Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 596

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 596
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 did not alter the par value of the Company’s common stock or modify any voting rights or other terms of the
common stock. The reverse stock split was primarily intended to bring the Company in compliance with the minimum bid price requirements
for maintaining its listing on the Nasdaq Capital Market. The Company has reflected the reverse stock split on a retroactive basis herein,
unless otherwise indicated.

In
addition, the Company effected a reverse stock split of its outstanding common stock at a ratio of 1-for-100, effective as of March 12,
2024, for the purpose of complying with Nasdaq Listing Rule 5550(a)(2) and satisfying the bid price requirements applicable for initial
listing applications in connection with the closing of the XTI Merger. The Company has reflected the reverse stock split on a retroactive
basis herein, unless otherwise indicated.

Note
15 -  Segments

The
Company’s Chief Executive Officer (“CEO”), acting as the Chief Operating Decision Maker, or (“CODM”), regularly
reviews and manages certain areas of its businesses, resulting in the Company identifying two reportable segments: Industrial IoT and
Commercial Aviation. The Company manages and reports its operating results through these two reportable segments. This allows the Company
to enhance its customer focus and better align its business models, resources, and cost structure to the specific current and future
growth drivers of each business, while providing increased transparency to the Company’s shareholders.

The commercial aviation segment is currently in the pre-revenue development
stage and its primary activity is the development of the TriFan 600 airplane. The Industrial IoT segment generates revenue primarily from
the sale of real-time location system solutions for the industrial sector and its customers are primarily located in Germany and the U.S.
As it relates to the Industrial IoT segment, the results disclosed in the table below only reflect activity following the XTI Merger closing
through the December 31, 2024 reporting date.

Information
on each of our reportable segments and reconciliation to consolidated loss from operations is presented in the table below. We have assigned
certain previously reported expenses to each segment to conform to the way we internally manage and monitor our business. Unallocated
operating expenses include costs that are not specific to a particular segment but are general to the group; included expenses incurred
for administrative and accounting staff, general liability and other insurance, accrued consulting fees and transaction bonuses relating
to former Legacy Inpixon executives, professional fees and other similar corporate expenses.

F-35

XTI