Conference Call to Be Held Today at 5:00 pm Eastern Time
PALO ALTO, Calif., Nov. 05, 2018 (GLOBE NEWSWIRE) -- Inpixon (NASDAQ: INPX), a leading indoor positioning and data analytics
company, today reported financial results for the third quarter ended September 30, 2018 and provided an update on corporate
developments.
Third Quarter 2018 Financial Highlights:
- 2018 Q3 revenue of $940,000
- 2018 Q3 gross margin of 68%
- 2018 Q3 GAAP net loss of $4.84 per share
- 2018 Q3 Proforma Non-GAAP net loss1 of $3.61 per share
- 2018 Q3 Non-GAAP Adjusted EBITDA1 loss of $3.4 million
“The successful spin-off of the value added reseller business during the third quarter of 2018 has immediately
resulted in an increase in stockholders’ equity and gross profit and a decrease in GAAP net
loss, even with the inclusion of two months of losses from the discontinued business. We anticipate that these improvements
will continue through the fourth quarter, which will represent the first full quarter following the completion of the
spin-off,” said Nadir Ali, CEO of Inpixon. “We are now exclusively focused on our indoor positioning analytics (“IPA”)
business prepared to execute on a strategy that we believe will position Inpixon as a leader in a multi-billion dollar
industry. We have been able to increase the number of our channel partners and customers in both the federal and commercial
sector resulting in a 67% increase in the number of purchase orders received in the third quarter of this year as
compared to the second quarter of 2018.”
Third Quarter 2018 Financial Results
Revenue: Net revenues for the three months ended September 30, 2018 were $940,000 compared to $871,000 for the
comparable period in the prior year. This $69,000 increase, or approximately 8%, is primarily associated with the increase in sales
from our IPA products.
Gross Profit: Gross profit for the three months ended September 2018 was $642,000 versus $604,000 for the same
period in 2017. This increase in gross profit is due to the additional higher margin IPA sales. The gross profit margin for
the three months ended September 30, 2018 was 68% compared to 69% during the three months ended September 30, 2017.
GAAP Net Loss: Net loss attributable to common stockholders of Inpixon for the three months ended September 30, 2018 was $5.2
million compared to $14.6 million for the prior year period. This decrease in loss of $9.4 million was primarily attributable to a
decrease in compensation and occupancy costs due to the downsizing of staff and office locations and a $7.8 million impairment of
goodwill charge included in deconsolidated operations.
Non-GAAP Net Loss1: Proforma non-GAAP net loss per basic and diluted common share for the three
months ended September 30, 2018 was ($3.61) compared to ($546.74) for the prior year period. These decreases are attributable to
the changes discussed in our results of operations.
Non-GAAP adjusted EBITDA1: Adjusted EBITDA for the three months ended September 30, 2018 was a loss
of $3.4 million compared to a loss of $3.1 million for the prior year period.
1 A reconciliation of GAAP to non-GAAP financial measures is provided in the financial statement
tables included in this press release. An explanation of these measures is also included under the heading “Non-GAAP
Financial Measures.”
Third Quarter 2018 Business Highlights and Recent Developments
- Inpixon signs wireless specialist ROCK Networks as Indoor Positioning Analytics reseller partner.
- Inpixon announces adding video camera data feed into indoor positioning analytics
- Inpixon appoints retail industry veteran Adam Benson as CTO
- Inpixon announced it has successfully completed the spin-off of its value-added reseller business, Sysorex, Inc.
(“Sysorex”). (Note: As a result, Inpixon and Sysorex are now two separate publicly traded companies.)
- Inpixon announced NuVision Technologies has contracted to purchase Inpixon Indoor Positioning Analytics (IPA).
- Inpixon recently provided a technology update on blockchain, voice-user interface, artificial intelligence, and Amazon Web
Services.
All results summarized in this press release (including the financial statement tables) should be considered
preliminary, are qualified in their entirety by the financial statement tables included in this press release and are subject to
change. Please refer to Inpixon’s Quarterly Report on Form 10-Q for the period ended September 30, 2018, which will be filed with
the U.S. Securities and Exchange Commission on or about November 5, 2018.
Conference Call Information
Management will host a conference call on Monday, November 5, 2018, at 5:00pm Eastern Time to review financial
results, corporate highlights and provide an update on developments. Following management’s formal remarks, there will be a
question and answer session for Equity Analysts.
To listen to the conference call, interested parties within the U.S. should call 1-844-824-3831. International
callers should call +1-412-317-5141. All callers should ask for the Inpixon conference call. The conference call will also be
available through a live webcast, which can be accessed at https://services.choruscall.com/links/inpx181101.html or via the
company’s website at http://client.irwebkit.com/inpixon/events.
A replay of the call will be available approximately one hour after the end of the call through December 1,
2018. The replay can be accessed via Inpixon’s website or by dialing 1-877-344-7529 (U.S.) or +1-412-317-0088 (international). The
replay conference playback code is 10125897.
About Inpixon
Inpixon (Nasdaq: INPX) is a leader in Indoor Positioning Analytics (IPA). Inpixon IPA Sensors are designed to
find all accessible cellular, Wi-Fi, and Bluetooth devices anonymously. Paired with a high-performance data analytics platform,
this technology delivers visibility, security, and business intelligence on any commercial or government location worldwide.
Inpixon’s products and professional services group help customers take advantage of mobile, big data, analytics, and the Internet
of Things (IoT) to uncover the untold stories of the indoors. For the latest insight on IPA, follow Inpixon on LinkedIn, @InpixonHQ
on Twitter, and visit inpixon.com.
Safe Harbor Statement
All statements in this release that are not based on historical fact are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995 and the provisions of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as amended. While management has based any forward-looking
statements included in this release on its current expectations, the information on which such expectations were based may change.
These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks,
uncertainties and other factors, many of which are outside of the control of Inpixon and its subsidiaries, which could cause actual
results to materially differ from such statements. Such risks, uncertainties, and other factors include, but are not limited to,
the fluctuation of global economic conditions, the performance of management and employees, ability to obtain financing,
competition, general economic conditions and other factors that are detailed in our periodic and current reports available for
review at sec.gov. Furthermore, we operate in a highly competitive and rapidly changing environment where new and unanticipated
risks may arise. Accordingly, investors should not place any reliance on forward-looking statements as a prediction of actual
results. We disclaim any intention to, and undertake no obligation to, update or revise forward-looking statements.
Non-GAAP Financial Measures
Management believes that certain financial measures not in accordance with generally accepted accounting
principles in the United States (“GAAP””) are useful measures of operations. EBIDTA, Adjusted EBITDA and pro forma net loss per
share are non-GAAP measures. Inpixon defines “EBITDA” as net income (loss) before interest, provision for (benefit from) income
taxes, and depreciation and amortization. Management uses Adjusted EBITDA as the matrix in which it manages the business and
Inpixon defines “Adjusted EBITDA” as EBITDA plus adjustments for other income or expense items, non-recurring items and non-cash
stock-based compensation. Inpixon defines “pro forma net loss per share” as GAAP net loss per share adjusted for non-cash items
including stock-based compensation, amortization of intangibles and one time charges including gain/loss on the settlement of
obligations, severance costs, change in the fair value of derivative liability, acquisition costs and the costs associated with
public offerings.
Management provides Adjusted EBITDA and pro forma net loss per share measures so that investors will have the
same financial information that management uses, which may assist investors in assessing Inpixon’s performance on a
period-over-period basis. Adjusted EBITDA or pro forma net loss per share is not a measure of financial performance under GAAP, and
should not be considered an alternative to net income (loss) or any other measure of performance under GAAP, or to cash flows from
operating, investing or financing activities as an indicator of cash flows or as a measure of liquidity. Adjusted EBITDA and pro
forma net loss per share have limitations as analytical tools and should not be considered either in isolation or as a substitute
for analysis of Inpixon’s results as reported under GAAP.
Contacts
Inpixon Investor Relations:
CORE IR
Scott Arnold, +1-516-222-2560
Managing Director
www.coreir.com
| |
| INPIXON AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED BALANCE
SHEETS |
| (In thousands, except
number of shares and par value data) |
| |
|
|
|
|
|
|
| |
|
As of September 30, |
|
As of December 31, |
| |
|
2018 |
|
2017 |
| |
|
|
|
| |
|
|
|
|
|
|
| |
|
(Unaudited) |
|
(Audited) |
| ASSETS |
|
|
|
|
| Current Assets |
|
|
|
|
|
|
| Cash and cash equivalents |
|
$ |
1,461 |
|
|
$ |
119 |
|
| Accounts receivable, net |
|
|
878 |
|
|
|
429 |
|
| Notes and other receivables |
|
|
64 |
|
|
|
13 |
|
| Inventory |
|
|
810 |
|
|
|
783 |
|
| Assets held for sale |
|
|
-- |
|
|
|
23 |
|
| Related party receivable |
|
|
750 |
|
|
|
-- |
|
| Current assets of deconsolidted operations |
|
|
-- |
|
|
|
6,983 |
|
| Prepaid assets and other current assets |
|
|
923 |
|
|
|
859 |
|
| Total Current Assets |
|
|
4,886 |
|
|
|
9,209 |
|
| |
|
|
|
|
|
|
| Property and equipment, net |
|
|
219 |
|
|
|
348 |
|
| Software development costs, net |
|
|
1,680 |
|
|
|
2,017 |
|
| Intangible assets, net |
|
|
5,321 |
|
|
|
7,566 |
|
| Goodwill |
|
|
636 |
|
|
|
636 |
|
| Non-current assets of deconsolidted operations |
|
|
-- |
|
|
|
7,558 |
|
| Other assets |
|
|
249 |
|
|
|
357 |
|
| Total Assets |
|
$ |
12,991 |
|
|
$ |
27,691 |
|
| |
|
|
|
|
|
|
| LIABILITIES AND STOCKHOLDERS’ (DEFICIT)
EQUITY |
|
|
|
|
|
|
| Current Liabilities |
|
|
|
|
|
|
| Accounts payable |
|
$ |
777 |
|
|
$ |
1,562 |
|
| Accrued liabilities |
|
|
1,149 |
|
|
|
2,206 |
|
| Deferred revenue |
|
|
52 |
|
|
|
58 |
|
| Short-term debt |
|
|
1,815 |
|
|
|
3,058 |
|
| Derivative liabilities |
|
|
-- |
|
|
|
48 |
|
| Current liabilities of deconsolidated operations |
|
|
-- |
|
|
|
33,040 |
|
| Liabilities held for sale |
|
|
-- |
|
|
|
2,059 |
|
| Total Current Liabilities |
|
|
3,793 |
|
|
|
42,031 |
|
| |
|
|
|
|
|
|
| Long Term Liabilities |
|
|
|
|
|
|
| Long-term debt |
|
|
142 |
|
|
|
767 |
|
| Other liabilities |
|
|
29 |
|
|
|
73 |
|
| Non-current liabilities of deconsolidated operations |
|
|
-- |
|
|
|
3,673 |
|
| Total Liabilities |
|
|
3,964 |
|
|
|
46,544 |
|
| |
|
|
|
|
|
|
| Commitments and Contingencies |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| Stockholders’ (Deficit) Equity: |
|
|
|
|
|
|
| Preferred Stock - $0.001 par value; 5,000,000 shares authorized, 0
issued and outstanding as of September 30, 2018 and December 31, 2017 |
|
|
-- |
|
|
|
-- |
|
| Series 4 Convertible Preferred Stock - $1,000 stated value; 10,185
shares authorized; |
|
|
|
|
|
|
| 7 and 0 issued and 7 and 0 outstanding at September 30, 2018 and
December 31, 2017. |
|
|
|
|
|
|
| Liquidation preference of $0 at September 30, 2018 and December
31, 2017. |
|
|
-- |
|
|
|
-- |
|
| Common Stock - $0.001 par value; 250,000,000 shares
authorized; |
|
|
|
|
|
|
| 1,281,126 and 24,055 issued and 1,281,113 and 24,042
outstanding at September 30, 2018 and December 31, 2017, respectively. |
|
|
51 |
|
|
|
1 |
|
| Additional paid-in capital |
|
|
120,124 |
|
|
|
78,302 |
|
| Treasury stock, at cost, 13 shares |
|
|
(695 |
) |
|
|
(695 |
) |
| Accumulated other comprehensive income |
|
|
16 |
|
|
|
31 |
|
| Accumulated deficit |
|
|
(110,482 |
) |
|
|
(94,486 |
) |
| Stockholders’ (Deficit) Equity Attributable to Inpixon |
|
|
9,014 |
|
|
|
(16,847 |
) |
| |
|
|
|
|
|
|
| Non-controlling interest |
|
|
13 |
|
|
|
(2,006 |
) |
| |
|
|
|
|
|
|
| Total Stockholders' (Deficit) Equity |
|
|
9,027 |
|
|
|
(18,853 |
) |
| |
|
|
|
|
|
|
| Total Liabilities and Stockholders’ (Deficit)
Equity |
|
$ |
12,991 |
|
|
$ |
27,691 |
|
| |
|
|
|
|
|
|
| |
| INPIXON AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS AND COMPREHENSIVE LOSS |
| (In thousands, except
per share data) |
| |
| |
|
For the Three Months Ended |
|
For the Nine Months Ended |
| |
|
September 30, |
|
September 30, |
| |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| |
|
(Unaudited) |
|
(Unaudited) |
| Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| Products |
|
$ |
271 |
|
|
$ |
52 |
|
|
$ |
554 |
|
|
$ |
476 |
|
| Services |
|
|
669 |
|
|
|
819 |
|
|
|
2,073 |
|
|
|
2,531 |
|
| Total Revenues |
|
|
940 |
|
|
|
871 |
|
|
|
2,627 |
|
|
|
3,007 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Cost of Revenues |
|
|
|
|
|
|
|
|
|
|
|
|
| Products |
|
|
107 |
|
|
|
94 |
|
|
|
259 |
|
|
|
410 |
|
| Services |
|
|
191 |
|
|
|
173 |
|
|
|
559 |
|
|
|
580 |
|
| Total Cost of Revenues |
|
|
298 |
|
|
|
267 |
|
|
|
818 |
|
|
|
990 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Gross Profit |
|
|
642 |
|
|
|
604 |
|
|
|
1,809 |
|
|
|
2,017 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Expenses |
|
|
|
|
|
|
|
|
|
|
|
|
| Research and development |
|
|
296 |
|
|
|
224 |
|
|
|
820 |
|
|
|
713 |
|
| Sales and marketing |
|
|
447 |
|
|
|
441 |
|
|
|
1,259 |
|
|
|
1,917 |
|
| General and administrative |
|
|
2,326 |
|
|
|
3,239 |
|
|
|
8,796 |
|
|
|
8,325 |
|
| Acquisition related costs |
|
|
78 |
|
|
|
-- |
|
|
|
94 |
|
|
|
5 |
|
| Impairment of goodwill |
|
|
-- |
|
|
|
587 |
|
|
|
-- |
|
|
|
587 |
|
| Amortization of intangibles |
|
|
812 |
|
|
|
808 |
|
|
|
2,419 |
|
|
|
2,536 |
|
| Total Operating Expenses |
|
|
3,959 |
|
|
|
5,299 |
|
|
|
13,388 |
|
|
|
14,083 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from Operations |
|
|
(3,317 |
) |
|
|
(4,695 |
) |
|
|
(11,579 |
) |
|
|
(12,066 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Other Income (Expense) |
|
|
|
|
|
|
|
|
|
|
|
|
| Interest expense |
|
|
(78 |
) |
|
|
(252 |
) |
|
|
(981 |
) |
|
|
(1,317 |
) |
| Change in fair value of derivative liability |
|
|
-- |
|
|
|
46 |
|
|
|
48 |
|
|
|
254 |
|
| Gain on the sale of Sysorex Arabia |
|
|
-- |
|
|
|
-- |
|
|
|
23 |
|
|
|
-- |
|
| Other income/(expense) |
|
|
-- |
|
|
|
14 |
|
|
|
(11 |
) |
|
|
(54 |
) |
| Total Other Income (Expense) |
|
|
(78 |
) |
|
|
(192 |
) |
|
|
(921 |
) |
|
|
(1,117 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Loss from Continuing Operations |
|
|
(3,395 |
) |
|
|
(4,887 |
) |
|
|
(12,500 |
) |
|
|
(13,183 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from Discontinued Operations, Net of
Tax |
|
|
(1,785 |
) |
|
|
(9,754 |
) |
|
|
(4,778 |
) |
|
|
(13,946 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Loss |
|
|
(5,180 |
) |
|
|
(14,641 |
) |
|
|
(17,278 |
) |
|
|
(27,129 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Loss Attributable to Non-controlling
Interest |
|
|
4 |
|
|
|
(4 |
) |
|
|
6 |
|
|
|
(13 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Loss Attributable to Stockholders of
Inpixon |
|
$ |
(5,184 |
) |
|
$ |
(14,637 |
) |
|
$ |
(17,284 |
) |
|
$ |
(27,116 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Deemed dividend to preferred stockholders |
|
|
-- |
|
|
|
-- |
|
|
|
(11,235 |
) |
|
|
-- |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Loss Attributable to Common
Stockholders |
|
$ |
(5,184 |
) |
|
$ |
(14,637 |
) |
|
$ |
(28,519 |
) |
|
$ |
(27,116 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Loss Per Basic and Diluted Common Share |
|
|
|
|
|
|
|
|
|
|
|
|
| Loss from continuing operations |
|
$ |
(3.17 |
) |
|
$ |
(620.65 |
) |
|
$ |
(45.97 |
) |
|
$ |
(3,372.47 |
) |
| Loss from discontinued operations |
|
|
(1.67 |
) |
|
|
(1,238.76 |
) |
|
|
(9.25 |
) |
|
|
(3,567.66 |
) |
| Net Loss Per Share - Basic and Diluted |
|
$ |
(4.84 |
) |
|
$ |
(1,858.90 |
) |
|
$ |
(55.24 |
) |
|
$ |
(6,936.81 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Weighted Average Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic and Diluted |
|
|
1,071,310 |
|
|
|
7,874 |
|
|
|
516,302 |
|
|
|
3,909 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Comprehensive Loss |
|
|
|
|
|
|
|
|
|
|
|
|
| Net Loss |
|
$ |
(5,180 |
) |
|
$ |
(14,641 |
) |
|
|
(17,278 |
) |
|
|
(27,129 |
) |
| Unrealized foreign exchange gain/(loss) from cumulative
translation adjustments |
|
|
(10 |
) |
|
|
(5 |
) |
|
|
(15 |
) |
|
|
(15 |
) |
| Comprehensive Loss |
|
$ |
(5,190 |
) |
|
$ |
(14,646 |
) |
|
$ |
(17,293 |
) |
|
$ |
(27,144 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
| INPIXON AND SUBSIDIARIES |
| CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS |
| (In
thousands) |
| |
| |
|
For the Nine Months Ended |
| |
|
September 30, |
| |
|
2018 |
|
|
2017 |
|
| (Unaudited) |
|
| Cash Flows from Operating Activities |
|
|
|
|
|
|
| Net loss |
|
$ |
(17,278 |
) |
|
$ |
(27,129 |
) |
| Adjustment to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
| Depreciation and amortization |
|
|
1,334 |
|
|
|
1,324 |
|
| Amortization of intangible assets |
|
|
3,804 |
|
|
|
4,094 |
|
| Impairment of goodwill |
|
|
-- |
|
|
|
8,392 |
|
| Stock based compensation |
|
|
979 |
|
|
|
1,282 |
|
| Amortization of technology |
|
|
50 |
|
|
|
50 |
|
| Change in fair value of derivative liability |
|
|
(48 |
) |
|
|
(254 |
) |
| Amortization of debt discount |
|
|
417 |
|
|
|
1,545 |
|
| Amortization of deferred financing costs |
|
|
-- |
|
|
|
167 |
|
| Provision for doubtful accounts |
|
|
221 |
|
|
|
773 |
|
| Gain on the settlement of liabilities |
|
|
(307 |
) |
|
|
-- |
|
| Gain on the sale of Sysorex Arabia |
|
|
(23 |
) |
|
|
-- |
|
| Other |
|
|
(37 |
) |
|
|
129 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
| Accounts receivable and other receivables |
|
|
207 |
|
|
|
5,223 |
|
| Inventory |
|
|
(19 |
) |
|
|
270 |
|
| Other current assets |
|
|
54 |
|
|
|
455 |
|
| Prepaid licenses and maintenance contracts |
|
|
(5 |
) |
|
|
9,787 |
|
| Other assets |
|
|
34 |
|
|
|
46 |
|
| Accounts payable |
|
|
(8,797 |
) |
|
|
4,751 |
|
| Accrued liabilities |
|
|
(3,057 |
) |
|
|
455 |
|
| Deferred revenue |
|
|
64 |
|
|
|
(10,704 |
) |
| Other liabilities |
|
|
(978 |
) |
|
|
(438 |
) |
| Total Adjustments |
|
|
(6,107 |
) |
|
|
27,347 |
|
| |
|
|
|
|
|
|
| Net Cash (Used in) Provided by Operating
Activities |
|
|
(23,385 |
) |
|
|
218 |
|
| |
|
|
|
|
|
|
| Cash Flows Used in Investing Activities |
|
|
|
|
|
|
| Purchase of property and equipment |
|
|
(39 |
) |
|
|
(91 |
) |
| Investment in capitalized software |
|
|
(661 |
) |
|
|
(1,063 |
) |
| Investment in technology |
|
|
(175 |
) |
|
|
-- |
|
| Cash spun off a result of de-consolidation |
|
|
(362 |
) |
|
|
-- |
|
| |
|
|
|
|
|
|
| Net Cash Flows Used in Investing Activities |
|
|
(1,237 |
) |
|
|
(1,154 |
) |
| |
|
|
|
|
|
|
| Cash Flows from Financing Activities |
|
|
|
|
|
|
| Repayments to bank facility |
|
|
(1,141 |
) |
|
|
(3,348 |
) |
| Net proceeds from issuance of common stock, preferred stock and
warrants |
|
|
27,961 |
|
|
|
6,117 |
|
| Repayment of notes payable |
|
|
(113 |
) |
|
|
(20 |
) |
| Advances to related party |
|
|
(774 |
) |
|
|
-- |
|
| Repayments from related party |
|
|
24 |
|
|
|
-- |
|
| Repayment of debenture |
|
|
-- |
|
|
|
(2,850 |
) |
| Net proceeds from convertible promissory notes |
|
|
-- |
|
|
|
2,000 |
|
| Repayment of convertible promissory notes |
|
|
-- |
|
|
|
(2,662 |
) |
| |
|
|
|
|
|
|
| Net Cash Flows Provided by (Used in) Financing
Activities |
|
|
25,957 |
|
|
|
(763 |
) |
| |
|
|
|
|
|
|
| Effect of Foreign Exchange Rate on Changes on Cash |
|
|
(15 |
) |
|
|
(15 |
) |
| |
|
|
|
|
|
|
| Net Increase (Decrease) in Cash and Cash Equivalents |
|
|
1,320 |
|
|
|
(1,714 |
) |
| |
|
|
|
|
|
|
| Cash and Cash Equivalents - Beginning of Period |
|
|
141 |
|
|
|
1,821 |
|
| |
|
|
|
|
|
|
| Cash and Cash Equivalents - End of Period |
|
$ |
1,461 |
|
|
$ |
107 |
|
| |
| |
| Reconciliation of Non-GAAP Financial
Measures: |
| |
| (In thousands) |
|
Three Months Ended |
|
Nine Months Ended |
| September
30, |
|
September
30, |
| |
|
2018 |
|
|
2017 |
|
|
2018 |
|
|
2017 |
|
| Net loss attributable to common stockholders |
|
$ |
(5,184 |
) |
|
$ |
(14,637 |
) |
|
$ |
(17,284 |
) |
|
$ |
(27,116 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
| Non-recurring one-time charges: |
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition transaction/financing costs |
|
|
78 |
|
|
|
-- |
|
|
|
94 |
|
|
|
5 |
|
| Costs associated with public offering |
|
|
4 |
|
|
|
159 |
|
|
|
85 |
|
|
|
159 |
|
| Impairment of goodwill |
|
|
-- |
|
|
|
8,392 |
|
|
|
-- |
|
|
|
8,392 |
|
| Gain on the settlement of obligations |
|
|
(45 |
) |
|
|
-- |
|
|
|
(307 |
) |
|
|
-- |
|
| Gain on earnout |
|
|
-- |
|
|
|
(561 |
) |
|
|
(934 |
) |
|
|
(561 |
) |
| Gain on the sale of Sysorex Arabia |
|
|
-- |
|
|
|
-- |
|
|
|
(23 |
) |
|
|
-- |
|
| Gain on the sale of contracts |
|
|
-- |
|
|
|
-- |
|
|
|
(601 |
) |
|
|
-- |
|
| Change in the fair value of derivative liability |
|
|
-- |
|
|
|
(46 |
) |
|
|
(48 |
) |
|
|
(254 |
) |
| Provison for doubtful accounts |
|
|
-- |
|
|
|
773 |
|
|
|
221 |
|
|
|
773 |
|
| Severance |
|
|
-- |
|
|
|
-- |
|
|
|
15 |
|
|
|
27 |
|
| Stock based compensation - acquisition costs |
|
|
-- |
|
|
|
-- |
|
|
|
-- |
|
|
|
7 |
|
| Stock-based compensation – compensation and related benefits |
|
|
122 |
|
|
|
288 |
|
|
|
979 |
|
|
|
1,275 |
|
| Interest expense |
|
|
146 |
|
|
|
694 |
|
|
|
1,785 |
|
|
|
2,721 |
|
| Depreciation and amortization |
|
|
1,452 |
|
|
|
1,817 |
|
|
|
5,137 |
|
|
|
5,418 |
|
| Adjusted EBITDA |
|
$ |
(3,427 |
) |
|
$ |
(3,121 |
) |
|
$ |
(10,881 |
) |
|
$ |
(9,154 |
) |
| |
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| (In thousands, except share data) |
|
Three Months Ended |
|
Nine Months Ended |
| September
30, |
|
September
30, |
| |
|
2018 |
|
2017 |
|
2018 |
|
2017 |
| Net loss attributable to common stockholders |
|
$ |
|
(5,184 |
) |
|
$ |
|
(14,637 |
) |
|
$ |
|
(17,284 |
) |
|
$ |
|
(27,116 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
| Non-recurring one-time charges: |
|
|
|
|
|
|
|
|
|
|
|
|
| Acquisition transaction/financing costs |
|
|
|
78 |
|
|
|
|
-- |
|
|
|
|
94 |
|
|
|
|
5 |
|
| Costs associated with public offering |
|
|
|
4 |
|
|
|
|
159 |
|
|
|
|
85 |
|
|
|
|
159 |
|
| Impairment of goodwill |
|
|
|
-- |
|
|
|
|
8,392 |
|
|
|
|
-- |
|
|
|
|
8,392 |
|
| Gain on the settlement of obligations |
|
|
|
(45 |
) |
|
|
|
-- |
|
|
|
|
(307 |
) |
|
|
|
-- |
|
| Gain on earnout |
|
|
|
-- |
|
|
|
|
(561 |
) |
|
|
|
(934 |
) |
|
|
|
(561 |
) |
| Gain on the sale of Sysorex Arabia |
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
(23 |
) |
|
|
|
-- |
|
| Gain on the sale of contracts |
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
(601 |
) |
|
|
|
-- |
|
| Change in the fair value of derivative liability |
|
|
|
-- |
|
|
|
|
(46 |
) |
|
|
|
(48 |
) |
|
|
|
(254 |
) |
| Provison for doubtful accounts |
|
|
|
-- |
|
|
|
|
773 |
|
|
|
|
221 |
|
|
|
|
773 |
|
| Severance |
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
15 |
|
|
|
|
27 |
|
| Stock based compensation - acquisition costs |
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
-- |
|
|
|
|
7 |
|
| Stock-based compensation – compensation and related benefits |
|
|
|
122 |
|
|
|
|
288 |
|
|
|
|
979 |
|
|
|
|
1,275 |
|
| Amortization of intangibles |
|
|
|
1,158 |
|
|
|
|
1,327 |
|
|
|
|
3,804 |
|
|
|
|
4,094 |
|
| Proforma non-GAAP net loss |
|
|
$ |
(3,867 |
) |
|
$ |
|
(4,305 |
) |
|
|
$ |
(13,999 |
) |
|
$ |
|
(13,199 |
) |
| Proforma non-GAAP net loss per basic and diluted common share |
|
|
$ |
(3.61 |
) |
|
$ |
|
(546.74 |
) |
|
|
$ |
(27.11 |
) |
|
$ |
|
(3,376.57 |
) |
| Weighted average basic and diluted common shares outstanding |
|
|
|
1,071,310 |
|
|
|
|
7,874 |
|
|
|
|
516,302 |
|
|
|
|
3,909 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
