Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 54

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 54
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                                            economic or political factors.

Any
of the above risks, should they occur, could result in an increase in the cost of components, production delays, general business interruptions,
delays from difficulties in obtaining export licenses for certain technology, tariffs and other barriers and restrictions, longer payment
cycles, increased taxes, restrictions on the repatriation of funds and the burdens of complying with a variety of foreign laws, any of
which could ultimately have a material adverse effect on our business.

Our
international operations are subject to special U.S. government laws and regulations, such as the Foreign Corrupt Practices Act, and
regulations and procurement policies and practices, including import-export control regulations, which may expose us to liability or
impair our ability to compete in international markets.

Our
international operations are subject to the U.S. Foreign Corrupt Practices Act (“FCPA”), and other laws that prohibit improper
payments or offers of payments to foreign governments and their officials and political parties by U.S. and other business entities for
the purpose of obtaining or retaining business. We have operations and deal with governmental customers in countries known to experience
corruption, including certain countries in the Middle East and in the future, the Far East. Our activities in these countries create
the risk of unauthorized payments or offers of payments by one of our employees, consultants or contractors that could be in violation
of various laws including the FCPA, even though these parties are not always subject to our control. We are also subject to import-export
control regulations restricting the use and dissemination of information classified for national security purposes and the export of
certain products, services, and technical data, including requirements regarding any applicable licensing of our employees involved in
such work.

28

Difficult
conditions in the global capital markets and the economy generally may materially adversely affect our business and results of operations,
and we do not expect these conditions to improve in the near future.

Our
results of operations are materially affected by conditions in the global capital markets and the economy generally, both in the U.S.
and elsewhere around the world. Weak economic conditions generally, sustained uncertainty about global economic conditions, or a prolonged
or further tightening of credit markets could cause our customers and potential customers to postpone or reduce spending on technology
products or services or put downward pressure on prices, which could have an adverse effect on our business, results of operations or
cash flows. Concerns over inflation, energy costs, geopolitical issues and the availability of credit in the U.S. have contributed to