Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 408

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 3
Chunk 408
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 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.

Licenses for new products may be difficult
to obtain in the future

The drones and other electronic products sold
by Drone Nerds and Anzu Robotics require FCC licenses to be imported into the US and sold to customers. Suppliers may face difficulties
in the future obtaining these licenses. In such cases, Drone Nerds and Anzu Robotics will not be able to sell products where suppliers
are not able to obtain licenses. This can be a major impact to Drone Nerds and Anzu Robotics’ business.

Difficult conditions in the global capital
markets and the economy generally may materially adversely affect our business and results of operations, and we do not expect these conditions
to improve in the near future.

Our results of operations are materially affected
by conditions in the global capital markets and the economy generally, both in the U.S. and elsewhere around the world. Weak economic
conditions generally, sustained uncertainty about global economic conditions, or a prolonged or further tightening of credit markets could
cause our customers and potential customers to postpone or reduce spending on technology products or services or put downward pressure
on prices, which could have an adverse effect on our business, results of operations or cash flows. Concerns over inflation, energy costs,
geopolitical issues and the availability of credit in the U.S. have contributed to increased volatility and diminished expectations for
the economy and the markets going forward. These factors, combined with volatile oil prices and wavering business and consumer confidence,
have precipitated an economic slowdown and uncertain global outlook. Domestic and international equity markets have been experiencing
heightened volatility and turmoil. These events and the continuing market upheavals may have an adverse effect on our business. In the
event of extreme prolonged market events, such as the global economic recovery, we could incur significant losses.

The existence of inflation in certain economies
has resulted in, and may continue to result in, rising interest rates and capital costs, supply shortages, increased costs of labor, components,
manufacturing and shipping, as well as weakening exchange rates and other similar effects. As a result, we have experienced and may continue
to experience cost increases. Although we take measures to mitigate the effects of inflation and rising interest rates,