Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 251

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 251
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 manufacturing and certification. The development of an xVTOL airplane that meets our business requirements
demands significant design and development efforts on all facets of the airplane. We believe that by bringing together a mix of talent
with VTOL and traditional commercial aerospace backgrounds, we have built a team that enables us to move through the design, development,
and certification of our xVTOL airplane with the Federal Aviation Administration (“FAA”) in an efficient manner, thus allowing
us to achieve our end goal of bringing to market our airplane as efficiently as possible.

To date, we have not generated
any revenue from aircraft sales because we are still designing and developing our xVTOL 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.

 Key Factors Affecting Operating Results

We believe that the growth
of our business and our future success are dependent upon many factors, including our ability to retain and develop engineering internal
and third-party resources, secure strategic partnerships with suppliers, expand the number of customer purchase orders, locate a facility
for further aircraft development and