Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 55

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 55
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increased volatility and diminished expectations for the economy and the markets going forward. These factors, combined with volatile
oil prices and wavering business and consumer confidence, have precipitated an economic slowdown and uncertain global outlook. Domestic
and international equity markets have been experiencing heightened volatility and turmoil. These events and the continuing market upheavals
may have an adverse effect on our business. In the event of extreme prolonged market events, such as the global economic recovery, we
could incur significant losses.

The existence of inflation
in certain economies has resulted in, and may continue to result in, rising interest rates and capital costs, supply shortages, increased
costs of labor, components, manufacturing and shipping, as well as weakening exchange rates and other similar effects. As a result, we
have experienced and may continue to experience cost increases. Although we take measures to mitigate the effects of inflation and rising
interest rates, if these measures are not effective, our business, financial condition, results of operations and liquidity could be materially
adversely affected. Even if such measures are effective, there could be a difference between the timing of when those beneficial actions
impact our results or operations and when the cost of inflation is incurred.

Domestic
and foreign government regulation and enforcement of data practices and data tracking technologies is expansive, broadly defined and
rapidly evolving. Such regulation could result in additional costs and liabilities to us, directly restrict portions of our business
or indirectly affect our business by constraining our customers’ use of our technology and services or limiting the growth of our
markets.

Federal,
state, municipal and/or foreign governments and agencies have adopted and could in the future adopt, modify, apply or enforce laws, policies,
and regulations covering user privacy, data security, technologies that are used to collect, store and/or process data, and/or the collection,
use, processing, transfer, storage and/or disclosure of data associated with individuals. The categories of data regulated under these
laws vary widely, are often broadly defined, and subject to new applications or interpretation by regulators. The uncertainty and inconsistency
among these laws, coupled with a lack of guidance as to how these laws will be applied to current and emerging indoor positioning analytics
technologies, creates a risk that regulators, lawmakers or other third parties, such as potential plaintiffs, may assert claims, pursue
investigations or audits, or engage in civil or criminal enforcement. These actions could limit the market for our services and technologies
or impose burdensome requirements on our services and/or customers