Business context and reporting period
This is Inpixon’s Form 10-K for the fiscal year ended December 31, 2021, filed March 16, 2022—not a quarterly report. The filing identifies the registrant as Inpixon (Nasdaq: INPX); it does not identify XTI Aerospace as the filer. Inpixon sells indoor positioning, mapping, analytics, workplace-app and industrial RTLS products, alongside Shoom media-publishing software and SAVES scientific software. It completed several acquisitions in 2021, including CXApp and IntraNav.
Financial performance and liquidity
| Metric | 2021 | 2020 |
|---|---|---|
| Revenue | $16.0 million | $9.3 million |
| Gross profit / margin | $11.6 million / 73% | $6.7 million / 72% |
| Operating expenses | $84.2 million | $30.5 million |
| Operating loss | $72.6 million | $23.8 million |
| Net loss | $70.1 million | $29.2 million |
| Net loss attributable to Inpixon stockholders | $69.2 million | $29.2 million |
| Net loss attributable to common stockholders; basic and diluted loss per share | $77.3 million; $0.72 | $29.2 million; $1.01 |
| Net cash used in operating activities | $37.1 million | $20.6 million |
| Cash and cash equivalents at year-end | $52.5 million | $18.0 million |
| Short-term investments at year-end | $43.1 million | $8.0 million |
| Working capital surplus at year-end | $78.8 million | $18.2 million |
Revenue grew 72%, primarily from Indoor Intelligence and SAVES; Shoom revenue was broadly flat. Indoor Intelligence revenue was $11.0 million, SAVES $2.9 million and Shoom $2.0 million. The 2021 gross margin rose slightly, but operating expenses grew substantially, reflecting acquisitions, stock-based compensation, earnout expense, amortization and a $14.8 million goodwill impairment. Adjusted EBITDA loss, a non-GAAP measure, widened to $29.6 million from $17.1 million.
Cash flow from investing activities was an outflow of $53.5 million, while financing activities provided $125.0 million, largely from securities offerings and warrant exercises. The company raised approximately $128 million in net proceeds from securities sales and warrant exercises during 2021. Year-end current liabilities included $3.5 million of short-term debt and $5.1 million of acquisition liabilities. The March 2020 note carried a 10% interest rate; subsequent exchanges and an extension moved its maturity to March 18, 2023. The filing states that available resources were expected to cover operating and other requirements for at least 12 months from issuance of the financial statements, while also warning that further capital may be needed.
Material changes versus the prior comparable period
- Revenue increased by $6.7 million, or 72%; management attributed much of the growth to acquired businesses and expanded product lines.
- Operating expenses rose by $53.8 million; the company recorded $14.8 million of goodwill impairment and $10.9 million of stock-based compensation, compared with $1.2 million in 2020.
- Operating cash use increased to $37.1 million from $20.6 million.
- Common shares outstanding rose from 53.2 million at December 31, 2020 to 124.4 million at December 31, 2021. The company also had substantial outstanding options and warrants, creating potential dilution.
- The Sysorex debt settlement produced a reported $49.8 million gain and $1.6 million of interest income, but the received securities were later marked down, generating a $57.1 million unrealized loss. The filing reports the securities at $1.8 million fair value at year-end.
Outlook, risks and unusual items
Management said it expected Indoor Intelligence growth to continue in 2022 and anticipated improving sales cycles as adoption broadened. It described ongoing investment in machine learning and AI for positioning, 5G-related detection, LIDAR and 3D mapping, augmented reality, and app and analytics capabilities. The filing provides no quantified revenue, earnings or cash-flow guidance. The board was reviewing strategic alternatives, including a possible asset sale, merger or spin-off; the company said it was evaluating a preliminary inbound indication of interest.
A significant near-term liquidity contingency was the Series 7 preferred stock’s cash redemption right. The maximum stated redemption amount was $49.25 million; by the filing date, holders had submitted notices for $33.0 million, and the company reported that those shares had been redeemed, with 19.8 million related warrants forfeited. Redemption terms included potential higher amounts upon certain defaults and an 18% default interest rate cap. The company also had a minimum-cash requirement tied to the preferred stock through June 14, 2022.
Other material risks include a history of losses and dependence on external financing; acquisition integration and impairment risk; COVID-related supply-chain costs and project delays; customer concentration and long sales cycles; data privacy, cybersecurity and technology risks; and potential dilution from equity issuance, warrants and options. Nasdaq had notified the company of a minimum-bid-price deficiency, with an April 25, 2022 deadline to regain compliance. Management reported effective disclosure controls and internal control over financial reporting; the auditor’s report did not express an opinion on internal-control effectiveness. The auditor issued an unqualified opinion on the financial statements and identified goodwill impairment and acquisition-intangible valuation as critical audit matters.
Key facts investors should verify
- Confirm the issuer and period: this filing is Inpixon’s FY2021 Form 10-K, not an XTI Aerospace filing or a Q4-only report.
- Track the cash impact and completion status of Series 7 redemptions, remaining preferred shares and the minimum-cash covenant.
- Review operating cash burn, financing needs, debt maturities and the terms of any subsequent note exchanges or financings.
- Assess whether acquired businesses can deliver sustainable organic growth and whether goodwill and intangible assets remain recoverable.
- Reconcile the Sysorex settlement’s reported gain and subsequent unrealized loss, including realizability and liquidity of the remaining securities.
- Monitor share-count changes, warrant and option overhang, and dilution from acquisition earnouts and financing transactions.
- Check Nasdaq bid-price compliance and any developments from the strategic-alternatives review.