Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 475

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 4
Chunk 475
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 we may not be able to realize the revenue and other synergies and growth that we anticipated from these acquisitions
in the time frame that we currently expect, and the costs of achieving these benefits may be higher than what we currently expect, because
of a number of risks, including, but not limited to:

    ●
    the possibility that the acquisition may not further our business strategy as we expected;

    ●
    the possibility that we may not be able to expand the reach and customer base for the acquired companies’ current and future products as expected;

    ●
    the possibility that we may have entered a market with no prior experience and may not succeed in the manner expected; and

    ●
    the possibility that the carrying amounts of goodwill and other purchased intangible assets may not be recoverable.

In addition, a significant
portion of the aggregate purchase price of Drone Nerds and Anzu Robotics may be allocated to acquired goodwill and other intangible assets,
which must be assessed for impairment at least annually. For the purposes of the unaudited pro forma condensed combined financial information
included in our Current Report on Form 8-K filed with the SEC on November 12, 2025, the Company has assumed the excess consideration over
the net assets acquired is goodwill. The Company will perform a more comprehensive assessment of assets acquired that may result in other
intangible assets being identified in that analysis. If the Acquisitions do not yield expected returns or fair value estimates deteriorate,
we may be required to take charges to our results of operations based on this impairment assessment process, which could adversely affect
our results of operations.

As a result of these risks, the acquisitions of
Drone Nerds and Anzu Robotics and integration may not contribute to our earnings as expected, we may not achieve expected revenue synergies
or our return on invested capital targets when expected, or at all, and we may not achieve the other anticipated strategic and financial
benefits of the acquisitions.

The risks arising with respect to the historic
business and operations of Drone Nerds and Anzu Robotics may be different from what we anticipate, which could significantly increase
the costs and decrease the benefits of the acquisitions and materially and adversely affect our operations going forward.

Although we performed significant financial, legal,
technological and business due diligence with respect to Drone Nerds and Anzu Robotics, we may not have appreciated, understood or fully
anticipated the extent of the risks associated with the acquisitions. We have secured indemnification for certain matters in connection
with