Inpixon(US:INPX)2021-11-15 22:20Financial Performance - The company reported a net loss of approximately $33.9 million for the three months ended September 30, 2021, compared to a net loss of $7.5 million for the same period in 2020[275]. - For the nine months ended September 30, 2021, the net loss was approximately $32.0 million, an increase from a net loss of $20.9 million in the same period of 2020[275]. - Revenues for Q3 2021 were $4.45 million, a 74% increase from $2.55 million in Q3 2020, primarily driven by a $1.8 million increase in Indoor Intelligence sales[336]. - Revenues for the nine months ended September 30, 2021 were $10.86 million, an increase of approximately $5.4 million or 100% compared to $5.43 million in the prior year[348]. - Net loss attributable to stockholders of Inpixon for Q3 2021 was $33.64 million, up from a loss of $7.47 million in Q3 2020, primarily due to a $22.3 million unrealized loss on the Sysorex note[345]. - For the nine months ended September 30, 2021, the net loss attributable to common stockholders was $31.4 million, compared to a net loss of $20.9 million for the same period in 2020[367]. - Adjusted EBITDA for the nine months ended September 30, 2021 was a loss of $18.5 million, compared to a loss of $12.4 million in the prior year[359]. Revenue and Growth - The company experienced revenue growth in the first three quarters of 2021 compared to the same periods in 2020, driven by increased sales from its indoor intelligence platform and additional revenue from Systat software licenses[276]. - The company experienced a total revenue growth for the nine months ended September 30, 2021, attributed to the addition of new product lines and acquisitions despite challenges from COVID-19[372]. Acquisitions and Strategic Transactions - The company completed a series of strategic acquisitions to enhance its product offerings, including technologies for wireless device positioning and indoor mapping solutions[278]. - The company acquired a controlling interest in Game Your Game, Inc. for a total purchase price of approximately $3.07 million, enhancing its capabilities in sports data and analytics[286]. - The company completed the acquisition of over 99.9% of The CXApp for approximately $22.5 million in cash and 8,820,239 shares valued at about $10 million[294][295]. - The total consideration for the CXApp acquisition, including contingent earnout payments, could reach up to $45 million[295]. - The company plans to continue evaluating strategic transactions, including acquisitions, to maintain pace with industry demands and enhance shareholder value[279]. - The company intends to focus on accretive acquisitions that provide operational synergies and enhance its comprehensive Indoor Intelligence platform[279]. Operating Expenses and Losses - Operating expenses for Q3 2021 were $15.72 million, an increase of approximately $7.57 million from $8.15 million in Q3 2020, mainly due to costs from recent acquisitions and additional amortization[340]. - Loss from operations for Q3 2021 was $12.46 million, compared to a loss of $6.25 million in Q3 2020, reflecting increased operating expenses despite higher gross profit[341]. - Loss from operations for the nine months ended September 30, 2021 was $38.2 million, an increase of approximately $21.2 million or 125% from a loss of $16.9 million in the prior year[352]. - Operating expenses rose to $46.06 million, an increase of $25.15 million or 120% compared to $20.91 million in the prior year, driven by various acquisition-related costs and scaling for growth[351]. Cash Flow and Capital - The company raised net proceeds of approximately $128.4 million from the sale of securities during the nine months ended September 30, 2021[371]. - Cash and cash equivalents as of September 30, 2021, were $66.8 million, up from $18.0 million as of September 30, 2020[373]. - The company reported a net cash increase of $48.8 million for the nine months ended September 30, 2021, compared to $26.5 million for the same period in 2020[373]. - Net cash used in operating activities for the nine months ended September 30, 2021, was $24.0 million, an increase from $15.6 million for the same period in 2020[373]. - Net cash flows provided by financing activities for the nine months ended September 30, 2021, were $125.4 million, compared to $47.1 million in the same period of 2020[381]. Tax and Other Financial Considerations - The company recorded a net income tax benefit of approximately $0.9 million for Q3 2021, related to reduced estimated taxes payable due to losses incurred[343]. - The company incurred an income tax provision of approximately $1.4 million for the nine months ended September 30, 2021, related to current and deferred tax expenses[354]. - Other income for the nine months ended September 30, 2021 was $7.5 million, an increase of approximately $11.6 million compared to a loss of $4.1 million in the prior year, primarily due to gains on the Sysorex note[353]. Deferred Revenue and Revenue Recognition - As of September 30, 2021, the company reported deferred revenue of approximately $4.5 million, up from $1.9 million as of December 31, 2020[311]. - The company recognizes revenue from software as a service and professional services, with revenue from maintenance and consulting services recognized evenly over the service period[299][301]. Market and Operational Challenges - Supply chain constraints and COVID-19 impacts have affected hardware product delivery times and demand, but the company remains optimistic about future growth[276]. - The company continues to seek additional resources for the development of its technologies, including AirPatrol and Locality, with no assurance of success[321]. Goodwill and Asset Management - Goodwill and indefinite-lived assets were recorded in connection with acquisitions, with recoverability evaluated at least annually[322]. - The company has not recorded any impairment charges for long-lived assets for the three and nine months ended September 30, 2021[315]. - The company evaluates the remaining useful lives of long-lived assets regularly, with no changes indicated during the reporting periods[318].