Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 13

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 13
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 worldwide, non-exclusive, irrevocable, royalty free, fully paid up, perpetual license
to use, practice and otherwise exploit such intellectual property (with certain exceptions) that is owned, controlled or purported to
be owned or controlled by the other party (the “Licensor”) to the extent used, practiced or otherwise exploited in the business
of the Licensee during the twelve (12) months prior to the separation or is reasonably anticipated to be used after the separation for
the conduct of any business of the Licensee as conducted on or prior to the separation and reasonably anticipated extension or evolutions
thereof that are not substitutes for any product or service of the Licensor.

Government
Regulation

In
general, 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, anticorruption, import/export controls, trade restrictions, internal and disclosure
control obligations, securities regulation and anti-competition.

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.
To date, compliance with these regulations has not been financially burdensome.

Aviation
Regulations

In
the U.S., civil aviation is regulated by the FAA, which controls virtually every aspect of flight from pilot licensing to aircraft design
and construction, and use of the public air space within the boundaries and territorial waters of the United States. The FAA requires
that every civilian aircraft that flies in the U.S. carry a valid “type certificate” and airworthiness certificate issued
by the FAA or a foreign civil aviation authority.

We intend to seek approval for the design of the TriFan 600 by obtaining
a standard Type Certificate under Federal Aviation Regulations, in particular the criteria set forth under the “Powered Lift”
regulations. In March 2025, the Company submitted its Type Certification application to the FAA. The FAA will oversee extensive testing
and analysis of the TriFan 600 to confirm the airplane’s safety, stability, reliability,