Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 26

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 26
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 to effectively market and sell travel and other applications
by the TriFan 600 as a substitute for conventional methods of air transportation (i.e., helicopters and/or light and mid-size business
aircraft) and the effectiveness of our other marketing and growth efforts. We have projected the market for the TriFan 600 based upon
a variety of internal and external market data. The estimates involve assumptions, which may not be realized in fact. There can be no
assurance that our estimates for the number of TriFan 600 airplane that may be sold in the market will be as anticipated. If the public
does not respond as expected as a result of concerns regarding safety, affordability or for other reasons, then the market for our offerings
may not develop, may develop more slowly than we expect or may not achieve the growth potential we expect, any of which could harm our
business, financial condition and results of operations.

Developing
new products and technologies entails significant risks and uncertainties.

Delays
or cost overruns in the development or certification of the TriFan 600 and failure of the product to meet its performance estimates is
likely to affect our financial performance. Delays and increased costs may be caused by unanticipated technological hurdles, changes
to design or failure on the part of our suppliers to deliver components as agreed. This may further delay the development and/or certification
of the TriFan 600.

Additionally,
the TriFan 600 may not perform at the level we expect or may contain defects in design and manufacture that may cause them not to perform
as expected or that may require repair. It is not possible to fully replicate every operating condition and validate the long-term durability
of every aspect of our aircraft in testing prior to its use in service. In some instances, we may need to continue to rely upon projections
and models to validate the projected performance of our aircraft over their lifetime. Therefore, similar to most aerospace products,
there is a risk that our aircraft may suffer unforeseen faults, defect or other issues in service. Such faults, defects and other issues
may require significant additional research and development to rectify and could involve suspension of operation of our aircraft until
any such defects can be cured. There can be no assurance that such research and development efforts would result in viable products or
cure any such defects. Obtaining the necessary data and results may take longer than planned or may not be obtained at all. Any such
delays or setbacks could have a material adverse effect on our reputation and our ability to