Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 71

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 71
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itative Disclosures About Market Risk

Not applicable.

 Item 4. Controls and Procedures

Disclosure Controls and Procedures

Disclosure controls are procedures
that are designed with the objective of ensuring that information required to be disclosed in our reports filed under the Exchange Act,
such as this Form 10-Q, is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and
forms. Disclosure controls are also designed with the objective of ensuring that such information is accumulated and communicated to our
management, including the Principal Executive Officer and Principal Financial Officer, as appropriate, to allow timely decisions regarding
required disclosure. Internal controls are procedures which are designed with the objective of providing reasonable assurance that (1)
our transactions are properly authorized, recorded and reported; and (2) our assets are safeguarded against unauthorized or improper use,
to permit the preparation of our condensed consolidated financial statements in conformity with GAAP.

We conducted an evaluation, under the supervision
and with the participation of our Chief Executive Officer and Chief Financial Officer, of our disclosure controls and procedures (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