Company: XTIA
Filing Date: 2025-11-12
Form Type: 8-K
Source: 0001213900-25-108855
Chunk: 10

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-12
Form: 8-K
Item: Item 8.01
Chunk 10
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 If any of those suppliers decided to no longer work with Drone Nerds, this could impact Drone
Nerds ability to source products.

In addition, under the 2025
National Defense Authorization Act (“ NDAA”), a U. S. national-security agency is required to complete a security review of
certain suppliers, including DJI, by December 23, 2025. If no agency completes this review by the deadline, the law instructs the Federal
Communications Commission (the “ FCC”) to automatically add these suppliers to the FCC “ Covered List,” which would
effectively block new FCC equipment authorizations for their technology and drones in the U. S. (i. e., new models could not be approved).

Drone Nerds relies on DJI
for a significant portion of its drone sales, creating significant regulatory and operational risk. Also, in September 2025, Drone Nerds
signed an additional one-year contract with DJI to be the official non-exclusive dealer of its products in the U. S. DJI is already listed
on certain U. S. government watchlists for national security and data concerns, which could restrict imports and limit access to government
or defense-related contracts. This dependence exposes Drone Nerds to potential supply disruptions.

In addition, while existing
FCC equipment authorizations for previously approved DJI products would remain valid, federal agencies have indicated that continued use
of legacy or in-service DJI equipment may become restricted or phased out over time. Such actions could include procurement bans, limits
on participation in government-funded projects, or heightened data-security and export-control scrutiny. Even absent formal revocation
of existing approvals, these measures could discourage public-sector or enterprise customers from purchasing or deploying DJI-based systems,
thereby reducing demand for Drone Nerds’ products.

Although the NDAA establishes
the deadline for the national-security review, the ongoing federal government shutdown has created uncertainty around whether agencies
will complete the review on time. Many federal departments responsible for technology and security evaluations are operating with reduced
staffing or suspended programs, which may delay interagency coordination and risk assessments. If the review is not completed by the
statutory deadline, DJI and other covered suppliers would be automatically added to the FCC Covered List by operation of law. This outcome - caused
indirectly by administrative delay - could occur even without any final security determination.

If regulatory developments,
including delayed or adverse NDAA determinations, restrict DJI’s market access, Drone Nerds may be