Inpixon(INPX) - 2024 Q4 - Annual Report

Merger and Acquisition - The company completed a merger with Legacy XTI on March 12, 2024, resulting in a name change to XTI Aerospace, Inc.[18] - The merger is accounted for as a reverse acquisition, with Legacy XTI as the accounting acquirer, affecting the consolidated financial statements from the closing date through December 31, 2024[19] - XTI Aerospace completed a merger with Legacy XTI on March 12, 2024, with Legacy XTI as the accounting acquirer[18] - The merger is accounted for as a reverse acquisition, with the financial statements reflecting a continuation of Legacy XTI's results[19] Stock Split - A reverse stock split at a ratio of 1-for-100 was executed on March 12, 2024, to comply with Nasdaq Listing Rule 5550(a)(2)[21] - A subsequent reverse stock split of 1-for-250 is planned for January 10, 2025, also for compliance with Nasdaq Listing Rule 5550(a)(2)[21] Financial Performance and Challenges - The company has a history of losses and faces challenges in achieving profitability and delivering non-prototype aircraft to customers[13] - Future financial results are subject to uncertainties, and actual outcomes may differ from projections due to various risks[15] - Economic conditions, including inflation and supply chain challenges, may impact the company's performance and customer base[16] Development and Commercialization - The development and commercialization schedule for the TriFan 600 is critical, with necessary certifications still pending[13] - Conditional pre-orders for aircraft may be subject to cancellation or modification, impacting future cash flows[13] Competitive Landscape and Risks - The company is navigating a competitive landscape with emerging technologies that may outpace its developments[13] - The company faces risks related to long development cycles, quality control, and dependence on third-party suppliers[16] - The company is subject to potential lawsuits and regulatory investigations, including those from the SEC[16] - Future patent applications may face delays or rejections, incurring substantial costs for the company[16] - The company must manage risks associated with system failures and changes in tax regimes[16] Operational Focus - The company is focused on enhancing its brand reputation and expanding its customer base while managing manufacturing and supply chain relationships[16] - The ability to attract and retain qualified personnel is critical for the company's growth and operational success[16]