Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 566

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 566
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 customer of the performance completed to date, in which revenue is recognized over time.

(3)Software As A Service Revenue’s performance obligation is satisfied evenly over the service period using a time-based measure because the Company is providing continuous access to its service and revenue is recognized over time.

F-18

XTI
AEROSPACE, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEARS ENDED DECEMBER 31, 2024 AND 2023

Deferred
revenue

As
of December 31, 2023, the Company did not have any deferred revenue. As part of the XTI Merger, the Company acquired approximately
$0.8 million of deferred revenue, all of which relates to RTLS maintenance agreements.

The Company’s
deferred revenue balance of approximately $0.5 million as of December 31, 2024 related to cash received in advance for product maintenance
services and professional services provided by the Company’s technical staff. The fair value of the deferred revenue approximates
the services to be rendered. The Company expects to satisfy its remaining performance obligations for these maintenance services and
professional services, and recognize the deferred revenue and related contract costs over the next twelve months.

Note 5
 - Merger Transaction

The
XTI Merger was accounted for as a reverse merger in accordance with GAAP. Under this method of accounting, Legacy Inpixon was treated
as the “acquired” company for financial reporting purposes. This determination is primarily based on the fact that subsequent
to the XTI Merger, Legacy XTI maintains control of the Board of Directors and management of the Company, and the preexisting shareholders
of Legacy XTI have majority voting rights of the Company. For accounting purposes, the acquirer is the entity that has obtained control
of another entity and, thus, consummated a business combination. Accordingly, Legacy XTI’s assets and liabilities are recorded
at carrying value and the assets and liabilities associated with Legacy Inpixon are recorded at estimated fair value as of the acquisition
date. The excess of the purchase price over the estimated fair value of the net assets acquired, if applicable, is recognized as goodwill.

The
below summarizes the total consideration transferred in the business combination (in thousands):

    Fair value of common stock 
    $10,939 
  
    Fair value of warrants 
     3,250 
  
    Fair value of preferred stock 
     11