Company: XTIA
Filing Date: 2025-11-19
Form Type: 10-Q
Source: 0001213900-25-112615
Chunk: 18

Company: XTI Aerospace, Inc.
Filing Date: 2025-11-19
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 for the Company for annual
periods beginning after December 15, 2024. The Company is evaluating the impact of ASU 2023-09 on our consolidated financial statements
and disclosures.

12

XTI AEROSPACE, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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  September
    30,  
    For the Nine Months Ended  September
    30, 

    2025  
    2024  
    2025  
    2024 
  
    Recurring revenue 

    Software 
    $374  
    $327  
    $1,079  
    $697 
  
    Total recurring revenue 
    $374  
    $327  
    $1,079  
    $697 

    Non-recurring revenue 

    Hardware 
    $1,735  
    $422  
    $2,091  
    $1,190 
  
    Software 
    $226  
    $77  
    $231  
    $82 
  
    Professional services 
    $149  
    $92  
    $167  
    $200 
  
    Total non-recurring revenue 
    $2,110  
    $591  
    $2,489  
    $1,472 

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

    For the Three Months Ended September
    30,  
    For the Nine Months Ended September
    30, 

    2025  
    2024  
    2025  
    2024 
  
    Revenue recognized at a point in time 

    Industrial IoT (1)