Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 41

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 41
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 otherwise used or disclosed trade secrets or other
proprietary information of former employers or competitors. Litigation may be necessary to defend against these claims. We may be subject
to unexpected claims of infringement of third party intellectual property rights, either for intellectual property rights of which we
are not aware, or for which we believe are invalid or narrower in scope than the accusing party. Even if we are successful in defending
against these claims, litigation could result in substantial costs and be a distraction to management. If we fail in defending such claims,
in addition to paying money claims, we may lose valuable intellectual property rights or personnel or be enjoined from selling certain
products or providing certain services. A loss of key research personnel or their work product could hamper or prevent our ability to
commercialize certain products, which could severely harm our business.

We
have been subject to government or regulatory investigations or inquiries under national, regional and local laws, as amended from time
to time, and may be required to comply with data requests, or requests for information by government authorities and regulators in the
United States or other jurisdictions in which we operate and any resulting enforcement action could have a materially adverse effect
on us.

As
a publicly trading reporting company with operations in the United States and internationally, we interact regularly with regulatory
and self-regulatory agencies in the United States or other jurisdictions in which we operate, including the SEC and the Nasdaq Stock
Market. We have been and may in the future be the subject of SEC and other regulatory investigations and may be required to comply with
informal or formal orders or other requests for information or documentation from such government authorities and regulators regarding
our compliance with national, regional and local laws and regulations, including the rules and regulations under the Securities Act and
the Exchange Act. Such laws and regulations and their interpretation and applications may also change from time to time. Responding to
requests for information from regulators in connection with any such investigations or inquiries could have a materially adverse effect
on our business through, among other things, significantly increased legal fees and the time and attention required of the Company’s
management and employees to be diverted from our normal business operations and growth plans. Moreover, if a regulator were to initiate
an enforcement action against us, any such action could further consume our resources, require us to change our business practices and
have a material adverse effect on our business, financial condition, results of operations and cash flows.

22

Adverse
judgments or settlements in legal proceedings could materially harm