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

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 10
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 the development of the TriFan 600, the type and extent of
assistance to be provided by Mesa in obtaining certification of the TriFan 600, branding and marketing matters, and optional equipment
in the airplane. If the parties do not agree on such material terms, either party has the right to terminate the agreement if such party
determines in its discretion that it is not likely that the material terms will be agreed to in a manner consistent with such party’s
business and operational interests (as those interests may change from time to time).

6

Additionally, we have entered into non-binding options to purchase
an aggregate of 40 airplanes with potential purchasers located in the United States and Europe. We have entered into non-binding aircraft
reservation deposit agreements for an aggregate of 114 airplanes with potential purchasers located in the United Kingdom, Ireland, Australia,
Dubai, India, Japan, Brazil, and the United States. Customers making reservation deposits are not obligated to purchase any airplanes
until they execute a definitive purchase agreement. We have written letters of intent (without deposits) with customers for an additional
105 airplanes. Customers may request a return of their refundable deposits any time up until the execution of a purchase agreement. These
conditional orders and reservations represent the potential of more than $3.0 billion in future gross revenue upon delivery of those airplanes,
assuming the low end of our current list price range of $10 million per airplane assuming we can execute on the development program for
the TriFan 600, secure FAA certification, and deliver these airplanes.

RTLS
& IIoT Solutions

Our
RTLS offerings which include real-time location tracking, collision avoidance and wireless device detections are used around the world
in automotive factories, heavy equipment factories, logistics and distribution warehouses, mining operations, government and military
buildings, and corporate offices.

During
the year ended December 31, 2024, four customers accounted for over 10% of revenue (23%, 14%, 13%, and 11%, respectively). The Company
had no revenue during the year ended December 31, 2023.

Competition

TriFan
600

The private jet and private business aircraft markets are highly competitive,
and we face a significant number of original equipment manufacturer competitors, most of which are larger, better known and have better
financial resources than us. When the TriFan 600 goes into production, we believe it will compete with other aircraft manufacturers by
providing our customers with what we believe is