Correction of Previously Issued Financial Statements

12 Months Ended

Dec. 31, 2021

Accounting Changes and Error Corrections [Abstract]

Correction of Previously Issued Financial Statements

The Company follows ASC Topic 250, Accounting Changes and Error Corrections, when accounting for accounting changes and errors in previously issued financial statements. The former is a change in accounting principle, a change in accounting estimates or a change in reporting entity. The latter is an error in recognition, measurement, presentation, or disclosure in financial statements resulting from mathematical mistakes, mistakes in the application of generally accepted accounting principles, or oversight or misuse of facts that existed at the time the financial statements were prepared.

Subsequent to the issuance of the Company’s consolidated and combined financial statements as of September 30, 2021 and 2020 (the “previously issued financial statements”), new information became available to management which required a re-evaluation of the Company’s historical application of ASC Topic 480, Distinguishing Liabilities from Equity (“ASC 480”), and ASC Topic 260, Earnings per Share (“ASC 260”) and concluded a accretion discount of the Series 7 preferred shares should have recorded been as a reduction to the Company’s Net Loss Attributable to Common Stockholders. The error also impacted the company’s Net Loss Per Share- Basic and Diluted calculation. Management evaluated the quantitative and qualitative impact of this accounting error and concluded it was not material to the Company’s previously issued financial statements. Notwithstanding this conclusion, management has revised the accompanying consolidated financial statements and related disclosures included herein to correct this accounting error for all periods presented, as well as the accompanying footnotes affected by the accounting error, which include additional disclosure or corresponding revisions to the Consolidated Statements. The correction of this accounting error had no effect on the Company’s previously reported revenues and operating loss.

The following tables summarize the effect of correcting this accounting error on the Company’s previously issued financial statements:


Consolidated Statement of Operations Information
	For the Three Months Ended September 30, 2021						For the Nine Months Ended September 30, 2021
	As Previously Issued		Adjustment		Corrected		As Previously Issued		Adjustment		Corrected
Net loss attributable to Stockholders of Inpixon	$	(33,640)	$	—	$	(33,640)	$	(31,438)	$	—	$	(31,438)
Accretion of Series 7 preferred stock	$	—	$	(2,962)	$	(2,962)	$	—	$	(2,962)	$	(2,962)
Net Loss Attributable to Common Stockholders	$	(33,640)	$	(2,962)	$	(36,602)	$	(31,438)	$	(2,962)	$	(34,400)
Net Loss Per Share - Basic and Diluted	$	(0.29)	$	(0.02)	$	(0.31)	$	(0.31)	$	(0.03)	$	(0.34)