Attached files

file filename
EX-10.1 - NOTE PURCHASE AGREEMENT, DATED AS OF OCTOBER 12, 2018 - INPIXONf8k101218ex10-1_inpixon.htm
EX-4.1 - PROMISSORY NOTE, DATED AS OF OCTOBER 12, 2018 - INPIXONf8k101218ex4-1_inpixon.htm
8-K - CURRENT REPORT - INPIXONf8k101218_inpixon.htm

Exhibit 99.1

 

INPIXON AND SUBSIDIARIES

INTRODUCTION TO

UNAUDITED CONDENSED

COMBINED PRO FORMA FINANCIAL STATEMENTS

 

The strategic business plans of Inpixon (the “Company”) included a spin-off of its infrastructure segment (the “Spin-off”), which separated Sysorex, Inc, f/k/a Inpixon USA (“Sysorex”), and Sysorex Government Services, Inc., f/k/a Inpixon Federal, Inc. (“SGS”), the subsidiaries that have the commercial and federal value-added reseller (“VAR”) business. In connection with the Spin-off, the employees, assets and liabilities associated with the VAR business and those subsidiaries were retained by Sysorex as its own separate stand-alone public reporting company with SGS as its wholly-owned subsidiary.  Employees, assets and liabilities related to the indoor positioning analytics business or product segment including AirPatrol, Shoom and Lightminer in Sysorex were contributed up to the Company. The following unaudited pro forma financial information presents the consolidated results of operations of the Company as of and for the six months ended June 30, 2018, as if the Spin-off had occurred as of January 1, 2018.  The pro forma does not necessarily (1) reflect the results of operations that would have occurred had the entities been stand-alone companies during those periods, or (2) the terms of any consideration that may be delivered to the Company in connection with a sale. The unaudited pro forma information is presented for illustration purposes only in accordance with the assumptions set forth above and below. Furthermore, this financial information does not project the Company’s financial condition or results of operations for any future date or period.

 

 

 

 

Pro Forma Condensed Balance Sheet

June 30, 2018

(Rounded to 1,000’s)

(UNAUDITED)

 

   Inpixon Consol
Balance Sheet
   (A)
Less: Divestiture
   (B)
Less:
Proforma Adjust
   Proforma
Balance Sheet
 
Assets                
Current Assets                
Cash and Cash Equivalents  $8,336   $(264)  $(2,000)  $6,072 
Accounts Receivable, net   1,364    (734)   -    630 
Notes and Other Receivables   167    (163)   -    4 
Inventory   852    -    -    852 
Prepaid Licenses and Maintenance Contracts   12    (12)   -    - 
Prepaid Assets and Other Current Assets   1,044    (115)   -    929 
Total Current Assets   11,775    (1,288)   (2,000)   8,487 
                     
Property and Equipment, net   331    (70)   -    261 
Software Development Costs, net   1,567    -    -    1,567 
Intangible Assets, net   10,208    (4,074)   -    6,134 
Goodwill   636    -    -    636 
Other Assets   375    (44)   -    331 
                     
Total Assets  $24,892   $(5,476)  $(2,000)  $17,416 
                     
Liabilities                    
Accounts Payable   18,637    (18,012)   -    625 
Accrued Liabilities   1,434    (520)   -    914 
Deferred Revenue   109    (15)   -    94 
Short-Term Debt   1,815    -    -    1,815 
Total Current Liabilities   21,995    (18,547)        3,448 
                     
Long Term Liabilities                    
Long-Term Debt   142    -    -    142 
Other Liabilities   75    (40)   -    35 
Acquisition Liability - Integrio   62    (62)   -    - 
Total Liabilities   22,274    (18,649)        3,625 
                     
Stockholders’ Equity                    
Common Stock   38    -    -    38 
Additional Paid-in Capital   108,539    13,173    (2,000)   119,712 
Treasury Stock, at cost   (695)   -    -    (695)
Accumulated other comprehensive income   26    -    -    26 
Accumulated Equity   (105,299)        -    (105,299)
                     
Stockholders’ Equity Attributable to Inpixon   2,609    13,173    (2,000)   13,782 
                     
Non-Controlling Interest   9    -         9 
                     
Total Stockholders’ Equity   2,618    13,173    (2,000)   13,791 
                     
Total Liabilities and Stockholders’ Equity  $24,892   $(5,476)  $(2,000)  $17,416 

 

(A) Spin-off of Infrastructure Segment/divestiture of Sysorex, Inc. and Sysorex Government Services, Inc., the subsidiaries that have the commercial and federal VAR business.

(B) Inpixon contribution to Sysorex, Inc.

 

 2 

 

 

Pro Forma Condensed Combined Statements of Operations

For the Six Months Ended June 30, 2018

(Rounded to 1,000’s)

(UNAUDITED)

 

   Inpixon   (A) Less:   Proforma Stmt 
   Consol   Divestiture   of Operations 
Revenues            
Products  $1,182   $(900)  $282 
Services   2,740    (1,335)   1,405 
Total Revenues   3,922    (2,235)   1,687 
                
Cost of Revenues               
Products   598    (446)   152 
Services   1,078    (710)   368 
Total Cost of Revenues   1,676    (1,156)   520 
                
Gross Profit   2,246    (1,079)   1,167 
                
Operating Expenses               
Research and development   681    (158)   523 
Sales and marketing   1,944    (1,133)   811 
General and administrative   9,017    (2,544)   6,473 
Acquisition related costs   16    -    16 
Amortization of intangibles   2,645    (1,038)   1,607 
Total Operating Expenses   14,303    (4,873)   9,430 
                
Loss from Operations   (12,057)   3,794    (8,263)
                
Other Income (Expense)               
Interest expense   (1,638)   736    (902)
Change in fair value of derivative liability   48    -    48 
Gain on the sale of Sysorex Arabia   23    -    23 
Gain on the settlement of obligations   1    (1)   - 
Other income/(expense)   1,524    (1,536)   (12)
Total Other Income (Expense)   (42)   (801)   (843)
                
Net Loss   (12,099)   2,993    (9,106)
Net Gain Attributable to Non-Controlling Interest   2    -    2 
Net Loss Attributable to Stockholders of Inpixon   (12,101)   2,993    (9,108)
Deemed dividend to preferred stockholders   (11,235)   -    (11,235)
Net Loss Attributable to Common Stockholders  $(23,336)  $2,993   $(20,343)

 

(A) Spin-off of Infrastructure Segment/divestiture of Sysorex, Inc. and Sysorex Government Services, Inc., the subsidiaries that have the commercial and federal VAR business.

 

 3