Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 141

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 8
Chunk 141
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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.

14

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 
    June 30,  
    For the Six Months Ended 
    June 30, 

    2025  
    2024  
    2025  
    2024 
  
    Recurring revenue 

    Software 
    $385  
    $317  
    $705  
    $370 
  
    Total recurring revenue 
    $385  
    $317  
    $705  
    $370 

    Non-recurring revenue 

    Hardware 
    $194  
    $606  
    $356  
    $768 
  
    Software 
    $3  
    $5  
    $5  
    $5 
  
    Professional services 
    $18  
    $103  
    $18  
    $108 
  
    Total non-recurring revenue 
    $215  
    $714  
    $379  
    $881 

    Total Revenue 
    $600  
    $1,031  
    $1,084  
    $1,251 

    For the Three Months Ended June
    30,  
    For the Six Months Ended June
    30, 

    2025  
    2024  
    2025  
    2024 
  
    Revenue recognized at a point in time 

    Industrial IoT (1) 
    $197  
    $611  
    $361