Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 122

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 122
---
    2027 
     231 
  
    2028 
     231 
  
    2029 
     185 
  
    2030 and thereafter 
     257 
  
    Total 
    $1,308 

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 three months ended
March 31, 2025, in the form of a sustained decrease of the Company’s stock price and a consistent history of operating losses. The
Company notes that based on a quantitative assessment, the Company recorded an impairment to its Trade Names & Trademarks, Proprietary
Technology, and In-Process Research and Development of $0.1 million, $0.2 million, and $0.2 million, respectively, for the three months
ended March 31, 2025, which is included in ‘Impairment of intangible assets’ in the condensed consolidated statements of operations.
The Company notes that these assets were part of the Company’s Industrial IoT segment.

The Company assessed the fair value of the Trade
Names & Trademarks, Proprietary Technology, and In-Process Research and Development by using an income approach in the form of a relief
from royalty model, which considered a specified royalty rate, discount rate reflecting the risk inherent in future cash flows, perpetual
growth rate, and projected future economic and market conditions.

19

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 8 - Other Balance Sheet Information

Prepaid expenses and other current assets

Prepaid expenses and other current assets as of March 31, 2025 and
December 31, 2024 consisted of the following (in thousands):

    As of 
March 31,
2025  
    As of
December 31,
2024 
  
    AVX deposit - related party 
    $459  
    $464 
  
    Prepaid insurance 
     703  
     293 
  
    Deposits 
     178  
     88 
  
    Prepaid consulting/professional fees 
     120