Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 29

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 29
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 political intervention and other factors beyond our control or which we do
not presently anticipate, could also affect our partners’ and suppliers’ abilities to deliver components to us on a timely
basis, which could have a material adverse effect on our overall timelines to produce our aircraft. We do not control our suppliers or
partners or such parties’ labor and other legal compliance practices, including their environmental, health and safety practices.
If our current suppliers or partners, or any other suppliers or partners which we may use in the future, violates any specific laws or
regulations, we may be subjected to extra duties, significant monetary penalties, adverse publicity, the seizure and forfeiture of products
that we are attempting to import or the loss of our import privileges. The effects of these factors could render the conduct of our business
in a particular country undesirable or impractical and have a negative impact on our business, financial condition and results of operations.

If
we do not adequately protect our intellectual property rights, we may experience a loss of revenue and our operations and growth prospects
may be materially harmed.

Although
we have received certain patents for the TriFan 600 issued by the US Patent and Trademark Office (USPTO) and various foreign jurisdictions,
there is no guarantee that we will receive one or more additional patents for which we will apply to the USPTO or for which we have applied
or will apply in foreign jurisdictions. The process of obtaining patent protection is expensive and time-consuming, and we may not be
able to prosecute all necessary or desirable patent applications at a reasonable cost or in a timely manner. Even if issued, there can
be no assurance that these patents will adequately protect our intellectual property, as the legal standards relating to the validity,
enforceability and scope of protection of patent and other intellectual property rights are complex and often uncertain and are subject
to change. There is no guarantee that any court will rule in our favor in the event of a dispute related to our intellectual property.
In the absence of further patent protection, it may be more difficult for us to achieve commercial production of the TriFan 600. In addition,
any patents issued in the future may not provide us with any competitive advantages because our competitors may independently develop
similar or alternative technologies or products that are equal to or superior to our TriFan 600 technology without infringing on any
of our intellectual property rights or design around our proprietary technologies.

Furthermore,
our proprietary software is protected by common law copyright laws, as opposed to registration under copyright statutes. We have