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

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 25
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    $(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 six months
ended June 30, 2025 was approximately $0.06 million and $0.15 million, respectively. Amortization expense for the three and six months
ended June 30, 2024 was approximately $0.19 million and $0.23 million, respectively.

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

    Year ending December 31, 
    Amount 
  
    2025 (for 6 months) 
    $112 
  
    2026 
     224 
  
    2027 
     224 
  
    2028 
     224 
  
    2029 
     173 
  
    2030 and thereafter 
     266 
  
    Total 
    $1,223 

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 a triggering event during the six months ended June 30, 2025,
in the form of a current period operating and cash flow loss, a consistent history of operating losses, and the revenue results for the
current period missing forecasted targets due to (i) the sales cycle to close transactions taking longer than anticipated and (ii) supply
chain issues causing delays in our delivery of Nanotron product to customers. Based on a quantitative assessment, the Company recorded
an impairment to its Proprietary