Commercial Aviation Development - The company has not generated revenue from the Commercial Aviation segment as it is still in the design, development, and certification phase for the TriFan 600 aircraft [277]. - The company completed its preliminary design review (PDR) for the TriFan 600 in 2022, which set the stage for further design development [266]. - The current development design review (DDR) phase includes interactions with suppliers to mature major structures and systems of the TriFan 600, with ongoing communication with the FAA to ensure compliance [267]. - The company plans to seek FAA certification for the TriFan 600, with critical design review (CDR) and preliminary testing of a full-scale flight test aircraft as the next milestones [265]. - The company is pursuing multiple funding alternatives to complete the development of the TriFan 600 and its test aircraft [261]. Industrial IoT Segment - The Industrial IoT segment generates revenue through a "location as a service" (LaaS) model, which typically involves 3-5 year contracts and includes maintenance and hardware upgrades, creating a recurring revenue stream [278]. - The company believes it has positioned its Industrial IoT business as a market leader with a comprehensive suite of products and solutions [264]. - The company faces significant competition in both the Commercial Aviation and Industrial IoT markets, with larger competitors having better financial resources [270][271]. Financial Performance - Revenues for the three months ended March 31, 2024 were $0.2 million, a significant increase from $0.0 million in the same period of 2023, marking a change of approximately $0.2 million [291]. - Operating expenses for the same period increased to $9.0 million from $1.3 million, representing a substantial increase of approximately $7.7 million or 602% [294]. - Net loss for the three months ended March 31, 2024 was $2.6 million, compared to a net loss of $1.6 million in the prior year, reflecting an increase of 66% [289]. - Other income for the three months ended March 31, 2024 was a gain of $6.3 million, compared to a loss of $0.3 million in the same period last year, an increase of approximately $6.6 million [295]. - The company reported a working capital deficit of approximately $5.1 million as of March 31, 2024 [299]. - Cash and cash equivalents as of March 31, 2024 were approximately $1.8 million [299]. - Customer deposits received as of March 31, 2024 amounted to approximately $1.4 million, which will not be recognized as revenue until aircraft orders are delivered [301]. - The company incurred inducement losses on debt conversions of approximately $6.7 million during the three months ended March 31, 2024 [295]. - The increase in operating expenses was primarily due to a rise in non-cash stock-based compensation expense of approximately $5.7 million [294]. - The company recognized an income gain of approximately $12.9 million related to the remeasurement of convertible notes at fair value during the three months ended March 31, 2024 [295]. - For the three months ended March 31, 2024, the company had a net loss of approximately $2.6 million and used approximately $2.6 million of cash for operating activities [327]. - Net cash used in operating activities during the three months ended March 31, 2024 was approximately $2.6 million, with non-cash expenses totaling approximately $0.7 million [332]. - The company assessed the Transaction Value applicable to the XTI Merger at $225 million, based on the enterprise value of Legacy XTI [312]. Merger and Compensation - The company completed its merger with XTI Aircraft Company on March 12, 2024, which was structured as a reverse triangular merger [272]. - The company plans to pay Mr. Ali a total of $1.5 million three months following the closing of the XTI Merger, plus $4.5 million in 12 equal monthly installments of $375,000 each [319]. - As of March 31, 2024, liability amounts of approximately $0.7 million and $0.1 million are included in Accrued Expenses and Other Current Liabilities and Related Party Payables, respectively, related to deferred compensation and retention bonuses [325]. - The company restored the salaries of all employees to the original amount effective March 31, 2023, following additional financing received in the first quarter of 2023 [326]. - The company has implemented a cost savings plan effective July 1, 2022, which includes a compensation reduction directive and retention bonus program [323]. Cash Flow and Going Concern - The company’s condensed consolidated financial statements for the three months ended March 31, 2024, have been prepared under the assumption of continuing as a going concern for the next twelve months [329]. - Net cash used in operating activities for the three months ended March 31, 2023 was approximately $0.5 million, with a net loss of $1.565 million [333]. - Non-cash expenses totaled approximately $0.315 million, primarily due to stock-based compensation expense of $0.141 million [333]. - Net cash flows used in investing activities for the three months ended March 31, 2024 was approximately $3.0 million, compared to $0.0 million in the same period of 2023 [334]. - Net cash flows provided by financing activities for the three months ended March 31, 2024 was $1.4 million, including $1.0 million from an existing promissory note arrangement [335]. - In the three months ended March 31, 2023, net cash flows provided by financing activities was $0.7 million, with $0.3 million from the issuance of a convertible note [336]. - The net change in operating assets and liabilities for the three months ended March 31, 2023 resulted in a cash use of approximately $0.793 million, primarily due to an increase in accounts payable of $0.496 million [333]. - The company does not have any off-balance sheet guarantees or trading activities involving non-exchange traded contracts [337]. - There were no applicable quantitative and qualitative disclosures about market risk [339].

Corporate Actions and Mergers - The company completed a reverse stock split at a ratio of 1-for-100 effective March 12, 2024, to comply with Nasdaq Listing Rule 5550(a)(2) and satisfy bid price requirements for the XTI Merger[136]. - The merger between XTI Aerospace and XTI Aircraft Company was completed on March 12, 2024, with Legacy XTI becoming a wholly-owned subsidiary of XTI Aerospace[219]. - The merger transaction was executed under the XTI Merger Agreement, originally dated July 24, 2023, and amended on December 30, 2023, and March 12, 2024[219]. - The company reported its audited consolidated financial statements for the years ended December 31, 2023, and 2022, which were filed with the SEC on March 15, 2024[221]. Product Development and Technology - The TriFan 600 is expected to have a range of 700 miles, providing significant advantages over eVTOL aircraft, which rely on charging infrastructure not yet commercially available[139]. - The company has established a baseline bill-of-materials for the TriFan 600 by negotiating with key suppliers globally during the design phase[145]. - The company is pursuing a phased approach to hybrid-electric propulsion for future TriFan configurations, considering current technology readiness and regulatory guidance[139]. - The company emphasizes the importance of securing required certifications for the TriFan 600 aircraft to ensure successful development and commercialization[217]. - The company is committed to developing new products and technologies to meet customer demand and enhance its competitive position[217]. Market and Customer Dynamics - The company aims to diversify its product offerings and increase market presence through acquisitions, although future consumer demand remains uncertain[157]. - The company's RTLS business growth depends on increasing sales to existing customers and acquiring new customers, which is influenced by competitive pricing and product quality[152]. - Two customers accounted for over 27% of revenue in 2023, with one customer contributing 17% and another 10%[176]. - In 2022, one customer represented 23% of revenue, indicating a potential volatility in customer contributions to revenue[176]. - The market acceptance of RTLS products is critical, with potential impacts from technological changes and competition affecting growth prospects[181]. Financial Risks and Challenges - The company faces risks related to the timely collection of receivables, which could adversely affect cash flow and working capital[179]. - The company may be subject to product liability claims due to manufacturing or design defects, which could have a material adverse effect on its financial condition[170]. - The company is subject to risks from reliance on a limited number of significant customers, which could materially affect operations if lost[178]. - The company has a history of losses and is focused on achieving profitability in the future[207]. - The company has outlined potential risks associated with its ability to maintain profitability and manage operational challenges[215]. Operational and Geopolitical Risks - The company faces risks from potential changes in U.S.-China trade relations, which could impact its ability to source hardware products necessary for manufacturing[149]. - The company is vulnerable to cyber threats that could disrupt operations and harm its reputation, despite implementing security measures[162]. - The company is exposed to risks associated with foreign operations, including currency fluctuations and longer payment cycles[213]. - The company faces risks related to geopolitical and economic factors that could impact international sales and operations[209]. - XTI Aerospace's international business is sensitive to changes in customer priorities and budgets, influenced by geopolitical uncertainties[211]. Supply Chain and Operational Efficiency - The company is navigating challenges related to supply chain disruptions and increased costs for materials and labor[208]. - The company may experience delays or cancellations in installations if its products do not effectively interoperate with customers' IT infrastructure[197]. - Defects or vulnerabilities in products could lead to significant financial expenditures to address issues, impacting overall operational results[184]. - The company is focused on integrating acquired technologies and companies to achieve operational synergies[218].

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 As filed with the Securities and Exchange Commission on December 20, 2023 Registration No. 333- REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 INPIXON (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) Nevada 7371 88-0434915 (I.R.S. Employer Identification Number) 2479 E. Bayshore Road, Suite 195 ...

Financial Performance - Inpixon reported a net loss from continuing operations of approximately $30.5 million for the nine months ended September 30, 2023, compared to a net loss of approximately $27.1 million for the same period in 2022[290]. - Revenues for the three months ended September 30, 2023, were $2.0 million, a decrease of approximately $0.4 million or 17% compared to $2.4 million in the same period last year[356]. - Revenues for the nine months ended September 30, 2023, were $7.2 million, a decrease of approximately $0.5 million or 6% compared to $7.7 million in the same period of 2022, primarily due to longer sales cycles in the IIOT business[365]. - Net loss attributable to stockholders for the nine months ended September 30, 2023, was $34.2 million, a decrease of $14.5 million or 30% from a loss of $48.7 million in the prior year[364]. - For the three months ended September 30, 2023, the net loss attributable to stockholders was $10,384,000, compared to a net loss of $22,631,000 for the same period in 2022[384]. - The proforma non-GAAP net loss for the nine months ended September 30, 2023, was $21,368,000, which is an increase from a loss of $9,964,000 in the same period of 2022[384]. Revenue and Cost Analysis - Cost of revenues for the three months ended September 30, 2023, were $0.5 million, a decrease of approximately $0.3 million or 40% compared to $0.8 million in the prior year[357]. - Cost of revenues for the nine months ended September 30, 2023, was $1.6 million, a decrease of approximately $0.8 million or 32% from $2.4 million in the prior year, mainly due to lower costs in the SAVES product line[366]. - Gross profit for the three months ended September 30, 2023, was $1.6 million, representing 78% of revenues, compared to $1.7 million or 69% of revenues in the prior year[355]. - Gross profit margin for the three months ended September 30, 2023, was 78%, up from 69% in the same period of 2022, primarily due to lower costs in the SAVES and indoor intelligence product lines[358]. - Gross profit margin for the nine months ended September 30, 2023, was 77%, up from 69% in the same period of 2022, driven by lower costs in the SAVES product line[367]. Strategic Transactions and Corporate Actions - Inpixon is exploring strategic transactions, including possible asset sales, mergers, or spin-offs, to enhance shareholder value[293]. - Inpixon entered into a merger agreement with XTI Aircraft Company on July 24, 2023, and plans to divest its Shoom, SAVES, and Game Your Game lines of business[294]. - The Company entered into a Merger Agreement with XTI Aircraft Company on July 24, 2023, with the anticipated exchange ratio allowing Inpixon stockholders to retain approximately 40% of the combined company[319]. - Inpixon plans to spin off Grafiti Holding Inc. by distributing all outstanding common shares of Grafiti to stockholders on a pro rata basis[345]. - Inpixon entered into a Business Combination Agreement with Damon Motors Inc. and anticipates that holders of Grafiti Common Shares will retain approximately 18.75% of the outstanding capital stock of the combined company[348]. Cash Flow and Liquidity - As of September 30, 2023, the company had cash and cash equivalents of $13,489,000, an increase from $10,235,000 as of December 31, 2022[396]. - The company reported a working capital surplus of approximately $2,986,000 as of September 30, 2023, down from $5,152,000 at the end of 2022[396]. - Net cash used in operating activities for the nine months ended September 30, 2023, was $25,090,000, compared to $26,943,000 for the same period in 2022[394]. - The company raised gross proceeds of approximately $27,400,000 in connection with the ATM Offering and received $2,300,000 from warrants exercised since January 1, 2023[392]. - The company expects that general economic conditions may materially impact its liquidity and ability to access capital for growth plans[393]. Expenses and Impairments - Operating expenses for the three months ended September 30, 2023, were $10.6 million, an increase of approximately $3.5 million or 49% compared to $7.1 million in the prior year[355]. - The Company paid approximately $3.5 million to management under the Transaction Bonus Plan during the three months ended September 30, 2023[333]. - Non-cash income and expenses totaled approximately $22.2 million, primarily due to stock-based compensation and impairment of goodwill[399]. - As of September 30, 2023, the Company's previously recorded goodwill has been fully impaired[354]. Compliance and Regulatory Matters - The company received a notice from Nasdaq regarding non-compliance with the minimum bid price requirement, with a deadline to regain compliance by April 8, 2024[302]. - A reverse stock split was approved by shareholders to potentially cure bid price deficiencies, with a ratio between 1-for-2 and 1-for-50 to be determined by the board[304]. Market and Economic Conditions - The company anticipates challenges from global events, including supply chain interruptions and increased costs, which may impact its operations[292]. - There were no significant market risks disclosed in the report[405].

Financial Performance - Inpixon reported a net loss from continuing operations of approximately $19.7 million for both the six months ended June 30, 2023, and 2022 [265]. - Revenues for Q2 2023 were $2.1 million, a decrease of approximately 20% from $2.6 million in Q2 2022, primarily due to delayed shipments and lower sales in the Indoor Intelligence and SAVES product lines [318]. - For the six months ended June 30, 2023, revenues were $5.161 million, a slight decrease of approximately 1% from $5.225 million in the same period in 2022 [329]. - Net loss from continuing operations for Q2 2023 was $7.3 million, an improvement of 18% compared to a loss of $9.0 million in Q2 2022 [318]. - The company recorded a net loss attributable to stockholders of $6.966 million in Q2 2023, a significant improvement of 65% from a loss of $19.872 million in Q2 2022 [318]. - For the six months ended June 30, 2023, the net loss attributable to common stockholders was $23.840 million, compared to a loss of $42.219 million in the same period of 2022 [341]. - The company reported a net loss of $24.5 million for the six months ended June 30, 2023, an improvement from a net loss of $31.9 million in the same period of 2022 [359][360]. - Adjusted EBITDA for Q2 2023 was a loss of $5.0 million, compared to a loss of $5.2 million in Q2 2022 [338]. - Adjusted EBITDA for the six months ended June 30, 2023, was $(9.870) million, compared to $(11.667) million in the prior year [341]. Cash Flow and Liquidity - As of June 30, 2023, the company had cash and cash equivalents of approximately $15.681 million [351]. - The company reported net cash used by operating activities for the six months ended June 30, 2023, of $15.8 million [352]. - Net cash used in operating activities for the six months ended June 30, 2023 was approximately $15.8 million, compared to $19.5 million for the same period in 2022 [355][360]. - Net cash provided by financing activities for the six months ended June 30, 2023 was $11.7 million, compared to a net cash outflow of $4.2 million in the same period of 2022 [363]. - Cash and cash equivalents as of June 30, 2023 were $15.7 million, an increase from $10.2 million as of December 31, 2022 [357]. - The company experienced a net decrease in cash and cash equivalents of $4.6 million for the six months ended June 30, 2023, compared to an increase of $13.3 million in the same period of 2022 [357]. - The company anticipates that current cash balances and financing facilities will be sufficient to meet working capital needs for the next 12 months [355]. Strategic Transactions and Mergers - The company has entered into an agreement to merge with XTI Aircraft Company, with plans to divest its Shoom, SAVES, and Game Your Game lines of business [268]. - The merger agreement with XTI Aircraft Company was unanimously approved, with Inpixon expected to retain approximately 40% and XTI security holders approximately 60% of the combined company's capital stock [287]. - Inpixon will provide loans to XTI of up to $1,775,000, with each Future Loan being in the principal amount of up to $500,000 [291]. - The total principal amount under the Promissory Note is up to $2,313,407, which includes $525,000 previously advanced to XTI [292]. - The merger agreement includes provisions for the conversion of XTI's outstanding convertible notes into common stock of the combined company [282]. - The company is exploring strategic transactions, including possible asset sales, mergers, or spin-offs to enhance shareholder value [268]. Stock and Shareholder Information - The company sold 28,981,729 shares of common stock for gross proceeds of approximately $21.0 million during the six months ended June 30, 2023 [269]. - The company issued 9,000,000 shares of common stock in July 2023, receiving gross proceeds of approximately $2.3 million from the exercise of warrants [280]. - The company is currently subject to Nasdaq's "baby shelf rules," which may limit future issuances of shares due to its public float being less than $75 million [269]. - The company has been provided a 180-day period to regain compliance with Nasdaq's minimum bid price requirement of $1 per share [274]. - A cash fee of $800,000 will be paid to Maxim Group LLC upon closing of the merger, along with approximately 6,565,988 shares of Inpixon common stock [289]. - The Completed Transaction Bonus Plan allows eligible participants to receive a cash bonus equal to 100% of their aggregate annual base salary as of December 31, 2022 [298]. - Inpixon's named executive officers will receive a cash bonus totaling 4% of the $70,350,000 transaction value from the Completed Transaction [299]. - The Transaction Bonus Plan for future strategic transactions will provide bonuses to participants upon the closing of a Contemplated Transaction or Qualifying Transaction [304]. Operational Challenges - Supply chain interruptions and increased costs for parts, materials, and labor are expected to continue to challenge the business [356]. - The company may pursue strategic transactions and raise additional capital as needed through equity securities and/or cash and debt financings [356].

As filed with the Securities and Exchange Commission on June 23, 2023 Registration No. 333- (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) Nevada 7371 88-0434915 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 INPIXON (Exact name of registrant as specified in its charter) (I.R.S. Employer Identification Number) 2479 E. Bayshore Road Suite 195 Palo ...

Financial Performance - Inpixon reported a net loss from continuing operations of approximately $12.3 million for the three months ended March 31, 2023, compared to a net loss of approximately $10.8 million for the same period in 2022 [239]. - Revenues for Q1 2023 were $3.1 million, a 17% increase from $2.6 million in Q1 2022, primarily driven by Indoor Intelligence sales [265]. - Gross profit margin improved to 75% in Q1 2023 from 70% in Q1 2022, attributed to a favorable sales mix [266]. - Operating expenses decreased to $10.5 million in Q1 2023 from $11.1 million in Q1 2022, mainly due to lower compensation and professional fees [267]. - Net loss attributable to stockholders for Q1 2023 was $16.9 million, a 51% increase compared to a loss of $11.2 million in Q1 2022 [264]. - Adjusted EBITDA for Q1 2023 was a loss of $7.7 million, an improvement from a loss of $8.8 million in the prior year [273]. - Basic and diluted net loss per share for Q1 2023 was $1.38, compared to a loss of $9.05 for the same period last year [279]. - Loss from discontinued operations for Q1 2023 was $4.9 million, significantly higher than a loss of $0.8 million in Q1 2022 [271]. - For the three months ended March 31, 2023, the net loss attributable to stockholders was $16.9 million, compared to a net loss of $17.4 million for the same period in 2022 [283]. - The proforma non-GAAP net loss for the three months ended March 31, 2023 was $12.4 million, with a proforma non-GAAP net loss per share of $1.01, compared to a loss of $9.2 million and $4.79 per share in 2022 [283]. Cash Flow and Capital Structure - As of March 31, 2023, the company had cash and cash equivalents of approximately $15.3 million, with a working capital surplus of about $0.2 million [290]. - Net cash used in operating activities during the three months ended March 31, 2023 was approximately $9.5 million, compared to $15.3 million for the same period in 2022 [293]. - The company raised gross proceeds of approximately $19.6 million since January 1, 2023, in connection with the ATM Offering [288]. - The company owed approximately $15.0 million in principal under promissory notes with third parties, payable within the next twelve months [287]. - Net cash flows provided by financing activities for Q1 2023 were $4.9 million, compared to a net cash outflow of $4.1 million in Q1 2022 [300]. - The company received $15.0 million from a registered direct offering during Q1 2023 [300]. - The company distributed $10.0 million to shareholders related to the spin-off of CXApp in Q1 2023 [300]. Strategic Initiatives - Inpixon completed the spin-off of its enterprise apps business on March 14, 2023, contributing cash to ensure CXApp had $10 million in cash and cash equivalents prior to transaction expenses [249][250]. - The company is exploring strategic transactions, including potential asset sales, mergers, or spin-offs, to enhance shareholder value [243]. - Inpixon's corporate strategy focuses on being the primary provider of foundational technologies for indoor data, enabling organizations to create actionable insights [234]. Operational Challenges - The company anticipates ongoing challenges from supply chain interruptions and increased costs due to global events, including the COVID-19 pandemic and inflation [242]. - The company experienced supply chain cost increases and constraints, impacting delivery times and demand for certain products [291]. - The company anticipates that global events, including the ongoing impact of the pandemic and geopolitical tensions, may continue to affect its results of operations [292]. Technology and Product Development - Inpixon's full-stack industrial IoT solution integrates RTLS, sensor networks, edge computing, and big data analytics to optimize operations and improve efficiency [236]. - Inpixon's RTLS technology is crucial for Industry 4.0, providing real-time tracking and monitoring to improve operational efficiency and safety [235]. - The company generated revenue from three segments: Indoor Intelligence, Shoom, and SAVES, with revenue from hardware, software licenses, and professional services [238]. Compliance and Regulatory Matters - The company received a Nasdaq compliance letter indicating it did not meet the minimum bid price requirement of $1 per share, with a compliance period until October 11, 2023 [257]. - The Transition Services Agreement between Legacy CXApp and Inpixon will provide mutual administrative support services, terminating twelve months after the last service provided [256]. Tax and Non-Cash Items - The company recorded an income tax expense of approximately $2.5 million in Q1 2023, compared to no tax expense in Q1 2022 [270]. - Non-cash income and expenses for the three months ended March 31, 2023, totaled approximately $5.6 million, primarily due to depreciation and amortization expenses [296].

Financial Performance and Strategy - The company has a history of losses and is focused on achieving profitability in the future[14] - The company anticipates potential tax treatment and benefits from the spin-off of its enterprise apps business, which may not be fully realized[14] - The company is actively seeking to attract, retain, and manage existing customers to enhance its market position[14] Market and Competitive Environment - The company faces emerging competition and rapidly advancing technology that could outpace its developments[14] - General economic conditions, including inflation and supply chain challenges, may impact the company's performance and customer demand[14] Corporate Actions and Compliance - The company reported a reverse stock split at a ratio of 1-for-75 effective October 7, 2022, to comply with Nasdaq Listing Rule 5550(a)(2)[20] - The company is committed to maintaining compliance with Nasdaq Capital Market listing requirements[14] - The company has outlined risks related to potential strategic transactions, including acquisitions and mergers[14] - The company has no obligation to publicly update or revise forward-looking statements made in the report[16] Operational Challenges - Recent acquisitions have contributed to the company's limited operating history, posing integration challenges[14]

Financial Performance - Inpixon reported a net loss of approximately $49.9 million for the nine months ended September 30, 2022, compared to a net loss of approximately $32.0 million for the same period in 2021[317]. - The company reported revenues of $4.2 million for the three months ended September 30, 2022, a decrease of approximately 6% from $4.5 million in the prior year[356]. - Revenues for the nine months ended September 30, 2022, were $14.1 million, an increase of approximately $3.3 million or 30% compared to $10.9 million in the prior year[364]. - Net loss attributable to stockholders of Inpixon was $48.7 million for the nine months ended September 30, 2022, compared to a loss of $31.4 million in the prior year, representing a change of $17.2 million or 55%[373]. - Adjusted EBITDA for the nine months ended September 30, 2022, was a loss of $26.9 million, compared to a loss of $18.5 million in the prior year[372]. - Basic and diluted net loss per share for the nine months ended September 30, 2022, was $31.08, compared to a loss of $23.95 in the prior year[378]. Operational Challenges - The company has experienced supply chain cost increases and constraints, impacting delivery times for hardware products due to the ongoing effects of the COVID-19 pandemic[318]. - Inpixon anticipates ongoing challenges from global events, including inflation and supply chain interruptions, which may impact future operations and demand[320]. - The company anticipates that supply chain interruptions and increased costs may continue to challenge its operations[392]. Strategic Initiatives - Inpixon's corporate strategy includes a focus on strategic acquisitions to enhance its Indoor Intelligence solutions, with several key acquisitions completed since 2019[321]. - The company plans to separate its enterprise apps business into a wholly-owned subsidiary, which will merge with a special purpose acquisition corporation, valuing the subsidiary at $69 million[321]. - The proposed business combination with KINS Technology Group Inc. values the enterprise apps business at $69 million, expected to complete in Q4 2022[338]. - The company is focused on enhancing its product offerings through technological innovations and strategic partnerships to meet evolving customer needs[321]. Financial Position - As of September 30, 2022, the company reported a working capital surplus of approximately $51.6 million, with cash and cash equivalents totaling $63.2 million[387]. - The company raised net proceeds of $14.2 million from a registered direct offering of common stock and warrants[347]. - The company raised net proceeds of approximately $14.2 million from a registered direct offering in October 2022 and $5 million from a debt offering in July 2022[390]. - The total obligation for operating leases as of September 30, 2022, was approximately $1.5 million, with $0.6 million expected to be paid in the next twelve months[386]. - The company owed approximately $6.2 million in principal under promissory notes with third parties, payable within the next twelve months[389]. Revenue and Cost Analysis - Cost of revenues increased by approximately $1.1 million or 36%, totaling $4.0 million for the nine months ended September 30, 2022, compared to $3.0 million in the prior year[365]. - Gross profit margin decreased to 71% for the nine months ended September 30, 2022, down from 73% in the prior year, attributed to the sales mix during the period[366]. - Gross profit margin decreased to 70% for the three months ended September 30, 2022, down from 73% in the same period of 2021[358]. - Operating expenses rose to $50.4 million, an increase of $4.4 million or 10% compared to $46.1 million in the prior year, primarily due to a $7.6 million goodwill impairment[367]. - Operating expenses decreased by approximately $2.4 million to $13.3 million for the three months ended September 30, 2022, primarily due to lower compensation and professional fees[359]. Investment Activities - Net cash flows from investing activities for the nine months ended September 30, 2022, were approximately $36.7 million, a significant improvement from a net cash outflow of approximately $52.7 million in the same period of 2021[399]. - Cash flows related to investing activities in 2022 included $43.0 million from the sales of treasury bills, while in 2021, $63.4 million was spent on purchasing treasury bills[399]. Other Financial Information - A note purchase agreement was executed for an unsecured promissory note with an initial principal amount of approximately $6.5 million, accruing interest at a rate of 10% per annum[325]. - The company purchased a 10% Original Issue Discount Senior Convertible Debenture from FOXO Technologies for approximately $6.1 million, with a purchase price of $5.5 million[333]. - An impairment charge of $7.6 million was recorded for goodwill as of June 30, 2022, resulting in remaining goodwill being fully impaired[353]. - Other income/expense resulted in a loss of $9.4 million for the nine months ended September 30, 2022, a decrease of approximately $17.0 million compared to a gain of $7.5 million in the prior year[368]. - Other income/expense loss improved to $7.6 million for the three months ended September 30, 2022, compared to a loss of $22.3 million in the prior year, reflecting lower unrealized losses on equity securities[360]. - Unrealized losses on equity securities amounted to $7.1 million for the nine months ended September 30, 2022[368]. Stock and Financing Activities - The company completed a reverse stock split at a ratio of 1:75 effective October 7, 2022, to comply with Nasdaq listing requirements[343]. - The company has filed an At-The-Market financing facility with an aggregate offering price of up to $25 million to support its capital needs[390]. - The company received $46.9 million from the issuance of preferred stock and warrants, while in 2021, it received $77.9 million from the issuance of common stock and warrants[400]. - The company paid $49.3 million for the redemption of preferred series 7 stock during the nine months ended September 30, 2022[400]. Accounting and Risk Disclosures - Recent accounting standards and their implications are discussed in Note 3 of the financial statements included in the report[402]. - There were no applicable quantitative and qualitative disclosures about market risk provided by the company[403]. - There were no off-balance sheet guarantees or trading activities involving non-exchange traded contracts reported by the company[401]. - The company has not engaged in any interest rate swap transactions or foreign currency contracts[401].

Financial Performance - Inpixon reported a net loss of approximately $31.9 million for the six months ended June 30, 2022, compared to a net income of $2.0 million for the same period in 2021[294]. - Revenues for Q2 2022 were $4.7 million, a 37% increase from $3.5 million in Q2 2021, primarily driven by increased sales in Indoor Intelligence[319]. - Revenues for the six months ended June 30, 2022 were $10.0 million, a 55% increase from $6.4 million in the same period in 2021, driven by Indoor Intelligence sales and new product lines[330]. - Loss from operations for Q2 2022 was $19.9 million, compared to a loss of $13.3 million in Q2 2021, reflecting increased operating expenses despite higher gross profit[323]. - Net loss attributable to stockholders for Q2 2022 was $19.9 million, a significant decline from a net income of $14.8 million in Q2 2021, primarily due to other income items in the prior year[327]. - Loss from operations for the six months ended June 30, 2022 was $30.0 million, compared to a loss of $25.7 million in the same period in 2021, reflecting increased operating expenses[334]. - Adjusted EBITDA for the three months ended June 30, 2022, was a loss of $9.9 million compared to a loss of $6.3 million for the prior year period, indicating a deterioration of approximately 57%[341]. - Adjusted EBITDA for the six months ended June 30, 2022, was a loss of $18.7 million compared to a loss of $11.8 million for the prior year period, reflecting an increase in loss of approximately 58%[342]. - Basic and diluted net loss per share for the three months ended June 30, 2022, was $0.16, compared to income of $0.13 for the prior year period, marking a significant shift in performance[349]. - Basic and diluted net loss per share for the six months ended June 30, 2022, was $0.29, compared to income of $0.02 for the prior year period, indicating a substantial increase in loss per share[350]. - Net income (loss) attributable to non-controlling interest for the six months ended June 30, 2022, was a loss of $804,000, an increase from a loss of $235,000 in the same period of the previous year[338]. Operating Expenses and Impairments - Operating expenses for Q2 2022 were $23.2 million, an increase of approximately $7.4 million from $15.9 million in Q2 2021, largely due to a $7.6 million goodwill impairment[322]. - Operating expenses for the six months ended June 30, 2022 were $37.1 million, up from $30.3 million in the prior year, mainly due to goodwill impairment and acquisitions[333]. - The company recorded a goodwill impairment charge of $7.6 million in Q2 2022, resulting in the remaining goodwill being fully impaired[316]. - The company incurred an impairment of goodwill amounting to $7.57 million during the reporting period[344]. Cash Flow and Capital Management - The net cash used in operating activities for the six months ended June 30, 2022, was approximately $19.5 million, compared to $14.2 million for the same period in 2021[367][371]. - The total cash and cash equivalents increased by approximately $13.3 million during the six months ended June 30, 2022[367]. - The company raised net proceeds of approximately $46.9 million from the sale of Series 8 Preferred Stock and securities, along with an additional $5 million from a debt offering in July 2022[363]. - The company received $46.9 million from the issuance of preferred stock and warrants during the six months ended June 30, 2022[375]. - The company paid $49.3 million for the redemption of preferred series 7 stock during the six months ended June 30, 2022[375]. - As of June 30, 2022, the company reported a working capital surplus of approximately $65.2 million, with cash and cash equivalents totaling approximately $65.8 million[359]. - The company has filed an At-The-Market financing facility to access additional capital as needed[363]. Strategic Initiatives - Inpixon has entered into an Equity Distribution Agreement to offer shares of common stock with an aggregate offering price of up to $25 million for working capital and corporate strategy execution[299]. - The company has completed several strategic acquisitions to enhance its Indoor Intelligence solutions, including technologies for wireless device positioning and indoor mapping[298]. - Inpixon's corporate strategy focuses on providing end-to-end solutions for indoor intelligence, aiming to secure and optimize premises for businesses and governments[298]. - Inpixon's strategic focus includes evaluating potential acquisitions and partnerships to enhance shareholder value and support continued innovation in indoor intelligence technologies[298]. Market and Operational Challenges - The company has experienced supply chain cost increases and delays in hardware product components due to the COVID-19 pandemic, impacting delivery times[295]. - The company anticipates ongoing challenges from global events, including inflation and supply chain interruptions, which may impact operations and demand for products[296]. - The company anticipates that supply chain interruptions and increased costs may continue to challenge its operations[365]. Other Financial Information - A note purchase agreement was executed for an unsecured promissory note with an initial principal amount of approximately $6.5 million, accruing interest at a rate of 10% per annum[301]. - Inpixon purchased a 10% Original Issue Discount Senior Convertible Debenture for approximately $6.1 million, with a purchase price of $5.5 million, accruing interest at a rate of 12% per annum[308]. - The company has a total obligation for acquisition liabilities of approximately $3.5 million, all expected to be paid in the next twelve months[358]. - The total obligation for operating leases as of June 30, 2022, was approximately $1.8 million, with $0.7 million expected to be paid in the next twelve months[358]. - The company did not have any off-balance sheet guarantees or engage in trading activities involving non-exchange traded contracts[376]. - There were no applicable quantitative and qualitative disclosures about market risk[378].