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Sep 30, 2023
XTI Aerospace Q3 2023 Earnings Report
Inpixon reported financial results for the third quarter of 2023, highlighted by strategic agreements with XTI Aircraft and Damon Motors, and a focus on recurring subscription sales within its RTLS business.
Key Takeaways
Inpixon reported a decrease in revenue but an increase in gross profit margin for Q3 2023. The company focused on strategic opportunities, including a merger agreement with XTI Aircraft and a spin-off and merger of its SAVES UK business with Damon Motors Inc. Transaction-related costs impacted operating expenses, but the company ended the quarter with $13.5 million in cash and cash equivalents.
Entered into a definitive merger agreement with XTI Aircraft, expected to close in Q4 2023.
Announced the planned spin-off of Grafiti Holding and subsequent merger with Damon Motors Inc., expected to close in Q1 2024.
Transitioned RTLS business to recurring subscription sales, resulting in improved gross margin.
Ended the quarter with over $13.5 million in cash and cash equivalents.
XTI Aerospace
XTI Aerospace
Forward Guidance
Inpixon anticipates closing the merger with XTI Aircraft during the fourth quarter of 2023 and the spin-off and merger with Damon Motors in the first quarter of 2024. The company expects these transactions to provide opportunities to maximize shareholder value.
Positive Outlook
- Merger with XTI Aircraft expected to close in Q4 2023.
- Spin-off and merger with Damon Motors anticipated to close in Q1 2024.
- XTI Aircraft has over 700 conditional pre-orders, representing potential gross revenues of more than $7.0 billion.
- Damon Motors has obtained approximately $85 million in pre-production consumer reservations for its motorcycles.
- Transactions expected to provide opportunities to maximize shareholder value.
Challenges Ahead
- Incurred meaningful transaction-related costs associated with the two transactions.
- Decrease in Indoor Intelligence sales due to longer sales cycles.
- Revenues decreased compared to the same period in the prior year.
- Operating expenses increased due to acquisition and transaction costs.
- Net loss from continuing operations remained significant.