Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 572

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 572
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, the Company reassessed the useful lives of these long-lived assets. Management notes that the remaining
useful lives of the Trade Names & Trademarks, Proprietary Technology, and Customer Relationships were 8 years, 5 years, and 0 years,
respectively.

F-22

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

Note 8
- Other Balance Sheet Information

Prepaid
expenses and other current assets

Prepaid
expenses and other current assets as of December 31, 2024 and 2023 consisted of the following (in thousands):

    As
    of December 31, 

    2024  
    2023 
  
    AVX deposit
    - related party 
    $464  
    $— 
  
    Prepaid insurance 
     293  
     13 
  
    Prepaid software 
     89  
     90 
  
    Deposits 
     88  
     22 
  
    Other 
     84  
     — 
  
    Total
    prepaid expenses and other current assets 
    $1,018  
    $125 

Inventories

The
Company did not hold any inventory as of December 31, 2023. Inventory as of December 31, 2024 consisted of the following
(in thousands):

    As
    of December 31, 2024 
  
    Raw materials 
    $198 
  
    Work-in-process 
     116 
  
    Finished
    goods 
     1,900 
  
    Inventories 
    $2,214 

Inventories
are primarily accounted for using the first-in, first-out method, and are valued at the lower of cost and net realizable value. This
valuation requires us to make judgments, based on currently available information, about the likely method of disposition, such as through
sales to individual customers, returns to product vendors, or liquidations, and expected recoverable values of each disposition category.
The inventory valuation allowance, representing a write-down of inventory, was approximately $0.2 million as of December 31, 2024.

Accrued
expenses and other current liabilities

Accrued expenses
and other current liabilities as of December