Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 30

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 30
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registered copyrights on any of the proprietary software we have developed. Our performance and ability to compete are dependent to a
significant degree on our proprietary technology. Common law protection may be narrower than that which we could obtain under registered
copyrights. As a result, we may experience difficulty in enforcing our copyrights against certain third party infringements. As part
of our confidentiality-protection procedures, we generally enter into agreements with our employees and consultants and limit access
to, and distribution of, our software, documentation and other proprietary information. There can be no assurance that the steps we have
taken will prevent misappropriation of our technology or that agreements entered into for that purpose will be enforceable. Moreover,
the laws of other countries may afford us little or no protection of our intellectual property. Our inability to protect our intellectual
property rights could adversely affect our financial condition, operating results and growth prospects.

We
also rely on a variety of technology that we license from third parties. There can be no assurance that these third party technology
licenses will continue to be available to us on commercially reasonable terms, if at all. The loss of or inability to maintain or obtain
upgrades to any of these technology licenses could result in delays in completing software enhancements and new development until equivalent
technology could be identified, licensed or developed and integrated. Any such delays would materially and adversely affect our business.

Our
ability to use net operating loss carryforwards and certain other tax attributes may be limited.

As
of December 31, 2024, we had federal net operating loss carryforwards (“NOLs”) of approximately $96.9 million, of which approximately
$5.3 million will begin to expire in 2037 and the remainder do not expire. Under the Tax Cuts and Jobs Act, federal NOLs generated by
us in tax years through December 31, 2017 may be carried forward for 20 years and may fully offset taxable income in the year utilized
and federal NOLs generated by us in tax years beginning after December 31, 2017 may be carried forward indefinitely but may only be used
to offset 80% of our taxable income annually. Under Sections 382 and 383 of the Code, if a corporation undergoes an “ownership
change,” the corporation’s ability to use its pre-change federal NOLs and other tax attributes (such as research and development
tax credits) to offset its post-change income and taxes may be limited. In general, an “