Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 380

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 380
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.0 million at the time of conversion and the shares received are accounted for as a marketable
equity security and measured at fair value. This equity investment is included in Other assets on the consolidated balance sheets. As
a result of the automatic conversion, the Company recognized a loss of approximately $2.6 million in the consolidated statements of operations,
which includes the $59,000 unrealized gain in other comprehensive income reclassified to earnings.

Damon
common stock is traded in active markets, as the security is trading under “DMN” on the Nasdaq Exchange.  The Damon
common stock is accounted for as marketable equity securities based on “Level 1” inputs, which consist of quoted prices
in active markets, with unrealized holding gains and losses included in earnings.  The fair value was determined by the closing
trading price of the security as of December 31, 2024.  The Company recognized an unrealized loss on Damon common stock of approximately
$0.6 million which is included in the consolidated statements of operations for the year ended December 31, 2024. 

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

    Fair
    Value at December 31, 2024 

    Total  
    Level
    1  
    Level
    2  
    Level
    3 
  
    Assets: 

    Equity
    investment – Damon Motors, Inc. 
     342  
     342  
     —  
     — 
  
    Total
    assets 
    $342  
    $342  
    $—  
    $— 

    Fair
                                            Value at December 31, 2023 

    Total  
    Level
    1  
    Level
    2  
    Level
    3 
  
    Liabilities: 

    Warrant Liability 
    $497  
    $—  
    $—  
    $497 
  
    Convertible notes, at
    fair value 
     16,804  
     —  
     —  
     16,804 
  
    Loan
    conversion derivatives 
     333  
     —  
     —  
     333 
  
    Total
    liabilities 
    $17,634  
    $—