Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 252

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 252
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    difficulties or complications in combining the companies’ operations;

    ●
    differences in controls, procedures and policies, regulatory standards and business cultures among the combined companies;

    ●
    the diversion of management’s attention from our ongoing core business operations;

    ●
    increased exposure to certain governmental regulations and compliance requirements;

    ●
    the potential increase in operating costs;

    ●
    the potential loss of key personnel;

    ●
    the potential loss of key customers or suppliers who choose not to do business with the combined business;

    ●
    difficulties or delays in consolidating the acquired companies’ technology platforms, including implementing systems designed to maintain effective disclosure controls and procedures and internal control over financial reporting for the combined company and enable the Company to continue to comply with U.S. GAAP and applicable U.S. securities laws and regulations;

    ●
    unanticipated costs to successfully integrate operations, technologies, personnel of acquired businesses and other assumed contingent liabilities;

    ●
    difficulty comparing financial reports due to differing financial and/or internal reporting systems;

    ●
    making any necessary modifications to internal financial control standards to comply with the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder; and/or

    ●
    possible tax costs or inefficiencies associated with integrating the operations of the combined company.

60

These factors could cause us to not fully realize
the anticipated financial and/or strategic benefits of the acquisitions, which could have a material adverse effect on our business, financial
condition and/or results of operations.

Even if we are able to successfully operate the
acquired businesses, we may not be able to realize the revenue and other synergies and growth that we anticipated from these acquisitions
in the time frame that we currently expect, and the costs of achieving these benefits may be higher than what we currently expect, because
of a number of risks, including, but not limited to:

    ●
    the possibility that the acquisition may not further our business strategy as we expected;

    ●
    the possibility that we may not be able to expand the reach and customer base for the acquired companies’ current and future products as expected;

    ●
    the possibility that we may have entered a market with no prior experience and may not succeed in the manner expected; and

    ●
    the possibility that the carrying amounts of goodwill and other purchased intangible assets may not be recoverable.

In addition, a significant
portion of the aggregate purchase price of Drone Nerds