Subsequent Events (Tables)

12 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

Unaudited Pro Forma Financial Statements

INPIXON AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED BALANCE SHEET
As of December 31, 2022
(In thousands, except number of shares and par value data)
	Inpixon and Subsidiaries Historical (a)		Enterprise Apps Discontinued Operations (b)		Pro Forma Adjustments		Note	Pro Forma Inpixon and Subsidiaries Continuing Operations
Assets
Current Assets
Cash and cash equivalents	$	20,235	$	(6,308)	$	(3,692)	(c)	$	10,235
Accounts receivable, net of allowances	3,227		(1,338)		—			1,889
Other receivables	359		(273)		—			86
Inventory	2,442		—		—			2,442
Note receivable	150		—		—			150
Prepaid expenses and other current assets	3,453		(650)		—			2,803
Total Current Assets	29,866		(8,569)		(3,692)			17,605
Property and equipment, net	1,266		(202)		—			1,064
Operating lease right-of-use asset, net	1,212		(681)		—			531
Software development costs, net	1,752		(487)		—			1,265
Investments in equity securities	330		—		—			330
Long-term investments	716		—		(716)		(d)	—
Intangible assets, net	22,283		(19,289)		—			2,994
Other assets	210		(52)		—			158
Total Assets	$	57,635	$	(29,280)	$	(4,408)		$	23,947
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable	$	2,557	$	(1,054)	$	—		$	1,503
Accrued liabilities	4,355		(1,736)		—			2,619
Operating lease obligation, current	477		(266)		—			211
Deferred revenue	3,485		(2,162)		—			1,323
Short-term debt	13,643		—		—			13,643
Acquisition liability	197		(197)		197		(e)	197
Total Current Liabilities	24,714		(5,415)		197			19,496
Long Term Liabilities

Operating lease obligation, noncurrent	778		(444)		—			334
Other liabilities, noncurrent	28		(30)		—			(2)
Total Liabilities	25,520		(5,889)		197			19,828
Commitments and Contingencies
Mezzanine Equity
Series 8 Convertible Preferred Stock- 53,197.7234 shares authorized, 0 issued and outstanding as of December 31, 2022.	—		—		—			—
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 outstanding as of December 31, 2022.	—		—		—			—
Series 5 Convertible Preferred Stock - 12,000 shares authorized; 126 issued and outstanding as of December 31, 2022.	—		—		—			—
Common Stock - $0.001 par value; 500,000,000 shares authorized; 3,570,894 issued and 3,570,893 outstanding as of December 31, 2022	4		—		—			4
Additional paid-in capital	346,668		—		—			346,668
Treasury stock, at cost, 1 share	(695)		—		—			(695)
Accumulated other comprehensive income	1,061		—		—			1,061
Accumulated deficit	(314,841)		(23,391)		(4,605)		(c), (d), (e)	(342,837)
Stockholders’ Equity Attributable to Inpixon	32,197		(23,391)		(4,605)			4,201
Non-controlling Interest	(82)		—		—			(82)
Total Stockholders’ Equity	32,115		(23,391)		(4,605)			4,119
Total Liabilities, Mezzanine Equity and Stockholders’ Equity	$	57,635	$	(29,280)	$	(4,408)		$	23,947

INPIXON AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENTS OF OPERATIONS
For the year ended December 31, 2022
(In thousands, except number of shares and par value data)
	Inpixon and Subsidiaries Historical (a)		Enterprise Apps Discontinued Operations (f)		Pro Forma Adjustments		Note	Pro Forma Inpixon and Subsidiaries Continuing Operations
Revenues	$	19,418	$	(8,470)	$	—		$	10,948
Cost of Revenues	5,489		(2,064)		—			3,425
Gross Profit	13,929		(6,406)		—			7,523
Operating Expenses
Research and development	17,661		(9,323)		—			8,338
Sales and marketing	8,872		(5,096)		100		(g)	3,876
General and administrative	26,060		(11,571)		1,031		(g)	15,520
Acquisition-related costs	426		(16)		—			410
Impairment of goodwill and intangibles	12,199		(5,540)		—			6,659
Amortization of intangibles	5,411		(3,885)		—			1,526
Total Operating Expenses	70,629		(35,431)		1,131			36,329
Loss from Operations	(56,700)		29,025		(1,131)			(28,806)
Other Income (Expense)
Interest expense, net	(673)		(4)		—			(677)
Other expense, net	692		1		—			693
Unrealized loss on equity securities	(7,904)		—		—			(7,904)
Unrealized loss on equity method investment	(1,784)		—		—			(1,784)
Total Other Expense	(9,669)		(3)		—			(9,672)
Net Loss, before tax	(66,369)		29,022		(1,131)			(38,478)
Income tax provision	65		153					218
Net Loss	(66,304)		29,175		(1,131)			(38,260)
Net Loss Attributable to Non-controlling Interest	(2,910)		—		—			(2,910)
Net Loss Attributable to Stockholders of Inpixon	(63,394)		29,175		(1,131)			(35,350)
Accretion of Series 7 preferred stock	(4,555)		—		—			(4,555)

Accretion of Series 8 Preferred Stock	(13,090)		—		—		(13,090)
Deemed dividend for the modification related to Series 8 Preferred Stock	(2,627)		—		—		(2,627)
Deemed contribution for the modification related to Warrants issued in connection with Series 8 Preferred Stock	1,469		—		—		1,469
Amortization premium- modification related to Series 8 Preferred Stock	2,627		—		—		2,627
Net Loss Attributable to Common Stockholders	$	(79,570)	$	29,175	$	(1,131)	$	(51,526)
Basic and diluted loss per share	$	(34.12)					$	(22.09)
Weighted Average Shares Outstanding, basic and diluted	2,332,041						2,332,041

The following is a summary of the unaudited pro forma adjustments reflected in the unaudited pro forma consolidated financial statements based on preliminary estimates, which may change as additional information is obtained.

a.Reflects amounts reported by the Company within its Annual Report on Form 10-K for the year ended December 31, 2022.

b.Reflects the elimination of the Enterprise Apps Business assets, liabilities, and historical balances within the Company's consolidated financial statements that were discontinued as result of the Business Combination. The Company notes $69 million of consideration was to be received by the Company in connection with the Business Combination. The consideration was paid directly to the shareholders of the Company, and no adjustment was included in the unaudited pro forma consolidated balance sheet as a result.

c.Reflects adjustments for remaining cash contribution of $3.7 million to reach $10 million cash balance for Enterprise Apps Business in accordance with the Separation and Distribution Agreement.

d.Reflects adjustments to the Company's investment in Class A and Class B Units of Cardinal Ventures Holdings LLC, which has certain interests in the sponsor of KINS. The Company distributed its ownership interests to certain employees and members of management on February 28, 2023 as a pre-requisite to the Business Combination.

e.Reflects adjustment for acquisition liability that is within the Enterprise Apps Business, but will be retained by the Company subsequent to the Enterprise Apps Spin-off.

f.Reflects the elimination of the historical revenue and expenses directly related to the Enterprise Apps Business that will not recur in the Company combined statement of operations as a result of the Enterprise Apps Spin-off.

g.Reflects management’s estimates of approximately $1.1 million of historical costs mainly for executive salaries and benefits in general and administrative expenses ($1.0 million) and sales and marketing expenses ($0.1 million) that were allocated to Enterprise Apps Business. The historical costs were added back to the statement of operations for the year ended December 31, 2022 as the costs would be incurred by the Company.