Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 17

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 17
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 of assets held and used is measured by comparison of the carrying amount of an asset to the future undiscounted
cash flows expected to be generated from the use of the asset and its eventual disposition. If the carrying amount of an asset group
exceeds its estimated future undiscounted cash flows, an impairment charge is recognized for the amount by which the carrying amount
of the asset group exceeds its fair value.

11

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

For the nine months ended September 30, 2025, the Company determined
that its long-lived assets were impaired by approximately $0.6 million. For the nine months ended September 30, 2025, the Company determined
that its goodwill was impaired by approximately $4.05 million. There was no impairment recorded for the three months ended September 30,
2025 or 2024.

Recently Adopted Accounting Standards 

No new accounting standards were adopted in the nine months ended September
30, 2025.

Recently Issued Accounting Standards Not
Yet Adopted

In November 2024, the Financial Accounting Standards
Board (“FASB”) issued ASU 2024-03, Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation
Disclosures, which includes amendments to require the disclosure of certain specific costs and expenses that are included in a relevant
expense caption on the face of the income statement. Specific costs and expenses that would be required to be disclosed include: purchases
of inventory, employee compensation, depreciation and intangible asset amortization. Additionally, a qualitative description of other
items is required, equal to the difference between the relevant expense caption and the separately disclosed specific costs. The amendments
in ASU 2024-03 are effective for fiscal years beginning after December 15, 2026, and for interim periods beginning after December 15,
2027, and are applied either prospectively or retrospectively at the option of the Company. The Company is evaluating the impact of the
amendments on our condensed consolidated financial statements and disclosures.

In December 2023, the FASB also issued ASU 2023-09,
Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. The new standard requires a company to expand its existing income tax
disclosures, specifically related to the rate reconciliation and income taxes paid. The standard is effective