Inpixon(US:INPX)2025-08-14 20:56Aircraft Development - The company is developing the TriFan 600, a vertical takeoff and landing (VTOL) airplane designed for various applications, including private aviation and emergency medical services, with a range of over 1,000 miles and speeds twice that of competing helicopters [223]. - The company achieved several key development milestones for the TriFan 600, including finalizing the Global Finite Element Model and selecting key components for the drivetrain system [239]. - The FAA has assigned the Fort Worth Certification Branch Office to oversee the TriFan 600 certification activities, marking a significant step in the certification process [239]. - The company is actively engaging with the FAA to ensure compliance with regulatory requirements as it advances the TriFan 600 toward certification and commercialization [240]. - The company is exploring hybrid-electric propulsion solutions for future aircraft variants through a collaboration with VerdeGo Aero [239]. - The company expects to commence deliveries of the TriFan 600 by 2030 at the earliest, funding operations primarily through equity and debt financings until then [296]. Financial Performance - Revenues for the three months ended June 30, 2025 were $0.6 million, a decrease of 41.8% compared to $1 million for the same period in 2024, primarily due to supply chain disruptions [266]. - Gross profit for the three months ended June 30, 2025 was $0.5 million, down from $0.7 million in the prior year, with a gross margin percentage of 80.5% compared to 64.2% [268]. - Operating expenses for the three months ended June 30, 2025 were $11.6 million, a decrease of $3 million from $14.6 million in the same period in 2024 [269]. - Revenues for the six months ended June 30, 2025 were $1.1 million, a decrease of 13.3% from $1.3 million in the prior year, also due to supply chain disruptions [275]. - Gross profit for the six months ended June 30, 2025 was $0.8 million, consistent with the prior year, with a gross margin percentage of 75.5% compared to 64.2% [277]. - Operating expenses for the six months ended June 30, 2025 were $22.4 million, a decrease of $1.2 million from $23.6 million in the same period in 2024 [278]. - The company recorded a loss of $9.7 million in other (expense) income for the three months ended June 30, 2025, compared to a loss of $0.8 million in the prior year [271]. - The company reported a net loss of approximately $33.7 million for the six months ended June 30, 2025, compared to a loss of $8.2 million for the same period in 2024 [293]. Capital and Funding - The company raised approximately $14.7 million in net proceeds from a public offering of 6,231,200 shares of common stock, which closed on June 26, 2025 [233]. - The company raised approximately $41.8 million in net proceeds through various public offerings and warrant exercises during the first half of 2025 [286]. - Cash and cash equivalents increased by approximately $15.9 million, primarily due to net proceeds from the June Offering, bringing total cash to approximately $20.0 million as of June 30, 2025 [288][284]. - Net working capital improved by approximately $11.2 million, reaching $2.4 million, adjusted to $16.9 million when excluding derivative warrant liabilities [285][293]. - The company filed a shelf registration statement on Form S-3, allowing it to offer up to $1 billion in securities until August 2028 [295]. Strategic Initiatives - The company is focused on expanding into autonomous, remotely operated drones as part of its strategic initiatives to create new revenue opportunities across multiple industries [231]. - The company has expanded its corporate advisory board to ten members to evaluate strategic opportunities related to the anticipated demand for the TriFan 600 [238]. - The company reported that during the quarter ended December 31, 2024, it began exploring strategic options to wind down and/or sell the hardware portions of its Industrial IoT business segment to focus on software sales [227]. Goodwill and Impairment - A goodwill impairment of $4.05 million was recognized for the three and six months ended June 30, 2025, attributed to the Industrial IoT reporting unit [249]. - The company will continue to monitor qualitative and quantitative factors for potential goodwill impairment during fiscal year 2025 [248]. Cash Flow and Expenses - The company incurred $22 million in net cash used by operating activities for the six months ended June 30, 2025 [284]. - Net cash used in operating activities for the three months ended June 30, 2025 was approximately $22.0 million, with a net loss of $33.7 million [301]. - Non-cash income and expenses for the three months ended June 30, 2025 totaled approximately $17.7 million, primarily due to stock-based compensation of $1.2 million and impairment of goodwill of $4.0 million [301]. - Net cash used in changes in operating assets and liabilities was approximately $5.9 million, mainly due to a decrease in accrued expenses of $4.9 million [301]. - Net cash used in investing activities for the six months ended June 30, 2025 was approximately $0.1 million, compared to $2.9 million provided in the same period of 2024 [304]. - Net cash flows provided by financing activities during the six months ended June 30, 2025 was approximately $37.7 million, including $36.4 million from the sale of common stock and warrants [305]. - The company received $1.7 million from the now expired ATM and $3.8 million from the exercise of warrants during the six months ended June 30, 2025 [305]. - The company repaid $0.5 million towards outstanding promissory notes during the six months ended June 30, 2024 [306]. - The decrease in accrued expenses and other current liabilities of approximately $4.9 million was mainly due to cash payments for accrued transaction bonuses and consulting fees [301]. - The company does not have any off-balance sheet guarantees or engage in trading activities involving non-exchange traded contracts [307].