Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 21

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 21
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 TriFan 600 airplane that we intend to reopen later in 2025. Most pre-orders do not include deposits. Pre-sale agreements generally
provide customers a delivery slot for their airplanes. The deposits we have received do not create an obligation on the part of the customer
to purchase an airplane, and a customer may request the full return of its refundable deposit. Most pre-orders are subject to the execution
of a definitive purchase agreement between us and each party that contains the final terms for the purchase of our TriFan 600 airplane,
including, but not limited to, the final number of airplanes to be purchased and the timing for delivery of the airplanes. Some or most
customers might not transition to non-refundable purchase contracts until prior to aircraft delivery, if at all. Aircraft customers might
respond to weak economic conditions or competitive alternatives in the market by canceling orders, resulting in lower demand for our TriFan
600 airplane and other materials, such as parts, services, and training, from which we expect to generate additional revenue. Customers’
request for a return of their refundable deposits could have a material adverse effect on our financial results and/or liquidity, including,
but not limited to, the possibility that we may be financially unable to return such deposits.

We
have a history of losses, and in order to successfully execute our business plan, we will need to raise additional capital through additional
debt or equity financing, which may otherwise not be available on reasonable terms or at all.

We incurred net losses
of approximately $35.6 million and $25.1 million for the fiscal years ended December 31, 2024 and 2023, respectively, and we had an
accumulated deficit of approximately $93.6 million as of December 31, 2024. These losses and prior-year losses have resulted in
significant negative cash flows. The continuation of our Company is dependent upon attaining and maintaining profitable operations
in our RTLS business and executing timely on our design, FAA certification and eventual production of the TriFan 600 and raising
additional capital as needed, but there can be no assurance that we will be able to raise any further financing.

Our
management is evaluating options and strategic transactions and continuing to market and promote our new products and technologies, however,
there is no guarantee that these efforts will be successful or that we will be able to achieve or sustain profitability. Even if we are
able to successfully develop and sell our aircraft, there can be no assurance that the aircraft will