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

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 25
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 be inapplicable or inadequate to cover any such incident, accident, catastrophe
or action. In the event that our insurance is inapplicable or inadequate, we may be forced to bear substantial losses from an incident
or accident. In addition, any such incident, accident, catastrophe or action involving our employees, our TriFan 600 airplane or other
types of aircraft could create an adverse public perception, which could harm our reputation, result in passengers being reluctant to
use our services and adversely impact our business, results of operations and financial condition.

We
operate in highly competitive markets and we may be required to reduce the prices for some of our products and services to remain competitive,
which could adversely affect our results of operations.

The TriFan 600 potentially competes with a variety of aircraft manufacturers
in the United States and abroad. Further, we could face competition from competitors of whom we are not aware that have developed or are
developing technologies that will offer alternatives to the TriFan 600. Competitors could develop an aircraft that renders the TriFan
600 less competitive than we believe it will become. Many existing potential competitors are well-established, have or may have longer-standing
relationships with customers and potential business partners, have or may have greater name recognition, and have or may have access to
significantly greater financial, technical and marketing resources. Other manufacturers may be developing a light, fixed-wing, VTOL airplane
with performance similar to that of the TriFan 600.

Additionally,
the RTLS industry is developing rapidly and related technology trends are constantly evolving. In this environment, we face, among other
things, significant price competition from our competitors. As a result, we may be forced to reduce the prices of the RTLS products and
services we sell in response to offerings made by our competitors and may not be able to maintain the level of bargaining power that
we have enjoyed in the past when negotiating the prices of our products and services. If we are not able to maintain favorable pricing
for our RTLS products and services, our results of operations could be adversely affected.

The
market for a civilian long-range fixed-wing VTOL airplane is new and untested. If such market does not respond at the level we
expect or if it fails to grow as large as we expect, our business, financial condition and results of operations could be
harmed.

The market for a civilian long-range fixed-wing VTOL airplane is completely
new and untested. Our success in this market is dependent upon our ability