Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 264

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 2
Chunk 264
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 the
six months ended June 30, 2025 were $22.4 million and $23.6 million for the comparable period ended June 30, 2024, a decrease
of $1.2 million. Excluding nonrecurring expenses incurred during the six months ended June 30, 2024 including (i) merger-related transaction
costs of $6.5 million, (ii) transaction bonus expense of $6.7 million, and (iii) professional fees of $0.6 million relating to post-XTI
Merger integration efforts including regulatory filings triggered by the merger, operating expenses increased by $12.6 million.

This increase of $12.6 million 
was due primarily to (i) an increase in research and development expenses of $2.1 million, mainly attributable to the development of the
TriFan 600, as the Company secured additional financing during the first half of 2025, (ii) an increase in sales and marketing expenses
of $1.4 million as the Company invested more in brand development and awareness, trade show participation, and business development initiatives,
(iii) an increase in non-cash impairment of goodwill and intangible assets of $4.7 million relating to the Industrial IoT segment, (iv)
an increase in nonrecurring consulting compensation expense of $0.4 million relating to consulting agreements entered into with the prior
executives of Legacy Inpixon on March 12, 2024 that had either expired in 2024 or, in the case of the prior Legacy Inpixon CEO, terminated
on March 27, 2025 pursuant to the Settlement Agreement, (v) an increase in the Industrial IoT segment’s general and administrative
expenses of $0.4 million as the results for the six months ended June 30, 2024 only reflect the activity of the segment since the closing
of the XTI Merger on March 12, 2024, and (vi) an aggregate increase of approximately $3.6 million due to (a) increases in legal and accounting
fees relating to capital raising activities during the first half of 2025, (b) increase in administrative headcount to support operations
growth, and (c) increases in public company-related professional fees as the 2024 historical results reflect the operations of a private
company, Legacy XTI, from January 1, 2024 through the March 12, 2024 closing date of