Leases

12 Months Ended

Dec. 31, 2024

Leases [Abstract]

Leases

Note 22 – Leases

The Company has operating leases for administrative offices in the United States (Colorado) and Germany.

As part of the XTI Merger, the Company acquired right-of-use assets and lease liabilities related to an operating lease for an office space (the IntraNav office) located in Frankfurt, Germany. The original term of the lease expired on January 6, 2025, at which time the lease converted to month-to-month at a rate of $10,298 (€9,890) per month. The lease will continue indefinitely until either party provides 180-day written notice of termination.

As part of the XTI Merger, the Company acquired right-of-use assets and lease liabilities related to an operating lease for an office space (the Inpixon GmbH office) located in Berlin, Germany. The lease expired on March 31, 2025 and had a lease rate of $7,810 (€7,500) per month up to the expiration date. Subsequent to the March 31, 2025 expiration, the Inpixon GmbH office personnel moved to a new location in Berlin. The lease rate at the new location is $3,897 (€3,742) per month. The new lease expires on March 31, 2026.

On January 1, 2024, the Company entered into a lease agreement for its new corporate office location in Englewood, Colorado. This lease expires on January 31, 2028 and the current lease rate is $10,630 per month as of the date of this filing.

The Company has no other operating or financing leases with terms greater than 12 months.

Right-of-use assets are summarized below (in thousands):

	As of December 31, 2024			As of December 31, 2023
Englewood, CO Office	$	394		$	—
Berlin, Germany Office		91			—
Frankfurt, Germany Office		87			—
Less accumulated amortization		(232	)		—
Right-of-use asset, net	$	340		$	—

Lease expense for operating leases recorded in the balance sheet is included in operating costs and expenses and is based on the future minimum lease payments recognized on a straight-line basis over the term of the lease plus any variable lease costs. Operating lease expenses, inclusive of short-term and variable lease expenses, recognized in our consolidated statements of operations for the years ended December 31, 2024 and 2023 was $0.4 million and $0.0 million, respectively.

During the years ended December 31, 2024 and 2023, the Company recorded $0.3 million and $0.0 million, respectively, as rent expense to the right-of-use assets.

During the years ended December 31, 2024 and 2023, the Company recorded short-term lease expenses of $0.04 million and $0.00 million, respectively. During the years ended December 31, 2024 and 2023, the Company recorded variable lease expenses of $0.02 million and $0.00 million, respectively.

Lease liability is summarized below (in thousands):

	As of December 31, 2024			As of December 31, 2023
Total lease liability	$	350		$	—
Less: short term portion		(119	)		—
Long term portion	$	231		$	—

Maturity analysis under the lease agreement is as follows (in thousands):

Year ending December 31, 2025	$	145
Year ending December 31, 2026		118
Year ending December 31, 2027		124
Year ending December 31, 2028		10
Total	$	397
Less: Present value discount		(47	)
Lease liability	$	350

Operating lease liabilities are based on the net present value of the remaining lease payments over the remaining lease term. In determining the present value of lease payments, the Company used its incremental borrowing rate based on the information available at the date of adoption of Topic 842. As of December 31, 2024, the weighted average remaining lease term is 2.8 years and the weighted average discount rate used to determine the operating lease liabilities was 8.6%.