Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 23

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 23
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 capital we are able to raise from financing activities,
together with our limited revenues from operations, is not sufficient to satisfy our capital needs, we may need to reduce our operations
by, for example, selling certain assets or business segments.

As a result of our failure to timely file
a Current Report on Form 8-K, we are currently ineligible to use Form S-3 until August 2025, which may impair our ability to raise capital
on terms favorable to us, in a timely manner or at all.

Form
S-3 permits eligible issuers to conduct registered offerings using a short form registration statement that allows the issuer to incorporate
by reference its past and future filings and reports made under the Exchange Act. In addition, Form S-3 enables eligible issuers to conduct
primary offerings “off the shelf” under Rule 415 of the Securities Act. The shelf registration process, combined with the
ability to forward incorporate information, allows issuers to avoid delays and interruptions in the offering process and to access the
capital markets in a more expeditious and efficient manner than raising capital in a standard registered offering pursuant to a registration
statement on Form S-1. The ability to register securities for resale may also be limited as a result of the loss of Form S-3 eligibility.

As a result of our failure
to timely file a Current Report on Form 8-K, we are currently ineligible to use Form S-3 until August 2025. Our inability to use Form
S-3 may significantly impair our ability to raise necessary capital to fund our operations and execute our strategy. If we seek to access
the capital markets through a registered offering during the period of time that we are unable to use Form S-3, we may be required to
publicly disclose the proposed offering and the material terms thereof before the offering commences, we may experience delays in the
offering process due to SEC review of a Form S-1 registration statement and we may incur increased offering and transaction costs and
other considerations. Disclosing a public offering prior to the formal commencement of an offering may result in downward pressure on
our stock price. If we are unable to raise capital through a registered offering, we would be required to conduct our equity financing
transactions on a private placement basis, which may be subject to pricing, size and other limitations imposed under the Nasdaq rules,
or seek other sources of capital. The foregoing limitations on our financing approaches could prevent us from pursuing transactions or
implementing business strategies that