Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 52

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 52
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 multiple generations of products
that have been added over time. As a result, when problems occur in a company’s infrastructure, it may be difficult to identify
the sources of these problems. If we find errors in the existing software or defects in the hardware used in our customers’ infrastructure,
we may have to modify our customers’ software or hardware so that our products will interoperate with their infrastructure. In
such cases, our products may be unable to provide significant performance improvements for applications deployed in the infrastructure
of our customers. These issues could cause longer installation times for our products and could cause order cancellations, either of
which would adversely affect our business, results of operations and financial condition. In addition, other customers may require products
to comply with certain security or other certifications and standards. If our products are late in achieving or fail to achieve compliance
with these certifications and standards, or competitors sooner achieve compliance with these certifications and standards, we may be
disqualified from selling our products to such customers, or may otherwise be at a competitive disadvantage, either of which would harm
our business, results of operations, and financial condition.

Our
business and operations expose us to numerous legal and regulatory requirements and any violation of these requirements could harm our
business. Furthermore, our international business exposes us to geo-political and economic factors, legal and regulatory requirements,
public health and other risks associated with doing business in foreign countries.

We
are subject to numerous federal, state and foreign legal requirements on matters as diverse as data privacy and protection, employment
and labor relations, immigration, taxation, anti-corruption, import/export controls, trade restrictions, internal control and disclosure
control obligations, securities regulation and anti-competition. Compliance with diverse and changing legal requirements is costly, time-consuming
and requires significant resources. Violations of one or more of these diverse legal requirements in the conduct of our business could
result in significant fines and other damages, criminal sanctions against us or our officers, prohibitions on doing business and damage
to our reputation. Violations of these regulations or contractual obligations related to regulatory compliance in connection with the
performance of customer contracts could also result in liability for significant monetary damages, fines and/or criminal prosecution,
unfavorable publicity and other reputational damage, restrictions on our ability to compete for certain work and allegations by our customers
that we have not performed our contractual obligations.

Furthermore,
we provide our RTLS products and services to customers worldwide and our international business exposes us to risks that differ from
and potentially may be