Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 224

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 2
Chunk 224
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 (as defined
in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based upon this evaluation, our Chief Executive Officer and Chief Financial
Officer concluded that our disclosure controls and procedures were effective as of March 31, 2025.

Changes in Internal Controls

There have been no changes
in our internal control over financial reporting identified in connection with the evaluation required by paragraph (d) of Rule 13a-15
or 15d-15 under the Exchange Act that occurred during the quarter ended March 31, 2025 that has materially affected, or is reasonably
likely to materially affect, our internal control over financial reporting.

Limitations of the Effectiveness of Control

A control system, no matter
how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met.
Because of the inherent limitations of any control system, no evaluation of controls can provide absolute assurance that all control issues,
if any, within a company have been detected.

49

PART II — OTHER INFORMATION

 Item 1. Legal Proceedings

There are no material pending
legal proceedings as defined by Item 103 of Regulation S-K, to which we are a party or of which any of our property is the subject, other
than ordinary routine litigation incidental to the Company’s business and as described in Note 18 of the Notes to Condensed Consolidated
Financial Statements included in Part I, Item 1 of this report under the heading “Litigation.”

There are no proceedings in
which any of the directors, officers or affiliates of the Company, or any registered or beneficial holder of more than 5% of the Company’s
voting securities, is an adverse party or has a material interest adverse to that of the Company.

 Item 1A. Risk Factors

We
face a number of significant risks and uncertainties in connection with our operations. Our business, results of operations and financial
condition could be materially adversely affected by these risks. In addition to the risk factors set forth below and the other information
set forth in this Form 10-Q, you should carefully consider the factors disclosed in Part I, Item 1A, “Risk Factors,” in our
Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on April 15, 2025, which report is incorporated
by reference herein, all of which could materially affect our business, financial