Discontinued Operations

9 Months Ended

Sep. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On March 14, 2023, the Company completed the divestiture of its Enterprise Apps Business and certain related assets and liabilities through a spin-off of CXApp Holding Corp., a Delaware corporation ("Legacy CXApp") to Inpixon’s shareholders of record as of March 6, 2023 (the “Record Date”) on a pro rata basis. This Enterprise Apps Spin-off was considered a strategic shift that has a major impact on the Company, and therefore, the results of operations are recorded as a component of "Earnings (loss) from discontinued operations, net of income taxes" in the Condensed Consolidated Statements of Operations for all periods presented. The Company noted that Legacy CXApp was part of the Company’s Indoor Intelligence segment. The net assets distributed as a result of the Enterprise Apps Spin-off was $24.2 million. Included within the $24.2 million dividend recorded to Additional Paid in Capital as a result of the deconsolidation of CXApp through distribution to shareholders recorded during the three months ended March 31, 2023, is approximately $1.2 million in accumulated other comprehensive income that was recognized as a result of those distributed assets and liabilities included in the foreign operations of CXApp.

	Three Months Ended September 30, 2022		Nine Months Ended September 30, 2023		Nine Months Ended September 30, 2022
Revenues	$	1,742	$	1,620	$	6,473
Cost of Revenues	499		483		1,628
Gross Profit	1,243		1,137		4,845
Operating Expenses
Research and development	2,508		1,514		6,929
Sales and marketing	1,121		988		3,797
General and administrative	3,767		1,644		11,207
Earnout compensation benefit	—		—		(2,827)
Acquisition related costs	—		—		16
Transaction costs	—		1,043		—
Impairment of goodwill	—		—		5,540
Amortization of intangibles	971		805		2,919
Total Operating Expenses	8,367		5,994		27,581
Loss from Operations	(7,124)		(4,857)		(22,736)
Interest (expense)/income, net	(6)		1		3
Other income/(expense)	9		—		9
Total Other Income (Expense)	3		1		12
Loss from discontinued operations, before tax	(7,121)		(4,856)		(22,724)
Income tax provision	—		—		(62)
Loss from discontinued operations, net of tax	$	(7,121)	$	(4,856)	$	(22,786)

Cash used in operating activities by the Enterprise Apps Business totaled approximately $0.8 million and $14.6 million for the nine months ended September 30, 2023 and 2022, respectively. Cash provided by investing activities from the Enterprise Apps Business totaled approximately $0.1 million for the nine months ended September 30, 2023 and cash used in investing activities by the Enterprise Apps Business totaled approximately $0.4 million for the nine months ended September 30, 2022.

Note 25 - Discontinued Operations (continued)

The following table summarizes certain assets and liabilities of discontinued operations:

	As of December 31, 2022
Current Assets of Discontinued Operations
Cash and cash equivalents	$	10,000
Accounts receivable	1,338
Prepaid expenses and other current assets	923
Current Assets of Discontinued Operations	$	12,261
Long Term Assets of Discontinued Operations
Property and equipment, net	$	202
Operating Lease Right-of-Use Asset, net	681
Software development costs, net	487
Intangible assets, net	19,289
Other Assets	52
Long Term Assets of Discontinued Operations	$	20,711
Current Liabilities of Discontinued Operations
Accounts payable	$	1,054
Accrued liabilities	1,736
Operating lease obligation, current	266
Deferred revenue	2,162
Current Liabilities of Discontinued Operations	$	5,218
Long Term Liabilities of Discontinued Operations
Operating lease obligation, noncurrent	$	444
Other Liabilities, noncurrent	28
Long Term Liabilities of Discontinued Operations	$	472