Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 20

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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CODM”) determined its operating segments in accordance with ASC 280, “Segment
Reporting” (“ASC 280”). The Company is organized and operates as two reporting segments based on similar economic characteristics,
the nature of products and production processes, end-use markets, channels of distribution, and regulatory environments.

Recently Issued Accounting Standards Not
Yet Adopted

In November 2024, the FASB issued ASU 2024-03,
Income Statement - Reporting Comprehensive Income (Topic 220): Expense Disaggregation Disclosures, which includes amendments to require
the disclosure of certain specific costs and expenses that are included in a relevant expense caption on the face of the income statement.
Specific costs and expenses that would be required to be disclosed include: purchases of inventory, employee compensation, depreciation
and intangible asset amortization. Additionally, a qualitative description of other items is required, equal to the difference between
the relevant expense caption and the separately disclosed specific costs. The amendments in ASU 2024-03 are effective for fiscal years
beginning after December 15, 2026, and for interim periods beginning after December 15, 2027, and are applied either prospectively or
retrospectively at the option of the Company. The Company is evaluating the impact of the amendments on our condensed consolidated financial
statements and disclosures.

In December 2023, the FASB also issued ASU 2023-09,
Income Taxes (Topic 740) - Improvements to Income Tax Disclosures. The new standard requires a company to expand its existing income
tax disclosures, specifically related to the rate reconciliation and income taxes paid. The standard is effective for the Company for
annual periods beginning after December 15, 2024, with early adoption permitted. The Company does not expect to early adopt the new standard.
The new standard is expected to be applied prospectively, but retrospective application is permitted. The Company is currently evaluating
the impact of ASU 2023-09 on its financial statements and related disclosures.

14

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Note 4 - Disaggregation of Revenue and Deferred
Revenue

Disaggregation of Revenue

The Company recognizes revenue when control is
transferred of the promised products or services to its customers, in an amount that reflects the consideration the Company expects to
be entitled to in exchange for those products or services.