Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 47

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 47
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by us, regardless of whether the breach is attributable to a vulnerability in our products or services, could result in liability for
us, damage our reputation or otherwise harm our business.

24

Any
failures or interruptions in our services or systems could disrupt our business and impair our ability to effectively provide our RTLS
services and products to our customers, which could damage our reputation and adversely affect our revenues and profitability.

Our
success depends in part on our ability to provide reliable remote services, technology integration and managed services to our customers.
We are highly dependent on information technology systems, many of which are operated by third parties (e.g., cloud services) and as
a result we may have limited ability to ensure their availability and operation, or, in the event of system failures, to control the
timing and success of system restorations. We do not have complete redundancy for all of our systems, and we do not maintain real-time
off-site backups of all of our data. The operations of our Cloud based applications and analytics are susceptible to damage or interruption
from human error, fire, flood, power loss, telecommunications failure, terrorist attacks and similar events. We could also experience
failures or interruptions of our systems and services, or other problems in connection with our operations, as a result of:

●damage
                                            to or failure of our computer software or hardware or our connections;

●errors
                                            in the processing of data by our systems;

●computer
                                            viruses or software defects;

●physical
                                            or electronic break-ins, sabotage, intentional acts of vandalism and similar events;

●increased
                                            capacity demands or changes in systems requirements of our customers; and

●errors
                                            by our employees or third-party service providers.

Any interruptions in our systems
or services could cause us financial or reputational damage, interrupt or suspend our operations, impair our ability to provide our RTLS
products and services to our customers, subject us to legal action and increased regulatory oversight, or otherwise have a material adverse
effect on our business and results of operations, including, among other things, an adverse effect on our ability to bill our customers
for work performed on our contracts, collect the amounts that have been billed and produce accurate financial statements in a timely manner.
While we maintain disaster recovery plans and insurance with coverage we believe to be adequate, claims may exceed insurance coverage
limits, may not be covered by insurance or insurance may not continue to be available on commercially reasonable terms.

The
growth of our RTLS business