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]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _______________ Commission File Number 001-36404 INPIXON (Exact name of registrant as specified in its charter) (State ...

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].

Financial Performance - In the first quarter of 2022, the company reported a net loss of approximately $11.6 million, compared to a net loss of $12.5 million in the same period of 2021, indicating a slight improvement in financial performance[265]. - Revenues for Q1 2022 were $5.2 million, a 77% increase from $2.95 million in Q1 2021, primarily driven by Indoor Intelligence sales and new product lines[300]. - Gross profit margin improved to 73% in Q1 2022 from 70% in Q1 2021, reflecting better sales performance[302]. - Loss from operations narrowed to $10.06 million in Q1 2022, down from $12.42 million in Q1 2021, attributed to increased gross profit and reduced operating costs[305]. - Net loss attributable to stockholders of Inpixon was $11.21 million in Q1 2022, compared to a loss of $12.56 million in Q1 2021, reflecting improved financial performance[309]. - Adjusted EBITDA for Q1 2022 was a loss of $8.8 million, compared to a loss of $5.6 million in the prior year period[311]. - For the three months ended March 31, 2022, the net loss attributable to common stockholders was $17.36 million, compared to a loss of $12.56 million in the same period of 2021[313]. - Basic and diluted net loss per share for the three months ended March 31, 2022, was a loss of $0.13, an improvement from a loss of $0.16 in the prior year[318]. - The company reported a net income loss of $11.6 million for Q1 2022, compared to a loss of $12.5 million in Q1 2021, showing a slight improvement in financial performance[333][334]. Revenue and Growth - The company experienced revenue growth in Q1 2022 due to increased sales from its Indoor Intelligence platform, including acquisitions of CXApp and Intranav completed in April and December 2021, respectively[266]. - The company generated revenue from three segments: Indoor Intelligence, Shoom, and SAVES, with revenue derived from hardware sales, software licenses, and professional services[264]. - The company experienced growth in revenue for Q1 2022 compared to Q1 2021, driven by increased sales from its indoor intelligence platform[330]. Expenses and Cash Flow - Operating expenses decreased to $13.9 million in Q1 2022 from $14.5 million in Q1 2021, mainly due to lower stock-based compensation[304]. - Cost of revenues increased to $1.4 million in Q1 2022 from $0.9 million in Q1 2021, a rise of approximately 57% due to higher sales[301]. - Net cash used in operating activities for the three months ended March 31, 2022, was $15.3 million, resulting from a net loss of $11.6 million and non-cash adjustments of approximately $2.2 million[329]. - Net cash used in operating activities for Q1 2022 was approximately $15.3 million, compared to $5.7 million in Q1 2021, indicating a significant increase in cash outflow[332][334]. - Non-cash expenses for Q1 2022 totaled approximately $2.2 million, primarily driven by stock-based compensation and depreciation[333]. Strategic Initiatives - The company has pursued a strategic acquisition strategy since 2019, enhancing its product offerings and positioning itself as a market leader in Indoor Intelligence solutions[269]. - The company plans to evaluate various strategic transactions to enhance shareholder value, including potential mergers, asset sales, or spin-offs of business units[269]. - The company has received preliminary indications of interest for strategic alternatives, which are currently under evaluation[269]. - The company may continue to pursue strategic transactions and raise additional capital as needed for future acquisitions[330]. Capital and Financing - The company raised approximately $50.0 million through a registered direct offering of Series 8 Shares, which are convertible into approximately 112.8 million shares of common stock at a conversion price of $0.4717 per share[278]. - The Series 8 Shares rank senior to common stock and certain other preferred stocks regarding dividends and liquidation preferences, with specific rights and limitations outlined in the Certificate of Designation[271]. - The company raised net proceeds of approximately $46.9 million from a registered direct offering during the first quarter of 2022[329]. Liquidity and Assets - The company reported a working capital surplus of approximately $74.34 million as of March 31, 2022[328]. - Cash and cash equivalents were approximately $60.85 million, with short-term investments of about $15.04 million as of March 31, 2022[325]. - Cash and cash equivalents increased to $60.9 million as of March 31, 2022, up from $52.5 million as of December 31, 2021, indicating improved liquidity[331]. - The working capital surplus decreased to $74.3 million as of March 31, 2022, down from $78.8 million as of December 31, 2021, suggesting tighter operational cash flow[331]. - The total obligation for operating leases was approximately $1.8 million, with $0.7 million expected to be paid in the next twelve months[326]. Other Financial Information - The company recorded a loss of $1.4 million in other income/expense for Q1 2022, significantly higher than a loss of $0.1 million in Q1 2021, primarily due to unrealized losses on Sysorex shares[306]. - The company engaged in the sale of treasury bills amounting to $28.0 million during Q1 2022, contributing to the cash flow from investing activities[336]. - The company did not have any off-balance sheet guarantees or trading activities involving non-exchange traded contracts, indicating a conservative financial strategy[338]. - The company entered into multiple exchange agreements to restructure debt and warrants, including the issuance of 13,811,407 shares in exchange for existing warrants[283].

Indoor Intelligence Solutions - Inpixon reported a focus on Indoor Intelligence solutions, leveraging technologies such as positioning, mapping, and analytics to enhance productivity and safety in workplaces [21]. - The company generates revenue from three segments: Indoor Intelligence, Shoom, and SAVES, with Indoor Intelligence revenue derived from hardware, software licenses, and professional services [24]. - The Smart Office App integrates over 75 products, enhancing employee experience through features like desk booking and indoor navigation [26]. - Inpixon's RTLS IoT platform offers real-time location solutions for industrial applications, including vehicle localization and production tracking, enabling significant process optimizations [33]. - The company plans to expand its use of machine learning and AI to improve positioning accuracy and reliability, impacting both commercial and industrial deployments [43]. - Inpixon is investing in R&D to enhance its app capabilities and SDKs, aiming to improve integration with workplace systems and tools [46]. - The corporate strategy includes aggressive acquisitions to build a comprehensive Indoor Intelligence platform, enhancing data collection and insights for workplace environments [48]. - The company aims to leverage LIDAR technology and AR to validate changes in physical spaces against digital twins, enhancing navigation and asset deployment [45]. - Inpixon's analytics platform allows for data visualization from multiple sources, enabling clients to export data to internal business intelligence systems [47]. Financial Performance and Revenue - The company incurred net losses attributable to stockholders of approximately $69.2 million and $29.2 million for the fiscal years ended December 31, 2021 and 2020, respectively, reflecting an increase in loss of approximately $39.9 million [107]. - Revenues increased by 72% compared to the same period in 2020, but were still insufficient to fund operations and cover operating losses [108]. - The company's top three customers accounted for approximately 16% of gross revenue in 2021, down from 43% in 2020, indicating a diversification in the customer base [56]. - The company operates primarily on a SaaS model, generating recurring revenue through 2-3 year contracts, which includes maintenance upgrades [53]. - The company has secured indemnification for certain matters related to acquisitions, but risks associated with historic operations may still adversely affect its business [94]. - The company has a history of operating losses and working capital deficiency, raising concerns about its ability to achieve profitability [87]. - The company does not intend to pay cash dividends to stockholders, limiting potential returns on investment [87]. Acquisitions and Strategic Transactions - The company has made several acquisitions, including the purchase of Locality Systems, Inc. and a portfolio of GPS technologies, to enhance its product offerings and market position [68][69]. - In April 2021, the company acquired over 99.9% of Design Reactor, Inc. (The CXApp), a leading SaaS app platform, and by May 2021, it owned 100% of the outstanding capital stock [76]. - On December 9, 2021, the company, through its subsidiary Nanotron Technologies GmbH, acquired 100% of IntraNav GmbH, a provider of industrial IoT and real-time location systems [77]. - The company has completed several strategic acquisitions since 2014, including Locality, Jibestream, and Nanotron, which may complicate future evaluations of its business [88]. - The company is exploring strategic transactions, including potential asset sales, mergers, or spin-offs, to enhance shareholder value and has received preliminary indications of interest [50]. Risks and Challenges - The COVID-19 pandemic has caused significant volatility and disruptions, impacting supply chains and customer demand, with uncertain future effects on operations [96]. - The company faces risks related to the integration of acquired businesses, which may disrupt current operations and affect financial performance [89]. - The company may need additional capital to support operations, which could involve dilutive equity offerings or unfavorable financing terms [102]. - The company faces risks associated with future acquisitions, including potential disruption to operations and dilution to existing stockholders [114]. - The company is subject to regulatory investigations which could result in increased legal fees and divert management's attention from business operations [125]. - The loss of key personnel, including the CEO, could adversely affect operations and productivity [128]. - Digital threats such as cyber-attacks could disrupt operations and harm the company's reputation, potentially leading to liability issues [147]. - The company faces challenges from natural disasters, public health issues, and political instability that could disrupt manufacturing and impact customer orders [168]. Market and Competitive Environment - The company emphasizes the importance of keeping pace with rapid technological changes to maintain competitiveness and growth prospects [140]. - The company must innovate and develop new products to keep pace with rapidly changing technology and customer requirements, or risk losing market competitiveness [175]. - The newspaper publishing industry is facing challenges, leading to potential negative impacts on the sales of Shoom products, which are focused on this sector [139]. - The company’s growth strategy includes continued acquisitions, which may strain administrative, financial, and operational resources [103]. Stock and Financing - The company may face delisting from the Nasdaq Capital Market if it fails to meet continued listing requirements, including a minimum bid price of $1.00 per share [196]. - The company has received notifications from Nasdaq regarding non-compliance with the minimum bid price requirement, with a 180-day period to regain compliance [198]. - The market price of the company's common stock is likely to be highly volatile, influenced by various external factors [203]. - The company may issue additional common stock to raise capital or satisfy debt obligations, which could materially dilute existing stockholders' interests [211]. - The company has a remaining amount of $232.5 million available for issuance under a shelf registration statement filed with the SEC [209]. - The company has the ability to issue up to 2,000,000,000 shares of common stock and 5,000,000 shares of preferred stock without stockholder approval [212].

Financial Performance - The company reported a net loss of approximately $33.9 million for the three months ended September 30, 2021, compared to a net loss of $7.5 million for the same period in 2020[275]. - For the nine months ended September 30, 2021, the net loss was approximately $32.0 million, an increase from a net loss of $20.9 million in the same period of 2020[275]. - Revenues for Q3 2021 were $4.45 million, a 74% increase from $2.55 million in Q3 2020, primarily driven by a $1.8 million increase in Indoor Intelligence sales[336]. - Revenues for the nine months ended September 30, 2021 were $10.86 million, an increase of approximately $5.4 million or 100% compared to $5.43 million in the prior year[348]. - Net loss attributable to stockholders of Inpixon for Q3 2021 was $33.64 million, up from a loss of $7.47 million in Q3 2020, primarily due to a $22.3 million unrealized loss on the Sysorex note[345]. - For the nine months ended September 30, 2021, the net loss attributable to common stockholders was $31.4 million, compared to a net loss of $20.9 million for the same period in 2020[367]. - Adjusted EBITDA for the nine months ended September 30, 2021 was a loss of $18.5 million, compared to a loss of $12.4 million in the prior year[359]. Revenue and Growth - The company experienced revenue growth in the first three quarters of 2021 compared to the same periods in 2020, driven by increased sales from its indoor intelligence platform and additional revenue from Systat software licenses[276]. - The company experienced a total revenue growth for the nine months ended September 30, 2021, attributed to the addition of new product lines and acquisitions despite challenges from COVID-19[372]. Acquisitions and Strategic Transactions - The company completed a series of strategic acquisitions to enhance its product offerings, including technologies for wireless device positioning and indoor mapping solutions[278]. - The company acquired a controlling interest in Game Your Game, Inc. for a total purchase price of approximately $3.07 million, enhancing its capabilities in sports data and analytics[286]. - The company completed the acquisition of over 99.9% of The CXApp for approximately $22.5 million in cash and 8,820,239 shares valued at about $10 million[294][295]. - The total consideration for the CXApp acquisition, including contingent earnout payments, could reach up to $45 million[295]. - The company plans to continue evaluating strategic transactions, including acquisitions, to maintain pace with industry demands and enhance shareholder value[279]. - The company intends to focus on accretive acquisitions that provide operational synergies and enhance its comprehensive Indoor Intelligence platform[279]. Operating Expenses and Losses - Operating expenses for Q3 2021 were $15.72 million, an increase of approximately $7.57 million from $8.15 million in Q3 2020, mainly due to costs from recent acquisitions and additional amortization[340]. - Loss from operations for Q3 2021 was $12.46 million, compared to a loss of $6.25 million in Q3 2020, reflecting increased operating expenses despite higher gross profit[341]. - Loss from operations for the nine months ended September 30, 2021 was $38.2 million, an increase of approximately $21.2 million or 125% from a loss of $16.9 million in the prior year[352]. - Operating expenses rose to $46.06 million, an increase of $25.15 million or 120% compared to $20.91 million in the prior year, driven by various acquisition-related costs and scaling for growth[351]. Cash Flow and Capital - The company raised net proceeds of approximately $128.4 million from the sale of securities during the nine months ended September 30, 2021[371]. - Cash and cash equivalents as of September 30, 2021, were $66.8 million, up from $18.0 million as of September 30, 2020[373]. - The company reported a net cash increase of $48.8 million for the nine months ended September 30, 2021, compared to $26.5 million for the same period in 2020[373]. - Net cash used in operating activities for the nine months ended September 30, 2021, was $24.0 million, an increase from $15.6 million for the same period in 2020[373]. - Net cash flows provided by financing activities for the nine months ended September 30, 2021, were $125.4 million, compared to $47.1 million in the same period of 2020[381]. Tax and Other Financial Considerations - The company recorded a net income tax benefit of approximately $0.9 million for Q3 2021, related to reduced estimated taxes payable due to losses incurred[343]. - The company incurred an income tax provision of approximately $1.4 million for the nine months ended September 30, 2021, related to current and deferred tax expenses[354]. - Other income for the nine months ended September 30, 2021 was $7.5 million, an increase of approximately $11.6 million compared to a loss of $4.1 million in the prior year, primarily due to gains on the Sysorex note[353]. Deferred Revenue and Revenue Recognition - As of September 30, 2021, the company reported deferred revenue of approximately $4.5 million, up from $1.9 million as of December 31, 2020[311]. - The company recognizes revenue from software as a service and professional services, with revenue from maintenance and consulting services recognized evenly over the service period[299][301]. Market and Operational Challenges - Supply chain constraints and COVID-19 impacts have affected hardware product delivery times and demand, but the company remains optimistic about future growth[276]. - The company continues to seek additional resources for the development of its technologies, including AirPatrol and Locality, with no assurance of success[321]. Goodwill and Asset Management - Goodwill and indefinite-lived assets were recorded in connection with acquisitions, with recoverability evaluated at least annually[322]. - The company has not recorded any impairment charges for long-lived assets for the three and nine months ended September 30, 2021[315]. - The company evaluates the remaining useful lives of long-lived assets regularly, with no changes indicated during the reporting periods[318].

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _______________ Commission File Number 001-36404 INPIXON (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organizati ...

Table of Contents Commission File Number 001-36404 INPIXON (Exact name of registrant as specified in its charter) UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ______________ to _______________ Nevada 88- ...

Market Growth and Trends - The global market for Indoor Positioning and Indoor Navigation (IPIN) is projected to grow from USD 2.8 billion in 2020 to USD 56.6 billion by 2027, at a CAGR of 53.3%[28] - The global indoor location market is expected to increase from USD 6.1 billion in 2020 to USD 17.0 billion by 2025, with a CAGR of 22.5%[31] - The real-time location systems (RTLS) market is anticipated to grow from USD 3.4 billion in 2020 to USD 10.3 billion by 2025, reflecting a CAGR of 24.8%[31] - The smart buildings software market is projected to grow from USD 6.4 billion in 2021 to USD 8.5 billion by 2025, indicating a growth trajectory of 7% CAGR[31] Company Strategy and Acquisitions - Inpixon has pursued multiple acquisitions to enhance its technology portfolio, including Locality Systems, GTX Corp, and Jibestream, expanding its capabilities in wireless device positioning and indoor mapping[26] - The company aims to explore strategic transactions that provide operational synergies and enhance shareholder value, including minority investments and joint ventures[25] - The company completed several strategic acquisitions since 2014, including Locality Systems, Inc. and Jibestream, enhancing its product offerings in indoor positioning and analytics[85] - In 2020, the company acquired Nanotron, expanding its asset tracking and RTLS business with wireless location awareness technology[77] - The company acquired an exclusive license for the SYSTAT and SigmaPlot software suite, enhancing its analytics capabilities[75] - The company has expanded its technology portfolio with the acquisition of GPS technologies and IP, including a smart school safety network solution[73] Financial Performance and Challenges - The company incurred net losses of approximately $29.2 million and $34.0 million for the fiscal years ended December 31, 2020 and 2019, respectively[101] - Revenues increased by 48% compared to the same period in 2019, but are still insufficient to fund operations and cover operating losses[102] - The company has a history of operating losses and working capital deficiency, raising concerns about achieving profitability and securing additional financing[101] - The company anticipates needing additional cash financing to support growth and respond to market demands[145] - The company may need additional capital to support operations, which could involve dilutive equity offerings[95] Product and Technology Development - Inpixon's Indoor Intelligence platform utilizes sensor technology to provide positioning information with accuracy ranging from several meters to approximately thirty centimeters, depending on conditions and product deployment[22] - Inpixon's analytics capabilities integrate existing video surveillance feeds with location data, enhancing security and customer relations[23] - The company plans to expand its use of artificial intelligence and machine learning to improve positioning accuracy and enhance device capture algorithms, aiming for better predictive analytics[44] - Inpixon's mapping solution integrates business data with geospatially accurate indoor maps, facilitating various use cases such as facility management and asset tracking[39] - The company is investing in augmented reality technologies to enhance its mapping platform, allowing for new navigation use cases and optimization in various environments[46] Customer Dependency and Market Risks - The company's top three customers accounted for approximately 43% and 66% of gross revenue during the years ended December 31, 2020 and 2019, respectively, highlighting a reliance on a few key clients[52] - The company relies on increasing sales to existing customers and acquiring new customers to enhance financial performance[130] - The newspaper publishing industry is facing challenges, which may negatively impact sales of the company's Shoom products[131] - The company faces significant price competition, which may force it to reduce prices and impact profitability[136] - The market acceptance of the company's products is critical, and failure to meet customer demands could adversely affect financial results[148] Legal and Regulatory Compliance - The company is subject to numerous legal and regulatory requirements, and violations could result in significant fines, criminal sanctions, and damage to its reputation[125] - The company has not registered copyrights on its proprietary software, which may hinder its ability to protect its intellectual property and could adversely affect its operations and financial condition[126] - The company may face claims related to the wrongful use or disclosure of trade secrets, which could result in substantial costs and distract management[116] - The company is subject to various risks from currency fluctuations and trade barriers that could impact overall business operations and financial results[164] Operational and Management Challenges - The company has faced challenges in integrating acquired businesses, which may disrupt ongoing operations and affect financial performance[86] - The integration of new personnel from acquisitions may disrupt ongoing operations and requires effective management to avoid negative impacts[97] - The company may face challenges in maintaining effective internal controls, which could harm its ability to report financial results accurately and prevent fraud[198] - The company may incur additional indebtedness in the future, intensifying existing risks associated with its current debt levels[113] Stock and Market Performance - The closing market price for the company's common stock has varied between a high of $2.84 and a low of $1.00 in the twelve-month period ended February 11, 2021[203] - The market price of the company's common stock is likely to continue to be volatile, with fluctuations influenced by market, industry, and other factors[204] - The company has a shelf registration statement allowing it to issue up to $300 million in various securities until June 2021, which could impact the trading price of its common stock[208] - The company must comply with Nasdaq's continued listing standards, including a minimum bid price requirement of $1.00 per share and a minimum stockholders' equity of $2.5 million[212]