Inpixon(US:INPX)2022-05-16 21:17Financial Performance - In the first quarter of 2022, the company reported a net loss of approximately $11.6 million, compared to a net loss of $12.5 million in the same period of 2021, indicating a slight improvement in financial performance[265]. - Revenues for Q1 2022 were $5.2 million, a 77% increase from $2.95 million in Q1 2021, primarily driven by Indoor Intelligence sales and new product lines[300]. - Gross profit margin improved to 73% in Q1 2022 from 70% in Q1 2021, reflecting better sales performance[302]. - Loss from operations narrowed to $10.06 million in Q1 2022, down from $12.42 million in Q1 2021, attributed to increased gross profit and reduced operating costs[305]. - Net loss attributable to stockholders of Inpixon was $11.21 million in Q1 2022, compared to a loss of $12.56 million in Q1 2021, reflecting improved financial performance[309]. - Adjusted EBITDA for Q1 2022 was a loss of $8.8 million, compared to a loss of $5.6 million in the prior year period[311]. - For the three months ended March 31, 2022, the net loss attributable to common stockholders was $17.36 million, compared to a loss of $12.56 million in the same period of 2021[313]. - Basic and diluted net loss per share for the three months ended March 31, 2022, was a loss of $0.13, an improvement from a loss of $0.16 in the prior year[318]. - The company reported a net income loss of $11.6 million for Q1 2022, compared to a loss of $12.5 million in Q1 2021, showing a slight improvement in financial performance[333][334]. Revenue and Growth - The company experienced revenue growth in Q1 2022 due to increased sales from its Indoor Intelligence platform, including acquisitions of CXApp and Intranav completed in April and December 2021, respectively[266]. - The company generated revenue from three segments: Indoor Intelligence, Shoom, and SAVES, with revenue derived from hardware sales, software licenses, and professional services[264]. - The company experienced growth in revenue for Q1 2022 compared to Q1 2021, driven by increased sales from its indoor intelligence platform[330]. Expenses and Cash Flow - Operating expenses decreased to $13.9 million in Q1 2022 from $14.5 million in Q1 2021, mainly due to lower stock-based compensation[304]. - Cost of revenues increased to $1.4 million in Q1 2022 from $0.9 million in Q1 2021, a rise of approximately 57% due to higher sales[301]. - Net cash used in operating activities for the three months ended March 31, 2022, was $15.3 million, resulting from a net loss of $11.6 million and non-cash adjustments of approximately $2.2 million[329]. - Net cash used in operating activities for Q1 2022 was approximately $15.3 million, compared to $5.7 million in Q1 2021, indicating a significant increase in cash outflow[332][334]. - Non-cash expenses for Q1 2022 totaled approximately $2.2 million, primarily driven by stock-based compensation and depreciation[333]. Strategic Initiatives - The company has pursued a strategic acquisition strategy since 2019, enhancing its product offerings and positioning itself as a market leader in Indoor Intelligence solutions[269]. - The company plans to evaluate various strategic transactions to enhance shareholder value, including potential mergers, asset sales, or spin-offs of business units[269]. - The company has received preliminary indications of interest for strategic alternatives, which are currently under evaluation[269]. - The company may continue to pursue strategic transactions and raise additional capital as needed for future acquisitions[330]. Capital and Financing - The company raised approximately $50.0 million through a registered direct offering of Series 8 Shares, which are convertible into approximately 112.8 million shares of common stock at a conversion price of $0.4717 per share[278]. - The Series 8 Shares rank senior to common stock and certain other preferred stocks regarding dividends and liquidation preferences, with specific rights and limitations outlined in the Certificate of Designation[271]. - The company raised net proceeds of approximately $46.9 million from a registered direct offering during the first quarter of 2022[329]. Liquidity and Assets - The company reported a working capital surplus of approximately $74.34 million as of March 31, 2022[328]. - Cash and cash equivalents were approximately $60.85 million, with short-term investments of about $15.04 million as of March 31, 2022[325]. - Cash and cash equivalents increased to $60.9 million as of March 31, 2022, up from $52.5 million as of December 31, 2021, indicating improved liquidity[331]. - The working capital surplus decreased to $74.3 million as of March 31, 2022, down from $78.8 million as of December 31, 2021, suggesting tighter operational cash flow[331]. - The total obligation for operating leases was approximately $1.8 million, with $0.7 million expected to be paid in the next twelve months[326]. Other Financial Information - The company recorded a loss of $1.4 million in other income/expense for Q1 2022, significantly higher than a loss of $0.1 million in Q1 2021, primarily due to unrealized losses on Sysorex shares[306]. - The company engaged in the sale of treasury bills amounting to $28.0 million during Q1 2022, contributing to the cash flow from investing activities[336]. - The company did not have any off-balance sheet guarantees or trading activities involving non-exchange traded contracts, indicating a conservative financial strategy[338]. - The company entered into multiple exchange agreements to restructure debt and warrants, including the issuance of 13,811,407 shares in exchange for existing warrants[283].