Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 600

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part II, Item 1A
Chunk 600
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ing 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/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