Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 68

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 68
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 subject to the reporting requirements of the Exchange Act and the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”).
The Exchange Act requires that we file annual, quarterly and current reports, proxy statements, and other information. The Sarbanes-Oxley
Act requires, among other things, that we establish and maintain effective internal controls and procedures for financial reporting.
Our principal executive officer and principal financial officer are required to certify that our disclosure controls and procedures are
effective in ensuring that material information we are required to disclose in reports that we file or submit under the Exchange Act
is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms. As a result, we
incur significant legal, accounting and other expenses. Furthermore, the need to establish the corporate infrastructure demanded of a
public company may divert management’s attention from implementing our growth strategy, which could prevent us from improving our
business, results of operations and financial condition. We have made, and will continue to make, if necessary, changes to our internal
controls and procedures for financial reporting and accounting systems to meet our reporting obligations as a public company. However,
the measures we take may not be sufficient to satisfy our obligations as a public company. In addition, we cannot predict or estimate
the amount of additional costs we may incur in order to comply with these requirements. We anticipate that these costs could materially
increase our selling, general and administrative expenses.

Section
404 of the Sarbanes-Oxley Act requires annual management assessments of the effectiveness of our internal control over financial reporting.
In connection with the implementation of the necessary procedures and practices related to internal control over financial reporting,
we may identify deficiencies. Additionally, in the event we are no longer a smaller reporting company, as defined under the Exchange
Act, and we are unable to comply with the internal controls requirements of the Sarbanes-Oxley Act of 2002, then we may not be able to
obtain the independent registered public accountants’ certifications required by that act, which may preclude us from keeping our
filings with the SEC current, and interfere with the ability of investors to trade our securities and our shares to continue to be listed
on the Nasdaq Capital Market.

35

If
we fail to establish and maintain an effective system of internal controls, we may not be able to report our financial results accurately
or prevent fraud. Any inability to report and file our financial results