Segments

12 Months Ended

Dec. 31, 2024

Segments [Abstract]

Segments

Note 15 - Segments

The Company’s Chief Executive Officer (“CEO”), acting as the Chief Operating Decision Maker, or (“CODM”), regularly reviews and manages certain areas of its businesses, resulting in the Company identifying two reportable segments: Industrial IoT and Commercial Aviation. The Company manages and reports its operating results through these two reportable segments. This allows the Company to enhance its customer focus and better align its business models, resources, and cost structure to the specific current and future growth drivers of each business, while providing increased transparency to the Company’s shareholders.

The commercial aviation segment is currently in the pre-revenue development stage 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 December 31, 2024 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):

	December 31, 2024
	Industrial			Commercial			Unallocated
	IoT			Aviation			Costs			Total
Revenue	$	3,202		$	—		$	—		$	3,202
Cost of revenues		1,314			—			—			1,314
Gross Profit		1,888			—			—			1,888
Operating expenses
Research and development		2,026			1,970			—			3,996
Sales and marketing		1,714			324			1,193			3,231
General and administrative		2,362			(741	)		20,401			22,022
Impairment of intangible assets		2,507			—			—			2,507
Other expenses(1)		426			6,525			161			7,112
Total operating expenses		9,035			8,078			21,755			38,868
Loss from operations	$	(7,147	)	$	(8,078	)	$	(21,755	)	$	(36,980	)

(1) Other expenses include merger-related transaction costs and amortization of intangibles.

	December 31, 2023
	Industrial		Commercial			Unallocated
	IoT		Aviation			Costs		Total
Revenue	$	—	$	—		$	—	$	—
Gross Profit		—		—			—		—
Operating expenses
Research and development		—		1,381			—		1,381
Sales and marketing		—		721			—		721
General and administrative		—		3,615			—		3,615
Other expenses(1)		—		1,872			—		1,872
Total operating expenses		—		7,589			—		7,589
Loss from operations	$	—	$	(7,589	)	$	—	$	(7,589	)

(1) Other expenses include merger-related transaction costs and amortization of intangibles.

The reporting package provided to the Company’s CODM does not include the measure of assets by segment as that information isn’t reviewed by the CODM when assessing segment performance or allocating resources.