Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 14

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 14
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 performance, and compliance with the applicable
airworthiness standards.

8

In addition, once the FAA issues a type certificate to the Company,
we intend to apply for a production certificate, the FAA’s approval required for the manufacture of an FAA-approved type design,
to enable the Company to manufacture the TriFan in commercial quantities. TriFan 600 airplane that are manufactured by XTI in accordance
with the type certificate and the production certificate will be delivered to customers along with a certificate of airworthiness. To
obtain a production certificate from the FAA, we must demonstrate that our organization and our personnel, facilities, and quality system
can produce the airplane such that they conform to the approved design.

Since
we are not permitted to deliver commercially produced aircraft to customers until any such aircraft has obtained FAA certification, no
material aircraft sales revenue will be generated before receipt of FAA certification. The process of obtaining a valid type certificate,
production certificate and airworthiness certificate for the TriFan 600 will take several years.

In
addition to the FAA, customers’ operation of the TriFan 600 will be regulated by various state, county, and municipal agencies.
Specifically, flight of the TriFan 600 will be regulated by the FAA, while the ability to take off and land will be governed by the FAA
and various zoning restrictions imposed by non-federal agencies in each location where an owner of the TriFan 600 intends to operate.
These restrictions vary by location. Some government and private locations in the U.S. and around the world limit or prohibit the use
of aircraft. There are currently over 5,000 helipads in the U.S. where helicopters are allowed to land. Thus, we expect that customers
will be able to legally land the TriFan 600 in these locations and at thousands of other paved areas or grassy areas, job sites, residential
and commercial locations in the U.S. and around the world where it’s safe and legal to land VTOL aircraft, as well as smaller general
aviation airports unavailable to conventional business aircraft and jets.

Employees

As of April 11, 2025, we have 47 employees, including 4 part-time employees,
which includes all employees of our subsidiaries. This includes 3 officers, 7 sales personnel, 4 marketing personnel, 20 technical and
engineering personnel and 9 finance, other executive, legal and administration personnel.

Business
Combination

On
July 24, 2023, we entered into