Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 570

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 570
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 there were triggering indicators of goodwill
impairment during the three months ended December 31, 2024 in the form of a sustained decrease of the Company’s stock price and
impairment recognized on long-lived assets under ASC 360.

In accordance with ASC 350, given a triggering event was identified,
the Company performed a quantitative goodwill impairment analysis related to its Industrial IoT reporting unit, and based on such analysis,
the Company concluded that the carrying amount of the reporting unit did not exceed its estimated fair value, indicating that the goodwill
of the reporting unit was not impaired. The Company utilized an income approach to assess the fair value of the reporting unit as of December
31, 2024. The income approach considered the discounted cash flow model, considering projected future cash flows (including timing and
profitability), a discount rate of 34% reflecting the risk inherent in future cash flows, perpetual growth rate of 2%, and projected future
economic and market conditions.

F-21

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

Intangible
Assets

Intangible
assets at December 31, 2024 and 2023 consisted of the following (in thousands):

     December 31, 2024      Gross Amount   Accumulated Amortization   Impairment    Net Carrying Amount   Remaining Weighted Average Useful Life as of December 31, 2024   Patents  $468   $(184)  $—   $284    9.8   Trade Name/Trademarks   897    (142)   (451)   304    6.1   Proprietary Technology   2,860    (326)   (1,583)   951    5.6   Customer Relationships   684    (109)   (473)   102    4.2   In-Process R&D   243    —    —    243    3.0   Totals  $5,152   $(761)  $(2,507)  $1,884       

Amortization
expense for the year ended