Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 598

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 598
---
 — 
  
    Gross Profit 
     —  
     —  
     —  
     — 
  
    Operating expenses 

    Research and development 
     —  
     1,381  
     —  
     1,381 
  
    Sales and marketing 
     —  
     721  
     —  
     721 
  
    General and administrative 
     —  
     3,615  
     —  
     3,615 
  
    Other
    expenses(1) 
     —  
     1,872  
     —  
     1,872 
  
    Total
    operating expenses 
     —  
     7,589  
     —  
     7,589 
  
    Loss
    from operations 
    $—  
    $(7,589) 
    $—  
    $(7,589)

(1)Other
                                            expenses include merger-related transaction costs and amortization of intangibles.

The
reporting package provided to the Company’s CODM does not include the measure of assets by segment as that information isn’t
reviewed by the CODM when assessing segment performance or allocating resources.

Note
16 - Fair Value Measurements and Fair Value of Financial Instruments

The
Company measures certain financial assets and liabilities at fair value on a recurring basis. The Company determines fair value based
upon the exit price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants, as determined by either the principal market or the most advantageous market. Inputs used in the valuation techniques to
derive fair values are classified based on a three-level hierarchy. These levels are:

Level 1:
Quoted prices (unadjusted) in active markets that are accessible at the measurement date for identical assets or liabilities.

Level
2: Observable prices that are based on inputs not quoted on active markets but corroborated by market data.

Level
3: Unobservable inputs which are supported by little or no market activity and values determined using pricing models, discounted cash
flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant judgment
or estimation.

Financial
instruments consist of cash and cash equivalents, accounts receivable, notes receivable, warrant asset, accounts payable, warrant liability,
convertible notes, and the loan conversion derivative.