Inpixon Stock

Inpixon operates as an Indoor Intelligence company. The company's solutions and technologies help organizations create and redefine exceptional experiences that enable smarter, safer and more secure environments. Inpixon customers can leverage its real-time positioning, mapping, and analytics technologies to achieve higher levels of productivity and performance, increase safety and security, improve worker and employee satisfaction rates and drive a more connected work environment. The company focuses its corporate strategy on being the primary provider of the full range of foundational technologies needed to form a comprehensive suite of solutions that make indoor data available and actionable to organizations and their employees. Together, the company's technologies allow organizations to create and utilize the digital twin of a physical location and to deliver enhanced experiences in their current environment and in the metaverse.

Inpixon specializes in providing real-time location systems (RTLS) for the industrial sector. As the manufacturing industry has evolved, RTLS technology has become a crucial aspect of Industry 4.0. The company's RTLS solution leverages cutting-edge technologies, such as IoT, AI, and big data analytics to provide real-time tracking and monitoring of assets, machines, and people within industrial environments. With its RTLS, industrial businesses can transform their operations and stay ahead of the curve in the digital age.

Inpixon's full-stack industrial IoT solution provides end-to-end visibility and control over a wide range of assets and devices. It's designed to help organizations optimize their operations and gain a competitive edge in today's data-driven world. The turn-key platform integrates a range of technologies, including RTLS, sensor networks, edge computing, and big data analytics, to provide a comprehensive view of an organization's operations. The company helps organizations to track the location and status of assets in real-time, identify inefficiencies, and make decisions that drive business growth. The company's IoT stack covers all the technology layers, from the edge devices to the cloud. It includes hardware components, such as sensors and gateways, a robust software platforms for data management and analysis, and a user-friendly dashboard for real-time monitoring and control. The company's solutions also offer robust security features, to help ensure the protection of sensitive data. Additionally, Inpixon's RTLS provides scalability and flexibility, allowing organizations to integrate it with their existing systems and add new capabilities as their needs evolve.

The company offers a unique and differentiated approach to the market with its industrial RTLS which is:

Comprehensive: The company offers full-stack RTLS solutions, which seamlessly integrates tracking tags, anchors, sensors, positioning engine, software, and connections to third-party systems. The company integrates a myriad of indoor data inputs and outputs. With a single platform the company can support a multitude of use cases across numerous industries in both the private and public sector.

Scalable: The company's solutions are built to support customers' expanding needs and use cases. Unlike many other competitive point-solutions, the company can offer expansion paths and support for a wide variety of location-based use cases at large, multi-size, global enterprises. The company's multi-layered depiction of indoor data allows users to see the information most relevant to their role, in the optimal format for them (e.g., charts, tables, maps, etc.).

Technology-Agnostic and Open: The company embraces an ecosystem of hardware, software, integration and distribution partners welcoming integration and synchronization with third party data and systems in combination with its platform. The company's open architecture is designed to enable the integration of disparate technologies, preserve investment and avoid obsolescence. APIs and MQTT make it possible to move data in and out of its platform to enable a plethora of opportunities and benefits.

In addition to its Indoor Intelligence technologies and solutions, the company offers:

Digital solutions (eTearsheets; eInvoice, adDelivery) or cloudbased applications and analytics for the advertising, media and publishing industries through its advertising management platform referred to as Shoom by Inpixon; and

A comprehensive set of data analytics and statistical visualization solutions for engineers and scientists referred to as SAVES by Inpixon.

The company reports financial results for three segments: Indoor Intelligence, Shoom and SAVES. For Indoor Intelligence, the company generates revenue from sales of hardware, software licenses and professional services. For Shoom and SAVES the company generates revenue from the sale of software licenses.

Products and Services

Indoor Intelligence

The company's Indoor Intelligence offerings consist of the following software and hardware products.

Industrial RTLS SaaS Platform - The company's full stack offering in the Industrial IoT space includes an enterprise class, multi-technology RTLS IoT platform for industrial automation. Inpixon's RTLS IoT platform is a comprehensive real-time IoT solution for the implementation of industrial RTLS (track & trace) applications for indoor and outdoor areas, such as vehicle localization, production tracking, yard management, gate allocation, forklift location (MHE), real-time route optimization, and the automatic identification (AutoID) and booking of goods and material flows. In addition to real-time data applications for the digital twin, it provides smart real-time location analyses from a single platform suite, enabling companies to identify significant process optimizations and make data-based decisions. Prebuilt modules offered within the platform include smart factory, smart warehouse, inventory manager, shipment manager, and yard manager. The digital twin of a physical space facilitates use cases for facility management, security safety, customer or worker experiences, asset tracking and more.

IoT Devices, Sensors and Tags - The company's RTLS asset tracking hardware includes a full end-to-end portfolio of IoT sensors (also known as nodes or anchors) and tracking tags to track assets or personnel. This portfolio leverages the company's own products for ultra-wideband (UWB) and chirp spread spectrum (CSS) and GPS while incorporating support for third party integrated BLE, RFID and LiDAR solutions. In the security space, a version of the company's sensor enables detection of cellular, Wi-Fi and BLE signals that is combined with UWB to offer security and high value asset tracking solutions. Chirp technology is effective for longer range communication while UWB is an important RF standard for pinpoint asset tracking. Organizations across many different industries can leverage the accuracy, low-latency, and reliability of both technologies to track the real-time location and status of key assets and equipment, with precision. Users can display and track the static location and movement of assets and asset attribute information within a space on indoor maps.

Transceivers/Modules - The Inpixon nanoLOC transceiver is a low-power, highly integrated mixed-signal chip. This 2.4 GHz long range CSS transceiver transmits and receives wireless data packets for robust wireless communications, ranging capabilities, and real-time location determination. Inpixon's chirp leverages a patented, Inpixon-owned technology and offers range comparable to Wi-Fi systems with accuracy of BLE or UWB in some scenarios. Supporting a freely adjustable center frequency with three non-overlapping frequency channels, amongst others, the Inpixon nanoLOC enables multiple physically independent networks and improved coexistence with existing 2.4 GHz wireless technologies. This product is also available in a module form to allow easier integration for the company's partners and integrators.

Video Integration - The company's RF video solution uses IoT analytics data and allows direct integration with leading Video Management Systems (VMS) and CCTV to provide visual track and trace of assets or to quickly allow video to aid security personnel in an emergency situation. This solution builds upon the accurate mapping solutions while adding analytics and precise RTLS data.

Analytics and Insights - The company's cloud-based analytics platform allows data from multiple sensors and data sources to be visualized for action by the customer. The company's platforms can engage with data from its IoT sensors, mobile apps, third-party sensors and data that is ingested via an application programming interface (API) or data import. Analytics enable, for instance, factory operators to visualize and analyze the flow of products through the facility to address bottlenecks and improve efficiency and productivity.

Augmented Reality (AR) and 3D - The company's augmented reality solutions allow ot to easily scan a space and subsequently attach AR content persistently to any position in the world. The technology can also be used for visual asset tracking without beacons or markers as well as digital twin creation and manipulation. Using SLAM combined with innovative technologies offers tools to help enable augmented reality and metaverse capabilities for their business.

Wireless Device Detection for Security - The company's wireless detection and positioning solutions help cultivate situational awareness and identify security risks by leveraging sensors with proprietary technology that can detect and position active cellular, Wi-Fi, Bluetooth, and UWB signals throughout a venue. This solution allows for the positioning of people and assets homogeneously as they travel in a controlled space and empowers customers to make key decisions around security, risk mitigation and public safety, at scale. Utilizing various radio signal technologies permits device positioning with accuracy ranging from several meters down to approximately thirty centimeters, depending on the product deployed and conditions in the indoor space. The technology allows for detailed understanding of space and resource utilization, and in security applications it enables detection and identification of authorized and unauthorized devices, prevention of rogue devices through alerts based on rules when unknown devices are detected in restricted areas and asset tracking with centimeter level precision.

Enterprise Apps - The company's indoor intelligence segment for the reporting period covered by this report also includes the smart office app, events and mapping solution which consists of the enterprise apps line of products offering enhanced employee experiences with a holistic location aware customer branded employee app for a smart, innovative and connected workplace. This suite of products and solutions was spun off in connection with the separation of the company's enterprise apps business effective as of March 14, 2023.

Shoom

With Shoom Digital Solutions the company offers comprehensive digital solutions or cloud-based applications and analytics for the media and publishing industry, including eTearsheets and eInvoice. eTearsheets provides both advertiser and publication users with an advertising analytics tool kit for accessing single ads or entire campaigns across multiple publications. eTearsheets seamlessly with existing PDF workflows, merging users PDF pages with ad data, creating links to the ads, and sending an option e-mail to advertisers containing a link to their ad pages. Users can access the site on their desktop, tablet or mobile devices, and need only internet access and a standard browser. eInvoice is a hosted, web-based solution offering email notifications, seamless interaction with eTearsheets and dynamic invoice searching.

SAVES

Through its SAVES product line, the company offers a comprehensive set of data analytics and statistical visualization software solutions for engineers and scientists. The suite of data analytics and statistical visualization tools includes SigmaPlot, SigmaStat, SYSTAT, PeakFit, TableCurve 2D, TableCurve 3D, SigmaScan and MYSTAT.

Product Enhancements

The company's ability to adapt to the technological advancements within its industry is critical to its long-term success and growth. As a result, its executive management must continuously work to ensure that they remain informed and prepared to quickly adapt and leverage new technologies within its product and service offering as such technologies become available. In connection with that goal, its product roadmap development plans include expanding the use of both UWB and CSS technology for precise asset tracking, furthering its efforts towards 3D mapping, with a specific focus on light detection and ranging (LiDAR) and AR features, innovation in its machine learning algorithms for its positioning engines, and understanding worldwide 5G deployments to enhance its detection and positioning capabilities.

Positioning Innovation Powered by Machine Learning

In 2023, the company intends to continue to expand its use of machine learning and artificial intelligence (AI) to improve positioning accuracy, reliability and range which would provide additional benefits to existing customers and unlock new opportunities for its technology. Following these enhancements, the company's products will be able to assist in providing predictive, more accurate, bidirectional location information to secure and optimize its deployments using hardware that includes iOS and Android smartphones, IoT sensors, access points or BLE beacons.

5G

Building on research and development (R&D) efforts in 2022, the company intends to continue to study the worldwide 5G deployments, both public and private, to identify a robust hardware and software solution to detect and position new handsets based on this technology and explore software defined radio solutions, as well as enhancements in antenna technology to provide its customers with additional capabilities in the security field. This is a complex challenge, and the company is working with partners and customers to understand requirements, use cases and solutions.

Analytics and Insights

Inpixon Analytics on-premises or in the cloud, along with specially-optimized algorithms and industry specific dashboards that are intended to provide better visibility, predictive maintenance, process optimization, security and safety, and data-driven decision-making. Improved visibility gives real-time locations and status of assets, people, and equipment both indoors and outdoors. By collecting and analyzing data from RTLS systems, organizations gain insights from asset movements and use this information to optimize their operations. Data-driven decision making by analyzing data from RTLS systems, organizations gains a better understanding of their operations, identify areas for improvement, and make data-driven decisions that drive business value.

Augmented Reality and Digital Twin

Inpixon AR and digital twin technologies multiplies the capabilities of RTLS solutions by providing real-time visualization aided with meta data, remote monitoring, simulation and testing, predictive maintenance, collaboration, and training, all of which can help optimize operations and improve efficiency. AR helps visualize the real-time location of assets, people, and equipment in the physical world, overlaid with digital information such as asset status, maintenance history, and other relevant data. This can provide a more intuitive and efficient way for operators to understand and interact with the physical world. In addition, digital twin features can enable remote monitoring of assets and equipment, providing a virtual representation of the physical world that can be accessed from anywhere to monitor assets and equipment in real-time and make informed decisions based on the data gathered. Digital twin technology can also enable simulation and testing of scenarios in a virtual environment, allowing its customers to test different configurations and optimize their operations without the need for physical experimentation. Finally, AR and digital twin technologies can facilitate collaboration and training by providing a shared virtual environment where operators can train and work together remotely.

Strategy

In order to continue to respond to rapid changes and required technological advancements, as well as increase its shareholder value, the company is exploring strategic transactions and opportunities that will enhance shareholder value.

Research and Development Expenses

The company's research and development expenses for the year ended December 31, 2022, totaled approximately $17.7 million.

Sales and Marketing

Inpixon sales channels include direct sales, as well as indirect sales through channel partners, including original equipment manufacturers (OEMs), integrators, resellers and distributors. Indirect sales partners may provide a range of pre- and post-sales services to Inpixon customers including system design, installation, commissioning and service.

Direct sales representatives are compensated with a base salary and, in certain circumstances, may participate in incentive plans, such as commissions or bonuses. Inpixon markets its products through industry-focused, as well as account-based marketing strategies, which utilize SEO, advertising, social media, trade shows, conferences, webinars and other media.

The company's Inpixon products are primarily sold on a license (up-front one-time fee) or SaaS model. In its licensing model, the company also typically charges an annual maintenance fee. The SaaS model is typically for a 2-3 year contract and includes maintenance upgrades. The SaaS model generates a recurring revenue stream. The company's Shoom product is on a monthly subscription model based on 2-3 year contracts. SAVES products are sold as annual or perpetual licenses along with maintenance subscriptions.

Customers

Inpixon's RTLS offerings, which include real-time location tracking, collision avoidance and wireless device detections are used around the world in automotive factories, heavy equipment factories, logistics and distribution warehouses, mining operations, government and military buildings, and corporate offices. Shoom solutions customers are primarily found in the advertising, media and publishing industries. SAVES solutions are used by engineers and scientists in a variety of industries, including environmental sciences, behavioral sciences, medical research and engineering.

Intellectual Property

The company's SAVES products are sold pursuant to an exclusive, world-wide, fully transferable, royalty free, 15 year (License Term) license and distribution agreement (the Systat License Agreement) with Cranes Software International Ltd. (Cranes) and Systat Software, Inc. (Systat and together with Cranes, the Systat Parties) pursuant to which it was granted an exclusive, worldwide license to use, modify, develop, market and distribute the SYSTAT software suite of products related source code, user documentation and associated intellectual property and an exclusive, worldwide sub-license to use, modify, develop, market and distribute the Sigma Plot suite of software, related source code, user documentation and associated intellectual property licensed to Systat by Cranes. In addition, the company granted with an exclusive, worldwide, fully transferable, royalty free license to create derivative works and improvements, modifications, enhancements, changes, or corrections to the underlying software, source code and documentation during the License Term (Modification). The company owns title to any Modifications.

In connection with the Enterprise Apps Spin-off and the terms of the Separation Agreement, each of Inpixon and CXApp have granted the other party a limited worldwide, non-exclusive, irrevocable, royalty free, fully paid up, perpetual license (the Licensee) to use, practice and otherwise exploit such intellectual property (with certain exceptions) that is owned, controlled or purported to be owned or controlled by the other party (the Licensor) to the extent used, practiced or otherwise exploited in the business of the Licensee during the twelve (12) months prior to the separation or is reasonably anticipated to be used after the separation for the conduct of any business of the Licensee as conducted on or prior to the separation and reasonably anticipated extension or evolutions thereof that are not substitutes for any product or service of the Licensor.

Competition

The company's RTLS Indoor Intelligence products compete with companies, such as Aruba, Cisco, Juniper Networks/Mist Systems, Ubisense, Sewio, Kinexon, Zebra Technologies and other mostly vertical focused RTLS companies. Originlab and Graphpad Prism are the main competitors of the company's SAVES products.