Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 49

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 49
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 and changes to our
pricing models could dramatically alter our financial results. Unless we are able to release location based products that meet a significant
market demand, we will not be able to improve our financial condition or the results of our future operations.

25

Our
RTLS business currently has a limited number of customers, the importance of which may vary dramatically from year to year, and a loss
of one or more of these key customers may adversely affect our operating results.

Our
RTLS business currently has a limited number of customers. The loss of a significant amount of business from one of our major RTLS customers
would materially and adversely affect our results of operations until such time, if ever, as we are able to replace the lost business.
Significant customers or projects in any one period may not continue to be significant customers or projects in other periods. To the
extent that we are dependent on any single customer, we are subject to the risks faced by that customer to the extent that such risks
impede the customer’s ability to stay in business and make timely payments to us.

If
we cannot collect our receivables or if payment is delayed, our business may be adversely affected by our inability to generate cash
flow, provide working capital or continue our business operations.

Our
RTLS business depends on our ability to successfully obtain payment from our customers of the amounts they owe us for products received
from us and any work performed by us. The timely collection of our receivables allows us to generate cash flow, provide working capital
and continue our business operations. Our customers may fail to pay or delay the payment of invoices for a number of reasons, including
financial difficulties resulting from macroeconomic conditions, lack of an approved budget as a result of administrative delays, or participating
in bankruptcy proceedings. An extended delay or default in payment relating to a significant account will have a material and adverse
effect on the aging schedule and turnover days of our accounts receivable. If we are unable to timely collect our receivables from our
customers for any reason, our business and financial condition could be adversely affected.

We
may be subject to product liability due to manufacturing or design defects for which product liability insurance may not be sufficient.

We
may be a party to product liability claims that arises from time to time in the ordinary course of our business, which may include those
related to, for example, the development or marketing of the products, or adverse events known or reported to be associated with, or
manufacturing defects in