Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 48

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 48
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 is dependent on increasing sales to our existing customers and obtaining new customers, which, if unsuccessful,
could limit our financial performance.

Our
future success depends, in part, on our ability to increase revenues from existing RTLS customers by identifying additional opportunities
to sell more of our RTLS products and services and on our ability to obtain new RTLS customers. The rate at which our customers purchase
additional products and services, and our ability to attract new customers, depends on a number of factors, including the perceived need
for indoor mapping products and services, our ability to offer high quality products and services at competitive prices, meeting customers’
needs and expectations, the strength of our competitors, the capabilities of our sales and marketing departments and general economic
conditions. If we are not able to continue to increase sales of our RTLS products and services to existing customers or to obtain new
customers in the future, we may not be able to increase our revenues and could suffer a decrease in revenues as well.

The
competitiveness of our RTLS business depends significantly on our ability to keep pace with the rapid changes in the RTLS industry. Failure
by us to anticipate and meet our customers’ technological needs could adversely affect our competitiveness and growth
prospects.

The
RTLS industry in which we operate is characterized by rapid technological innovation, changing customer needs, evolving industry standards
and frequent introductions of new products, product enhancements, services and distribution methods. Our success depends on our ability
to develop expertise with these new products, product enhancements, services and distribution methods and to implement solutions that
anticipate and respond to rapid changes in technology, the industry, and customer needs. The introduction of new products, product enhancements
and distribution methods could decrease demand for current products or render them obsolete. Sales of products and services can be dependent
on demand for specific product categories, and any change in demand for or supply of such products could have a material adverse effect
on our net sales if we fail to adapt to such changes in technology and market demand in a timely manner. If we do not successfully innovate
and introduce new technology into our anticipated technology solutions or effectively manage the transitions of our technology to new
RTLS product offerings, our business, financial condition and results of operations could be harmed.

There
can be no assurance that consumer or commercial demand for our future products will meet, or even approach, our expectations. In addition,
our pricing and marketing strategies may not be successful. Lack of customer demand, a change in marketing strategy