Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 63

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 63
---
 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 testing, expand on that facility or locate to a new facility for commercial production, build-out
production assembly lines in a timely manner, develop ancillary service offerings related to the TriFan 600 such as flight training and
maintenance products, and secure the needed financing to achieve FAA certification.

While each of these areas
presents significant opportunities for us, they also pose material challenges and risks that we must successfully address to achieve FAA
certification of the TriFan 600 and further reach our current aircraft delivery forecasts.

37

Corporate Strategy Update

Our primary focus is to power
what we term the Vertical Economy™ by delivering high-performance xVTOL solutions that scale from aircraft to innovative technologies
and infrastructure. We identify seven areas that comprise the Vertical Economy: manned aircraft, unmanned aircraft, power technology,
airspace and infrastructure management, artificial intelligence, aircraft advanced materials and next gen manufacturing. The term “xVTOL”
is intended to encompass the broad spectrum of vertical lift technologies within the Vertical Economy, including various aircraft types
(e.g., electric VTOL, regional VTOL and drones), operational models (manned and unmanned), supporting technologies (e.g., propulsion systems
and aerospace-related artificial intelligence technologies) and customer applications. With the TriFan 600 as our flagship commercial
aviation product, we are laying the groundwork for an innovative family of versatile aircraft and solutions addressing passenger travel,
logistics, autonomous operations and defense missions that we believe will unlock significant growth and market leadership.

Expanding into autonomous,
remotely operated drones is key to our strategic focus. By combining drone technology with VTOL innovation, we believe we are positioning
the Company to accelerate the development of both unmanned aerial vehicles and VTOL solutions, expand its market presence, and create
new revenue-generating opportunities across multiple industries. We will also be opportunistic and may consider other strategic transactions,
which may include, but not be limited to, other alternative investment opportunities, such as minority investments and joint ventures.
If we make any acquisitions in the future, we expect that we may pay for such acquisitions with cash, equity securities and/or debt in
combinations appropriate for each acquisition.

Recent Events

June 2025 Underwritten Offering 

On June 24, 2025, the Company
entered into an underwriting agreement with ThinkEquity, as the representative of