Company: XTIA
Filing Date: 2025-11-12
Form Type: 8-K
Source: 0001213900-25-108855
Chunk: 15

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-12
Form: 8-K
Item: Item 8.01
Chunk 15
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 may be changes to existing trade agreements, greater restrictions on free trade
generally, the imposition of or significant increases in tariffs on goods imported into the U. S., particularly those manufactured in Canada,
Mexico, Europe, and China, and adverse responses by foreign governments to U. S. trade policies, among other possible changes. China is
currently a leading global source of hardware products, including the hardware products that we use. As the implementation of tariffs
is ongoing, more tariffs may be added in the future. These tariffs could have an adverse impact on our business, results of operations,
prospects and financial condition, and if we are unable to pass such price increases through to our customers, it would likely increase
our cost of sales and, as a result, decrease our gross margins, operating income and net income. As of the date of this report, discussions
remain ongoing in respect of certain trade restrictions and tariffs on imports from Canada, China, Mexico and Europe, as well as retaliatory
tariffs enacted in response to such actions. In light of these events, there continues to exist significant uncertainty about the future
relationship between the U. S. and other countries with respect to such trade policies, treaties, and tariffs. These developments, or the
perception that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global
financial markets, and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States.
Any of these factors could depress economic activity and restrict our access to suppliers or customers and, in turn, have a material adverse
effect on the business and financial condition of such suppliers and customers or other counterparties we do business with, which in turn
would negatively impact us.

Deteriorating macroeconomic
conditions, including slower growth or a recession, inflation, changes in the U. S. presidential administration, bank failures, supply
chain disruption, increases in interest rates, increases to fuel and other energy costs or vehicle costs, geopolitical events, including
escalating tariff and non-tariff trade measures imposed by the U. S., Mexico, China, Canada and other countries, the potential for new
or unforeseen conflicts such as the impact of the Russia and Ukraine conflict and Hamas and Israel conflict, changes in the labor market,
or decreases in government spending power, could in the future result in a decline in customer spending, which could materially adversely
affect our business, results of operations, prospects and financial