Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 615

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 615
---

    2024  
    2023 
  
    Deferred Tax Liabilities 

    Intangible assets 
    $—  
    $— 
  
    Fixed assets 
     (7) 
     — 
  
    Other 
     (218) 
     — 
  
    Capitalized
    research 
     —  
     — 
  
    Total
    deferred tax liabilities 
     (225) 
     — 
  
    Net
    Deferred Tax Asset (Liability) 
    $—  
    $— 

F-43

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

At
December 31, 2024, the Company did not have any undistributed earnings of its foreign subsidiaries. As a result, no additional income
or withholding taxes have been provided for. The Company does not anticipate any impacts of the global intangible low taxed income (“GILTI”)
and base erosion anti-abuse tax (“BEAT) and as such, the Company has not recorded any impact associated with either GILTI or BEAT.

In accordance with Section 382 of the Internal
Revenue Code, deductibility of the Company’s NOL carryover is subject to an annual limitation in the event of a change of control,
as defined by the regulations. The Company performed an analysis to determine the annual limitation as a result of the changes in ownership
that occurred during 2023 and 2024. Ownership changes occurred during the 2023 and 2024 periods and are limited in their use. The NOL
available to offset future taxable income is approximately $96.9 million, subject to Section 382 limitations. The NOL generated in 2017
of $5.3 million, will expire in December 31, 2037 if not utilized. The remaining NOLs generated after 2017 have an indefinite life and
do not expire. 

As
of December 31, 2024, Nanotron GmbH, which was acquired through the merger, had approximately $45.7 million, respectively, of German
NOL carryovers available to offset future taxable income. Although these NOLs do not expire, minimum taxation restrictions apply such
that only a percentage of taxable income may be offset by NOL