Inpixon(US:INPX)2019-11-05 21:07Financial Performance - Revenues increased by approximately 63% in Q3 2019 compared to Q3 2018, driven by a focus on the Indoor Positioning Analytics (IPA) product line and a new customer contributing about 33% of revenues [212]. - The company reported a net loss of $6.6 million for Q3 2019, compared to a net loss of $5.2 million for Q3 2018, and a total net loss of $17.0 million for the nine months ended September 30, 2019 [213]. - Revenues for the three months ended September 30, 2019 were $1,534,000, representing a 63% increase from $940,000 in the same period of 2018 [260]. - Revenues for the nine months ended September 30, 2019 were $4.4 million, a 67% increase from $2.6 million in the same period of 2018 [272]. - Net loss attributable to stockholders of Inpixon for the three months ended September 30, 2019 was $6.6 million, compared to $5.2 million in the same period of 2018, reflecting a higher loss of approximately $1.4 million [269]. - Net loss attributable to stockholders of Inpixon for the nine months ended September 30, 2019 was $17.0 million, slightly lower than $17.3 million in the same period of 2018 [281]. - Adjusted EBITDA for the three months ended September 30, 2019 was a loss of $2.4 million, an improvement from a loss of $3.4 million in the prior period of 2018 [283]. - Proforma non-GAAP net loss per basic and diluted common share for the three months ended September 30, 2019 was ($0.17), compared to ($3.61) for the same period in 2018 [290]. Operating Expenses - Operating expenses for the three months ended September 30, 2019 were $6.8 million, an increase of approximately $2.8 million compared to $4.0 million in the same period of 2018 [264]. - Operating expenses for the nine months ended September 30, 2019 were $18.6 million, an increase of approximately $5.2 million from $13.4 million in the same period of 2018 [275]. - Stock-based compensation charges for the three months ended September 30, 2019 were $871,000, compared to $122,000 in the same period of 2018 [258]. Cash Flow and Financing - The company has no committed source of financing except for its Payplant facility, raising concerns about its ability to continue operations without additional funding [213]. - The company expressed substantial doubt about its ability to continue as a going concern without additional capital becoming available [298]. - The company plans to pursue additional equity or debt financing to mitigate concerns regarding its ability to continue operations [298]. - Cash and cash equivalents were approximately $494,000 as of September 30, 2019 [295]. - Net cash used in operating activities for the nine months ended September 30, 2019 was $9.1 million, consisting of a net loss of $17.0 million offset by non-cash adjustments of $8.4 million [296]. - Cash flows from financing activities provided $13.3 million in the nine months ended September 30, 2019, down from $26.0 million in the same period of 2018 [307]. Acquisitions and Strategic Initiatives - The company completed the acquisition of Locality, GTX's GPS products, and Jibestream, expanding its indoor positioning product line and patent portfolio [211][215][225]. - The company is focused on strategic acquisitions that add technology and operational synergies to enhance its Indoor Data Platform [215]. - The company anticipates utilizing Jibestream's mapping technology to enhance its existing indoor positioning offerings, targeting various indoor spaces [225]. - Inpixon Canada acquired Jibestream for a total consideration of CAD $5,000,000 plus cash equivalents held by Jibestream at closing, with an estimated cash closing amount adjusted for various factors [226]. Revenue Recognition and Deferred Revenue - The Company recognizes revenue from contracts with customers based on the five-step model outlined in Topic 606, with specific methods for Software as a Service and professional services [234][235][236]. - As of September 30, 2019, the Company had deferred revenue of approximately $789,000 related to software license agreements and $262,000 for cash received in advance for maintenance services [238]. Assets and Liabilities - The company reported a working capital deficit of $11.7 million as of September 30, 2019 [295]. - Working capital deficit increased to $11.7 million as of September 30, 2019, compared to $3.9 million as of December 31, 2018 [300]. - The principal amount outstanding under the Loan Agreement was $259,000 as of September 30, 2019 [299]. - The company does not have any off-balance sheet guarantees or foreign currency contracts [309].