Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 46

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 46
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 key personnel are employed under employment contracts, there is no assurance we
will be able to retain their services. The loss of several of our key personnel could have an adverse effect on the Company. Furthermore,
we do not maintain “key person” life insurance on the lives of any of our executive officers and their death or incapacity
would have a material adverse effect on us. The competition for qualified personnel is intense, and the loss of services of certain key
personnel could adversely affect our business. There can be no assurance that we will be successful in attracting and retaining the personnel
we require to develop and market the proposed TriFan 600 airplane and conduct our proposed operations.

Digital
threats such as cyber-attacks, data protection breaches, computer viruses or malware on our customers ’ networks,
or in cloud-based services provided by or enabled by us, could result in liability for us, damage our reputation or otherwise harm our
business.

Despite
our implementation of network security measures, the products and services we sell to customers, and our servers, data centers and the
cloud-based solutions on which our data, and data of our customers, suppliers and business partners are stored, are vulnerable to cyber-attacks,
data protection breaches, computer viruses, malicious acts, and similar disruptions from unauthorized tampering or human error. Use of
our products and services in our customers’ environments may have the possibility of being breached as a result of acts other than
our customers exposing confidential and sensitive information. For example, some parts of our technology, including but not limited to
the technology used in our Indoor Intelligence products, may be based on open-source technology, which is subject to the risk that the
development team or other third parties may intentionally or unintentionally introduce weaknesses or bugs into the core infrastructure
elements of such technology. Despite our security controls and measures, any such event could compromise our networks or those of our
customers, and the information stored on our networks or those of our customers could be accessed, publicly disclosed, lost or stolen,
which could subject us to liability to our customers, business partners and others, and could have a material adverse effect on our business,
operating results, and financial condition and may cause damage to our reputation. Efforts to limit the ability of malicious third parties
to disrupt the operations of the Internet or undermine our own security efforts may be costly to implement and meet with resistance,
and may not be successful. Breaches of network security in our customers’ networks, or in cloud-based services provided by or enabled