Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 206

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 2
Chunk 206
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 to move through the design, development,
and certification of our VTOL airplane with the Federal Aviation Administration (“FAA”) in an efficient manner, thus allowing
us to achieve our end goal of bringing to market our airplane as efficiently as possible.

To date, we have not generated
any revenue from aircraft sales because we are still designing and developing our VTOL airplane. Additionally, we are seeking the necessary
governmental approvals to bring the airplane into service. To continue funding these efforts, we will need to raise capital for the foreseeable
future. The amount and timing of our future capital needs will depend on various factors, including the progress and results of our airplane’s
design and development, our manufacturing operations, and our success in obtaining the required FAA certifications and other government
approvals. For instance, any significant delays in securing FAA certifications or other government approvals may force us to raise more
capital and could postpone our ability to generate revenue from aircraft sales.

Our RTLS solutions leverage
cutting-edge technologies such as IoT, AI, and big data analytics to provide real-time tracking and monitoring of assets, machines, and
people within industrial environments. With our RTLS solutions, businesses can achieve improved operational efficiency, enhanced safety
and reduced costs. By having real-time visibility into operations, industrial organizations can make informed, data-driven decisions,
minimize downtime, and ensure compliance with industry regulations.

We report financial results for
two segments: Commercial Aviation and Industrial IoT. For Industrial IoT, we generate revenue from sales of hardware, software licenses
and professional services. During the quarter ended December 31, 2024, the Company began exploring strategic options to wind down and/or
sell the hardware portions of the Company’s Industrial IoT business segment in order to shift its focus towards the sales of software
products. For Commercial Aviation, the segment is pre-revenue as we are currently developing the TriFan 600 airplane.

Key Factors Affecting Operating Results

We believe that the growth of
our business and our future success are dependent upon many factors, including our ability to retain and develop engineering internal
and third-party resources, secure strategic partnerships with suppliers, expand the number of customer purchase orders, locate a facility
for further aircraft development and testing, expand on that facility or locate to a new facility for commercial production, build-out
production assembly lines in a timely manner, develop ancillary service offerings related to the TriFan 600 such as flight training and
maintenance products, and secure the needed financing to achieve FAA certification.

While each