystems will be integrated into our PDR
configuration, C212. We will engage a handful of outside experts to be part of our PDR participants to help assess our PDR “exit”
readiness.

After PDR, we will launch our detailed design phase culminating in
a Critical Design Review (“CDR”). This phase will include further interactions with suppliers to develop and mature major
structures and systems of the airplane. With input from industry-respected suppliers, we believe all systems of the TriFan 600 can be
incorporated into the airframe to deliver a fully integrated solution. The fulfillment of this