Company: XTIA
Filing Date: 2025-11-12
Form Type: 8-K
Source: 0001213900-25-108855
Chunk: 9

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-12
Form: 8-K
Item: Item 8.01
Chunk 9
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Item 8.01 Other Events.

Risks Related to the Acquisitions

There are a number of significant
risks related to the Acquisitions, including the risk factors enumerated below. Accordingly, the Company is providing these additional
risk factors to supplement the risks described in “ Risk Factors” in the Company’s 2024 Form 10-K, Q1 2025 Form 10-Q
and Q2 2025 Form 10-Q and other filings made with the Commission. All references to “we,” “us” or “our”
mean the Company and its subsidiaries, including Drone Nerds and Anzu Robotics, unless stated otherwise or the context otherwise requires.

Drone Nerds operates in evolving markets,
which makes it difficult to evaluate its business and future prospects.

Drone Nerds’ drone,
camera and sensor technologies and software and training, operational support and repair services are and will be sold in new and rapidly
evolving markets. The commercial unmanned aerial vehicles (“ UAV”) industry is in the early stages of customer adoption and
the FAA’s definition of regulations relating to the integration of commercial drones into the U. S. National Airspace System is rapidly
evolving. Accordingly, Drone Nerds’ business and future prospects may be difficult to evaluate. We cannot accurately predict the
extent to which demand for the drone systems and solutions will increase, if at all. The challenges, risks and uncertainties frequently
encountered by companies in rapidly evolving markets could impact our ability to do the following in connection with our acquisition of
Drone Nerds:

  Generate                                                      

  Acquire                     

  Achieve                                       

  Renew       

  Successfully                                                        

  Adapt                                                                                       

  Access                                                                     

If
wefail to address these and other challenges, risks and uncertainties successfully, our business, results of operations and financial
condition would be materially harmed.

The supplier base of Drone Nerds is highly
concentrated. In addition, Drone Nerds is subject to risks arising from ongoing regulatory discussions and potential legislative actions
targeting its primary supplier from China, SZ DJI Technology Co, Ltd. and affiliates (“ DJI”), who represented a majority of
Drone Nerds’ vendor purchases during the 1H 2025.

Drone Nerds has relationships
with various global suppliers of drones and electronics, however the top 1 2 and 3 suppliers represent 53%, 10% and 7% of purchases, respectively,
for the six months ended June 30, 2025.