Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 36

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 36
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 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.

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/or results of operations.

Even
if we are able to successfully operate the acquired businesses, we may not be able to realize the revenue and other synergies and growth
that we anticipated from these acquisitions in the time frame that we currently expect, and the costs of achieving these benefits may
be higher than what we currently expect, because of a number of risks, including, but not limited to:

●the
                                            possibility that the acquisition may not further our business strategy as we expected;

●the
                                            possibility that we may not be able to expand the reach and customer base for the acquired
                                            companies’ current and future products as expected;

●the
                                            possibility that we may have entered a market with no prior experience and may not succeed
                                            in the manner expected; and

●the
                                            possibility that the carrying amounts of goodwill and other purchased intangible assets may
                                            not be recoverable.

As
a result of these risks, the acquisitions and integration may not contribute to our earnings as expected, we may not achieve expected
revenue synergies or our return on invested capital targets when expected, or at all, and we may not achieve the other anticipated strategic
and financial benefits of the acquisitions.

20

The
ongoing impact of the military conflict between Russia and Ukraine and the Israel/Hamas conflict may result in an increase in the likelihood
of supply chain constraints, contribute to inflation driving up the cost of material and labor required to make our products, the effects
of which remains uncertain and may have a material adverse impact on our business, operations and financial conditions.

The
ongoing military conflict between Russia and Ukraine has had an impact on our business and the Israel/Hamas conflict may increase the
likelihood of supply interruptions which may hinder our ability to find the materials we need to make our products. Supply disruptions
are making it harder for us to find favorable pricing and reliable sources for the materials we need, putting upward pressure on our
costs and increasing the risk that we may be unable to acquire the materials and services we need to continue to