Company: XTIA
Filing Date: 2025-06-03
Form Type: DRS
Source: 0001213900-25-050156
Chunk: 8

Company: XTI Aerospace, Inc.
Filing Date: 2025-06-03
Form: DRS
Chunk 8
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OL 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, we began exploring strategic options to wind down and/or sell the
hardware portions of our 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.

Corporate Strategy Update

Our
primary focus is to power what we term the “vertical economy” by delivering high-performance xVTOL solutions that scale from
aircraft to innovative technologies and infrastructure. We identify seven areas that comprise the vertical economy: manned aircraft, unmanned
aircraft, powered-lift technology, airspace and infrastructure management, artificial intelligence, aircraft advanced materials and next
gen manufacturing. The term “xVTOL” is intended to encompass the broad spectrum of vertical lift technologies within the vertical
economy, including various aircraft types (e.g., electric VTOL, regional VTOL and drones), operational models (manned and unmanned), supporting
technologies (e.g., propulsion systems and aerospace-related artificial intelligence technologies) and customer applications. With the
TriFan 600 as our flagship commercial aviation product, we are laying the groundwork for an innovative family of versatile aircraft and
solutions addressing passenger travel, logistics, autonomous operations and defense missions that we believe will unlock significant