Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 3

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 3
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unities as well as generate time savings for travelers. As technology matures, we envision a transition to hybrid-electric propulsion
for future TriFan configurations in our pursuit of taking aviation to a greener future. We believe our phased, measured-risk approach
is prudent given the lack of technology readiness of battery and hydrogen propulsion, limited and slow progress with respect to regulatory
guidance regarding novel propulsion technologies, and expected long timelines to develop a widespread charging network. With time, we
anticipate that owners and users of the TriFan will be able to access many of the landing pads, vertiports, and other VTOL aircraft infrastructure
that we expect will accommodate eVTOL air taxis, which should allow the Company to participate to some extent in the future Advanced Air
Mobility market.

As of the date of this filing, the base price of the TriFan 600 airplane
is approximately $10 to $12 million. The announced price for our only known direct competitor for a civilian fixed-wing VTOL airplane
is between $20 million and $30 million. The TriFan 600’s $10 to $12 million base price falls within the price range ($6.5 million
- $12 million) for many of the business airplanes with whom we expect the TriFan 600 to compete. Unlike the TriFan 600, these airplanes
require runways for takeoff and landing, which adds to total trip times. The $10 to $12 million base price is above the initial purchase
price range ($5.5 million to $8.2 million) for helicopters with whom the TriFan 600 expects to compete. However, the TriFan 600 will be
capable of completing missions at approximately twice the speed of competing helicopters. Therefore, the mission time compared to helicopters
is expected to be reduced by 40% - 50% and mission costs and emissions will also be reduced. As a result, we expect the TriFan 600’s
five-year cost of ownership (initial base purchase price plus annual direct operating costs) to be lower than much of the helicopter competition.

Products
and Services

TriFan
600

Our aviation business
is focused on the development of our initial configuration of the TriFan 600, which is a seven-occupant airplane intended to provide
point-to-point air travel over distances of up to 985 miles, fly at twice the speed of a helicopter and cruise at altitudes up to 25,000
feet. We believe that the target Tri