Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 159

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 8
Chunk 159
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    the valuation of convertible
    notes payable, at fair value;

    ●
    the valuation of goodwill
    and intangible assets;

    ●
    the valuation of warrant
    liabilities; and

    ●
    the valuation allowance
    for deferred tax assets.

9

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Credit Risk and Concentrations

Financial instruments that subject the Company
to credit risk consist principally of trade accounts receivable and cash and cash equivalents.

The Company maintains its cash and cash equivalents
primarily with high-credit-quality financial institutions in the United States and Germany. Cash balances maintained with financial institutions
in the United States are generally in excess of federally insured limits. The Company mitigates its credit risk by limiting its exposure
to any single financial institution and by monitoring the credit quality of its counterparties. The Company places its cash with financial
institutions that have long-term credit ratings of at least A- or equivalent, as assigned by major credit rating agencies.

The Company performs certain credit evaluation
procedures and does not require collateral for financial instruments subject to credit risk. The Company believes that credit risk is
limited because the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit
risk of its customers, establishes an allowance for credit losses.

The customers who account for 10% or more of
the Company’s revenue or 10% or more of the Company’s outstanding accounts receivable balance are presented as follows for
the periods indicated:

    Percentage of revenues  

    For the three months ended September
    30,  
    For the nine months ended September
    30,  
    Percentage of accounts receivable 
  
    Customer 
    2025  
    2024  
    2025  
    2024  
    As of  September 30,
    2025  
    As of December 31, 
    2024 
  
    A 
     45% 
     25  
     34% 
     23% 
     49% 
     31%
  
    B 
     15% 
     	**  
     13% 
     **  
     **  
     ** 
  
    C 
     10% 
     25% 
     13