Company: XTIA
Filing Date: 2025-04-15
Form Type: 10-K
Source: 0001213900-25-032213
Chunk: 565

Company: XTI Aerospace, Inc.
Filing Date: 2025-04-15
Form: 10-K
Item: Item 8
Chunk 565
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 The Company is currently evaluating the impact of ASU 2023-09 on its financial statements and related disclosures.

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. The Company derives revenue from
software as a service, design and implementation services for its Indoor Intelligence systems, and professional services for work performed
in conjunction with its systems recognition policy. Revenues consisted of the following (in thousands):

    For
    the Years Ended
    December 31, 

    2024  
    2023 
  
    Recurring revenue 

    Software 
    $987  
    $— 
  
    Total
    recurring revenue 
    $987  
    $— 

    Non-recurring
    revenue 

    Hardware 
    $1,823  
    $— 
  
    Software 
     84  
     — 
  
    Professional
    services 
     308  
     — 
  
    Total
    non-recurring revenue 
    $2,215  
    $— 

    Total
    Revenue 
    $3,202  
    $— 

     For
                                            the Years Ended
                                            December 31, 

    2024  
    2023 
  
    Revenue recognized at a point in time 

    Industrial
    IoT (1) 
    $1,907  
    $— 
  
    Total 
    $1,907  
    $— 

    Revenue
    recognized over time 

    Industrial
    IoT (2) (3) 
    $1,295  
    $— 
  
    Total 
    $—  
    $— 

    Total
    Revenue 
    $3,202  
    $— 

(1)Hardware and Software’s performance obligation is satisfied at a point in time when they are shipped to the customer.

(2)Professional services are also contracted on the fixed fee and time and materials basis. Fixed fees are paid monthly, in phases, or upon acceptance of deliverables. The Company has elected the practical expedient to recognize revenue for the right to invoice because the Company’s right to consideration corresponds directly with the value to the