Company: XTIA
Filing Date: 2025-08-14
Form Type: 10-Q
Source: 0001213900-25-076767
Chunk: 41

Company: XTI Aerospace, Inc.
Filing Date: 2025-08-14
Form: 10-Q
Item: Part I, Item 1
Chunk 41
---
 and its primary activity is the development of the TriFan 600 airplane. The Industrial IoT segment
generates revenue primarily from the sale of real-time location system solutions for the industrial sector and its customers are primarily
located in Germany and the U.S. As it relates to the Industrial IoT segment, the results disclosed in the table below only reflect activity
following the XTI Merger closing through the June 30, 2025 reporting date.

Information on each of our reportable segments
and reconciliation to consolidated loss from operations is presented in the table below. We have assigned certain previously reported
expenses to each segment to conform to the way we internally manage and monitor our business. Unallocated operating expenses include
costs that are not specific to a particular segment but are general to the group; included expenses incurred for administrative and accounting
staff, general liability and other insurance, accrued consulting fees and transaction bonuses relating to former Legacy Inpixon executives,
professional fees and other similar corporate expenses.

The following tables reflect the results of operations
from our business segments for the periods indicated below (in thousands):

    Three Months Ended June 30, 2025 

    Industrial  
    Commercial  
    Unallocated  

    IoT  
    Aviation  
    Costs  
    Total 
  
    Revenue 
    $600  
    $—  
    $—  
    $600 
  
    Cost of revenues 
     117  
     —  
     —  
     117 
  
    Gross Profit 
     483  
     —  
     —  
     483 
  
    Operating expenses 

    Research and development 
     570  
     1,380  
     —  
     1,950 
  
    Sales and marketing 
     571  
     280  
     654  
     1,505 
  
    General and administrative 
     472  
     138  
     3,338  
     3,948 
  
    Impairment of goodwill 
     4,049  
     —  
     —  
     4,049 
  
    Impairment of intangible assets 
     100  
     —  
     —  
     100 
  
    Other expenses(1) 
     48  
     8  
     5  
     61