Financial Performance - Revenue for the three months ended September 30, 2023, was $1,770 thousand, a slight increase of $28 thousand compared to $1,742 thousand for the same period in 2022[161] - Gross profit margin improved to 80% for the three months ended September 30, 2023, up from 71% in the same period of 2022, due to a more efficient cost structure[162] - Operating expenses decreased significantly to $5,641 thousand for the three months ended September 30, 2023, down from $10,759 thousand in the same period of 2022, reflecting reduced administrative costs[163] - Other income for the three months ended September 30, 2023, was $5,253 thousand, a substantial increase from an expense of $1,413 thousand in the same period of 2022, primarily due to changes in fair value of derivative warrant liabilities[164] - For the three months ended September 30, 2023, the Company reported a net income of approximately $1,441 thousand, while for the period from March 15, 2023 to September 30, 2023, it incurred a net loss of approximately $10,531 thousand[179] - The Company incurred a net loss of approximately $10,531 thousand for the three months ended September 30, 2023, compared to a net loss of $4,380 thousand for the same period in the previous year[184] Revenue Recognition - The company recognizes revenue when control is transferred to customers, primarily from software as a service and professional services for enterprise apps[192] - Revenue from subscription software as a service contracts is recognized over time using the output method, reflecting continuous access to the service[194] - Professional services revenue is accounted for using the percentage of completion method, recognizing revenue in proportion to the stage of completion of the contract[199] - The company utilizes a five-step process for revenue recognition, requiring significant judgment and estimates regarding distinct performance obligations[194] Operating Expenses and Cash Flow - Operating expenses for the period from March 15, 2023, to September 30, 2023, were $11,501 thousand, a decrease from $26,779 thousand for the nine months ended September 30, 2022[169] - The Company used approximately $8,937 thousand in cash for operating activities during the period from March 15, 2023 to September 30, 2023[179] - Net cash provided by investing activities was approximately $9,956 thousand for the period from March 15, 2023 to September 30, 2023, primarily due to cash acquired in connection with the Business Combination[185] - Net cash provided by financing activities was approximately $4,674 thousand for the period from March 15, 2023 to September 30, 2023[186] Tax and Valuation - The company has established a full valuation allowance for deferred tax assets as of September 30, 2023, due to historical losses and insufficient future profit projections[202] - No interest or penalties on uncertain tax positions were recorded during the three months ended September 30, 2023[203] - The company has not recorded any impairment charges for long-lived assets for the three months ended September 30, 2023[197] - Goodwill and other indefinite-lived assets are evaluated for impairment at least annually, with no indicators of impairment noted as of September 30, 2023[200] Business Operations - The business combination completed on March 14, 2023, involved the spin-off of Legacy CXApp to Inpixon's shareholders, enhancing the company's operational focus[156] - The Company implemented a headcount reduction in North America, resulting in cost savings of approximately $300 thousand per quarter[180] - The total obligation for operating leases as of September 30, 2023, was approximately $594 thousand, with $321 thousand expected to be paid in the next twelve months[188] - The company believes it has mitigated going concern issues for at least one year from the date the financial statements were issued, despite recurring losses and cash utilization[182] Accounting Policies - The company accounts for business combinations using the acquisition method, recording assets and liabilities at fair value at the date of acquisition[205] - The company has elected to take advantage of the extended transition period for complying with new accounting standards as an emerging growth company[209] - The company evaluates the remaining useful lives of long-lived assets and has determined no revisions are necessary as of the latest reporting periods[198] - The company monitors and evaluates estimates related to discounts and rebates, although historically these have not been significant[195]
KINS TECHNOLOGY(KINZ) - 2023 Q3 - Quarterly Report