Inpixon(INPX) - 2025 Q1 - Quarterly Report

Financial Performance - Revenues for Q1 2025 were $0.5 million, a 120% increase from $0.2 million in Q1 2024, driven by the Industrial IoT segment [248]. - Gross profit for Q1 2025 was $0.3 million, up 137.6% from $0.1 million in Q1 2024, with a gross margin of 69.2% compared to 64.1% in the prior year [251]. - Operating expenses increased to $10.7 million in Q1 2025 from $9.0 million in Q1 2024, with a significant portion attributed to R&D and consulting expenses [252]. - Net loss for Q1 2025 was $12.9 million, a 394.7% increase from a net loss of $2.6 million in Q1 2024 [248]. - Cash and cash equivalents as of March 31, 2025, were approximately $8 million, an increase of $3.9 million from $4.1 million at the end of 2024 [258]. - Net working capital improved to $12,000 as of March 31, 2025, compared to a deficit of $8.8 million at the end of 2024 [259]. - The company raised approximately $23.3 million in net proceeds during Q1 2025, which helped reduce debt and support the development of the TriFan 600 airplane [260]. - Customer deposits as of March 31, 2025, totaled approximately $1.4 million from non-binding aircraft purchase agreements and reservation deposits [264]. - The company raised approximately $21.7 million in net proceeds from public offerings during the first quarter of 2025, which was partially used to repay short-term obligations [268]. - The company's cash and cash equivalents increased to approximately $8 million as of March 31, 2025, up from $4.1 million as of December 31, 2024 [271]. - Net cash used in operating activities increased significantly from approximately $2.6 million in Q1 2024 to approximately $15.2 million in Q1 2025 [273][272]. - Net cash flows provided by financing activities were approximately $19.2 million for the three months ended March 31, 2025, compared to $1.4 million in the same period of 2024 [276][277]. - The company experienced a decrease in accrued expenses and other current liabilities of approximately $4.9 million, primarily due to cash payments for transaction bonuses and employee bonuses [272]. - The company reported a working capital of approximately $12,000 as of March 31, 2025, compared to a deficit of $8.84 million as of December 31, 2024 [271]. - Cash flows used in investing activities were approximately $45,000 for the three months ended March 31, 2025, compared to a net cash inflow of approximately $3 million in the same period of 2024 [274]. - The company became ineligible to use Form S-3 until August 2025, which may impair its ability to raise necessary capital [270]. Business Development - The company has not generated any revenue from aircraft sales as it is still in the design and development phase of the TriFan 600 airplane [208]. - The FAA accepted the company's type certification application for the TriFan 600 on March 17, 2025 [222]. - The company increased the wing fuel volume of the TriFan 600 from approximately 300 gallons to 400 gallons, enhancing its maximum range and mission length [221]. - The company is exploring strategic options to wind down and/or sell the hardware portions of its Industrial IoT business segment to focus on software products [210]. - The fair value of the Industrial IoT reporting unit exceeded its carrying value by 2.2% as of March 31, 2025, resulting in no goodwill impairment recognized for the quarter [232]. - The company is expanding into autonomous, remotely operated drones as part of its strategic focus to create new revenue-generating opportunities [214]. - The company is developing ancillary service offerings related to the TriFan 600, such as flight training and maintenance products [211]. - Research and development expenses are expected to increase significantly as the company expands staffing for aircraft engineering and software development [236]. - The company has authorized a share repurchase program to acquire up to $5 million of its common stock [218]. - The company has a commitment to pay $1.5 million in deferred consulting fees to Nadir Ali in three installments through 2025 [265]. - As of March 31, 2025, the company reported a net loss of approximately $12.9 million and used approximately $15.2 million in cash for operating activities [266][272].