Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 57

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 57
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 more difficult to meet expectations from or commitments
to customers, lead to significant fines, penalties or liabilities for noncompliance, impact our reputation, or slow the pace at which
we close sales transactions, any of which could harm our business.

Furthermore,
the uncertain and shifting regulatory environment and trust climate may cause concerns regarding data privacy and may cause our customers
or our customers’ customers to resist providing the data necessary to allow our customers to use our services effectively. Even
the perception that the privacy of personal information is not satisfactorily protected or does not meet regulatory requirements could
inhibit sales of our products or services and could limit adoption of our cloud-based solutions.

Misuse
of our products could harm our reputation and result in litigation or enforcement action or reduced demand for our services. 

Our
products, particularly our location-based security and detection products, may be misused by customers or third parties that obtain access
to such products. For example, location information combined with other information about the same users in the hands of criminals could
result in misuse of the data and privacy law violations and result in negative press coverage and negatively affect our reputation. Further,
our RTLS customers utilize our services and technologies to track connected devices anonymously and we must rely on our customers to
implement and administer notice and choice mechanisms required under applicable laws. If we or our customers fail to abide by these laws,
it could result in litigation or regulatory or enforcement action against our customers or against us directly.

Any
actual or perceived failure by us to comply with our privacy policy or legal or regulatory requirements in one or multiple jurisdictions
could result in proceedings, actions or penalties against us.

Any
failure or perceived failure by us to comply with federal, state or foreign laws or regulations, industry standards, contractual obligations
or other legal obligations, or any actual or suspected security incident, whether or not resulting in unauthorized access to, or acquisition,
release or transfer of personal data or other data, may result in governmental enforcement actions and prosecutions, private litigation,
fines and penalties or adverse publicity and could cause our customers to lose trust in us, which could have an adverse effect on our
reputation and business. Any inability to adequately address privacy and security concerns, even if unfounded, or comply with applicable
laws, regulations, policies, industry standards, contractual obligations or other legal obligations could result in additional cost and
liability to us, damage our reputation, inhibit sales and adversely affect our business.

A regional or global health pandemic, such
as the COVID-