16.08.2021 22:05:00

Inpixon Reports Second Quarter 2021 Financial Results and Provides Corporate Update

PALO ALTO, Calif., Aug. 16, 2021 /PRNewswire/ -- Inpixon (Nasdaq: INPX), the Indoor Intelligence™ company, today provided a business update and reported financial results for the second quarter of 2021.

(PRNewsfoto/Inpixon)

Nadir Ali, CEO of Inpixon, stated, "We continue to make tremendous growth strides, reporting a 221% increase in revenue for the three months ended June 30, 2021 as compared to the same period last year, in addition to $14.8 million in net income attributable to the stockholders of Inpixon primarily resulting from the settlement of a note receivable with equity. As a result of our expanded Indoor Intelligence product offering, we are increasing our SaaS subscription sales, and we are beginning to see higher recurring revenue streams and increases in the average selling price for certain of our products. We have had strong momentum, securing several new customer relationships for our smart office app following the acquisition of The CXApp during the second quarter of 2021. Organizations need to keep pace with the continuously evolving work environment in order to maintain a productive, satisfied and safe workforce. They are seeking simplified and comprehensive workplace solutions that can support hybrid return-to-the-office initiatives and selecting Inpixon to help them create and deliver a connected workplace where employees work in a mix of on-site and remote options. By delivering the best possible workplace experience for employees, one that fosters engagement and collaboration via a unified, user-friendly mobile app, we believe organizations can increase employee retention rates and remain competitive in the market.

"We are delivering a range of solutions that enhance indoor experiences by allowing our customers to provide smarter, safer and more secure environments. With activity around in-person events restarting including conferences and executive briefings, the need to deliver hybrid event options remains, and our app and events platform is optimized to deliver hybrid and omni-device experiences in a way that we believe other event app vendors don't provide. We are also delivering solutions for other work environments such as industrial, manufacturing and mining, where heavy equipment and vehicles are in close proximity to one another or people, and determining precise location is critical to ensure the safety of visitors and personnel. Utilization of our chirp and UWB technologies, such as is offered with our recently launched Inpixon Asset Tag and Inpixon Personnel Tag, can deliver increased visibility of people and assets, enhancing safety and resource utilization. Our technology offers a unique performance profile combining high accuracy, long operational range and interference resilience that makes it an excellent choice for a wide range of location and ranging use cases. According to MarketsandMarkets, the RTLS market is expected to grow at a CAGR of 24.8% during 2020-2025, and we expect to ride this wave of sharp growth.

"Overall, we have approximately $70 million available to the company as of June 30, 2021 including approximately $24.9 million in cash and an additional $45.3 million in short-term investments. With our strong financial position and increasing market awareness, we believe we are well positioned to aggressively penetrate the Indoor Intelligence market with the ability to offer products and solutions to satisfy the range of Indoor Intelligence needs. We are excited and pleased with the momentum we are gaining and look forward to providing updates regarding contract wins, technology enhancements and more as developments unfold," concluded, Mr. Ali.

Recent milestones:

  • Selected by leading global social media and information sharing company with hundreds of millions of active users worldwide for smart office app implementation across dozens of corporate locations.
  • Added to the Russell Microcap® Index.
  • Secured purchase order for implementation of smart office app with multinational mass media and entertainment conglomerate.
  • Launched Inpixon Asset Tag, a compact, active radio frequency (RF) tag for long-range RTLS asset tracking.
  • Won multi-year contract for smart office app for implementation with international banking organization, supporting European-based financial company's hybrid return-to-work initiative for employees in more than 75 locations.
  • Won "Best Smart Building Solution for Return to Work" award. Recognition was based on ability to add value and drive change through innovative solutions.
  • Secured purchase orders for tens of thousands of units in Inpixon's RTLS product line from integrator partners for customers in Europe, Asia, Africa and North America.

Financial Results

Revenues for the three months ended June 30, 2021 were $3.5 million compared to $1.1 million for the comparable period in the prior year for an increase of approximately $2.4 million, or approximately 221%. This increase is primarily attributable to an approximate $1.5 million increase in Indoor Intelligence sales and an increase of approximately $0.7 million of SAVES sales. Gross profit for the three months ended June 30, 2021 was $2.6 million compared to $0.77 million for the comparable period in the prior year, an increase of 232%. The gross profit margin for the three months ended June 30, 2021 was 74% compared to 72% for the three months ended June 30, 2020. This increase in margin is primarily due to a higher mix of gross profit from the Indoor Intelligence products. Net income attributable to stockholders of Inpixon for the three months ended June 30, 2021 was income of $14.8 million compared to a loss of $7.3 million for the comparable period in the prior year. This increase in income of approximately $22.1 million was primarily attributable to higher gross profit, the discounted net gain on the Sysorex note and release of valuation allowance on the Sysorex note, offset by the increased operating expenses including operating expenses from recent acquisitions. Non-GAAP Adjusted EBITDA for the three months ended June 30, 2021 was a loss of $6.3 million compared to a loss of $3.9 million for the prior year period. EBITDA is defined as net income (loss) before interest, provision for income taxes, and depreciation and amortization. Adjusted EBITDA is used by Inpixon management as a metric by which it manages the business. It is defined as EBITDA plus adjustments for other income or expense items, non-recurring items and other non-cash items including stock-based compensation.

Proforma non-GAAP net loss per basic and diluted common share for the three months ended June 30, 2021 was a loss of $0.07 compared to a loss of $0.21 per share for the prior year period. Proforma non-GAAP net income (loss) per share is used by Inpixon management as an evaluation tool as it manages the business and is defined as net income (loss) per basic and diluted share adjusted for non-cash items including stock-based compensation, amortization of intangibles and one-time charges and other adjustments including loss on the exchange of debt for equity, provision for valuation allowance on notes and acquisition costs.

Conference Call

Inpixon management will host a conference call at 4:30 p.m. Eastern Time on Monday, August 16, 2021 to discuss the company's financial results for the second quarter ended June 30, 2021, as well as the company's corporate progress and other developments.

The conference call will be available via telephone by dialing toll free 888-506-0062 for U.S. callers or +1 973-528-0011 for international callers and using entry code 560491. A webcast of the call may be accessed at https://www.webcaster4.com/Webcast/Page/2235/42390, or on the company's Investor Relations section of the website, ir.inpixon.com. Investors and other interested parties are invited to submit questions to management prior to the call's start via email to inpx@crescendo-ir.com.

A webcast replay of the call will be available on the company's Investor Relations section of the website (ir.inpixon.com) through August 16, 2022. A telephone replay will be available approximately one hour following the call, through August 23, 2021 and can be accessed by dialing 877-481-4010 for U.S. callers or +1 919-882-2331 for international callers and entering conference ID 42390.

About Inpixon

Inpixon® (Nasdaq: INPX) is the innovator of Indoor Intelligence™, delivering actionable insights for people, places and things. Combining the power of mapping, positioning and analytics, Inpixon helps to create smarter, safer, and more secure environments. The company's Indoor Intelligence and mobile app solutions are leveraged by a multitude of industries to optimize operations, increase productivity, and enhance safety. Inpixon customers can take advantage of industry leading location awareness, RTLS, workplace and hybrid event solutions, analytics, sensor fusion and the IoT to create exceptional experiences and to do good with indoor data. For the latest insights, follow Inpixon on LinkedInTwitter, and visit inpixon.com.

Safe Harbor Statement

All statements in this release that are not based on historical fact are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking statements included in this release on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are outside of the control of Inpixon and its subsidiaries, which could cause actual results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to, the fluctuation of economic conditions, the impact of COVID-19 on Inpixon's results of operationsand global supply chain constraints, Inpixon's ability to integrate the products and business from recent acquisitions into its existing business, the performance of management and employees, the regulatory landscape as it relates to privacy regulations and their applicability to Inpixon's technology, Inpixon's ability to maintain compliance with Nasdaq's minimum bid price requirement and other continued listing requirements, the valuation associated with the Sysorex shares owned by Inpixon may fluctuate on a quarter by quarter basis and is anticipated to be subject to discounts or other adjustments for a variety of factors including but not limited to fluctuations in the market price of Sysorex's common stock which may result in unrealized losses if the value of such securities declines and require us to recognize a charge against earnings, the ability to obtain financing, competition, general economic conditions and other factors that are detailed in Inpixon's periodic and current reports available for review at sec.gov. Furthermore, Inpixon operates in a highly competitive and rapidly changing environment where new and unanticipated risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual results. Inpixon disclaims any intention to, and undertakes no obligation to, update or revise forward-looking statements.

Non-GAAP Financial Measures

Management believes that certain financial measures not in accordance with generally accepted accounting principles in the United States ("GAAP") are useful measures of operations. EBIDTA, Adjusted EBITDA and pro forma net loss per share are non-GAAP measures. Inpixon defines "EBITDA" as net income (loss) before interest, provision for (benefit from) income taxes, and depreciation and amortization. Management uses Adjusted EBITDA as a metric for which it manages the business, and Inpixon defines "Adjusted EBITDA" as EBITDA plus adjustments for other income or expense items, non-recurring items and non-cash items. Inpixon defines "pro forma net loss per share" as GAAP net loss per share adjusted for stock-based compensation, amortization of intangibles and one-time charges including loss on the exchange of debt for equity and provision for valuation allowances.

Management provides Adjusted EBITDA and pro forma net loss per share measures so that investors will have the same financial information that management uses, which may assist investors in assessing Inpixon's performance on a period-over-period basis. Adjusted EBITDA or pro forma net loss per share is not a measure of financial performance under GAAP, and should not be considered an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA and pro forma net loss per share have limitations as analytical tools and should not be considered either in isolation or as a substitute for analysis of Inpixon's results as reported under GAAP.

For more information on our non-GAAP financial measures and a reconciliation of GAAP to non-GAAP measures, please see the "Reconciliation of Non-GAAP Financial Measures" table accompanying this press release.

Inpixon Contacts

Media relations and general inquiries:
Inpixon
Email: marketing@inpixon.com
Web: inpixon.com/contact-us

Investor relations:
Crescendo Communications, LLC
Tel: +1 212-671-1020
Email: INPX@crescendo-ir.com

###

INPIXON AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except number of shares and par value data)










As of 



June 30, 2021


December 31, 2020



(Unaudited)


(Audited)

ASSETS





Current Assets







Cash and cash equivalents


$

24,912


$

17,996

Accounts receivable, net of allowances of $234 and $235, respectively



2,694



1,739

Notes and other receivables



272



152

Inventory, net of reserve of $138 and $138, respectively



1,919



1,243

Short-term investments



45,303



7,998

Prepaid assets and other current assets



1,381



1,197

Total Current Assets



76,481



30,325








Property and equipment, net



1,499



1,445

Operating lease right-of-use asset, net



1,775



2,077

Software development costs, net



1,658



1,721

Investment in Equity Securities



29,940



--

Long-term investments



2,500



2,500

Intangible assets, net



36,530



14,203

Goodwill



23,890



6,588

Other assets



141



152

Total Assets


$

174,414


$

59,011








LIABILITIES AND STOCKHOLDERS' EQUITY







Current Liabilities







Accounts payable


$

1,726


$

908

Accrued liabilities



5,717



2,739

Income tax liabilities



6,750



--

Operating lease obligation, current



602



647

Deferred revenue



2,780



1,922

Short-term debt



4,251



5,401

Acquisition liability



440



500

Total Current Liabilities



22,266



12,117








Long Term Liabilities







Operating lease obligations, noncurrent



1,202



1,457

Other liabilities, noncurrent



35



7

Acquisition liability, noncurrent



5,425



750

Total Liabilities



28,928



14,331








Commitments and Contingencies



--



--








Stockholders' Equity







Preferred Stock - $0.001 par value; 5,000,000 shares authorized; Series 4 Convertible
Preferred Stock - 10,415 shares authorized; 1 issued, and 1 outstanding as of June 30, 2021
and December 31, 2020, respectively; Series 5 Convertible Preferred Stock - 12,000 shares
authorized; 126 issued, and 126 outstanding as of June 30, 2021 and December 31, 2020,
respectively.



--



--

Common Stock - $0.001 par value; 250,000,000 shares authorized;
116,454,028 and 53,178,462 issued and 116,454,027 and 53,178,461
outstanding as of June 30, 2021 and December 31, 2020, respectively.



116



53

Additional paid-in capital



322,196



225,613

Treasury stock, at cost, 1 share



(695)



(695)

Accumulated other comprehensive income



52



660

Accumulated deficit 



(178,931)



(180,992)

Stockholders' Equity Attributable to Inpixon



142,738



44,639








Non-controlling interest



2,748



41








Total Stockholders' Equity



145,486



44,680








Total Liabilities and Stockholders' Equity


$

174,414


$

59,011

 

 

 

INPIXON AND SUBSIDIARIES

 CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(In thousands, except per share data)

















For the Three Months Ended,


For the Six Months Ended




June 30,


June 30,




2021


2020


2021


2020




(Unaudited)


(Unaudited)


Revenues


$

3,453


$

1,076


$

6,407


$

2,880


Cost of Revenues



896



305



1,780



814
















Gross Profit



2,557



771



4,627



2,066
















Operating Expenses














Research and development



3,223



1,278



5,931



2,612


Sales and marketing



2,073



1,468



3,712



2,159


General and administrative



8,828



2,476



17,999



6,268


Acquisition related costs



535



169



1,005



196


Amortization of intangibles



1,191



508



1,693



1,524


Total Operating Expenses



15,850



5,899



30,340



12,759
















Loss from Operations



(13,293)



(5,128)



(25,713)



(10,693)
















Other Income (Expense)














Interest income (expense), net



1,555



(777)



1,206



(1,397)


Loss on exchange of debt for equity



--



(47)



(30)



(132)


Benefit (provision) for valuation allowance on
related party loan - held for sale



7,462



(835)



7,345



(835)


Other income (expense)



125



(517)



511



(499)


Gain on related party loan - held for sale



49,817



--



49,817



--


Unrealized loss on equity securities



(28,965)



--



(28,965)



--


Total Other Income (Expense)



29,994



(2,176)



29,884



(2,863)
















Net Income (Loss), before tax



16,701



(7,304)



4,171



(13,556)


Income tax (provision) benefit



(2,195)



--



(2,204)



87


Net Income (Loss)



14,506



(7,304)



1,967



(13,469)
















Net (Loss) Income Attributable to Non-controlling
Interest



(253)



19



(235)



9
















Net Income (Loss) Attributable to Stockholders of
Inpixon


$

14,759


$

(7,323)


$

2,202


$

(13,478)






























Net Income (Loss) Per Share - Basic 


$

0.13


$

(0.32)


$

0.02


$

(0.97)


Net Income (Loss) Per Share - Diluted


$

0.13


$

(0.32)


$

0.02


$

(0.97)
















Weighted Average Shares Outstanding














Basic 



110,040,532



22,823,976



94,577,520



13,931,245


Diluted



110,041,378



22,823,976



94,591,619



13,931,245
















Comprehensive Income (Loss)














Net Income (Loss)


$

14,506


$

(7,304)


$

1,967



(13,469)


Unrealized foreign exchange (loss) gain from
cumulative translation adjustments



52



318



(619)



(295)


Comprehensive Income (Loss)


$

14,558


$

(6,986)


$

1,348


$

(13,764)


 

 

 

INPIXON AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(In thousands)










For the Six Months Ended



June 30,



2021


2020

(Unaudited)


Cash Flows Used In Operating Activities







  Net Income (loss)


$

1,967


$

(13,469)

Adjustments to reconcile net income (loss) to net cash used in operating activities:







Depreciation and amortization



625



384

Amortization of intangible assets



2,007



1,524

Amortization of right of use asset



370



356

Stock based compensation



7,149



685

Loss on exchange of debt for equity



30



132

Amortization of debt discount



224



1,909

Accrued interest income, related party



(1,627)



(32)

Unrealized gain on note



(490)



--

(Recovery) provision for the valuation allowance for held for sale loan



(7,345)



835

Provision for the valuation allowance for related party receivable



--



648

Gain on settlement of related party promissory note and loan related party receivable



(49,817)



--

Deferred income tax



(4,507)



(87)

Unrealized loss on equity securities



28,965



--

Other



57



21








Changes in operating assets and liabilities:







Accounts receivable and other receivables



532



(107)

Inventory



(555)



22

Prepaid expenses and other current assets



(319)



(905)

Other assets



203



(13)

Accounts payable



(331)



(1,539)

Accrued liabilities



2,494



(593)

Income tax liabilities



6,711



--

Deferred revenue



(238)



105

Operating lease obligation



(364)



(362)

Other liabilities



96



117

Net Cash Used in Operating Activities



(14,163)



(10,369)








Cash Flows Used in Investing Activities







   Purchase of property and equipment



(149)



(39)

Purchases of capitalized software



(373)



(433)

Purchases of other short term investments



(2,000)



--

Purchases of treasury bills



(63,362)



--

Sales of treasury bills



28,000



--

Purchase of Systat licensing agreement



(900)



--

Acquisition of Game Your Game



184



--

Acquisition of CXApp



(15,186)



--

Acquisition of Visualix



(61)



--

Net Cash Flows Used in Investing Activities



(53,847)



(472)








Cash From Financing Activities







Net repayments to bank facility



--



(150)

Net proceeds from issuance of common stock and warrants



77,853



41,771

Taxes paid related to net share settlement of restricted stock units



(1,687)



--

Net proceeds from notes payable



--



1

Loans to related party



(117)



(1,035)

Repayments from related party



--



200

Net proceeds from promissory notes



--



5,000

Repayment of CXApp acquisition liability



(137)



--

Repayment of acquisition liability to Nanotron shareholders



(467)



--

Repayment of acquisition liability to Locality shareholders



(500)



(250)

Net Cash Provided By Financing Activities



74,945



45,537








Effect of Foreign Exchange Rate on Changes on Cash



(19)



(15)








Net Increase in Cash, Cash Equivalents and Restricted Cash



6,916



34,681








Cash, Cash Equivalents and Restricted Cash - Beginning of period



17,996



4,849








Cash, Cash Equivalents and Restricted Cash - End of period


$

24,912


$

39,530

 

 

 

Reconciliation of Non-GAAP Financial Measures:




















For the Three Months Ended


For the Six Months Ended

(In thousands)


June 30,


June 30,


2021


2020


2021


2020










Net loss attributable to common stockholders


14,759


(7,323)


2,202


(13,478)

Adjustments:









Non-recurring one-time charges:









Loss on exchange of debt for equity


-


47


30


132

(Recovery) provision for valuation allowance on held for sale loan


(7,462)


835


(7,345)


835

Provision for the valuation allowance related party receivable


-


648


-


648

Gain on related party loan held for sale


(49,817)


-


(49,817)


-

Unrealized loss on equity securities


28,965


-


28,965


-

Acquisition transaction/financing costs


535


169


1,005


196

Earn out  Compensation Expense


2,059


-


2,059


-

Professional service fees


422


-


771


-

Unrealized gain on note


(128)


-


(491)


-

Stock-based compensation – compensation and related benefits


2,053


286


7,149


685

Interest expense, net


(1,555)


777


(1,206)


1,397

Income tax provision (benefit)


2,195


-


2,204


(87)

Depreciation and amortization


1,695


682


2,638


1,908

Adjusted EBITDA


(6,279)


(3,879)


(11,836)


(7,764)












For the Three Months Ended


For the Six Months Ended

(In thousands, except share data)


June 30,


June 30,


2021


2020


2021


2020










Net income (loss) attributable to common stockholders


14,759


(7,323)


2,202


(13,478)

Adjustments:









Non-recurring one-time charges:









Loss on exchange of debt for equity


-


47


30


132

(Recovery) provision for valuation allowance on held for sale loan


(7,462)


835


(7,345)


835

Provision for the valuation allowance related party receivable


-


648


-


648

Gain on related party loan held for sale


(49,817)


-


(49,817)


-

Unrealized loss on equity securities


28,965


-


28,965


-

Acquisition transaction/financing costs


535


169


1,005


196

Earnout compensation expense


2,059


-


2,059


-

Professional service fees


422


-


771


-

Unrealized gain on note


(128)


-


(491)


-

Stock-based compensation – compensation and related benefits


2,053


286


7,149


685

Amortization of intangibles


1,361


508


2,011


1,524

Proforma non-GAAP net loss


(7,253)


(4,830)


(13,461)


(9,458)










Proforma non-GAAP net loss per share - Basic


(0.07)


(0.21)


(0.14)


(0.68)

Proforma non-GAAP net loss per share - Diluted


(0.07)


(0.21)


(0.14)


(0.68)

Weighted average shares outstanding









Basic


110,040,532


22,823,976


94,577,520


13,931,245

Diluted


110,041,378


22,823,976


94,591,619


13,931,245










 

 

 

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