Company: XTIA
Filing Date: 2025-11-12
Form Type: 8-K
Source: 0001213900-25-108855
Chunk: 20

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-12
Form: 8-K
Item: Item 8.01
Chunk 20
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 the acquisitions.

The risks arising with respect to the historic
business and operations of Drone Nerds and Anzu Robotics may be different from what we anticipate, which could significantly increase
the costs and decrease the benefits of the acquisitions and materially and adversely affect our operations going forward.

Although we performed significant
financial, legal, technological and business due diligence with respect to Drone Nerds and Anzu Robotics, we may not have appreciated,
understood or fully anticipated the extent of the risks associated with the acquisitions. We have secured indemnification for certain
matters in connection with the Drone Nerds and Anzu Robotics acquisitions in order to mitigate the consequences of breaches of representations,
warranties and covenants under the applicable acquisition agreements and the risks associated with historic operations, including those
with respect to compliance with laws, accuracy of financial statements, financial reporting controls and procedures, tax matters and undisclosed
liabilities, and certain matters known to us. We believe that the indemnification provisions of the acquisition agreements, together with
insurance policies that we have in place will limit the economic consequences of the issues we have identified in our due diligence to
acceptable levels. Notwithstanding our exercise of due diligence and risk mitigation strategies, the Drone Nerds and Anzu Robotics acquisitions
may expose us to unanticipated risks or unknown or contingent liabilities and the costs associated with these risks or liabilities may
be greater than we anticipate. We may not be able to contain or control the costs associated with unanticipated risks or liabilities,
which could materially and adversely affect our business, liquidity, capital resources or results of operations.

Item 9.01 Financial Statements and Exhibits.