Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 70

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 70
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 incur substantially
higher costs to obtain the same or similar coverage. As a result, it may be more difficult for us to attract and retain qualified persons
to serve on our Board or as executive officers, and to maintain insurance at reasonable rates, or at all.

If
securities or industry analysts do not publish research or reports about our business, or if they change their recommendations regarding
our stock adversely, our stock price and trading volume could decline.

The
trading market for our common stock relies in part on the research and reports that equity research analysts publish about us and our
business. We do not control these analysts. The price of our common stock could decline if one or more equity research analysts downgrade
our common stock or if they issue other unfavorable commentary or cease publishing reports about us or our business.

We
may be or may become the target of securities litigation, which is costly and time-consuming to defend.

Following
periods of market volatility in the price of a company’s securities or the reporting of unfavorable news, security holders may
institute class action litigation. If the market value of our securities experience adverse fluctuations and we become involved in this
type of litigation, regardless of the outcome, we could incur substantial legal costs and our management’s attention could be diverted
from the operation of our business, causing our business to suffer.

ITEM
1B: UNRESOLVED STAFF COMMENTS

As
a smaller reporting company, we are not required to provide this information.

36

ITEM
1C: CYBERSECURITY

XTI
Aerospace maintains a cyber risk management program designed to identify, assess, manage, mitigate, and respond to cybersecurity threats.
This program, in conjunction with the Company’s enterprise risk management assessment processes, addresses cybersecurity risks
to the corporate information technology (“IT”) environment including systems, hardware, software, data, people, and processes.

The
underlying processes and controls of the XTI Aerospace’s cyber risk management program incorporate recognized best practices and
standards for cybersecurity and IT, including the National Institute of Standards and Technology (“NIST”) Cybersecurity Framework
(“CSF”) and processes and controls supporting EU general data protection regulation requirements. XTI Aerospace has an annual
assessment performed by a third-party specialist of the Company’s cyber risk management program against the NIST CSF. The annual
risk assessment identifies, quantifies, and categorizes material cyber risks. In addition, the Company, in conjunction with the third-party
cyber risk management specialists develop a