Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 571

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 571
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 December 31, 2024 was approximately $0.62 million. Amortization expense for the year ended December 31, 2023
was approximately $0.03 million.

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

    For
    the Years Ending December 31, 
    Amount 
  
    2025 
    $361 
  
    2026 
     361 
  
    2027 
     361 
  
    2028 
     280 
  
    2029
    and thereafter 
     521 
  
    Total 
    $1,884 

In accordance with ASC 360, the Company performed
a qualitative assessment as of December 31, 2024, to determine if there were any indicators of impairment that would require a quantitative
analysis to be performed. Based on the qualitative analysis, the Company determined that there were triggering indicators of long-lived
asset impairment during the three months ended December 31, 2024 in the form of a sustained decrease of the Company’s stock price
and the Company beginning planning the process of winding down and/or selling the Nanotron business in the quarter ended December 31,
2024. The Company notes that based on a quantitative assessment, the Company recorded an impairment to its Trade Names & Trademarks,
Proprietary Technology, and Customer Relationships of $451,000, $1,583,000, and $473,000, respectively, for the year ended December 31,
2024, which is included in loss from operations on the statements of operations. The Company notes that these assets were part of the
Company’s Industrial IoT segment.

The
Company assessed the fair value of the Customer Relationships by using an income approach in the form of a discounted cash flow model,
which considered 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 Company assessed the fair value of the Trade
Names & Trademarks and Proprietary Technology by using an income approach in the form of a relief from royalty model, which considered
a specified royalty rate, discount rate reflecting the risk inherent in future cash flows, perpetual growth rate, and projected future
economic and market conditions.

The
Company notes that for the Trade Names & Trademarks, Proprietary Technology, and Customer Relationships included in the asset groups
that were assessed for fair value