Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 410

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 3
Chunk 410
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, profitability, efficiencies
or synergies that justify the acquisition or that the acquisition will result in increased earnings for us in any future period. These
factors could have a material adverse effect on our business, financial condition and operating results.

We may not be able to successfully integrate
the business and operations of Drone Nerds, Anzu Robotics or other entities that we have acquired or may acquire in the future into our
ongoing business operations, which may result in our inability to fully realize the intended benefits of these acquisitions, or may disrupt
our current operations, which could have a material adverse effect on our business, financial position and/or results of operations.

We plan to integrate the operations of Drone Nerds
and Anzu Robotics into our business, and this process involves complex operational, technological and personnel-related challenges, which
are time-consuming and expensive and may disrupt our ongoing business operations. Furthermore, integration involves a number of risks,
including, but not limited to:

    ●
    difficulties or complications in combining the companies’ operations;

    ●
    differences in controls, procedures and policies, regulatory standards and business cultures among the combined companies;

    ●
    the diversion of management’s attention from our ongoing core business operations;

    ●
    increased exposure to certain governmental regulations and compliance requirements;

    ●
    the potential increase in operating costs;

    ●
    the potential loss of key personnel;

    ●
    the potential loss of key customers or suppliers who choose not to do business with the combined business;

    ●
    difficulties or delays in consolidating the acquired companies’ technology platforms, including implementing systems designed to maintain effective disclosure controls and procedures and internal control over financial reporting for the combined company and enable the Company to continue to comply with U.S. GAAP and applicable U.S. securities laws and regulations;

    ●
    unanticipated costs to successfully integrate operations, technologies, personnel of acquired businesses and other assumed contingent liabilities;

    ●
    difficulty comparing financial reports due to differing financial and/or internal reporting systems;

    ●
    making any necessary modifications to internal financial control standards to comply with the Sarbanes-Oxley Act of 2002 and the rules and regulations promulgated thereunder; and/or

    ●
    possible tax costs or inefficiencies associated with integrating the operations of the combined company.

60

These factors could cause us to not fully realize
the anticipated financial and/or strategic benefits of the acquisitions, which could have a material adverse effect on our business, financial
condition and