Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 167

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 167
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ortization  
    Impairment  
    Net Carrying Amount 
  
    Patents 
    $468  
    $(184) 
    $—  
    $284 
  
    Trade Name/Trademarks 
     897  
     (142) 
     (451) 
     304 
  
    Proprietary Technology 
     2,860  
     (326) 
     (1,583) 
     951 
  
    Customer Relationships 
     684  
     (109) 
     (473) 
     102 
  
    In-Process R&D 
     243  
     —  
     —  
     243 
  
    Totals 
    $5,152  
    $(761) 
    $(2,507) 
    $1,884 

Amortization expense for the three and nine months
ended September 30, 2025 was approximately $0.1 million and $0.2 million, respectively. Amortization expense for the three and nine months
ended September 30, 2024 was approximately $0.2 million and $0.4 million, respectively.

15

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Future amortization expense on intangibles assets is anticipated to
be as follows (in thousands):

    Year ending December 31, 
    Amount 
  
    2025 (for 3 months) 
    $58 
  
    2026 
     224 
  
    2027 
     224 
  
    2028 
     224 
  
    2029 
     173 
  
    2030 and thereafter 
     266 
  
    Total 
    $1,169 

The Company tests for impairment if a change
in circumstances or the occurrence of events indicates that potential impairment exists. In accordance with ASC 360, the Company first
performed a qualitative assessment to determine if there were any indicators of impairment that would require a quantitative analysis
to be performed. The results of the qualitative analysis performed by the Company determined there was no triggering event during the
three months ended September 30, 2025. However, a triggering event was identified by the Company during the first and second quarters
of 2025, in the form