Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 32

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 32
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 more stringent regulatory
requirements, increased monitoring and disclosure requirements, and potential effects on our reputation and/or changes in our business.
We could incur significant costs to improve the climate resiliency of our aircraft or infrastructure and otherwise prepare for, respond
to, and mitigate such physical effects of climate change. We are not able to accurately predict the materiality of any potential losses
or costs associated with the physical effects of climate change.

Market
and regulatory trends to reduce climate change may not evolve in the direction and within the timing expected, which could have a negative
impact in our business plan.

A
number of governments globally have introduced or are moving to introduce climate change legislation and treaties at the international,
national, state/provincial and local levels. Regulation relating to emission levels and energy efficiency is becoming more stringent
and is gaining more widespread market approval, as consumers expect companies to play a role in addressing climate change. Our business
plan is predicated in part on the idea that market and regulatory trends favoring such “clean” energy and addressing climate
change will continue to evolve in our favor. However, any change or reversal in such market and regulatory trends, such as less focus
on climate-friendly solutions or less stringent legislation with respect to emissions, could result in lower demand for our aircraft
and have an adverse effect on our business.

Investors’
expectations of our performance relating to environmental, social and governance (“ESG”)
factors may impose additional costs and expose us to new risks.

There
is an increasing focus from investors, employees, customers and other stakeholders concerning corporate responsibility, specifically
related to ESG matters. Some investors may use these non-financial performance factors to guide their investment strategies and, in some
cases, may choose not to invest in us if they believe our policies and actions relating to corporate responsibility are inadequate. The
growing investor demand for measurement of non-financial performance is addressed by third-party providers of sustainability assessments
and ratings with respect to public companies. The criteria by which our corporate responsibility practices are assessed may change due
to changes in the sustainability landscape, which could cause us to undertake costly initiatives to satisfy such new criteria. If we
elect not to or are unable to satisfy such new criteria, investors may conclude that our policies and/or actions with respect to corporate
social responsibility are inadequate. We may face reputational damage in the event that we do not meet the ESG standards set by various
constituencies.

Insurance
and contractual protections may not always cover potential claims,