Inpixon(US:INPX)2020-11-12 22:05Financial Performance - The company reported a net loss of approximately $7.5 million for Q3 2020, compared to a net loss of $6.6 million for Q3 2019, and a net loss of $20.9 million for the nine months ended September 30, 2020, compared to $17.0 million for the same period in 2019[221]. - Revenues for Q3 2020 were $2,554,000, a 66% increase from $1,534,000 in Q3 2019, driven by sales growth in Aware and Mapping product lines and new Systat licensing[273]. - Revenues for the nine months ended September 30, 2020 were $5,434,000, a 24% increase from $4,387,000 in the prior year, mainly due to additional mapping revenues and new Systat licensing[283]. - Adjusted EBITDA for Q3 2020 was a loss of $4.6 million, compared to a loss of $2.4 million in Q3 2019, indicating worsening operational performance[294]. - Net loss attributable to stockholders for Q3 2020 was $7.5 million, compared to $6.6 million in Q3 2019, reflecting a 13% increase in loss due to higher operating expenses[281]. - Net loss attributable to stockholders for the nine months ended September 30, 2020 was $20.9 million, compared to $17.0 million in the prior year, reflecting a 23% increase in loss[292]. Revenue and Cost Analysis - Cost of revenues for Q3 2020 increased by 69% to $645,000 from $382,000 in Q3 2019, primarily due to increased sales[274]. - Cost of revenues for the nine months ended September 30, 2020 rose by 32% to $1,459,000 from $1,109,000 in the prior year, driven by increased sales[284]. - Operating expenses for Q3 2020 were $8.2 million, up 19% from $6.8 million in Q3 2019, mainly due to higher expenses related to the Systat licensing product line[276]. - Operating expenses for the nine months ended September 30, 2020 were $20.9 million, a 13% increase from $18.6 million in the prior year, primarily due to Systat licensing and Jibestream division expenses[286]. - Loss from operations for Q3 2020 was $6.2 million, an increase of approximately 10% from $5.7 million in Q3 2019, attributed to higher operating expenses despite increased revenue[277]. Capital and Funding - The company raised approximately $44.0 million in net proceeds during the nine months ended September 30, 2020, through sales under its at-the-market equity facility, with a maximum gross proceeds potential of $150 million[221]. - The company issued and sold 31,574,358 shares of common stock during the nine months ended September 30, 2020, resulting in net proceeds of approximately $44 million[241]. - The company raised approximately $44 million in net proceeds through an ATM equity facility during the nine months ended September 30, 2020[306]. - The company is pursuing strategic transactions and may raise additional capital as needed, potentially up to $150 million under the ATM[306]. - The company experienced a net cash increase of $26.5 million for the nine months ended September 30, 2020, compared to a decrease of $0.7 million in the same period of 2019[307]. Strategic Acquisitions - The company acquired a suite of "blue-dot" indoor location and motion technologies for $1.5 million in cash and 480,000 shares of common stock on August 19, 2020[227]. - The company acquired Nanotron Technologies GmbH for an aggregate purchase price of $8.7 million on October 6, 2020, enhancing its capabilities in location-aware IoT systems[233]. - The company has a corporate strategy focused on acquiring complementary technologies and intellectual property to enhance its product offerings and expand its market presence[225]. - The company is exploring opportunities for strategic transactions, including acquisitions and joint ventures, to supplement revenue growth and increase shareholder value[225]. Operational Challenges - The company has faced supply chain constraints and delays due to the COVID-19 pandemic, impacting product delivery times and customer demand[222]. - The impact of the COVID-19 pandemic on the company's operations remains uncertain, with supply chain constraints affecting product delivery times[306]. Financial Position - As of September 30, 2020, the company had cash and cash equivalents of $31.4 million, a substantial increase from $4.8 million as of December 31, 2019[307]. - The overall working capital surplus as of September 30, 2020 was $23.2 million, compared to a deficit of $6.975 million as of September 30, 2019[307]. - The company has sufficient funds to support ongoing operations for the next twelve months based on its cash balances and budgeted cash flow requirements[221]. Deferred Revenue and Accounting - As of September 30, 2020, the company had deferred revenue of approximately $1,761,000 related to software license agreements and $81,000 for cash received in advance for product maintenance services[251]. - The company expects to satisfy its remaining performance obligations for maintenance services and recognize the deferred revenue over the next twelve months[251]. - The company capitalizes direct internal costs of labor for software development, amortizing these costs over an estimated useful life of one to four years[262]. - The company utilizes the percentage of completion method for mapping services revenue recognition, recognizing contract revenue in proportion to the stage of completion[249]. - The company has not recognized any impairment charges for long-lived assets for the three and nine months ended September 30, 2020 and 2019[261]. Non-Cash Adjustments and Cash Flows - Net cash used in operating activities for the nine months ended September 30, 2020 was $15.6 million, compared to $9.1 million for the same period in 2019[308][309]. - Non-cash adjustments for the nine months ended September 30, 2020 totaled $8.3 million, primarily due to depreciation and amortization expenses[308]. - Net cash flows used in investing activities for the nine months ended September 30, 2020, were approximately $4.9 million, unchanged from the same period in 2019[311]. - Cash flows related to investing activities in 2020 included $2.2 million for the Systat Licensing Agreement and $1.5 million for the Ten Degrees acquisition[311]. - Net cash flows provided by financing activities for the nine months ended September 30, 2020, were approximately $47.1 million, compared to $13.3 million in 2019[312]. Miscellaneous - The company has made progress in raising capital and gaining industry recognition for its technologies, including awards from leading industry analysts[260]. - There were no off-balance sheet guarantees or trading activities involving non-exchange traded contracts reported[313]. - The company does not engage in interest rate swap transactions or foreign currency contracts[313]. - Recent accounting standards discussions can be found in Note 3 of the financial statements included in the Form 10-Q[314]. - There were no applicable quantitative and qualitative disclosures about market risk[315].