Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 165

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 165
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ents, accounts receivable, accounts payable, 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 June 30, 2025 

    Total  
    Level 1  
    Level 2  
    Level 3 
  
    Labilities: 

    Warrant liability 
    $14,564  
    $—  
    $—  
    $14,564 
  
    Total liabilities 
    $14,564  
    $—  
    $—  
    $14,564 

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 12).

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 12) 
     5,353 
  
    Pre-funded and Common Warrants issued in connection with the June Offering (Note 12) 
     18,427 
  
    Exercise of warrants 
     (14,647)
  
    Change in fair value 
     5,431 
  
    Balance at June 30, 2025 
    $14,564 

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.

28

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 15 - 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 States  
    Germany  
    United Kingdom  
    Eliminations  
    Total 
  
    For