Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 316

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 2
Chunk 316
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    $  
    % 
  
    (in thousands, except percentages) 
    Amount  
    Amount  
    Change*  
    Change* 
  
    Revenues 
    $2,484  
    $918  
    $1,566  
     171%
  
    Cost of revenues 
    $1,407  
    $398  
    $1,009  
     254%
  
    Gross profit 
    $1,077  
    $520  
    $557  
     107%
  
    Operating expenses 
    $15,886  
    $4,736  
    $11,150  
     235%
  
    Loss from operations 
    $(14,809) 
    $(4,216) 
    $(10,593) 
     251%
  
    Other (expense) income 
    $1,364  
    $(219) 
    $1,583  
     (723)%
  
    Income tax provision 
    $(1) 
    $—  
    $(1) 
     — 
  
    Net loss 
    $(13,446) 
    $(4,435) 
    $(9,011) 
     203%

    *
    Amounts used to calculate
    dollar and percentage changes are based on numbers in the thousands. Accordingly, calculations in this item, which may be rounded
    to the nearest hundred thousand, may not produce the same results.

Revenues

The revenue amount for the
periods presented represents the results of the revenue-generating Industrial IoT segment. Revenues for the three months ended September
30, 2025 were $2.5 million, compared to $0.9 million for the three months ended September 30, 2024, representing an increase of approximately
$1.6 million. The increase was primarily attributable to a $1.3 million increase in hardware revenue related to the Company’s IoT
business, resulting from improved supply chain conditions. These improvements followed the resolution of disruptions caused by regional
conflict in the Middle East, which had impacted operations of the Company’s Israeli supplier and resulted in delays in hardware
product deliveries during the first half of 2025. In addition, we communicated our plan to explore our strategic options to wind down
and/or sell the hardware portions of our Industrial IoT business to our customers which resulted in customers increasing their hardware
purchases, and