Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 143

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 143
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 of operations of the Company and Legacy Inpixon for the three
months and six months ended June 30, 2024, as if the XTI Merger had occurred as of the beginning of the first period presented (January
1, 2024) instead of on March 12, 2024. The proforma information does not necessarily reflect the results of operations that would have
occurred had the entities been a single company during those periods.

The proforma financial information for the Company
and Legacy Inpixon is as follows (in thousands):

    For the Three Months Ended  June 30, 2024  
    For the  Six Months Ended  June 30, 2024 
  
    Revenues 
    $1,031  
    $1,758 
  
    Net loss attributable to common stockholders 
    $(15,420) 
    $(31,669)
  
    Net loss per basic and diluted common share 
    $(261.97) 
    $(538.07)
  
    Weighted average common shares outstanding: 

    Basic and Diluted 
     58,857  
     58,857 

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 three months ended June 30, 2025 (in thousands):

    Amount 
  
    Beginning balance - January 1, 2025 
    $12,072 
  
    Foreign currency translation adjustment 
     1,120 
  
    Impairment 
     (4,049)
  
    Ending balance – June 30, 2025 
    $9,143 

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 a triggering event during the
six months ended June 30, 2025 related to the IoT reporting unit, in the form of a current period operating and cash flow loss,