Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 275

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 275
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 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.

50

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 17 of the Notes to Condensed Consolidated
Financial Statements included in Part I, Item 1 of this report under the heading “Litigation.”

There are no proceedings in
which any of the directors, officers or affiliates of the Company, or any registered or beneficial holder of more than 5% of the Company’s
voting securities, is an adverse party or has a material interest adverse to that of the Company.

Item 1A. Risk Factors

We
face a number of significant risks and uncertainties in connection with our operations. Our business, results of operations and financial
condition could be materially adversely affected by these risks. In addition to the risk factors set forth below and the other information
set forth in this Form 10-Q, you should carefully consider the factors disclosed in Part I, Item 1A, “Risk Factors,” in our
Annual Report on Form 10-K
for the year ended December 31, 2024, filed with the SEC on April 15, 2025, which report is incorporated by reference herein, all
of which could materially affect our business, financial condition and future results.

Adverse judgments or settlements in legal
proceedings could materially harm our business, financial condition, operating results and cash flows.

We may be a party to claims
that arise from time to time in the ordinary course of our business, which may include those related to, for example, our securities offerings,
contracts, sub-contracts, protection of confidential information or trade secrets, adversary proceedings arising from customer bankruptcies,
employment of our workforce and immigration requirements or compliance with any of a wide array of state and federal statutes, rules and
regulations that pertain to different aspects of our business.

Additionally, we are and we may be made a party to future claims relating
to the XTI Merger. On December 6, 2023, Xeriant, Inc. (“Xeriant”) filed a complaint in the United States District Court for
the Southern District of New