Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 129

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 129
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 the Years Ended
    December 31, 

    2024  
    2023 
  
    Revenues 
    $3,709  
    $4,562 
  
    Net loss attributable
    to common stockholders 
    $(50,849) 
    $(40,335)
  
    Net
    loss per basic and diluted share 
    $(219.29) 
    $(1,016.57)
  
    Weighted average common shares outstanding: 

    Basic and Diluted 
     231,880  
     39,678 

Note 7
- Goodwill and Intangible Assets

Goodwill

In
connection with the XTI and Inpixon 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 year ended December 31, 2024 (in thousands):

    Amount 
  
    Beginning balance - January 1, 2024 
    $—  
  
    Goodwill
    recognized in connection with XTI Merger - Note 5 
     12,398 
  
    Foreign
    currency translation adjustment 
     (326)
  
    Ending
    balance – December 31, 2024 
    $12,072 

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 performed a qualitative
assessment as of December 31, 2024, to determine if there were any indicators of goodwill impairment that would require a quantitative
analysis to be performed. Due to the qualitative analysis, the Company determined that there were triggering indicators of goodwill
impairment during the three months ended December 31, 2024 in the form of a sustained decrease of the Company’s stock price and
impairment recognized on long-lived assets under ASC 360.

In accordance with ASC 350, given a triggering event was identified,
the Company performed a quantitative goodwill impairment analysis related to its Industrial IoT reporting unit, and based on such analysis,
the Company concluded that the carrying amount of the reporting unit did not exceed its estimated fair value, indicating that the goodwill
of the reporting unit was not impaired. The Company utilized an income approach to assess