Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 33

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 33
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 lost revenue, increased expenses or liquidated damages payments, which
could adversely affect our financial results.

Although
we maintain insurance and intend to obtain warranties from suppliers, obligate subcontractors to meet certain performance levels and
attempt, where feasible, to pass risks we cannot control to our customers, the proceeds of such insurance or the warranties, performance
guarantees or risk sharing arrangements may not be adequate to cover potential claims, lost revenue, increased expenses or liquidated
damages payments that may be required in the future. Moreover, there can be no assurance that present levels of coverage will be available
in the future at reasonable cost. We also expect our insurance needs and costs to increase as we build production facilities, manufacture
aircraft, establish commercial operations and expand into new markets.

18

We
have completed several strategic transactions including acquisitions and dispositions, which may make it difficult for potential investors
to evaluate our future business. Any future acquisitions or dispositions could disrupt our business and harm our business, financial
condition or operating results. Furthermore, due to the risks and uncertainties related to the acquisition of new businesses, any such
acquisition does not guarantee that we will be able to attain profitability.

We have historically had a
strategic acquisition strategy and since 2014 we completed several strategic transactions and spin-offs. Our RTLS business has developed
through multiple acquisition transactions. In August 2018, we completed the spin-off of our VAR business, which included our legacy value
added reseller business, and in 2019 we completed several other acquisition transactions to expand our product portfolio. In 2020, we
acquired the Nanotron business, an exclusive license for the distribution and marketing of statistical analytics and visualization software
solutions for engineering and sciences (SAVES) expanding our operations in the United Kingdom and Germany. In 2021, we acquired 100% of
the outstanding capital stock of IntraNav GmbH, an industrial IoT (IIoT), real-time location system (RTLS), and sensor data services provider
and 100% of the outstanding capital stock of Design Reactor, Inc which operated an enterprise level employee experience app. In 2023,
we completed the spin-off of this enterprise apps business. In December 2023, we transferred the UK division of our SAVES business to
Damon Motors Inc. (then known as Grafiti Holding Inc.) (“Damon Motors”) in connection with the spin-off and distribution of
all of the shares of