Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 38

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 38
---
 trade between the impacted nations
and the United States. Any of these factors could depress economic activity and restrict our access to suppliers or customers and, in
turn, have a material adverse effect on the business and financial condition of such suppliers and customers or other counterparties we
do business with, which in turn would negatively impact us.

Deteriorating macroeconomic
conditions, including slower growth or a recession, inflation, changes in the U.S. presidential administration, bank failures, supply
chain disruption, increases in interest rates, increases to fuel and other energy costs or vehicle costs, geopolitical events, including
escalating tariff and non-tariff trade measures imposed by the U.S., Mexico, China, Canada and other countries, the potential for new
or unforeseen conflicts such as the impact of the Russia and Ukraine conflict and Hamas and Israel conflict, changes in the labor market,
or decreases in government spending power, could in the future result in a decline in customer spending, which could materially adversely
affect our business, results of operations, prospects and financial condition. A trade war, other governmental action related to tariffs
or trade agreements, changes in U.S. social, political, regulatory and economic conditions or in laws and policies governing foreign trade,
manufacturing, development and investment in the territories and countries where we currently do business, and any resulting negative
sentiments towards the U.S. as a result of such changes, could have a material adverse effect on our business, financial condition, results
of operations and cash flows.

A
significant portion of the purchase price related to our strategic acquisitions prior to the XTI Merger was allocated to goodwill and
intangible assets that are subject to periodic impairment evaluations. An impairment loss could have a material adverse impact on our
financial condition and results of operations.

A
significant portion of the purchase price related to our strategic acquisitions prior to the XTI Merger was allocated to goodwill
and intangible assets that are subject to periodic impairment evaluations. As of December 31, 2024, our goodwill and the net book
value of our intangible assets was approximately $13.96 million in connection with the various acquisitions that we have
consummated. A future impairment loss could have a material adverse impact on our financial condition and results of
operations.

As
required by current accounting standards, we review intangible assets for impairment either annually or whenever changes in circumstances
indicate that the carrying value may not be recoverable. The risk of impairment to goodwill is higher during