Inpixon(US:INPX)2022-08-15 21:59Financial Performance - Inpixon reported a net loss of approximately $31.9 million for the six months ended June 30, 2022, compared to a net income of $2.0 million for the same period in 2021[294]. - Revenues for Q2 2022 were $4.7 million, a 37% increase from $3.5 million in Q2 2021, primarily driven by increased sales in Indoor Intelligence[319]. - Revenues for the six months ended June 30, 2022 were $10.0 million, a 55% increase from $6.4 million in the same period in 2021, driven by Indoor Intelligence sales and new product lines[330]. - Loss from operations for Q2 2022 was $19.9 million, compared to a loss of $13.3 million in Q2 2021, reflecting increased operating expenses despite higher gross profit[323]. - Net loss attributable to stockholders for Q2 2022 was $19.9 million, a significant decline from a net income of $14.8 million in Q2 2021, primarily due to other income items in the prior year[327]. - Loss from operations for the six months ended June 30, 2022 was $30.0 million, compared to a loss of $25.7 million in the same period in 2021, reflecting increased operating expenses[334]. - Adjusted EBITDA for the three months ended June 30, 2022, was a loss of $9.9 million compared to a loss of $6.3 million for the prior year period, indicating a deterioration of approximately 57%[341]. - Adjusted EBITDA for the six months ended June 30, 2022, was a loss of $18.7 million compared to a loss of $11.8 million for the prior year period, reflecting an increase in loss of approximately 58%[342]. - Basic and diluted net loss per share for the three months ended June 30, 2022, was $0.16, compared to income of $0.13 for the prior year period, marking a significant shift in performance[349]. - Basic and diluted net loss per share for the six months ended June 30, 2022, was $0.29, compared to income of $0.02 for the prior year period, indicating a substantial increase in loss per share[350]. - Net income (loss) attributable to non-controlling interest for the six months ended June 30, 2022, was a loss of $804,000, an increase from a loss of $235,000 in the same period of the previous year[338]. Operating Expenses and Impairments - Operating expenses for Q2 2022 were $23.2 million, an increase of approximately $7.4 million from $15.9 million in Q2 2021, largely due to a $7.6 million goodwill impairment[322]. - Operating expenses for the six months ended June 30, 2022 were $37.1 million, up from $30.3 million in the prior year, mainly due to goodwill impairment and acquisitions[333]. - The company recorded a goodwill impairment charge of $7.6 million in Q2 2022, resulting in the remaining goodwill being fully impaired[316]. - The company incurred an impairment of goodwill amounting to $7.57 million during the reporting period[344]. Cash Flow and Capital Management - The net cash used in operating activities for the six months ended June 30, 2022, was approximately $19.5 million, compared to $14.2 million for the same period in 2021[367][371]. - The total cash and cash equivalents increased by approximately $13.3 million during the six months ended June 30, 2022[367]. - The company raised net proceeds of approximately $46.9 million from the sale of Series 8 Preferred Stock and securities, along with an additional $5 million from a debt offering in July 2022[363]. - The company received $46.9 million from the issuance of preferred stock and warrants during the six months ended June 30, 2022[375]. - The company paid $49.3 million for the redemption of preferred series 7 stock during the six months ended June 30, 2022[375]. - As of June 30, 2022, the company reported a working capital surplus of approximately $65.2 million, with cash and cash equivalents totaling approximately $65.8 million[359]. - The company has filed an At-The-Market financing facility to access additional capital as needed[363]. Strategic Initiatives - Inpixon has entered into an Equity Distribution Agreement to offer shares of common stock with an aggregate offering price of up to $25 million for working capital and corporate strategy execution[299]. - The company has completed several strategic acquisitions to enhance its Indoor Intelligence solutions, including technologies for wireless device positioning and indoor mapping[298]. - Inpixon's corporate strategy focuses on providing end-to-end solutions for indoor intelligence, aiming to secure and optimize premises for businesses and governments[298]. - Inpixon's strategic focus includes evaluating potential acquisitions and partnerships to enhance shareholder value and support continued innovation in indoor intelligence technologies[298]. Market and Operational Challenges - The company has experienced supply chain cost increases and delays in hardware product components due to the COVID-19 pandemic, impacting delivery times[295]. - The company anticipates ongoing challenges from global events, including inflation and supply chain interruptions, which may impact operations and demand for products[296]. - The company anticipates that supply chain interruptions and increased costs may continue to challenge its operations[365]. Other Financial Information - A note purchase agreement was executed for an unsecured promissory note with an initial principal amount of approximately $6.5 million, accruing interest at a rate of 10% per annum[301]. - Inpixon purchased a 10% Original Issue Discount Senior Convertible Debenture for approximately $6.1 million, with a purchase price of $5.5 million, accruing interest at a rate of 12% per annum[308]. - The company has a total obligation for acquisition liabilities of approximately $3.5 million, all expected to be paid in the next twelve months[358]. - The total obligation for operating leases as of June 30, 2022, was approximately $1.8 million, with $0.7 million expected to be paid in the next twelve months[358]. - The company did not have any off-balance sheet guarantees or engage in trading activities involving non-exchange traded contracts[376]. - There were no applicable quantitative and qualitative disclosures about market risk[378].