Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 20

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 20
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 to fund the Company until the TriFan 600’s first
flight, including building the first test airplane. If planned operating levels are changed, higher operating costs encountered, lower
sales revenue received, more time is needed to implement the plan, or less funding is received from customer deposits or sales, more investor
funds than currently anticipated may be required. Additional difficulties may be encountered prior to FAA certification, such as unanticipated
problems relating to development, testing, and initial and continuing regulatory compliance, vendor manufacturing costs, production and
assembly, and the competitive and regulatory environments in which we intend to operate. If additional capital is not available when required,
or is not available on acceptable terms, we may be forced to modify or abandon our business plan. 

12

We
will require FAA certification, and a delay in receiving such certification could adversely affect our prospects, business, financial
condition and results of operations.

The
TriFan 600 is still in the development stage, and we are still working to obtain FAA type certification of the TriFan 600. Certification
by the FAA will be required for the sale of the TriFan 600 in the civil or commercial market in the United States. The process to obtain
such certification is expensive and time consuming and has inherent engineering risks. These include (but are not limited to) ground
test risks such as structural strength and fatigue resistance, and structural flutter modes. Flight test risks include (but are not limited
to) stability and handling over the desired center-of-gravity range, performance extremes (stalls, balked-landing climb, single-engine
climb), and flutter control effectiveness (aircraft roll effectiveness, controllability, various control failure safety). Delays in FAA
certification can be expected to result in us incurring increased costs in attempting to correct any issues causing such delays. Also,
the impact of new or changed laws or regulations on the TriFan 600’s certification or the costs of complying with such laws and
regulations cannot be predicted.

The
pre-orders we have received for our TriFan 600 airplane are non-binding, conditional or written expressions of interest and may be terminated at
any time prior to execution of a definitive purchase agreement. If these pre-orders are cancelled, modified, delayed or not placed in
accordance with the terms agreed with each party, our business, results of operations, liquidity and cash flow will be materially adversely
affected.

We previously had a pre-sales program that included refundable deposits
for the