Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 74

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 74
---
182) 
     (40.6)%
  
    Gross profit 
    $818  
    $803  
    $15  
     1.9%
  
    Operating expenses 
    $22,350  
    $23,607  
    $(1,257) 
     (5.3)%
  
    Loss from operations 
    $(21,532) 
    $(22,804) 
    $1,272  
     (5.6)%
  
    Other (expense) income 
    $(12,204) 
    $5,508  
    $(17,712) 
     (321.6)%
  
    Income tax benefit (provision) 
    $6  
    $(16) 
    $22  
     (137.5)%
  
    Net loss 
    $(33,730) 
    $(17,312) 
    $(16,418) 
     94.8%

    *
    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.

43

 Revenues

The revenue amount for the periods presented represents the results
of the revenue-generating Industrial IoT segment. Revenues for the six months ended June 30, 2025 were $1.1 million compared to $1.3
million for the comparable period in the prior year for a decrease of approximately $0.2 million. This decline in revenue was primarily
attributable to supply chain disruptions caused by regional conflict in the Middle East, which impacted our Israeli supplier’s operations
and resulted in delays in hardware product deliveries to our customers.

Cost of Revenues and Gross Profit

Cost of revenues for the six
months ended June 30, 2025 were $0.3 million compared to $0.4 million for the comparable period in the prior year.

Gross profit for the six months
ended June 30, 2025 and 2024 was $0.8 million. Despite a decline in revenue for the six months ended June 30, 2025 compared to the
comparable period in the prior year, gross profit for such periods remained consistent because of improved gross margins. The gross margin
percentage was 75.5% and 64.2% for the six months ended June 30, 2025 and