Inpixon(US:INPX)2019-05-14 21:27Financial Performance - Revenues increased by approximately 65% in Q1 2019 compared to Q1 2018, driven by the IPA product line and a new customer contributing about 55% of total revenues [145]. - The company reported a net loss of $5.2 million for the three months ended March 31, 2019, compared to a net loss of $6.2 million for the same period in 2018 [146]. - Revenues for Q1 2019 were $1.4 million, a 65% increase from $849,000 in Q1 2018, driven by a new customer contributing approximately 55% of revenues [195]. - Gross profit for Q1 2019 was $1,026,000, representing a 76% increase compared to $584,000 in Q1 2018 [194]. - Net loss for Q1 2019 was $5,150,000, an 18% improvement compared to a net loss of $6,243,000 in Q1 2018 [194]. - Net loss attributable to stockholders for Q1 2019 was $6,395,000, a 17% decrease from $7,751,000 in Q1 2018 [194]. - Adjusted EBITDA loss improved to $2.6 million for the three months ended March 31, 2019, compared to a loss of $3.4 million in the same period of 2018 [206]. - Basic and diluted net loss per share for the three months ended March 31, 2019, was ($1.42), a significant decrease from ($73.88) in the prior year [210]. - The net loss for the three months ended March 31, 2019 was $5.15 million, compared to a net loss of $6.24 million for the same period in 2018 [223][224]. Operating Expenses - Operating expenses for Q1 2019 were $5,889,000, a 35% increase from $4,364,000 in Q1 2018 [194]. - Operating expenses rose to $5.9 million for the three months ended March 31, 2019, compared to $4.4 million in the prior year, an increase of $1.5 million attributed to higher IT infrastructure costs and compensation [198]. - Loss from operations increased to $4.9 million for the three months ended March 31, 2019, compared to $3.8 million in the same period of 2018, reflecting higher operating expenses [199]. - Stock-based compensation charges for Q1 2019 were $890,000, compared to $286,000 in Q1 2018 [192]. Cash Flow and Capital Resources - Net cash used in operating activities was $3.5 million for the three months ended March 31, 2019, consisting of a net loss of $5.2 million offset by non-cash adjustments [216]. - The company reported a working capital deficit of $93,000 as of March 31, 2019, with total assets of $6.78 million and total liabilities of $6.87 million [216]. - The company plans to pursue additional capital through equity or debt financing to support operations over the next twelve months [217]. - Management expressed substantial doubt about the company's ability to continue as a going concern without additional capital becoming available [218]. - As of March 31, 2019, the company reported cash and cash equivalents of $3.83 million, an increase from $1.01 million as of December 31, 2018 [222]. - The working capital deficit improved to $93,000 as of March 31, 2019, compared to a deficit of $3.93 million as of December 31, 2018 [222]. - Net cash used in operating activities for the three months ended March 31, 2019 was $3.5 million, a significant decrease from $11 million for the same period in 2018 [223]. - Non-cash income and expenses for the three months ended March 31, 2019 totaled $2.47 million, down from $3.18 million in the same period of 2018 [223][225]. - Net cash flows provided by financing activities for the three months ended March 31, 2019 was $6.6 million, a decrease from $17.7 million in the same period of 2018 [227]. - The company received $10.9 million from the issuance of common stock, preferred stock, and warrants during the three months ended March 31, 2019 [227]. Strategic Initiatives - The company signed a non-binding term sheet on April 10, 2019, to acquire Locality Systems Inc., with the acquisition expected to be accretive and involve a combination of cash and equity [148]. - The company is focused on strategic acquisitions to enhance its technology offerings and operational synergies [148]. - The company continues to seek additional resources for the development of AirPatrol technology, with progress noted in capital raising efforts [181]. - The company anticipates improved sales cycles in 2019 as the customer base transitions from early adopters to mainstream customers [145]. Revenue and Profitability Metrics - Cost of revenues for Q1 2019 was $337,000, up 27% from $265,000 in Q1 2018, primarily due to increased IPA revenue [196]. - Gross profit margin increased to 75% for the three months ended March 31, 2019, up from 69% in the same period of 2018, primarily due to higher margin IPA revenue [197]. - Deferred revenue as of March 31, 2019, was approximately $173,000 related to cash received in advance for maintenance services [173]. - The company had reserves for credit losses of approximately $260,000 as of March 31, 2019, down from $464,000 as of December 31, 2018 [186]. Financing and Debt - The company closed a rights offering on January 15, 2019, generating gross proceeds of $12.0 million and net proceeds of approximately $10.77 million [154]. - The maximum principal amount under the Secured Note was increased from $3.0 million to $8.0 million through amendments in February and April 2019 [153]. - The company issued an unsecured promissory note for an aggregate principal amount of $3,770,000 on May 3, 2019, which includes an original issue discount of $750,000 [165]. - The company has no off-balance sheet guarantees or trading activities involving non-exchange traded contracts [228]. - There are no applicable quantitative and qualitative disclosures about market risk [230].