Company: XTIA
Filing Date: 2025-05-19
Form Type: 10-Q
Source: 0001213900-25-045396
Chunk: 116

Company: XTI Aerospace, Inc.
Filing Date: 2025-05-19
Form: 10-Q
Item: Part I, Item 8
Chunk 116
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 adopt the new standard.
The new standard is expected to be applied prospectively, but retrospective application is permitted. 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 Three Months
Ended March 31, 

    2025  
    2024 
  
    Recurring revenue 

    Software 
    $320  
    $53 
  
    Total recurring revenue 
    $320  
    $53 

    Non-recurring revenue 

    Hardware 
    $162  
    $162 
  
    Software 
     2  
     - 
  
    Professional services 
     -  
     5 
  
    Total non-recurring revenue 
    $164  
    $167 

    Total Revenue 
    $484  
    $220 

    For the Three Months
Ended March 31, 

    2025  
    2024 
  
    Revenue recognized at a point in time 

    Industrial IoT (1) 
    $164  
    $162 
  
    Total 
    $164  
    $162 

    Revenue recognized over time 

    Industrial IoT (2) (3) 
    $320  
    $58 
  
    Total 
    $320  
    $58 

    Total Revenue 
    $484  
    $220 

(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 customer of the performance completed to date,