XTI Aerospace, Inc.(XTIA) - 2024 Q4 - Annual Report

Merger and Acquisition - The company completed a merger with Legacy XTI on March 12, 2024, resulting in a name change to XTI Aerospace, Inc.[18] - The merger is accounted for as a reverse acquisition, with Legacy XTI being the accounting acquirer, and the financial statements reflect this change[19] - XTI Aerospace completed a merger with Legacy XTI on March 12, 2024, with Legacy XTI as the accounting acquirer[18] - The merger is accounted for as a reverse acquisition, with the financial statements reflecting a continuation of Legacy XTI's results[19] Stock Split - A reverse stock split of 1-for-100 was executed on March 12, 2024, to comply with Nasdaq Listing Rule 5550(a)(2)[21] - A subsequent reverse stock split of 1-for-250 is planned for January 10, 2025, also for compliance with Nasdaq Listing Rule 5550(a)(2)[21] Financial Performance and Challenges - The company has a history of losses and faces challenges in achieving profitability and delivering non-prototype aircraft[13] - Future financial results and performance are subject to various risks and uncertainties that could materially impact outcomes[12] - Economic conditions, including inflation and supply chain challenges, may impact the company's performance and customer base[16] Development and Competition - The company is working on the TriFan 600 and must secure required certifications for its development and commercialization[13] - The company is exposed to emerging competition and rapidly advancing technologies in the aerospace industry[13] - Conditional pre-orders for aircraft may be canceled or modified, impacting future cash flows and operations[13] Regulatory and Legal Risks - The company must navigate regulatory complexities and maintain compliance with Nasdaq listing requirements[16] - The company is subject to potential lawsuits and regulatory investigations, including those from the SEC[16] - There are risks associated with the approval of future patent applications and the costs of protecting intellectual property[16] Operational Risks - The company faces risks related to long development cycles and dependence on third parties for aircraft components[16] - The company must manage the risks of maintaining quality control and customer confidence in its aircraft[16] - The ability to attract and retain qualified personnel is critical for the company's growth and operational success[16]