Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 115

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 115
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 liabilities
that are not denominated in the functional currency at exchange rates in effect at the end of each period. Gains and losses from these
remeasurements are recognized in general and administrative expenses in the condensed consolidated statements of operations. Foreign exchange
gains (losses) were immaterial for the three months ended March 31, 2025 and 2024, respectively.

Segments

The Company and its Chief Executive Officer, acting
as the Chief Operating Decision Maker (“CODM”) determined its operating segments in accordance with ASC 280, “Segment
Reporting” (“ASC 280”). The Company is organized and operates as two reporting segments based on similar economic characteristics,
the nature of products and production processes, end-use markets, channels of distribution, and regulatory environments.

Recently Issued and Adopted Accounting Standards

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting
Comprehensive Income (Topic 220): Expense Disaggregation Disclosures, which includes amendments to require the disclosure of certain specific
costs and expenses that are included in a relevant expense caption on the face of the income statement. Specific costs and expenses that
would be required to be disclosed include: purchases of inventory, employee compensation, depreciation and intangible asset amortization.
Additionally, a qualitative description of other items is required, equal to the difference between the relevant expense caption and the
separately disclosed specific costs. The amendments in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and
for interim periods beginning after December 15, 2027, and are applied either prospectively or retrospectively at the option of the Company.
The Company is evaluating the impact of the amendments on our condensed consolidated financial statements and disclosures.

14

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Recently Issued Accounting Standards Not
Yet Adopted

In December 2023, the FASB also issued ASU 2023-09,
Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. The new standard requires a company to expand its existing income tax
disclosures, specifically related to the rate reconciliation and income taxes paid. The standard is effective for the Company for annual
periods beginning after December 15, 2024, with early adoption permitted. The Company does not expect to early