Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 397

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 397
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 policy for recording interest and penalties associated with unrecognized tax benefits is to record such interest and
penalties as interest expense and as a component of income tax expense. There were no amounts accrued for interest or penalties for the
years ended December 31, 2024 and 2023. Management does not expect any material changes in its unrecognized tax benefits in the next
year.

The
Company operates in multiple tax jurisdictions and, in the normal course of business, its tax returns are subject to examination by various
taxing authorities. Such examinations may result in future assessments by these taxing authorities. The Company is subject to examination
by U.S. tax authorities beginning with the year ended December 31, 2021.

F-44

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

Note
22 – Leases

The
Company has operating leases for administrative offices in the United States (Colorado) and Germany.

As part of the XTI Merger, the Company acquired right-of-use assets
and lease liabilities related to an operating lease for an office space (the IntraNav office) located in Frankfurt, Germany. The original
term of the lease expired on January 6, 2025, at which time the lease converted to month-to-month at a rate of $10,298 (€9,890) per
month. The lease will continue indefinitely until either party provides 180-day written notice of termination.

As part of the XTI Merger, the Company acquired right-of-use assets
and lease liabilities related to an operating lease for an office space (the Inpixon GmbH office) located in Berlin, Germany. The lease
expired on March 31, 2025 and had a lease rate of $7,810 (€7,500) per month up to the expiration date. Subsequent to the March
31, 2025 expiration, the Inpixon GmbH office personnel moved to a new location in Berlin. The lease rate at the new location is $3,897 (€3,742)
per month. The new lease expires on March 31, 2026.

On January 1, 2024, the Company entered into
a lease agreement for its new corporate office location in Englewood, Colorado. This lease expires on January 31, 2028 and