UNAUDITED PRO FORMA FINANCIAL STATEMENTS OF INPIXON FOLLOWING DIVESTITURE
Published on May 15, 2018
Exhibit 99.1
INPIXON AND SUBSIDIARIES
INTRODUCTION TO PRO FORMA CONDENSED
COMBINED FINANCIAL STATEMENTS
The Company’s strategic business plans include a sale, spin-off or other possible divesture of its Infrastructure Segment, which would separate Inpixon USA and Inpixon Federal, the subsidiaries that have the commercial and federal VAR business. In connection with such a transaction it is anticipated that the employees, assets and liabilities associated with the VAR business and those subsidiaries would be retained by Inpixon USA as its own separate stand-alone publicly traded company. Inpixon Federal would be a wholly-owned subsidiary of Inpixon USA. Employees, assets and liabilities related to the Indoor Positioning Analytics business or product segment including AirPatrol, Shoom and Lightminer in Inpixon USA will be contributed up to the parent Inpixon. The following unaudited pro forma financial information presents the consolidated results of operations of the Company as if such a divesture 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 a stand-alone company during those periods, (2) the terms of any consideration that may be delivered to the Company in connection with a sale, (3) the impact of a dividend distribution in the event of a spin-off or (4) the contribution by Inpixon to Inpixon USA of any cash amounts to support its operations following the divesture. The unaudited proforma information is presented for illustration purposes only in accordance with the assumptions set forth above and below.
Pro Forma Condensed Combined Balance Sheet
March 31, 2018
(In thousands)
(UNAUDITED)
| Inpixon Consol | (A) | Proforma | ||||||||||
| Balance Sheet | Less: Divestiture | Balance Sheet | ||||||||||
| Assets | ||||||||||||
| Current Assets | ||||||||||||
| Cash and Cash Equivalents | 6,694 | (330 | ) | 6,364 | ||||||||
| Accounts Receivable, net | 1,202 | (714 | ) | 488 | ||||||||
| Notes and Other Receivables | 218 | (168 | ) | 50 | ||||||||
| Inventory | 863 | (7 | ) | 856 | ||||||||
| Prepaid Assets and Other Current Assets | 1,643 | (113 | ) | 1,530 | ||||||||
| Total Current Assets | 10,620 | (1,332 | ) | 9,288 | ||||||||
| Property and Equipment, net | 419 | (143 | ) | 276 | ||||||||
| Software Development Costs, net | 1,772 | - | 1,772 | |||||||||
| Intangible Assets, net | 11,355 | (4,593 | ) | 6,762 | ||||||||
| Goodwill | 636 | - | 636 | |||||||||
| Other Assets | 350 | (13 | ) | 337 | ||||||||
| Total Assets | 25,152 | (6,081 | ) | 19,071 | ||||||||
| Liabilities | ||||||||||||
| Accounts Payable | 22,020 | (21,325 | ) | 695 | ||||||||
| Accrued Liabilities | 1,724 | (873 | ) | 851 | ||||||||
| Deferred Revenue | 27 | - | 27 | |||||||||
| Short-Term Debt | 1,828 | - | 1,828 | |||||||||
| Total Current Liabilities | 25,599 | (22,198 | ) | 3,401 | ||||||||
| Long Term Liabilities | ||||||||||||
| Long-Term Debt | 142 | - | 142 | |||||||||
| Other Liabilities | 108 | (40 | ) | 68 | ||||||||
| Acquisition Liability - Integrio | 420 | (420 | ) | - | ||||||||
| Total Liabilities | 26,269 | (22,658 | ) | 3,611 | ||||||||
| Stockholders’ Deficit | ||||||||||||
| Common Stock | 10 | - | 10 | |||||||||
| Additional Paid-in Capital | 98,979 | - | 98,979 | |||||||||
| Treasury Stock, at cost | (695 | ) | - | (695 | ) | |||||||
| Accumulated other comprehensive income | 24 | - | 24 | |||||||||
| Accumulated Deficit | (99,441 | ) | 16,577 | (82,864 | ) | |||||||
| Stockholders’ Deficit Attributable to Inpixon | (1,123 | ) | 16,577 | 15,454 | ||||||||
| Non-Controlling Interest | 6 | - | 6 | |||||||||
| Total Stockholders’ Deficit | (1,117 | ) | 16,577 | 15,460 | ||||||||
| Total Liabilities and Stockholders’ Deficit | 25,152 | (6,081 | ) | 19,071 | ||||||||
| (A) | Spin-off of Infrastructure Segment/divestiture of Inpixon USA and Inpixon Federal, the subsidiaries that have the commercial and federal VAR business |
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Pro Forma Condensed Combined Statements of Operations
For the Three Months Ended March 31, 2018
(In thousands)
(UNAUDITED)
| (A) | Proforma Stmt | |||||||||||
| Inpixon Consol | Less: Divestiture | of Operations | ||||||||||
| Revenues | ||||||||||||
| Products | 476 | (332 | ) | 144 | ||||||||
| Services | 1,619 | (914 | ) | 705 | ||||||||
| Total Revenues | 2,095 | (1,246 | ) | 849 | ||||||||
| Cost of Revenues | ||||||||||||
| Products | 255 | (175 | ) | 80 | ||||||||
| Services | 604 | (420 | ) | 184 | ||||||||
| Total Cost of Revenues | 859 | (595 | ) | 264 | ||||||||
| Gross Profit | 1,236 | (651 | ) | 585 | ||||||||
| Operating Expenses | ||||||||||||
| Research and development | 361 | (90 | ) | 271 | ||||||||
| Sales and marketing | 969 | (637 | ) | 332 | ||||||||
| General and administrative | 4,174 | (1,141 | ) | 3,033 | ||||||||
| Acquisition related costs | 16 | - | 16 | |||||||||
| Amortization of intangibles | 1,323 | (519 | ) | 804 | ||||||||
| Total Operating Expenses | 6,843 | (2,387 | ) | 4,456 | ||||||||
| Loss from Operations | (5,607 | ) | 1,736 | (3,871 | ) | |||||||
| Other Income (Expense) | ||||||||||||
| Interest expense | (1,283 | ) | 21 | (1,262 | ) | |||||||
| Change in fair value of derivative liability | 48 | - | 48 | |||||||||
| Gain on the sale of Sysorex Arabia | 23 | - | 23 | |||||||||
| Other income/(expense) | 576 | (577 | ) | (1 | ) | |||||||
| Total Other Income (Expense) | (636 | ) | (556 | ) | (1,192 | ) | ||||||
| Net Loss | (6,243 | ) | 1,180 | (5,063 | ) | |||||||
| Deemed dividend to preferred stockholders | (1,508 | ) | - | (1,508 | ) | |||||||
| Net Loss Attributable to Common Stockholders | (7,751 | ) | 1,180 | (6,571 | ) | |||||||
| (A) | Spin-off of Infrastructure Segment/divestiture of Inpixon USA and Inpixon Federal, the subsidiaries that have the commercial and federal VAR business |
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