Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 53

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 53
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 greater than those associated with our domestic business. Our international business is sensitive to changes in
the priorities and budgets of international customers and geo-political uncertainties, which may be driven by changes in threat environments
and potentially volatile worldwide economic conditions, various regional and local economic and political factors, risks and uncertainties,
as well as U.S. foreign policy.

27

Our
international operations (or those of our business partners) are also subject to local government laws, regulations and procurement policies
and practices, which may differ from U.S. government regulations, including regulations relating to import-export control, investments,
foreign exchange controls and repatriation of earnings, as well as to varying currency, geo-political and economic risks. Our international
contracts may include industrial cooperation agreements requiring specific in-country purchases, manufacturing agreements or financial
support obligations, known as offset obligations, and provide for penalties if we fail to meet such requirements. Our international contracts
may also be subject to termination at the customer’s convenience or for default based on performance, and may be subject to funding
risks. We also are exposed to risks associated with using foreign representatives and consultants for international sales and operations
and teaming with international subcontractors, partners and suppliers in connection with international programs. As a result of these
factors, we could experience award and funding delays on international programs and could incur losses on such programs, which could
negatively affect our results of operations and financial condition.

We
and our business partners are also subject to a number of other risks including:

●the
                                            absence in some jurisdictions of effective laws to protect our intellectual property rights;

●multiple
                                            and possibly overlapping and conflicting tax laws;

●restrictions
                                            on movement of cash;

●the
                                            burdens of complying with a variety of national and local laws;

●political
                                            instability;

●currency
                                            fluctuations;

●longer
                                            payment cycles;

●restrictions
                                            on the import and export of certain technologies;

●price
                                            controls or restrictions on exchange of foreign currencies;

●trade
                                            barriers;

●natural
                                            disasters such as earthquakes, tsunamis, flooding, typhoons and volcanic eruptions that disrupt
                                            manufacturing or other operations;

●public
                                            health issues (for example, an outbreak of a contagious disease such as 2019-Novel Coronavirus
                                            (2019-nCoV), avian influenza, measles or Ebola);

●disruptions
                                            of service from utilities, nuclear power plant accidents; and

●general