Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 122

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 1
Chunk 122
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common shares and included in net loss per share as of the date that all necessary conditions have been satisfied. Such shares include
outstanding penny warrants and shares issuable to Xeriant Inc. (“Xeriant”) related to the joint venture arrangement that
expired on May 31, 2023.

Diluted
net loss per share is computed by giving effect to all potentially dilutive securities outstanding for the period using the treasury
stock method or the if-converted method based on the nature of such securities. For periods in which the Company reports net losses,
diluted net loss per common share attributable to common stockholders is the same as basic net loss per common share attributable to
common stockholders, because potentially dilutive common shares are not assumed to have been issued if their effect is anti-dilutive.

Income
Taxes

The
Company records a provision for income taxes for the anticipated tax consequences of the reported results of operations using the asset
and liability method. Deferred income taxes are recognized by applying enacted statutory tax rates applicable to future years to differences
between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases as well as net operating
loss and tax credit carryforwards. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income
in the period that includes the enactment date. The measurement of deferred tax assets is reduced, if necessary, by a valuation allowance
for any tax benefits for which future realization is uncertain. The Company does not recognize certain tax benefits from uncertain tax
positions within the provision for income taxes. The Company may recognize a tax benefit only if it is more likely than not the tax position
will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized
in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood
of being realized upon settlement. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense.
See Note 21 Income Taxes to the consolidated financial statements for further information regarding income taxes.

Foreign
Currency 

The
functional currency for the Company’s subsidiaries is determined based on the primary economic environment in which the subsidiary
operates. The Company translates the assets and liabilities of its non-U.S. dollar functional currency subsidiaries into U.S. dollars
using exchange rates in effect at the end of each period. Revenues and expenses for these subsidiaries are translated using rates that
approximate those