Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 140

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 140
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Gains and losses from these translations are recognized in cumulative translation adjustment included in “Accumulated other comprehensive
loss” in stockholders’ equity on the condensed consolidated balance sheets. The Company remeasures monetary assets and liabilities
that are not denominated in the functional currency at exchange rates in effect at the end of each period. Gains and losses from these
remeasurements are recognized in general and administrative expenses in the condensed consolidated statements of operations. Foreign
exchange gains (losses) were immaterial for each of the three and six months ended June 30, 2025 and 2024.

Segments

The Company and its Chief Executive Officer,
acting as the Chief Operating Decision Maker (“CODM”) determined its operating segments in accordance with ASC 280, “Segment
Reporting” (“ASC 280”). The Company is organized and operates as two reporting segments based on similar economic characteristics,
the nature of products and production processes, end-use markets, channels of distribution, and regulatory environments.

Recently Issued Accounting Standards Not
Yet Adopted

In November 2024, the 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 for the Company for
annual periods beginning after December 15, 2024, with early adoption permitted. The Company does not expect to early