Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 27

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 27
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 achieve our projected timelines and financial
goals.

15

If
we are unable to obtain and maintain adequate facilities and infrastructure, we may be unable to develop and manufacture the aircraft
as expected, and our aircraft may require maintenance at frequencies or at costs that are greater than expected.

In
order to develop and manufacture our aircraft, we must be able to obtain and maintain adequate facilities and infrastructure. We may
be unsuccessful in obtaining, developing and/or maintaining these facilities in a commercially viable manner. Even if we are able to
begin assembly operations in these facilities, maintenance of these facilities will require considerable capital expenditure as we expand
operations. We cannot provide any assurance that we will be successful in obtaining and maintaining adequate facilities and infrastructure,
and any failure to do so may result in our inability to develop and manufacture our aircraft as expected or on the timelines projected,
which would adversely affect our business, financial condition and results of operations.

Moreover, the TriFan 600, when produced, is anticipated to require
regular maintenance and support. We are still developing our understanding of the long-term maintenance profile of the airplane, and if
useful lifetimes are shorter than expected, this may lead to greater maintenance costs than previously anticipated. If the TriFan 600
and related equipment require maintenance more frequently than we plan for or at costs that exceed our estimates, that would have an impact
on the sales of our aircraft and have a material adverse effect on our business, financial condition and results of operations.

There
may be a shortage of pilots and mechanics who meet the training standards required, which could reduce our ability to sell our aircraft
at scale and on our expected timelines.

There
is a shortage of pilots that is expected to exacerbate over time as more pilots in the industry approach mandatory retirement age. Similarly,
trained and qualified aircraft and aviation mechanics are also in short supply. If these shortages continue, the aviation industry as
a whole and our business may face challenges.

Operations
could be adversely affected by interruptions of production that are beyond our control.

We
intend to produce the TriFan 600 and its derivatives using systems, components and parts developed and manufactured by third-party suppliers.
This supply chain exposes us to multiple potential sources of delivery failure or component shortages for our aircraft, most of which
are out of our control, including shortages of, or disruptions in the supply of, the raw materials used by our partners in the manufacture
of components, disruptions to our partners’ workforce (such as strikes or labor shortfalls) and disruptions to