Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 165

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 165
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4 
  
    Revenues 
    $918  
    $2,676 
  
    Net loss attributable to common stockholders 
    $(4,674) 
    $(36,571)
  
    Net loss per basic and diluted common share 
    $(33.40) 
    $(456.99)
  
    Weighted average common shares outstanding: 

    Basic and Diluted 
     139,944  
     80,026 

Note 6 - 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 nine months ended September 30, 2025 (in thousands):

    Amount 
  
    Beginning balance - January 1, 2025 
    $12,072 
  
    Foreign currency translation adjustment 
     1,137 
  
    Impairment 
     (4,049)
  
    Ending balance – September 30, 2025 
    $9,160 

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 assessed whether there were any indicators of goodwill impairment that would require
a quantitative analysis to be performed (i.e., a triggering event). The Company determined there was no triggering event during the
three months ended September 30, 2025 related to the IoT reporting unit. However, a triggering event was identified by the Company during
the quarter ended June 30, 2025, in the form of a current period operating and cash flow loss, a consistent history of operating losses,
and the revenue results for the current period missing forecasted targets due to (i) the sales cycle to close transactions taking longer
than anticipated and (ii) supply chain issues causing delays in our delivery of Nanotron product to customers.

14

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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