Company: SINT
Filing Date: 2025-05-15
Form Type: 10-Q
Source: 0001641172-25-010496
Chunk: 41

Company: Sintx Technologies, Inc.
Filing Date: 2025-05-15
Form: 10-Q
Item: Item 2
Chunk 41
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 derived from
the manufacture and sale of products. These revenue sources primarily include coatings, materials, and components for aerospace and
medical device markets, toll processing services, and government contracts and grants. We generally recognize revenue from sales
where control transfers at a point in time as the title and risk of loss passes to the customer, which is at the time the product is
shipped. In general, our customer does not have rights of return or exchange.

We believe our product revenue will increase as we
secure opportunities to manufacture third party products with silicon nitride.

We derive grant and contract revenue from awards provided
by governmental agencies.

Cost of Revenue

The expenses that are included in cost of revenue
include all in-house manufacturing costs for the products we manufacture.

Gross Profit

Our gross profit measures our product revenue relative
to our cost of revenue.

Research and Development Expenses

Our research and development costs are expensed as
incurred. Research and development costs consist of engineering, product development, clinical trials, test-part manufacturing, testing,
developing and validating the manufacturing process, manufacturing, facility and regulatory-related costs. Research and development expenses
also include employee compensation, employee and non-employee stock-based compensation, supplies and materials, consultant services, and
travel and facilities expenses related to research and development activities.

We expect to incur additional research and development
costs as we continue to develop new medical devices, related product candidates for antipathogenic applications,
and other products which may increase our total research and development expenses.

General and Administrative Expenses

General and administrative expenses consist primarily
of salaries, benefits and other related costs, including stock-based compensation for certain members of our executive team and other
personnel employed in finance, compliance, administrative, information technology, customer service, executive and human resource departments.
General and administrative expenses also include other expenses not part of the other cost categories mentioned above, including facility
expenses and professional fees for accounting and legal services.

20

RESULTS OF OPERATIONS

The following is a tabular presentation of our unaudited
condensed consolidated operating results for the three months ended March 31, 2025 and 2024 (in thousands):

    Three Months Ended March 31,  

    2025  
    2024  
    $ Change  
    % Change 
  
    Product revenue 
    $291  
    $309  
    $(18) 
     -6%
  
    Grant and contract revenue 
     78