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

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 19
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 $1,961  
    $499  
    $2,322  
    $1,272 
  
    Total 
    $1,961  
    $499  
    $2,322  
    $1,272 

    Revenue recognized over time 

    Industrial IoT (2) (3) 
    $523  
    $419  
    $1,246  
    $897 
  
    Total 
    $523  
    $419  
    $1,246  
    $897 

    Total Revenue 
    $2,484  
    $918  
    $3,568  
    $2,169 

(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, in which revenue is recognized over time.

(3)Software As A Service Revenue’s performance obligation is satisfied evenly over the service period using a time-based measure because the Company is providing continuous access to its service and revenue is recognized over time.

13

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Deferred revenue

As of September 30, 2025 and December 31,
2024, the Company had approximately $0.7 million and $0.5 million, respectively, in deferred revenue. This deferred revenue balance relates
to cash received in advance for product maintenance services and professional services provided by the Company’s technical staff.
The fair value of the deferred revenue approximates the services to be rendered. The Company expects to satisfy its remaining performance
obligations for these maintenance services and professional services and recognize the deferred revenue and related contract costs over
the next twelve months.

Note 5 - Proforma Financial Information

The XTI Merger was accounted for as a reverse
merger under U.S. GAAP. For financial reporting purposes, Legacy Inpixon is treated as the “acquired” company. As a result,
the Company’s consolidated financial statements include the operating results of Legacy Inpixon