Inpixon(US:INPX)2023-08-18 21:24Financial Performance - Inpixon reported a net loss from continuing operations of approximately $19.7 million for both the six months ended June 30, 2023, and 2022 [265]. - Revenues for Q2 2023 were $2.1 million, a decrease of approximately 20% from $2.6 million in Q2 2022, primarily due to delayed shipments and lower sales in the Indoor Intelligence and SAVES product lines [318]. - For the six months ended June 30, 2023, revenues were $5.161 million, a slight decrease of approximately 1% from $5.225 million in the same period in 2022 [329]. - Net loss from continuing operations for Q2 2023 was $7.3 million, an improvement of 18% compared to a loss of $9.0 million in Q2 2022 [318]. - The company recorded a net loss attributable to stockholders of $6.966 million in Q2 2023, a significant improvement of 65% from a loss of $19.872 million in Q2 2022 [318]. - For the six months ended June 30, 2023, the net loss attributable to common stockholders was $23.840 million, compared to a loss of $42.219 million in the same period of 2022 [341]. - The company reported a net loss of $24.5 million for the six months ended June 30, 2023, an improvement from a net loss of $31.9 million in the same period of 2022 [359][360]. - Adjusted EBITDA for Q2 2023 was a loss of $5.0 million, compared to a loss of $5.2 million in Q2 2022 [338]. - Adjusted EBITDA for the six months ended June 30, 2023, was $(9.870) million, compared to $(11.667) million in the prior year [341]. Cash Flow and Liquidity - As of June 30, 2023, the company had cash and cash equivalents of approximately $15.681 million [351]. - The company reported net cash used by operating activities for the six months ended June 30, 2023, of $15.8 million [352]. - Net cash used in operating activities for the six months ended June 30, 2023 was approximately $15.8 million, compared to $19.5 million for the same period in 2022 [355][360]. - Net cash provided by financing activities for the six months ended June 30, 2023 was $11.7 million, compared to a net cash outflow of $4.2 million in the same period of 2022 [363]. - Cash and cash equivalents as of June 30, 2023 were $15.7 million, an increase from $10.2 million as of December 31, 2022 [357]. - The company experienced a net decrease in cash and cash equivalents of $4.6 million for the six months ended June 30, 2023, compared to an increase of $13.3 million in the same period of 2022 [357]. - The company anticipates that current cash balances and financing facilities will be sufficient to meet working capital needs for the next 12 months [355]. Strategic Transactions and Mergers - The company has entered into an agreement to merge with XTI Aircraft Company, with plans to divest its Shoom, SAVES, and Game Your Game lines of business [268]. - The merger agreement with XTI Aircraft Company was unanimously approved, with Inpixon expected to retain approximately 40% and XTI security holders approximately 60% of the combined company's capital stock [287]. - Inpixon will provide loans to XTI of up to $1,775,000, with each Future Loan being in the principal amount of up to $500,000 [291]. - The total principal amount under the Promissory Note is up to $2,313,407, which includes $525,000 previously advanced to XTI [292]. - The merger agreement includes provisions for the conversion of XTI's outstanding convertible notes into common stock of the combined company [282]. - The company is exploring strategic transactions, including possible asset sales, mergers, or spin-offs to enhance shareholder value [268]. Stock and Shareholder Information - The company sold 28,981,729 shares of common stock for gross proceeds of approximately $21.0 million during the six months ended June 30, 2023 [269]. - The company issued 9,000,000 shares of common stock in July 2023, receiving gross proceeds of approximately $2.3 million from the exercise of warrants [280]. - The company is currently subject to Nasdaq's "baby shelf rules," which may limit future issuances of shares due to its public float being less than $75 million [269]. - The company has been provided a 180-day period to regain compliance with Nasdaq's minimum bid price requirement of $1 per share [274]. - A cash fee of $800,000 will be paid to Maxim Group LLC upon closing of the merger, along with approximately 6,565,988 shares of Inpixon common stock [289]. - The Completed Transaction Bonus Plan allows eligible participants to receive a cash bonus equal to 100% of their aggregate annual base salary as of December 31, 2022 [298]. - Inpixon's named executive officers will receive a cash bonus totaling 4% of the $70,350,000 transaction value from the Completed Transaction [299]. - The Transaction Bonus Plan for future strategic transactions will provide bonuses to participants upon the closing of a Contemplated Transaction or Qualifying Transaction [304]. Operational Challenges - Supply chain interruptions and increased costs for parts, materials, and labor are expected to continue to challenge the business [356]. - The company may pursue strategic transactions and raise additional capital as needed through equity securities and/or cash and debt financings [356].