Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 123

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 123
---
 in effect during the period. Gains and losses from these translations are recognized in cumulative translation adjustment
included in “Accumulated other comprehensive loss” in Stockholders’ equity on the Consolidated Balance Sheets. The
Company remeasures monetary assets and 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 consolidated
statements of operations. Foreign exchange gains (losses) were immaterial for the years ended December 31, 2024 and 2023, respectively.

Segments

The
Company and its Chief Executive Officer (“CEO”), 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
July 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-03,
Presentation of Financial Statements (Topic 205), Income Statement - Reporting Comprehensive Income (Topic 220), Distinguishing Liabilities
from Equity (Topic 480), Equity (Topic 505), and Compensation - Stock Compensation (Topic 718), which updates codification on how
an entity would apply the scope guidance in paragraph 718-10-15-3 to determine whether profits interest and similar awards should be
accounted for in accordance with Topic 718, Compensation—Stock Compensation. The effective date of this update is for fiscal years
beginning after December 15, 2023, including interim periods within those fiscal years. The Company adopted ASU 2023-03 as of January
1, 2024. The adoption of this guidance did not have a material impact on the condensed consolidated financial statements and disclosures.

In
November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280) - Improvements to Reportable Segment Disclosures. The new standard
requires a company to disclose incremental segment information on an annual and interim basis, including significant segment expenses
and measures of profit or loss that are regularly provided to the chief operating decision maker. The standard is effective for the Company
beginning in fiscal year