PALO ALTO, Calif. and
TORONTO, May 11, 2020 /PRNewswire/ -- Inpixon (Nasdaq:
INPX), a leading indoor data company that specializes in delivering
indoor intelligence, today provided a business update and reported
financial results for the first quarter of 2020.
Nadir Ali, CEO of Inpixon,
commented, "In light of the unprecedented times resulting from the
impact of COVID-19 on organizations and businesses throughout the
world, I'm pleased to report a 32% increase in revenue year over
year when compared to the same period last year, driven primarily
by our mapping capabilities and solutions. With the help and
dedication of all of our employees who have had to work harder than
ever to balance work responsibilities with the challenges of family
life during extremely difficult times, we have been able to
seamlessly continue our business operations remotely, with minimal
impact on our day-to-day operations. In addition, while the
ultimate impact of the pandemic on our results of operations is
uncertain and difficult to predict, we believe we are well
positioned to fill a critical need in today's world with essential
tools and technologies to assist organizations with solutions that
enhance the safety, security and well-being of their employees and
visitors. In his daily briefing today, we heard Governor Cuomo, in
New York, indicate that businesses will have to implement
safety precautions to bring employees back to work with processes
and procedures to address crowding and density. Our solution
can support these necessary efforts by businesses to monitor
physical distancing, facilitate digital contact tracing for the
purpose of exposure notification, and identify areas within their
facilities in which to focus increased cleaning efforts."
Recent milestones:
- Secured new customer relationships to deliver our mapping and
wayfinding solutions to a variety of elite organizations including
a large destination resort, a company with dozens of shopping
centers in Europe and Asia, and a leading mental healthcare facility
in North America
- Expanded our partner and distribution relationships with the
addition of Unified Systems, a systems integration company
specializing in the design, installation and maintenance of
IP-based technologies for companies within various marketplaces
including gaming facilities, commercial and industrial companies,
as well as government and public agencies, as an authorized
reseller
- Expanded collaboration and product integration activities with
Mist Systems, a Juniper Networks Company, to integrate our new
Ultra-Wideband (UWB) technology into their enterprise wireless
infrastructure solutions
- Received an order for our Inpixon Sensor 4000 products from
Sengex, evidencing the continued recognition in the government
sector of the value of our technology for increasing security by
assisting in complying with regulations that mandate government
agencies to take actions to mitigate mobile device security
- Recognized as a Visionary in the 2020 Gartner Magic Quadrant
for Indoor Location Services, Global
- Won IoT Sensor Product of the Year Award
- Expanded patent protection for mobile device tracking and
management into Canada
Financial Results
Revenues for the first quarter ended March 31, 2020 were $1.8
million compared to $1.36
million for the comparable period in the prior year, for an
increase of $441,000, or
approximately 32%. The revenue increase was primarily due to an
increase in revenue from mapping services. Gross margin for three
months ended March 31, 2020 was 72%
compared to 75% for the for the three months ended March 31, 2019. This decrease in margin is
primarily due to lower margins associated with the increase in
mapping services as a percentage of revenue during the first
quarter ended March 31,
2020. Net loss attributable to stockholders for the three
months ended March 31, 2020 was
$6.2 million compared to a loss of
$5.2 million for the comparable
period in the prior year. The higher loss of approximately
$1.0 million was primarily
attributable to higher gross profit offset by higher operating and
interest expense during the first quarter ended March 31, 2020. Non-GAAP Adjusted EBITDA for the
three months ended March 31, 2020 was
a loss of $3.9 million compared to a
loss of $2.6 million for the prior
period in 2019. 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 non-cash stock-based compensation.
Proforma non-GAAP net loss per basic and diluted common share
for the three months ended March 31,
2020 was a loss of ($0.92) per
share compared to a loss of ($31.98)
per share for the prior period in 2019. Proforma non-GAAP net
income (loss) per share is used by the Company's management as an
evaluation tool as it manages the business and is defined as net
income (loss) per basic and diluted share adjusted for stock based
compensation, amortization of intangibles, provision for doubtful
accounts, severance costs, acquisition costs, costs associated with
public offerings and one time charges including loss on the
exchange of debt for equity and provision for valuation allowance
on held for sale loan.
Conference Call
Management will host a conference call at 4:30 p.m. Eastern Time on Monday, May 11, 2020 to
discuss the Company's financial results, as well as the Company's
corporate progress and other developments.
The conference call will be available via telephone by dialing
toll free 888-669-0684 for U.S. callers or +1
862-298-0702 for international callers, or on the Company's
Investors section of the website: ir.inpixon.com.
A webcast replay will be available on the Company's Investors
section of the website, ir.inpixon.com, through May 11, 2021. A telephone replay of the call will
be available approximately one hour following the call, through
May 18, 2020, 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: 34798.
About Inpixon
Inpixon® (Nasdaq: INPX) is an indoor intelligence company that
specializes in capturing, interpreting and giving context to indoor
data so it can be translated into actionable intelligence. The
company's indoor location and data platform ingests diverse data
from IoT, third-party and proprietary sensors designed to detect
and position active cellular, Wi-Fi, UWB and Bluetooth devices.
Paired with a high-performance data analytics engine, patented
algorithms, and advanced mapping technology, Inpixon's solutions
are leveraged by a multitude of industries to do good with indoor
data. This multidisciplinary depiction of indoor data enables users
to increase revenue, decrease costs, and enhance safety. Inpixon
customers can boldly take advantage of location awareness,
analytics, sensor fusion and the Internet of Things (IoT) to
uncover the untold stories of the indoors. For the latest insights,
follow Inpixon on LinkedIn, Twitter, 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 our results of operations, 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, including during a panel
monitoring period ending on February 5,
2021, 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. EBITDA, 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 the matrix in which it manages
the business and Inpixon defines "Adjusted EBITDA" as EBITDA plus
adjustments for deemed dividends, 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 deemed
dividends, stock based compensation, amortization of intangibles,
provision for doubtful accounts, severance costs, acquisition
costs, costs associated with public offerings and one time
charges including loss on the exchange of debt for equity and
provision for valuation allowance on held for sale loan.
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 in this press
release.
INPIXON AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In thousands,
except number of shares and par value data)
|
|
|
|
|
|
|
|
|
|
As
of
|
|
|
March 31,
2020
|
|
December 31,
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash and
cash equivalents
|
|
$
|
6,111
|
|
$
|
4,777
|
Accounts
receivable, net
|
|
|
1,484
|
|
|
1,108
|
Notes and
other receivables
|
|
|
76
|
|
|
74
|
Inventory
|
|
|
370
|
|
|
400
|
Prepaid assets
and other current assets
|
|
|
334
|
|
|
406
|
Total Current
Assets
|
|
|
8,375
|
|
|
6,765
|
|
|
|
|
|
|
|
Property and
equipment, net
|
|
|
119
|
|
|
145
|
Operating lease
right-of-use asset, net
|
|
|
1,375
|
|
|
1,585
|
Software development
costs, net
|
|
|
1,533
|
|
|
1,544
|
Intangible assets,
net
|
|
|
6,876
|
|
|
8,400
|
Goodwill
|
|
|
1,921
|
|
|
2,070
|
Receivable from
related party
|
|
|
632
|
|
|
616
|
Other
assets
|
|
|
107
|
|
|
94
|
Total
Assets
|
|
$
|
20,938
|
|
$
|
21,219
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,794
|
|
$
|
2,383
|
Accrued
liabilities
|
|
|
1,713
|
|
|
1,863
|
Operating
lease obligation
|
|
|
634
|
|
|
776
|
Deferred
revenue
|
|
|
877
|
|
|
912
|
Short-term
debt
|
|
|
9,028
|
|
|
7,304
|
Acquisition
liability
|
|
|
502
|
|
|
502
|
Total Current
Liabilities
|
|
|
14,548
|
|
|
13,740
|
|
|
|
|
|
|
|
Long Term
Liabilities
|
|
|
|
|
|
|
Operating
lease obligations, noncurrent
|
|
|
768
|
|
|
837
|
Other
liabilities
|
|
|
7
|
|
|
7
|
Deferred tax
liability, noncurrent
|
|
|
--
|
|
|
87
|
Acquisition
liability, noncurrent
|
|
|
500
|
|
|
500
|
Total
Liabilities
|
|
|
15,823
|
|
|
15,171
|
|
|
|
|
|
|
|
Commitments and
Contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders'
Equity
|
|
|
|
|
|
|
Pref Stock -
$0.001 par value; 5,000,000 shares auth, consisting of Series 4
Convertible Pref Stock -
10,415 shares auth; 1 and 1 issued, and 1 and 1 outstanding as of
Mar. 31, 2020 and Dec. 31,
2019, respectively, Series 5 Convertible Pref Stock - 12,000 shares
auth; 126 and 126 issued, and 126
and 126 outstanding as of Mar. 31, 2020 and Dec. 31, 2019,
respectively.
|
|
|
--
|
|
|
--
|
Common Stock -
$0.001 par value; 250,000,000 shares authorized;
7,068,490 and 4,234,923 issued and
7,068,489 and 4,234,922 outstanding as of March 31, 2020 and December 31, 2019,
respectively.
|
|
|
7
|
|
|
4
|
Additional
paid-in capital
|
|
|
164,225
|
|
|
158,382
|
Treasury
stock, at cost, 1 share
|
|
|
(695)
|
|
|
(695)
|
Accumulated
other comprehensive income
|
|
|
(517)
|
|
|
94
|
Accumulated
deficit (excluding $2,442 reclassified to additional paid in
capital in quasi-reorganization)
|
|
|
(157,920)
|
|
|
(151,763)
|
Stockholders'
Equity Attributable to Inpixon
|
|
|
5,100
|
|
|
6,022
|
|
|
|
|
|
|
|
Non-controlling interest
|
|
|
15
|
|
|
26
|
|
|
|
|
|
|
|
Total
Stockholders' Equity
|
|
|
5,115
|
|
|
6,048
|
|
|
|
|
|
|
|
Total Liabilities
and Stockholders' Equity
|
|
$
|
20,938
|
|
$
|
21,219
|
INPIXON AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE
LOSS
|
(In thousands,
except per share data)
|
|
|
|
|
|
|
|
|
|
For the Three
Months
Ended
|
|
|
March 31,
|
|
|
2020
|
|
2019
|
|
|
(unaudited)
|
Revenues
|
|
$
|
1,804
|
|
$
|
1,363
|
Cost of
Revenues
|
|
|
510
|
|
|
337
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
1,294
|
|
|
1,026
|
|
|
|
|
|
|
|
Operating
Expenses
|
|
|
|
|
|
|
Research and
development
|
|
|
1,334
|
|
|
956
|
Sales and
marketing
|
|
|
691
|
|
|
633
|
General and
administrative
|
|
|
3,791
|
|
|
3,351
|
Acquisition-related costs
|
|
|
28
|
|
|
137
|
Amortization
of intangibles
|
|
|
1,016
|
|
|
812
|
Total Operating
Expenses
|
|
|
6,860
|
|
|
5,889
|
|
|
|
|
|
|
|
Loss from
Operations
|
|
|
(5,566)
|
|
|
(4,863)
|
|
|
|
|
|
|
|
Other Income
(Expense)
|
|
|
|
|
|
|
Interest
expense, net
|
|
|
(621)
|
|
|
(356)
|
Loss on
exchange of debt for equity
|
|
|
(86)
|
|
|
--
|
Other
income/(expense)
|
|
|
18
|
|
|
69
|
Total Other Income
(Expense)
|
|
|
(689)
|
|
|
(287)
|
|
|
|
|
|
|
|
Net Loss from
Operations, before tax
|
|
|
(6,255)
|
|
|
(5,150)
|
Income tax
benefit
|
|
|
87
|
|
|
--
|
Net
Loss
|
|
|
(6,168)
|
|
|
(5,150)
|
|
|
|
|
|
|
|
Net Loss
Attributable to Non-controlling Interest
|
|
|
(10)
|
|
|
(5)
|
|
|
|
|
|
|
|
Net Loss
Attributable to Stockholders of Inpixon
|
|
$
|
(6,158)
|
|
$
|
(5,145)
|
|
|
|
|
|
|
|
Deemed
dividend for triggering of warrant down round feature
|
|
|
--
|
|
|
(1,250)
|
Net Loss
Attributable to Common Stockholders
|
|
$
|
(6,158)
|
|
$
|
(6,395)
|
|
|
|
|
|
|
|
Net Loss Per Share
- Basic and Diluted
|
|
$
|
(1.22)
|
|
$
|
(64.01)
|
|
|
|
|
|
|
|
Weighted Average
Shares Outstanding
|
|
|
|
|
|
|
Basic and
Diluted
|
|
|
5,038,515
|
|
|
99,903
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive
Loss
|
|
|
|
|
|
|
Net Loss
|
|
$
|
(6,168)
|
|
$
|
(5,150)
|
Unrealized
foreign exchange gain/(loss) from cumulative translation
adjustments
|
|
|
(613)
|
|
|
(8)
|
Comprehensive
Loss
|
|
$
|
(6,781)
|
|
$
|
(5,158)
|
INPIXON AND
SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
|
|
|
March
31,
|
|
|
2020
|
|
2019
|
|
Cash Flows Used In
Operating Activities
|
|
|
|
|
|
|
Net
loss
|
|
$
|
(6,168)
|
|
$
|
(5,150)
|
Adjustment to
reconcile net loss to net cash used in operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
210
|
|
|
231
|
Amortization of
intangible assets
|
|
|
1,016
|
|
|
812
|
Amortization of right
of use asset
|
|
|
157
|
|
|
83
|
Stock based
compensation
|
|
|
399
|
|
|
890
|
Amortization of
technology
|
|
|
--
|
|
|
17
|
Loss on exchange of
debt for equity
|
|
|
86
|
|
|
--
|
Amortization of debt
discount
|
|
|
868
|
|
|
250
|
Accrued interest
income, related party
|
|
|
(16)
|
|
|
--
|
Provision for
doubtful accounts
|
|
|
--
|
|
|
105
|
Income tax
benefit
|
|
|
(87)
|
|
|
--
|
Other
|
|
|
29
|
|
|
79
|
|
|
|
|
|
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable
and other receivables
|
|
|
(416)
|
|
|
(639)
|
Inventory
|
|
|
29
|
|
|
(130)
|
Other current
assets
|
|
|
65
|
|
|
61
|
Other
assets
|
|
|
(16)
|
|
|
(100)
|
Accounts
payable
|
|
|
(568)
|
|
|
(12)
|
Accrued
liabilities
|
|
|
(113)
|
|
|
77
|
Deferred
revenue
|
|
|
31
|
|
|
(62)
|
Operating lease
liabilities
|
|
|
(156)
|
|
|
--
|
Other
liabilities
|
|
|
115
|
|
|
(5)
|
Total
Adjustments
|
|
|
1,633
|
|
|
1,657
|
Net Cash Used in
Operating Activities
|
|
|
(4,535)
|
|
|
(3,493)
|
|
|
|
|
|
|
|
Cash Flows Used in
Investing Activities
|
|
|
|
|
|
|
Purchase
of property and equipment
|
|
|
(16)
|
|
|
(16)
|
Investment in
capitalized software
|
|
|
(193)
|
|
|
(239)
|
Net Cash Flows
Used in Investing Activities
|
|
|
(209)
|
|
|
(255)
|
|
|
|
|
|
|
|
Cash Flows From
Financing Activities
|
|
|
|
|
|
|
Net repayments
to bank facility
|
|
|
(150)
|
|
|
(23)
|
Net proceeds
from issuance of common stock, preferred stock and
warrants
|
|
|
--
|
|
|
10,859
|
Net proceeds
from issuance of common stock
|
|
|
1,252
|
|
|
--
|
Net proceeds
from notes payable
|
|
|
1
|
|
|
(1)
|
Loans to
related party
|
|
|
(184)
|
|
|
(4,909)
|
Repayments
from related party
|
|
|
185
|
|
|
652
|
Net proceeds
from promissory notes
|
|
|
5,000
|
|
|
--
|
Net Cash Provided
By Financing Activities
|
|
|
6,104
|
|
|
6,578
|
|
|
|
|
|
|
|
Effect of Foreign
Exchange Rate on Changes on Cash
|
|
|
(27)
|
|
|
(8)
|
|
|
|
|
|
|
|
Net (Decrease)
Increase in Cash, Cash Equivalents and Restricted
Cash
|
|
|
1,333
|
|
|
2,822
|
|
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash - Beginning of period
|
|
|
4,849
|
|
|
1,148
|
|
|
|
|
|
|
|
Cash, Cash
Equivalents and Restricted Cash - End of period
|
|
$
|
6,182
|
|
$
|
3,970
|
Reconciliation of
Non-GAAP Financial Measures:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In
thousands)
|
|
Three Months
Ended
|
March
31,
|
|
|
2020
|
|
2019
|
Net loss attributable
to common stockholders
|
|
$
|
(6,158)
|
|
$
|
(6,395)
|
Adjustments:
|
|
|
|
|
|
|
Non-recurring
one-time charges:
|
|
|
|
|
|
|
Loss on exchange of
debt for equity
|
|
|
86
|
|
|
--
|
Settlement of
litigation
|
|
|
--
|
|
|
6
|
Acquisition
transaction/financing costs
|
|
|
28
|
|
|
137
|
Provision for
doubtful accounts
|
|
|
--
|
|
|
105
|
Deemed dividend for
triggering of warrant down round feature
|
|
|
--
|
|
|
1,250
|
Stock-based
compensation – compensation and related benefits
|
|
|
399
|
|
|
890
|
Interest expense,
net
|
|
|
621
|
|
|
356
|
Income tax
benefit
|
|
|
(87)
|
|
|
--
|
Depreciation and
amortization
|
|
|
1,226
|
|
|
1,043
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
(3,885)
|
|
$
|
(2,608)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands, except
share data)
|
|
Three Months
Ended
|
March
31,
|
|
|
2020
|
|
2019
|
Net loss attributable
to common stockholders
|
|
$
|
(6,158)
|
|
$
|
(6,395)
|
Adjustments:
|
|
|
|
|
|
|
Non-recurring
one-time charges:
|
|
|
|
|
|
|
Loss on exchange of
debt for equity
|
|
|
86
|
|
|
--
|
Settlement of
litigation
|
|
|
--
|
|
|
6
|
Acquisition
transaction/financing costs
|
|
|
28
|
|
|
137
|
Provision for
doubtful accounts
|
|
|
--
|
|
|
105
|
Deemed dividend for
triggering of warrant down round feature
|
|
|
--
|
|
|
1,250
|
Stock-based
compensation – compensation and related benefits
|
|
|
399
|
|
|
890
|
Amortization of
intangibles
|
|
|
1,016
|
|
|
812
|
Proforma non-GAAP net
loss
|
|
$
|
(4,629)
|
|
$
|
(3,195)
|
Proforma non-GAAP net
loss per basic and diluted common share
|
|
$
|
(0.92)
|
|
$
|
(31.98)
|
Weighted average
basic and diluted common shares outstanding
|
|
|
5,038,515
|
|
|
99,903
|
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SOURCE Inpixon