XTI Aerospace, Inc. current report, 19 May 2017

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Business Context and Reporting Period

This Form 8-K is a current report filed by Inpixon (not XTI Aerospace, Inc.) on May 19, 2017. The filing addresses a regulatory notice received from The Nasdaq Stock Market regarding the company's compliance with listing standards.

Key Financial Metrics

The filing does not provide revenue, profit, cash flow, or margin data. The only specific financial metric disclosed is stockholders' equity.

  • Stockholders' Equity: ($2,483,000) as of March 31, 2017 (reported in the Form 10-Q).
  • Minimum Requirement: $2,500,000 (Nasdaq Listing Rule 5550(b)(1)).

Material Changes and Listing Status

On May 19, 2017, Inpixon received written notice from Nasdaq stating it failed to maintain the minimum stockholders' equity requirement. Consequently, the company is currently non-compliant with Nasdaq Listing Rule 5550(b)(1). The notice has no immediate effect on the listing of the company's common stock on The Nasdaq Capital Market.

Outlook, Risks, and Management Commentary

Compliance Plan and Timeline:

  • The company has 45 days (until July 3, 2017) to submit a plan to regain compliance.
  • If the plan is accepted, Nasdaq may grant an extension of up to 180 days (until November 15, 2017) to evidence compliance.
  • If the plan is rejected, the company has the right to appeal to a Nasdaq hearings panel.
Risks and Uncertainties:
  • There is no assurance that Nasdaq will accept the company's plan.
  • There is no assurance the company will be able to regain or maintain compliance with the equity requirement or other Nasdaq standards.
  • Forward-looking statements regarding the intent to provide a plan and the ability to regain compliance are subject to significant uncertainty.

Investor Verification Checklist

  • Verify the company name is Inpixon, not XTI Aerospace, Inc.
  • Confirm the exact stockholders' equity figure of ($2,483,000) from the Form 10-Q for the period ended March 31, 2017.
  • Monitor the submission of the compliance plan by the July 3, 2017 deadline.
  • Watch for any subsequent filings regarding Nasdaq's acceptance or rejection of the compliance plan.
  • Review the company's broader financial health to understand the causes of the negative equity position.