Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 249

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 249
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 significant uncertainty about the future relationship
between the U.S. and other countries with respect to such trade policies, treaties, and tariffs. These developments, or the perception
that any of them could occur, may have a material adverse effect on global economic conditions and the stability of global financial markets,
and may significantly reduce global trade and, in particular, trade between the impacted nations and the United States. Any of these factors
could depress economic activity and restrict our access to suppliers or customers and, in turn, have a material adverse effect on the
business and financial condition of such suppliers and customers or other counterparties we do business with, which in turn would negatively
impact us.

57

Deteriorating macroeconomic conditions, including
slower growth or a recession, inflation, changes in the U.S. presidential administration, bank failures, supply chain disruption, increases
in interest rates, increases to fuel and other energy costs or vehicle costs, geopolitical events, including escalating tariff and non-tariff
trade measures imposed by the U.S., Mexico, China, Canada and other countries, the potential for new or unforeseen conflicts such as the
impact of the Russia and Ukraine conflict and Hamas and Israel conflict, changes in the labor market, or decreases in government spending
power, could in the future result in a decline in customer spending, which could materially adversely affect our business, results of
operations, prospects and financial condition. A trade war, other governmental action related to tariffs or trade agreements, changes
in U.S. social, political, 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