Inpixon(INPX) - 2020 Q1 - Quarterly Report

Financial Performance - Revenues increased by approximately 32% in Q1 2020 compared to Q1 2019, primarily due to an increase in revenue from mapping services [209]. - The company experienced a net loss of approximately $6.2 million in Q1 2020, compared to a net loss of $5.2 million in Q1 2019 [210]. - Revenues for the three months ended March 31, 2020, were $1,804,000, representing a 32% increase from $1,363,000 in the same period of 2019 [252]. - Cost of revenues increased by approximately 51%, from $337,000 in Q1 2019 to $510,000 in Q1 2020, primarily due to increased mapping revenue [253]. - Gross profit margin decreased to 72% in Q1 2020 from 75% in Q1 2019, attributed to lower margins from mapping services [255]. - Operating expenses rose to $6.9 million in Q1 2020 from $5.9 million in Q1 2019, an increase of approximately $1.0 million due to the Jibestream acquisition and higher professional fees [256]. - The net loss for the three months ended March 31, 2020, was $6,168,000, compared to a net loss of $5,150,000 in the same period of 2019, reflecting a 20% increase in losses [251]. - Loss from operations for Q1 2020 was $5.6 million, an increase of approximately 14.3% from $4.9 million in Q1 2019 [257]. - Other income/expense for Q1 2020 resulted in a loss of $689,000, compared to a loss of $287,000 in Q1 2019, reflecting an increase in loss of 140% [258]. - Net loss attributable to stockholders for Q1 2020 was $6.2 million, up from $5.2 million in Q1 2019, representing an increase of approximately 19.2% [261]. - Adjusted EBITDA for Q1 2020 was a loss of $3.9 million, compared to a loss of $2.6 million in Q1 2019, indicating an increase in loss of approximately 50% [264]. - Proforma non-GAAP net loss per share for Q1 2020 was ($0.92), compared to ($31.98) in Q1 2019, showing a significant reduction in loss per share [270]. Cash Flow and Financing - The company raised aggregate gross proceeds of $5 million from recent debt financing and has access to an additional $50 million through an at-the-market equity facility [210]. - The company issued 937,010 shares of common stock during Q1 2020, resulting in net proceeds of approximately $1.33 million after compensation [213]. - Subsequent to Q1 2020, the company issued 9,551,636 shares of common stock, resulting in net proceeds of approximately $10.62 million [214]. - The company entered into exchange agreements, issuing 1,896,557 shares of common stock in exchange for approximately $4.19 million of outstanding promissory notes [216]. - The company reported a working capital deficit of $6.2 million as of March 31, 2020 [273]. - Cash on hand as of March 31, 2020 was approximately $6.1 million [273]. - Net cash used in operating activities for Q1 2020 was $4.5 million, driven by a net loss of $6.2 million offset by non-cash adjustments [274]. - The company has raised approximately $1.4 million from an ATM equity facility out of a total offering amount of up to $50 million as of March 31, 2020 [273]. - Net cash used in operating activities for Q1 2020 was $4.5 million, compared to $3.5 million in Q1 2019, representing a 29.9% increase in cash outflow [280]. - Net cash provided by financing activities was $6.1 million in Q1 2020, down from $6.6 million in Q1 2019, a decrease of 7.6% [286]. - The company experienced a net increase in cash of $1.3 million for Q1 2020, compared to a net increase of $2.8 million in Q1 2019, a decline of 53.6% [279]. Strategic Initiatives - The company is pursuing strategic acquisitions to enhance its technology and revenue, including the acquisition of Locality Systems, Inc. and Jibestream Inc. [211]. - The company has a corporate strategy focused on providing end-to-end solutions for indoor intelligence, including data collection and analytics [211]. - The company continues to seek additional resources for the development of technologies acquired through previous acquisitions, including AirPatrol and Jibestream [238]. Revenue Recognition and Deferred Revenue - The company’s revenue recognition follows the "Revenue from Contracts with Customers" standard, recognizing revenue either at a point in time or over time [225]. - Deferred revenue as of March 31, 2020, included approximately $692,000 related to software license agreements and $185,000 for cash received in advance for maintenance services [229]. Impairment and Other Charges - The company did not incur any anticipated losses for the three months ended March 31, 2020, and 2019 [228]. - Stock-based compensation charges for Q1 2020 were $399,000, down from $890,000 in Q1 2019 [250]. - The company has not recognized any impairment charges for long-lived assets for the three months ended March 31, 2020 [240]. - The effect of foreign exchange rate changes on cash was a loss of $27,000 in Q1 2020, compared to a loss of $8,000 in Q1 2019, indicating a 237.5% increase in foreign exchange losses [279].