Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 22

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 22
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 be commercially successful and achieve
or sustain profitability. We expect the rate at which we will incur losses to be significantly higher in future periods as we, among
other things, certify and assemble our aircraft, deploy our facilities, build up inventories of parts and components for our aircraft,
increase our sales and marketing activities, develop our manufacturing infrastructure and increase our general and administrative functions
to support our growing operations. These efforts may not result in the Company reaching profitability, which would further increase our
losses. We have funded our operations primarily with proceeds from public and private offerings of our common stock and secured and unsecured
debt instruments. Our history of operating losses and cash uses, our projections of the level of cash that will be required for our operations
to reach profitability, may impair our ability to raise capital on terms that we consider reasonable and at the levels that we will require
over the coming months.

13

To
the extent that we raise additional capital by issuing equity securities, such an issuance may cause significant dilution to our stockholders’
ownership and the terms of any new equity securities may have preferences over our common stock. Any debt financing that we enter into
may involve covenants that restrict our operations. These restrictive covenants may include limitations on additional borrowing and specific
restrictions on the use of our assets, as well as prohibitions on our ability to create liens, pay dividends, redeem its stock or make
investments.  In addition, if we raise additional funds through licensing, partnering or other strategic arrangements, it may be
necessary to relinquish rights to some of our technologies and proprietary rights, or grant licenses on terms that are not favorable
to us. We have issued, and may in the future issue, incentive awards under our equity incentive plans, which may have additional dilutive
effects. We may also be required to recognize non-cash expenses in connection with certain securities we may issue in the future such
as convertible notes and warrants, which would adversely impact our financial condition and results of operations.

Our
ability to obtain needed financing may be impaired by factors, including the condition of the economy and capital markets, both generally
and specifically in our industry, and the fact that we are neither cash flow positive nor profitable, which could affect the availability
or cost of future financing. We cannot provide any assurances that we will be able to secure additional funding from public or private
offerings or debt financings on terms acceptable to us, if at all. If the amount of