Company: XTIA
Filing Date: 2025-04-18
Form Type: POS AM
Source: 0001213900-25-033058
Chunk: 10

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-18
Form: POS AM
Chunk 10
---
 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 sales of software
products. For Commercial Aviation, the segment is pre-revenue as we are currently developing the TriFan 600 airplane.

Corporate Strategy

In addition to advancing the
design and certification of the TriFan 600 for commercial production and sale, and in order to continue to respond to rapid changes and
required technological advancements, increase our opportunities for revenue generation, and increase shareholder value, we are exploring
strategic transactions and opportunities that we believe will enhance shareholder value. We are particularly focused on delivering leading,
business-focused solutions that seek to shape the future across powered-lift aircraft solutions. Expanding into autonomous, remotely operated
drones is key to our strategic vision. By combining drone technology with VTOL innovation, we believe we are positioning XTI to accelerate
the development of both unmanned aerial vehicles (UAV) and VTOL solutions, expand its market presence, and create new opportunities across
multiple industries. We will also be opportunistic and may consider other strategic and/or attractive transactions, which may include,
but not be limited to other alternative investment opportunities, such as minority investments and joint ventures. If we make any acquisitions
in the future, we expect that we may pay for such acquisitions with cash, equity securities and/or debt in combinations appropriate for
each acquisition. In this regard, in January of this year, we entered into a non-binding memorandum of understanding to acquire a minority
equity interest in an AI-powered, autonomous drone company. We may enter into one or more additional non-binding letters of intent in
connection with our due diligence and strategic transaction evaluation process. In addition to these strategic initiatives, we also intend
to invest in a variety of thought leadership marketing and branding initiatives to increase market visibility and enhance our brand strength
and credibility within the powered lift aircraft market.

<div align='center