Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 24

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 24
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 its Industrial IoT reporting unit.

The Company utilized an income approach to assess the fair value of
the reporting unit as of June 30, 2025. The income approach considered the discounted cash flow model, considering projected future cash
flows (including timing and profitability), discount rate reflecting the risk inherent in future cash flows, perpetual growth rate, and
projected future economic and market conditions. The inputs for the fair value calculations of the reporting unit included a 3% terminal
growth rate and a discount rate of 29%. Management’s estimates of projected cash flows related to the reporting unit include, but
are not limited to, future earnings of the reporting unit using revenue growth rates, gross margins, and other cost assumptions consistent
with the reporting unit’s historical 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.

16

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Intangible Assets

Intangible assets at June 30, 2025 and December 31,
2024 consisted of the following (in thousands):

     June 30, 2025      Gross Amount   Accumulated Amortization   Impairment   Net Carrying Amount   Remaining Weighted Average Useful Life   Patents  $468   $(199)  $-   $269    9.3   Trade Name/Trademarks   486    (181)   (115)   190    4.6   Proprietary Technology   1,395    (439)   (293)   663    5.4   Customer Relationships   137    (36)   -    101    3.7   In-Process R&D   243    (20)   (223)   -    -   Totals  $2,729   $(875)  $(631)  $1,223       

    December 31, 2024 

    Gross Amount  
    Accumulated Amortization  
    Impairment  
    Net Carrying Amount 
  
    Patents 
    $468