Company: XTIA
Filing Date: 2025-11-12
Form Type: 8-K
Source: 0001213900-25-108855
Chunk: 11

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-12
Form: 8-K
Item: Item 8.01
Chunk 11
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 forced to renegotiate or terminate
this agreement, seek alternative suppliers, or incur substantial transition costs. Failure to diversify its supply base or mitigate these
risks could materially and adversely affect Drone Nerds’ business, financial condition, and operating results.

The nature of the Drone Nerds business involves
significant risks and uncertainties that may not be covered by insurance or indemnification.

Drone Nerds has developed
and sold products and services in circumstances where insurance or indemnification may not be available, for example, in connection with
the collection and analysis of various types of information. In addition, its products and services raise questions with respect to issues
of civil liberties, intellectual property, trespass, conversion, and similar concepts, which may create legal issues. Indemnification
to cover potential claims or liabilities resulting from the failure of any technologies that we deploy may be available in certain circumstances
but not in others. Currently, the uncrewed aerial systems industry lacks a formative insurance market. We may not be able to maintain
insurance to protect against all operational risks and uncertainties that our customers confront. Substantial claims resulting from an
accident, product failure, or personal injury or property liability arising from our products and services in excess of any indemnity
or insurance coverage (or for which indemnity or insurance coverage is not available or is not obtained) could harm our financial condition,
cash flows and operating results. Any accident, even if fully covered or insured, could negatively affect our reputation among our customers
and the public, and make it more difficult for us to compete effectively.

The Drone Nerds and Anzu Robotics acquisitions
may trigger contractual rights under certain agreements.

Drone Nerds and Anzu Robotics
are parties to certain agreements that may contain termination or other rights following a “change in control” or “sale
of all or substantially all” of such party’s assets. Any counterparty to such agreements may request modifications of its
respective agreements as a condition to granting a waiver or consent under such agreements, or they may elect not to grant a waiver or
consent. To the extent any counterparty to such agreements requests modifications of its respective agreements as a condition to granting
a waiver or consent under such agreements, Drone Nerds and Anzu Robotics will use reasonable efforts to accommodate such modification,
but such modifications may not be satisfactory to such counterparty or may not occur. There is no assurance that such counterparties will
not assert otherwise and seek to exercise any such rights, including termination rights where available