Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 20

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 only from March 12, 2024, the merger
closing date. The following unaudited proforma financial information presents the consolidated results of operations of the Company and
Legacy Inpixon for the three months and nine months ended September 30, 2024, as if the XTI Merger had occurred as of the beginning of
the first period presented (January 1, 2024) instead of on March 12, 2024. The proforma information does not necessarily reflect the
results of operations that would have occurred had the entities been a single company during those periods.

The proforma financial information for the Company
and Legacy Inpixon is as follows (in thousands):

    For the Three Months Ended 
    September 30, 2024  
    For the  Nine Months Ended 
    September 30, 2024 
  
    Revenues 
    $918  
    $2,676 
  
    Net loss attributable to common stockholders 
    $(4,674) 
    $(36,571)
  
    Net loss per basic and diluted common share 
    $(33.40) 
    $(456.99)
  
    Weighted average common shares outstanding: 

    Basic and Diluted 
     139,944  
     80,026 

Note 6 - Goodwill and Intangible Assets 

Goodwill

In connection with the XTI Merger, the excess
of the purchase price over the estimated fair value of the net assets assumed of $12.4 million was recognized as goodwill.

The following table summarizes the changes in
the carrying amount of Goodwill for the nine months ended September 30, 2025 (in thousands):

    Amount 
  
    Beginning balance - January 1, 2025 
    $12,072 
  
    Foreign currency translation adjustment 
     1,137 
  
    Impairment 
     (4,049)
  
    Ending balance – September 30, 2025 
    $9,160 

The Company tests goodwill for impairment at the reporting unit level
annually, on October 1, or more frequently if a change in circumstances or the occurrence of events indicates that potential impairment
exists. In accordance with ASC 350, the Company first assessed whether there were any indicators of goodwill impairment that would require
a quantitative analysis to be performed (i.e., a triggering event). The Company determined there was no triggering event during the
three