Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 39

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 1
Chunk 39
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, and warrant liability. Cash and cash equivalents, accounts receivable and accounts
payable are stated at their respective carrying amounts, which approximate fair value due to their short-term nature.

The Company’s assets and liabilities measured
at fair value consisted of the following at the periods indicated:

    Fair Value at March 31, 2025 

    Total  
    Level 1  
    Level 2  
    Level 3 
  
    Labilities: 

    Warrant liability 
    $4,442  
    $—  
     —  
    $4,442 
  
    Total liabilities 
    $4,442  
    $—  
    $—  
    $4,442 

The fair value of the Level 3 warrant liability
was determined by using a pricing model with certain significant unobservable market data inputs (refer to Note 13).

The table below provides a summary of changes
in the estimated fair value of the Company’s Level 3 warrant liability:

    Warrant Liability

    Balance at January 1, 2025
     
    $
    —

    Pre-funded
    and Common Warrants issued in connection with the March Offering (Note 13)

    5,353

    Exercise of warrants

    (408
    )
  
    Change in fair value

    (503
    )
  
    Balance at March 31, 2025
     
    $
    4,442

The change in fair value of the warrant liability
is presented within “Change in fair value of warrant liability” on the condensed consolidated statements of operations.

30

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 16 - Foreign Operations

Prior to the XTI Merger, the Company’s operations
were located primarily in the United States. After the XTI Merger, the Company’s operations are located primarily in the United States,
Germany, and the United Kingdom. Revenues by geographic area are attributed by country of domicile of our subsidiaries. The financial
data by geographic area are as follows (in thousands):

    United

    United

    States

    Germany

    Kingdom

    Eliminations

    Total

    For the Three Months Ended March 31, 2025:

    Revenues by geographic area
     
    $
    299

    $
    324