Financial Performance - For the period ended March 31, 2023, the company reported revenues of $342 thousand, a decrease of $620 thousand from $2,582 thousand for the same period in 2022[131]. - Gross profit margin for the period ended March 31, 2023, was 75%, compared to 77% for the same period in 2022[133]. - Operating expenses for the period ended March 31, 2023, were $742 thousand, significantly lower than $3,565 thousand for the same period in 2022[134]. - The company achieved a net income of $2,758 thousand for the period ended March 31, 2023, compared to a net loss of $1,671 thousand for the same period in 2022[131]. - The gross profit for the period ended March 31, 2023, was $255 thousand, down from $1,993 thousand for the same period in 2022[131]. - Adjusted EBITDA for the period ended March 31, 2023, was $(362) thousand, compared to $(2,898) thousand for the same period in 2022[139]. Cash Flow and Financial Position - As of March 31, 2023, the company reported cash and cash equivalents of approximately $6,724 thousand and a working capital surplus of approximately $3,052 thousand[143][144]. - For the period ended March 31, 2023, the company had a net income of approximately $2,758 thousand, while net cash used in operating activities was approximately $4,431 thousand[144][148]. - Net cash flows provided by investing activities during the period ended March 31, 2023, was approximately $9,980 thousand, significantly higher than the previous periods[149]. - The company experienced net cash flows used in financing activities of $328 thousand for the period ended March 31, 2023, compared to inflows of approximately $8,892 thousand in the prior period[150]. - The company utilized approximately $4,431 thousand of cash for operating activities during the period ended March 31, 2023, compared to $5,144 thousand in the prior period[148]. Tax and Valuation - The income tax benefit for the period ended March 31, 2023, was approximately $1,560 thousand, resulting from the release of valuation allowance attributable to acquired intangible assets[136]. - The company has established a full valuation allowance for deferred tax assets as of March 31, 2023, due to historical losses and insufficient future profit generation[167]. - No interest or penalties on uncertain tax positions were recorded during the periods ended March 31, 2023, March 14, 2023, or March 31, 2022[168]. Business Operations and Strategy - The company completed a business combination valued at approximately $70 million on September 25, 2022, acquiring Inpixon's enterprise apps business[125]. - The company’s SaaS platform targets the emerging hybrid workplace market, offering solutions such as indoor mapping and AI-based analytics[123]. - The company acknowledges that the impact of COVID-19 and macroeconomic conditions on its operations remains uncertain, affecting demand and project timelines[145][146]. - The company does not have any off-balance sheet guarantees or trading activities involving non-exchange traded contracts[151]. Revenue Recognition - The company recognizes revenue from software as a service and professional services, with specific methods for revenue recognition based on contract terms[157][161]. - Revenue from subscription software as a service contracts is recognized over time using the output method, while professional services revenue is accounted for using the percentage of completion method[161]. - The company recognizes revenue when control of promised products or services is transferred to customers, reflecting the expected consideration[157]. Accounting and Reporting - Adjusted EBITDA is presented as a supplemental metric, but it has limitations and should not be considered a substitute for net income or GAAP results[142][147]. - The company accounts for business combinations using the acquisition method, recording acquired assets and liabilities at fair value, with any excess purchase price recognized as goodwill[169]. - All acquisition costs related to business combinations are expensed as incurred, and any changes in estimated fair values of net assets recorded for acquisitions will adjust the goodwill amount[169]. - The company has elected to utilize the extended transition period for complying with new accounting standards, which may affect comparability with other companies[173]. Goodwill and Assets - Goodwill and other indefinite-lived assets were recorded in connection with the Business Combination, with goodwill not being amortized and evaluated for recoverability at least annually[165]. - The company did not record any impairment charges related to long-lived assets for the periods ended March 31, 2023, or December 31, 2022[163]. - The company evaluates the remaining useful lives of long-lived assets and intangible assets, determining that no revisions were warranted during the reporting periods[164]. Other Financial Instruments - Warrants are classified as liabilities at fair value and are subject to re-measurement at each reporting period until exercised[171]. - CXApp qualifies as an "emerging growth company" under the JOBS Act, allowing it to take advantage of certain reporting exemptions[172].
KINS TECHNOLOGY(KINZ) - 2023 Q1 - Quarterly Report