Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 8

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 8
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 phase is expected to pave the way for approving
engineering designs used to build the airplane. The CDR phase will also include ongoing communication with the FAA to discuss and maintain
awareness of our compliance with federal regulations. We expect this phase to take approximately 12 to 18 months.

Following the completion of the CDR phase, we will begin fabricating
and constructing our full-scale flight test airplane and working towards first flight. After a successful first flight activities, the
certification from the FAA is expected to take an additional 18 to 24 months to achieve. As such, we anticipate FAA type certification
of the TriFan 600 in 2030.

RTLS
& IIoT Solutions

Our
management believes that we must continue to dedicate a significant amount of resources to research and development efforts to maintain
a competitive position. Our RTLS products intersect many emerging fields including metaverse, augmented reality, occupancy planning,
industry 4.0, smart cities, and more, and we continue to innovate and patent new methods to solve problems for our customers.

5

Sales
and Marketing

TriFan
600

    Our
                                            sales channels include direct sales as well as indirect sales channels which may include
                                            one or more regional sales agents or brokers. Indirect sales partners may also provide a
                                            range of pre- and post-sales services to our customers including aftermarket support and
                                            maintenance, repair and overhaul (“MRO”) services using XTI Aerospace parts.

    In 2023, we entered into a commercial agreement with a sales and distribution
agent for prospective sales of the TriFan 600 airplane and MRO services in certain markets, including 21 countries of the Middle East
and North Africa. We have been in discussions with other sales and distribution agents throughout the world and plan to expand our global
territory reach via commercial agreements.

We intend to market our airplane through customer-targeted marketing
campaigns (e.g., EMS, land management, oil & gas) utilizing our digital presence, webinars, podcasts, national and regional trade
shows, conferences, and other media. To best identify target customers, we intend to utilize a Customer Advisory Board – a focus
group to solidify the “voice of the customers” and allow us to map customer requirements and use cases to our available features,
functions and options.

RTLS
& IIoT Solutions

Our
sales channels include direct sales as well as indirect sales through channel partners including original equipment manufacturers (OEMs),
integr