Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 16

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 16
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** 
  
    D 
     **  
     	**  
     **  
     	**  
     25% 
     11%
  
    E 
     **  
     **  
     **  
     **  
     **  
     31%

**Represents less than 10% of the total for the respective period.

10

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Intangible Assets and Goodwill

Finite-lived intangible assets primarily consist
of developed technology, patents, customer relationships, and trade names/trademarks. They are amortized ratably over a range of 5 to
15 years, which approximates customer attrition rate and technology obsolescence.

The Company tests goodwill for potential impairment
at least annually, or more frequently if an event or other circumstance indicates that the Company may not be able to recover the carrying
amount of the net assets of the reporting unit. In evaluating goodwill for impairment, the Company may assess qualitative factors to
determine whether it is more likely than not (that is, a likelihood of more than 50%) that the fair value of a reporting unit is less
than its carrying amount. If the Company bypasses the qualitative assessment, or if the Company concludes that it is more likely than
not that the fair value of a reporting unit is less than its carrying value, then the Company performs a quantitative impairment test
by comparing the fair value of a reporting unit with its carrying amount.

The Company calculates the estimated fair value
of a reporting unit using a weighting of the income and market approaches. For the income approach, the Company uses internally developed
discounted cash flow models that include the following assumptions, among others: projections of revenues, expenses, and related cash
flows based on assumed long-term growth rates and demand trends; expected future investments to grow new units; and estimated discount
rates. For the market approach, the Company uses internal analyses based primarily on market comparables. The Company bases these assumptions
on its historical data and experience, third party appraisals, industry projections, micro and macro general economic condition projections,
and its expectations.

The Company reviews its long-lived assets, inclusive
of its right-of-use assets, for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not
be recoverable. Recoverability