Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 350

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 2
Chunk 350
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 fair value, indicating that the goodwill
of the reporting unit was not impaired. The Company utilized an income approach to assess the fair value of the reporting unit as of December
31, 2024. The income approach considered the discounted cash flow model, considering projected future cash flows (including timing and
profitability), a discount rate of 34% reflecting the risk inherent in future cash flows, perpetual growth rate of 2%, and projected future
economic and market conditions.

F-21

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

Intangible
Assets

Intangible
assets at December 31, 2024 and 2023 consisted of the following (in thousands):

     December 31, 2024      Gross Amount   Accumulated Amortization   Impairment    Net Carrying Amount   Remaining Weighted Average Useful Life as of December 31, 2024   Patents  $468   $(184)  $—   $284    9.8   Trade Name/Trademarks   897    (142)   (451)   304    6.1   Proprietary Technology   2,860    (326)   (1,583)   951    5.6   Customer Relationships   684    (109)   (473)   102    4.2   In-Process R&D   243    —    —    243    3.0   Totals  $5,152   $(761)  $(2,507)  $1,884       

Amortization
expense for the year ended December 31, 2024 was approximately $0.62 million. Amortization expense for the year ended December 31, 2023
was approximately $0.03 million.

Future
amortization expense on intangibles assets is anticipated to be as follows (in thousands):

    For
    the Years Ending December 31, 
    Amount 
  
    2025 
    $361 
  
    2026 
     361 
  
    2027