Inpixon(US:INPX)2023-05-16 01:11Financial Performance - Inpixon reported a net loss from continuing operations of approximately $12.3 million for the three months ended March 31, 2023, compared to a net loss of approximately $10.8 million for the same period in 2022 [239]. - Revenues for Q1 2023 were $3.1 million, a 17% increase from $2.6 million in Q1 2022, primarily driven by Indoor Intelligence sales [265]. - Gross profit margin improved to 75% in Q1 2023 from 70% in Q1 2022, attributed to a favorable sales mix [266]. - Operating expenses decreased to $10.5 million in Q1 2023 from $11.1 million in Q1 2022, mainly due to lower compensation and professional fees [267]. - Net loss attributable to stockholders for Q1 2023 was $16.9 million, a 51% increase compared to a loss of $11.2 million in Q1 2022 [264]. - Adjusted EBITDA for Q1 2023 was a loss of $7.7 million, an improvement from a loss of $8.8 million in the prior year [273]. - Basic and diluted net loss per share for Q1 2023 was $1.38, compared to a loss of $9.05 for the same period last year [279]. - Loss from discontinued operations for Q1 2023 was $4.9 million, significantly higher than a loss of $0.8 million in Q1 2022 [271]. - For the three months ended March 31, 2023, the net loss attributable to stockholders was $16.9 million, compared to a net loss of $17.4 million for the same period in 2022 [283]. - The proforma non-GAAP net loss for the three months ended March 31, 2023 was $12.4 million, with a proforma non-GAAP net loss per share of $1.01, compared to a loss of $9.2 million and $4.79 per share in 2022 [283]. Cash Flow and Capital Structure - As of March 31, 2023, the company had cash and cash equivalents of approximately $15.3 million, with a working capital surplus of about $0.2 million [290]. - Net cash used in operating activities during the three months ended March 31, 2023 was approximately $9.5 million, compared to $15.3 million for the same period in 2022 [293]. - The company raised gross proceeds of approximately $19.6 million since January 1, 2023, in connection with the ATM Offering [288]. - The company owed approximately $15.0 million in principal under promissory notes with third parties, payable within the next twelve months [287]. - Net cash flows provided by financing activities for Q1 2023 were $4.9 million, compared to a net cash outflow of $4.1 million in Q1 2022 [300]. - The company received $15.0 million from a registered direct offering during Q1 2023 [300]. - The company distributed $10.0 million to shareholders related to the spin-off of CXApp in Q1 2023 [300]. Strategic Initiatives - Inpixon completed the spin-off of its enterprise apps business on March 14, 2023, contributing cash to ensure CXApp had $10 million in cash and cash equivalents prior to transaction expenses [249][250]. - The company is exploring strategic transactions, including potential asset sales, mergers, or spin-offs, to enhance shareholder value [243]. - Inpixon's corporate strategy focuses on being the primary provider of foundational technologies for indoor data, enabling organizations to create actionable insights [234]. Operational Challenges - The company anticipates ongoing challenges from supply chain interruptions and increased costs due to global events, including the COVID-19 pandemic and inflation [242]. - The company experienced supply chain cost increases and constraints, impacting delivery times and demand for certain products [291]. - The company anticipates that global events, including the ongoing impact of the pandemic and geopolitical tensions, may continue to affect its results of operations [292]. Technology and Product Development - Inpixon's full-stack industrial IoT solution integrates RTLS, sensor networks, edge computing, and big data analytics to optimize operations and improve efficiency [236]. - Inpixon's RTLS technology is crucial for Industry 4.0, providing real-time tracking and monitoring to improve operational efficiency and safety [235]. - The company generated revenue from three segments: Indoor Intelligence, Shoom, and SAVES, with revenue from hardware, software licenses, and professional services [238]. Compliance and Regulatory Matters - The company received a Nasdaq compliance letter indicating it did not meet the minimum bid price requirement of $1 per share, with a compliance period until October 11, 2023 [257]. - The Transition Services Agreement between Legacy CXApp and Inpixon will provide mutual administrative support services, terminating twelve months after the last service provided [256]. Tax and Non-Cash Items - The company recorded an income tax expense of approximately $2.5 million in Q1 2023, compared to no tax expense in Q1 2022 [270]. - Non-cash income and expenses for the three months ended March 31, 2023, totaled approximately $5.6 million, primarily due to depreciation and amortization expenses [296].