Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 164

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 164
---
     —  
     —  
     803 
  
    Operating expenses 

    Research and development 
     751  
     861  
     —  
     1,612 
  
    Sales and marketing 
     716  
     264  
     161  
     1,141 
  
    General and administrative 
     654  
     1,313  
     12,162  
     14,129 
  
    Other
    expenses(1) 
     158  
     6,511  
     56  
     6,725 
  
    Total operating expenses 
     2,279  
     8,949  
     12,379  
     23,607 
  
    Loss from operations 
    $(1,476) 
    $(8,949) 
    $(12,379) 
    $(22,804)

  (1) Other expenses include merger-related transaction costs and amortization of intangibles. 

The reporting package provided to the Company’s
CODM does not include the measure of assets by segment as that information is not reviewed by the CODM when assessing segment performance
or allocating resources.

27

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 14 - Fair Value Measurements and Fair
Value of Financial Instruments

The Company measures certain financial assets
and liabilities at fair value on a recurring basis. The Company determines fair value based upon the exit price that would be received
to sell an asset or paid to transfer a liability in an orderly transaction between market participants, as determined by either the principal
market or the most advantageous market. Inputs used in the valuation techniques to derive fair values are classified based on a three-level
hierarchy. These levels are:

Level 1: Quoted prices (unadjusted) in active
markets that are accessible at the measurement date for identical assets or liabilities.

Level 2: Observable prices that are based on
inputs not quoted on active markets but corroborated by market data.

Level 3: Unobservable inputs which are supported
by little or no market activity and values determined using pricing models, discounted cash flow methodologies, or similar techniques,
as well as instruments for which the determination of fair value requires significant judgment or estimation.

Financial instruments consist of cash and cash
equival