Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 120

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 120
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)
  
    Net loss per basic and diluted share 
    $(416.60)
  
    Weighted average common shares outstanding: 

    Basic and Diluted 
     39,678 

Note 7 - Goodwill and Intangible Assets 

Goodwill

In connection with the XTI Merger, the excess
of the purchase price over the estimated fair value of the net assets assumed of $12.4 million was recognized as goodwill.

The following table summarizes the changes in the carrying amount of
Goodwill for the three months ended March 31, 2025 (in thousands):

    Amount 
  
    Beginning balance - January 1, 2025 
    $12,072 
  
    Foreign currency translation adjustment 
     346 
  
    Ending balance - March 31, 2025 
    $12,418 

The Company tests goodwill for impairment at the
reporting unit level annually, on October 1, or more frequently if a change in circumstances or the occurrence of events indicates that
potential impairment exists. In accordance with ASC 350, the Company first performed a qualitative assessment to determine if there were
any indicators of goodwill impairment that would require a quantitative analysis to be performed. The results of the qualitative
analysis performed by the Company indicated there was a triggering event during the three months ended March 31, 2025 related to the IoT
reporting unit, in the form of a sustained decrease of the Company’s stock price and a consistent history of operating losses.

In accordance with ASC 350, given a triggering
event was identified, the Company performed a quantitative goodwill impairment analysis related to its Industrial IoT reporting unit,
which concluded the carrying amount of the reporting unit did not exceed its estimated 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 March 31,
2025. The income approach considered the discounted cash flow model, considering projected future cash flows (including timing and profitability),
discount rate reflecting the risk inherent in future cash flows, perpetual growth rate, and projected future economic and market conditions.

18

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Intangible Assets

Intangible assets at March 31, 2025 and December 31,
2024 consisted of the following (in thousands):

     March 31,