Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 51

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 51
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 may not produce successful products or features that result in significant revenue, cost savings
or other benefits in the near future. If we do not realize significant revenue from our research and development efforts, our business
and operating results could be adversely affected.

Developing
products and related enhancements in our field is expensive. Investments in research and development may not result in significant design
improvements, marketable products or features or may result in products that are more expensive than anticipated. We may not achieve
the cost savings or the anticipated performance improvements expected, and we may take longer to generate revenue from products in development,
or generate less revenue than expected.

Our
future plans include significant investments in research and development and related product opportunities. Our management believes that
we must continue to dedicate a significant amount of resources to research and development efforts to maintain a competitive position.
However, we may not receive significant revenue from these investments in the near future, or these investments may not yield the expected
benefits, either of which could adversely affect our business and operating results.

If
the general level of advanced attacks declines, or is perceived by current or potential customers to have declined, this could harm our
location based security and detection operating segment, and our financial condition, operating results and growth prospects.

Our
location based security and detection-operating segment is substantially dependent upon enterprises and governments recognizing that
APTs and other security attacks are pervasive and are not effectively prevented by legacy security solutions. High visibility attacks
on prominent enterprises and governments have increased market awareness of the problem of APTs and security attacks and help to provide
an impetus for enterprises and governments to devote resources to protecting against attacks, such as testing our platform, purchasing
it, and broadly deploying it within their organizations. If APTs and other security attacks were to decline, or enterprises or governments
perceived that the general level of attacks has declined, our ability to attract new customers and expand our offerings for existing
customers could be materially and adversely affected, which would, in turn, have a material adverse effect on our financial condition,
results of operations and growth prospects.

If
our location-based security and detection products do not effectively interoperate with our customers’ IT infrastructure,
installations could be delayed or cancelled, which would harm our financial condition, operating results and growth prospects.

Our
RTLS products must effectively interoperate with our customers’ existing or future IT infrastructure, which often has different
specifications, utilizes multiple protocol standards, deploys products from multiple vendors, and contains