v3.26.1
Segments
 12 Months Ended
Dec. 31, 2025
Segments [Abstract]  
Segments

Note 12 - 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: Unmanned Aircraft Systems (“UAS”) 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 UAS segment includes operating results of Drone Nerds, which is owned by the Company’s majority-owned subsidiary, XTI Drones Holdings, which provides an integrated suite of UAS solutions across hardware distribution, training, compliance management support, repair and maintenance, fleet sustainment, and related services. This segment is focused on revenue generation and lifecycle support for enterprise, public safety, government, and defense customers.

 

The Commercial Aviation segment consists of the development-stage VTOL aircraft program focused on the TriFan 600, which is designed to combine vertical takeoff and landing capability with the speed and range of a fixed-wing aircraft. This segment does not currently generate revenue and consists primarily of research, engineering, certification planning and program development activities. As of the beginning of 2026, activity on the development of the TriFan 600 has been paused.

 

The CODM evaluates segment performance primarily based on revenues, gross profit, and income (loss) from operations for the UAS segment, and research and development spending and progress toward program milestones for the Commercial Aviation segment. 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, public company costs, 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 UAS segment reflects results of Drone Nerds beginning in November 2025. There were no UAS segment operations during the year ended December 31, 2024. Segment operating results are presented on a consolidated basis prior to the allocation of net income (loss) attributable to noncontrolling interests.

 

Substantially all revenues and long-lived assets for continuing operations are located in the United States.

 

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

 

   Year Ended December 31, 2025 
       Commercial   Unallocated     
   UAS   Aviation   Costs   Total 
Revenue  $22,490   $
—
   $
—
   $22,490 
Cost of revenues   17,569    
—
    
—
    17,569 
Gross Profit   4,921    
—
    
—
    4,921 
Operating expenses                    
Research and development   28    5,212    
—
    5,240 
Sales and marketing   983    1,591    3,030    5,604 
General and administrative   2,087    1,383    29,375    32,845 
Other expenses(1)   134    32    3,887    4,053 
Total operating expenses   3,232    8,218    36,292    47,742 
Income (loss) from operations  $1,689   $(8,218)  $(36,292)  $(42,821)

 

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

 

   Year Ended December 31, 2024 
   Commercial   Unallocated     
   Aviation   Costs   Total 
Revenue  $
—
   $
—
   $
—
 
Gross Profit   
—
    
—
    
—
 
Operating expenses               
Research and development   1,970    
—
    1,970 
Sales and marketing   324    1,193    1,517 
General and administrative   (741)   20,401    19,660 
Other expenses(1)   6,520    
—
    6,520 
Total operating expenses   8,073    21,594    29,667 
Loss from operations  $(8,073)  $(21,594)  $(29,667)

 

(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.