Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 6

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 6
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, along with specially-optimized algorithms and industry specific dashboards that are intended to
provide better visibility, predictive maintenance, process optimization, security and safety, and data-driven decision-making. Improved
visibility gives real-time locations and status of assets, people, and equipment both indoors and outdoors. By collecting and analyzing
data from RTLS systems, organizations gain insights from asset movements and use this information to optimize their operations. Predictive
maintenance reduces downtime and maintenance costs, as well as improve the lifespan of equipment. Process optimization helps improve
productivity, reduce costs, and enhance customer satisfaction. Security and safety helps prevent accidents, reduce the risk of theft,
and enhance the overall safety of employees and customers. Data-driven decision making by analyzing data from RTLS systems, organizations
gains a better understanding of their operations, identify areas for improvement, and make data-driven decisions that drive business
value. Furthermore, we are continuing to enhance the integration of ChatGPT, a generative artificial intelligence (AI), into our RTLS
solutions. This innovative integration expands the capabilities of our RTLS, enabling rapid, AI-assisted insights as well as interactive
discussions in a conversational medium. Operations managers in production and logistics, in particular, stand to benefit from this transformative
development.

Research
and Development

TriFan
600

    We plan to seek FAA certification
    of the TriFan 600 under the FAA’s new “Powered Lift” aircraft category. Initial concept and engineering analysis
    for the TriFan 600 was completed in July 2015. Legacy XTI built a 65% scale prototype and in May 2019 began initial hover tests.
    The prototype was successfully hover-tested multiple times. Subsequent to raising private funding during 2021, Legacy XTI hired a
    number of engineers (employees and consultants) to establish its core engineering organization. Additionally, Legacy XTI retained
    consulting firms to provide specialized engineering technical knowledge to complement XTI’s team.

4

In 2022, Legacy XTI updated the exterior design of the TriFan 600,
including the location of the wing fans and the horizontal tail, to improve the performance and efficiency of the airplane. Design and
engineering for other systems, including the propulsion system, landing gear, cockpit visibility, cabin sizing and structural integrity
were also advanced during 2022 and 2023. Legacy XTI identified the initial supply chain and began negotiating with key suppliers globally.
As a result of these efforts, Legacy XTI