Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 24

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 trends,
and working capital requirements and future capital expenditures necessary to fund future operations. The assumptions in the fair value
measurement reflects the current market environment, industry-specific factors and company-specific factors. As a result of the impairment,
the Company assessed the remaining useful lives of the Trade Names & Trademarks and Proprietary Technology and concluded that there
were no changes required.

Note 7 - Other Balance Sheet Information

Prepaid expenses and other current assets

Prepaid expenses and other current assets as
of September 30, 2025 and December 31, 2024 consisted of the following (in thousands):

    As of  September 30,
    2025  
    As of December 31, 2024 
  
    AVX deposit - related party 
    $—  
    $464 
  
    Prepaid insurance 
     434  
     293 
  
    Deposits 
     17  
     88 
  
    Prepaid consulting/professional fees 
     192  
     15 
  
    Prepaid software 
     93  
     89 
  
    Other 
     182  
     69 
  
    Total prepaid expenses and other current
    assets 
    $918  
    $1,018 

16

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Accrued expenses and other current liabilities

Accrued expenses and other current liabilities
as of September 30, 2025 and December 31, 2024 consisted of the following (in thousands):

    As of September 30,
    2025  
    As of December 31, 2024 
  
    Accrued transaction bonuses – Strategic Transaction Bonus Plan 
    $—  
    $4,266 
  
    Accrued transaction bonuses – related party 
     —  
     400 
  
    Accrued bonus and commissions 
     1,207  
     1,163 
  
    Accrued compensation and benefits 
     542  
     446 
  
    Accrued other 
     514  
     428 
  
    Total accrued expenses and other current
    liabilities 
    $2,263  
    $6,703 

Note 8 - Debt 

The Company’s outstanding debt consisted of the following at
the