Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 34

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 34
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 Damon to our shareholders upon the effectiveness, in November 2024, of Damon’s registration statement related
to the spin-off distribution. In February 2024, we divested the remainder of the SAVES and Shoom business in a stock purchase transaction.
Our limited operating history after such acquisitions and divestitures makes it difficult for potential investors to evaluate our business
or prospective operations or the merits of an investment in our securities.

Any
future disposition of assets and business could have material and adverse effect on business, financial conditions, and operations, if
not consummated in a timely manner. Such transactions may expose us to unknown or unforeseeable challenges resulting in disruption of
business operations, loss of key personnel and ongoing tax benefits treatment, failure to obtain necessary statutory and regulatory approvals,
provide ongoing indemnity, and compliance with post-closing obligations, which may affect or prevent us from consummating the transactions,
and have a material and adverse effect on our business, financial conditions, and operations.

With
respect to acquisitions, we are subject to the risks inherent in the financing, expenditures, complications and delays characteristic
of a newly combined business, including, but not limited to:

●the
                                            purchase price we pay and/or unanticipated costs could significantly deplete our cash reserves
                                            or result in dilution to our existing stockholders;

●we
                                            may find that the acquired company or technologies do not improve our market position as
                                            planned;

●we
                                            may have difficulty integrating the operations and personnel of the acquired company, as
                                            the combined operations will place significant demands on the Company’s management,
                                            technical, financial and other resources;

●personnel,
                                            vendors, suppliers and customers of the acquired company may terminate their relationships
                                            with the acquired company as a result of the acquisition;

●we
                                            may experience additional financial and accounting challenges and complexities in areas such
                                            as tax planning and financial reporting;

●we
                                            may assume or be held liable for risks and liabilities (including environmental-related costs)
                                            as a result of our acquisitions, some of which we may not be able to discover during our
                                            due diligence investigation or adequately adjust for in our acquisition arrangements (for
                                            example, even if we secure indemnification protections in connection with these acquisitions
                                            from undisclosed liabilities, there may not be adequate resources to cover such indemnity);

●our
                                            ongoing business and management’s attention may be disrupted or diverted by transition
                                            or integration issues and the complexity of managing geographically