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Item 1. Business

2023-04-17 compared with 2022-03-16 · 129 added, 121 removed, 105 unchanged (70% of the section changed)

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Our solutions and technologies help organizations create and redefine exceptional experiences that enable smarter, safer and more secure environments.

We leverage our positioning, mapping, augmented reality, analytics and app technologies to achieve higher levels of productivity and performance, increase safety and security, improve worker and employee satisfaction rates and drive a more connected workplace.

We have focused our corporate strategy on being the primary provider of the full range of foundational technologies needed in order to offer a comprehensive suite of solutions that make indoor data available and meaningful to organizations, employees and visitors.

Together, our technologies are foundational for allowing organizations to create and launch the digital twin of a physical location necessary for driving enhanced experiences in the metaverse.

Our Indoor Intelligence solutions are used by our customers for a variety of use cases including, but not limited to, employee and visitor experience enhancement through a customer branded app with features such as desk booking, wayfinding and navigation, and the delivery of content to tens of thousands of attendees in hybrid events.

Our real time location (RTLS) and asset tracking products offer manufacturing and warehouse logistics optimization and automation, increase workforce productivity, and enhance worker safety and security.

Inpixon customers can leverage our 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.

We have focused our 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, our 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.

Our 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 our RTLS, businesses can achieve improved operational efficiency, enhanced safety and reduced costs.

By having real-time visibility into operations, industrial organizations can make informed, data-driven decisions, minimize downtime, and ensure compliance with industry regulations.

With our 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.

We help organizations to track the location and status of assets in real-time, identify inefficiencies, and make decisions that drive business growth.

Our 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.

Our 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 easily integrate it with their existing systems and add new capabilities as their needs evolve.

In addition to our Indoor Intelligence technologies and solutions, we also offer:

• Digital solutions (eTearsheets;

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

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

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

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Indoor Intelligence

Our Indoor Intelligence offerings consists of the following software and hardware products.

Experience Apps and Services

• Smart Office App – Our smart office app seeks to enhance the employee experience by providing organizations with a holistic location aware customer branded employee app for a smart, innovative and connected workplace.

This solution aims to help organizations provide a frictionless work environment with features such as hot desking and room booking, indoor navigation with turn by turn directions on a digital map, company-wide news feeds to more easily distribute relevant content to employees and other personnel, an in-app company directory and the ability to access workplace amenities and other bookable opportunities and experiences.

With over 75 product integrations (Slack, Zoom, Office365, G-suite, ServiceNow, etc.) our Smart Office App serves as the gateway to your corporate communications and productivity portfolio.

• Executive Briefing Centers (EBC) – Our EBC omni-channel software platform provides a virtual briefing platform allowing organizations to offer a personalized experience for in-office, remote and hybrid meetings.

This SaaS platform allows for meeting programs to be managed in one environment from meeting to meeting or location to location with agendas that support single or multi day events with a detailed day-by-day guide and customizable agenda capabilities.

• Events – Our hybrid events platform offers a mobile first and virtual event platform to connect tens of thousands of remote and in person audiences in a fully branded, end to end event experience.

The software-as-a-service (SaaS) platform allows for hosting and storage of events, perpetual engagement before during and after the event, personalized agendas, real time activity feeds, notifications and more.

• Inpixon Mapping , is our indoor mapping solution which provides users with the tools to add intelligence to complex indoor spaces by integrating business data with geospatially accurate indoor maps to create relevant views of indoor environments.

Our Indoor Intelligence offerings consist of the following software and hardware products.

• Industrial RTLS SaaS Platform - Our 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 also 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.

Inpixon Mapping offers developers the flexibility and control to create tailored map-enabled solutions that address multiple use cases with a single set of maps.

Deployed through native software development kits (SDKs) (Web, iOS, Android), maps are broken down into layers and objects that can be associated with third party data sources and used to provide a high-fidelity and fluid user experience.

Our mapping platform is flexible and has both customers with their own mobile apps that use our SDK as well as native deployment in our own smart office app.

• Augmented Reality (AR) and 3D – Inpixon's augmented reality SDKs allow businesses 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.

Creating the 3D representation of your venue can be as easy as using your phone camera.

Using SLAM combined with our patented and patent-pending technologies offers tools to help enterprise and industry enable metaverse capabilities for their business.

• Analytics and Insights – our robust cloud-based analytics platform allows data from multiple sensors and data sources to be visualized for action by the operator.

Our platforms can engage with data from our IoT sensors, our mobile apps, 3rd party sensors and data that is ingested via an application programming interface (API) or comma-separated value (CSV).

In retail, both shopping malls and large stores, we can capture radio frequency (RF) data to visually display shopper loyalty and behavior including measuring in-store events or experiential activations.

Our enterprise clients use analytics to monitor employee engagement with the mobile app and events platform while in the factory we analyze movement patterns in the warehouse and interact with enterprise resource planing (ERP) systems to optimize workflow.

• On-Device Positioning - we provide on-device positioning using internal sensors in smart phones and other IoT wearable devices.

The location data is ingested by the positioning system generating accurate coordinates which are displayed on an indoor map.

Our on-device indoor positioning solution enables a smartphone’s precise location to be displayed to a user in a mobile app.

Data is combined from various sensors, including accelerometers, gyroscopes, compass, global positioning system (GPS) and bluetooth (BLE) radio scanning, to position the blue dot and to correct for drift.

Enabling powerful location-based use cases, our patented on-device technology runs on a smartphone, smartwatch or other IoT wearable device and can operate without the internet.

Industrial Internet of Things (IoT) and RTLS

• IoT SaaS Platform - Our 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 or the automatic identification and booking of goods and material flows (AutoID).

In addition to real-time data applications for the digital twin, it also provides smart real-time location analyses from one platform suite, enabling companies to identify significant process optimizations and make data-based decisions.

The solutions offered by the platform include (1) SMART Warehouse (2) AutoID & Booking (3) SMART Forklift (4) Fleet Manager (5) Safety Manager (6) SMART Production (7) Material flow control (8) Equipment Manager (9) Yard Manager and (10) Shipment Manager.

• IoT Devices, Sensors and Tags - Our RTLS or asset tracking hardware includes a full end-to-end portfolio of IoT sensors (also known as nodes or anchors) and end user or asset tags.

This portfolio leverages our own products for GPS, ultra-wideband (UWB) and chirp spread spectrum (CSS) while incorporating support for third party integrated Wi-Fi and BLE solutions.

In the security space, a version of our sensor allows detection of cellular, Wi-Fi and BLE signals that is combined with UWB to offer security and high value asset tracking solutions.

• IoT Devices, Sensors and Tags - Our 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 our 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 our 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, quickness, and reliability of both technologies to track the real-time location and status of key assets and equipment, with greater precision.

Users can display and track the location and movement of static and moving

assets and asset attribute information within a space on high-fidelity, layer-based indoor maps and navigate to assets that are both fixed and in motion.

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 our partners and integrators.

• Video Integration – Our 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.

• Security – Our wireless detection and positioning solutions help cultivate situational awareness by leveraging sensors with proprietary technology that can detect and position active cellular, Wi-Fi, Bluetooth, UWB and Chirp signals throughout a venue.

This solution allows for the positioning of people and assets homogeneously as they travel in a controlled space and empowers users to make key decisions around security, risk mitigation and public safety, at scale.

• Analytics and Insights - Our cloud-based analytics platform allows data from multiple sensors and data sources to be visualized for action by the customer.

Our platforms can engage with data from our 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 - Our augmented reality solutions allow us 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 – Our 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, detection and identification of authorized and unauthorized devices, prevention of rogue devices through alert notification based on rules when unknown devices are detected in restricted areas and asset tracking with centimeter level precision.

• Transceiver/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 communication, ranging capabilities and RTLS.

A patented, Inpixon owned technology that offers range comparable to Wi-Fi systems with accuracy of BLE or UWB in some scenarios.

This product is also available in a module form to allow easier integration for our partners and integrators.

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 - Our indoor intelligence segment for the reporting period covered by this report also includes the smart office app, events and mapping solution which comprised 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 our enterprise apps business

effective as of March 14, 2023.

(See " Corporate History " below and “ Recent Events - Enterprise Apps Spin-off and Business Combination ” under Part II, Item 7 herein for more information).

With Shoom Digital Solutions we offer 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 work flows, 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.

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 eith eTearsheets and dynamic invoice searching.

eInvoice is a hosted, web-based solution offering email notifications, seamless interaction with eTearsheets and dynamic invoice searching.

Through our SAVES product line we offer a comprehensive set of data analytics and statistical visualization software solutions for engineers and scientists.

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As a result, our executive management must continuously work to ensure that they remain informed and prepared to quickly adapt and leverage new technologies within our product and service offering as such technologies become available.

In connection with that goal, our product roadmap development plans include expanding the use of both UWB and CSS technology for precise asset tracking, furthering our efforts towards 3D mapping, with a specific focus on light detection and ranging (LIDAR) and AR features, innovation in our machine learning algorithms for our positioning engines, understanding worldwide 5G deployments to enhance our detection and positioning capabilities.

In connection with that goal, our product roadmap development plans include expanding the use of both UWB and CSS technology for precise asset tracking, furthering our efforts towards 3D mapping, with a specific focus on light detection and ranging (LiDAR) and AR features, innovation in our machine learning algorithms for our positioning engines, and understanding worldwide 5G deployments to enhance our detection and positioning capabilities.

Positioning Innovation Powered by Machine Learning

In 2022, we intend to continue to expand our use of machine learning and artificial intelligence (“AI”) to improve positioning accuracy, reliability and range which will provide additional to existing customers and unlock new opportunities for our technology.

These improvements will impact our on-device positioning technology used to provide an indoor blue dot in corporate enterprises as well as our CSS and UWB deployments in both commercial and industrial companies.

Following these enhancements, our products will be able to assist in providing predictive, more accurate, bidirectional location information to secure and optimize our deployments using hardware that includes iOS and Android smartphones, IoT sensors, access points or BLE beacons.

In 2023, we intend to continue to expand our 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 our technology.

Following these enhancements, we believe our products will be able to assist in providing predictive, more accurate, bidirectional location information to secure and optimize our deployments using hardware that includes iOS and Android smartphones, IoT sensors, access points or BLE beacons.

Building on research and development (R&D) efforts in 2022, we intend 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 our customers with additional capabilities in the security field.

This is a complex problem and we are working with partners and customers to understand requirements, use cases and solutions.

Mapping, Digital Twin and Augmented Reality

Our advanced mapping platform is built with a set of developer tools to power an infinite number of experiences across multiple platforms.

In 2022, we will continue to expand our tools by leveraging LIDAR technology to confirm asset location in a deployment and explore the ability to validate changes in the physical world match our digital twin.

AR technologies will be used to both display and capture spatial data that can be overlay with the rich, profile-based maps in our CMS.

This will allow new navigation use cases, applications for deployment of assets and possibilities for optimization in manufacturing and office environments.

With the addition of our on-device positioning technology and the expanding usage of apps in the workplace, particularly campus and large building environments, we are investing R&D resources in improving our app capabilities, enhancing our SDKs and adding new functionality to support integration with workplace systems and tool.

Our API and SDK integrations with partners that provide conferencing, collaboration, delivery, secure lockers, parking and IoT management are key differentiators that make our app the gateway for our customers.

By providing the best mapping and app experience our enterprise customers can improve efficiency and experience in offices and guide users in following new health and safety recommendations.

This is a complex challenge and we are working with partners and customers to understand requirements, use cases and solutions.

Analytics and Insights

We provide data science analytics, on-premises or in the cloud, along with specially optimized algorithms that are intended to increase usability of the data we collect for our customers.

In 2022, we will continue to expand this offering allowing customers to export data to internal business intelligence systems and to upload additional datasets that might include security systems, assembly line data or shopping and receiving information.

Our system then delivers data reporting and visualizations to the user combining these data sources.

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.

Predictive maintenance reduces downtime and maintenance costs, as well as improve the lifespan of equipment.

Process optimization helps improve productivity, reduce costs, and enhance customer satisfaction.

Security and safety helps prevent accidents, reduce the risk of theft, and enhance the overall safety of employees

and customers.

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 our 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.

Corporate Strategy

Since 2019, management has pursued an aggressive corporate strategic acquisition strategy focused on building and developing our Indoor Intelligence TM platform to be able to offer a comprehensive range of solutions that allow for the collection of data within workplace environments to delivering insights from that data for, people, places and things.

In furtherance of this strategy, we have completed a series of strategic transactions, including, the acquisition of (1) technologies allowing for wireless device positioning and radio frequency augmentation of video surveillance systems;

(2) GPS tracking products, software, technologies, and related intellectual property to provide ground positioning, asset tracking, and situational awareness monitoring for those whose intelligence needs expand outdoors;

(3) our indoor mapping solution, Inpixon Mapping, to provide users with the tools to add intelligence to complex indoor spaces by integrating business data with geospatially accurate indoor maps to create relevant views of indoor environments;

(4) a suite of on-device “blue dot” indoor location and

motion technologies, including patents, trademarks, software and related intellectual property;

(5) IoT solutions for RTLS and indoor and outdoor positioning solutions utilizing both industry-standard technologies, such as UWB, and patented proprietary wireless communication technologies, such as CSS;

(6) a suite of augmented reality, computer vision, localization, navigation, mapping, and 3D reconstruction technologies, including patents, trademarks, software and related intellectual property, (7) a leading SaaS app platform that enables corporate enterprise organizations to provide a custom-branded, location-aware employee app focused on enhancing the workplace experience and hosting virtual and hybrid events, and (8) an industrial IoT, RTLS, and sensor data services provider.

We believe these transactions have positioned us as a market leader with a comprehensive suite of products and solutions allowing us to help organizations enhance the visitor and employee experience with actionable indoor intelligence making them smarter, safer and more secure.

We operate and compete in an industry that is characterized by rapid technological innovation, changing customer needs, evolving industry standards and frequent introductions of new products, product enhancements, services and distribution methods.

Our success will depend on our ability to develop expertise with these new products, product enhancements, services and distribution methods and to implement solutions that anticipate and respond to rapid changes in technology, the industry, and customer needs.

In order to continue to respond to rapid changes and required technological advancements, as well as increase our shareholder value, we are exploring strategic transactions and opportunities that we believe will enhance shareholder value and support our commitment to delivering exceptional experiences and continued innovation with technologies that combine the physical and digital worlds with augmented reality and location based technologies.

We are primarily focused on identifying potential targets with business value and operational synergies, however, we will also be opportunistic and may consider other strategic and/or attractive transactions that we believe may increase overall shareholder value, which may include, but not be limited to other alternative investment opportunities, such as minority investments, joint ventures or special purpose acquisition companies.

In addition, at the end of last year, our board of directors authorized a review of strategic alternatives, including a possible asset sale, merger with another company or spin-off of one or more of our business units.

We have received an inbound preliminary indication of interest which we are currently evaluating.

We also intend to retain an investment bank as our financial advisor in order to evaluate any available strategic options that may be available to us, If we make any acquisitions in the future, we expect that we may pay for such acquisitions with cash, equity securities and/or debt in combinations appropriate for each acquisition.

Our board of directors has authorized a review of strategic alternatives, including a possible asset sale, merger with another company or spin-off of one or more of our business units.

We will also be opportunistic and may consider other strategic and/or attractive transactions, which may include, but not be limited to other alternative investment opportunities, such as minority investments, joint ventures or special purpose acquisition companies.

If we make any acquisitions in the future, we expect that we may pay for such acquisitions with cash, equity securities and/or debt in combinations appropriate for each acquisition.

In September of 2022, we entered into an Agreement and Plan of Merger in connection with the spin-off and sale of our enterprise apps business which was consummated on March 14, 2023.

(See " Corporate History " below and “Recent Events - Enterprise Apps Spin-off and Business Combination” under Part II, Item 7 herein for more details).

In addition, we have entered into a non-binding letter of intent and are in the due diligence stages with another third party in connection with a potential transaction involving the remainder of our business.

We may enter into one or more additional non-binding letters of intent in connection with our due diligence and evaluation process.

Research and Development Expenses

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Our management believes that we must continue to dedicate a significant amount of resources to research and development efforts to maintain a competitive position.

Our products intersect many emerging fields including metaverse, augmented reality, occupancy planning, industry 4.0, smart cities and we continue to innovate and patent new methods to solve problems for our customers.

Our products intersect many emerging fields including metaverse, augmented reality, occupancy planning, industry 4.0, smart cities, and more, and we continue to innovate and patent new methods to solve problems for our customers.

Research and development expenses for the years ended December 31, 2022 and 2021 totaled approximately $17.7 million and $14.1 million, respectively.

Sales and Marketing

We utilize direct sales and marketing through sales representatives, who are compensated with a base salary and, in certain instances, may participate in incentive plans such as commissions or bonuses.

We also utilize webinars, conferences, tradeshows and other direct and indirect marketing activities to generate demand for our products and services.

We also have relationships with resellers and channel partners to directly engage with customers, to perform the installation as well as manufacturers (OEM) and systems integrators to assist with the implementation of certain of our products and services.

We are in the process of expanding our channel partners.

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.

Our Inpixon products are primarily sold on a license (up-front one-time fee) or SaaS model.

In our licensing model, we also typically charge an annual maintenance fee.

The SaaS model is typically for a 2-3 year contract and includes maintenance upgrades.

The SaaS model is typically for a 2-3 year contract and includes maintenance

The SaaS model generates a recurring revenue stream.

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SAVES products are sold as annual or perpetual licenses along with maintenance subscriptions.

The Company’s customers include Fortune 1000 enterprises primarily in the US and Europe that range from leading automotive manufacturers to major airlines to metaverse focused organizations to leading edge-to-cloud providers.

A list of customers is available on our website at www.inpixon.com.

Our workplace experience products including our award-winning mobile app, events platform, mapping services and briefing center tools are deployed in various sectors including pharmaceutical, banking, technology, hospitals, shopping malls, entertainment, electric vehicles and food delivery.

Our industrial IoT offerings which include security sensors, real-time location tracking, process optimization, paperless factory and virtual warehouse are used around the world in automotive factories, logistics warehouse, underground mining, distribution facilities, government and military buildings and corporate offices.

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.

Our top three customers accounted for approximately 19% and 16% of our gross revenue during the years ended December 31, 2022 and 2021, respectively.

During 2021 no customer accounted for more than 10% of our gross revenue, and one customer accounted for 8% of our gross revenue in 2021 and a separate customer accounted for 26% in 2020.

During 2022 no customer accounted for more than 10% of our gross revenue, and two customers accounted for 7% of our gross revenue in 2022 and one customer accounted for 8% of our gross revenue in 2021.

From time to time, one or two customers can represent a significant portion of our revenue as a result of one-time projects.

Our business is characterized by innovation and rapid change.

Our Indoor Intelligence products compete with companies that offer positioning and asset tracking products and services, indoor mapping solutions, or workplace experience apps.

For positioning we compete with companies such as Aruba, Cisco, Mist Networks/Juniper Networks, Aislelabs and Bluevision/HID.

For our workplace experience app, events and executive briefing center products we compete with Modo, Comfy, On24, Cvent, Signet and BriefingEdge.

For our mapping product, we compete with companies such as MappedIn, Mapwize and Esri.

For asset tracking and our Industrial Internet of Things (IIoT) products, we compete with Ubisense, Sewio, Kinexon, Zebra Technologies, Stanley Healthcare and other mostly vertical focused RTLS companies.

The positioning companies primarily offer BLE or Wi-Fi detection and, therefore, we believe they cannot achieve the same accuracy and comprehensive detection that we do.

We have partnered with or replaced some of these companies because we offer GPS, Cellular/LTE, Wi-Fi, BLE, CSS and UWB solutions that can deliver the level of accuracy required for the customer use case.

Most of the companies above are focused on one product and/or vertical and, at this time, we believe none of them have the complete offering of positioning, mapping, RTLS and analytics.

We believe we offer a unique and differentiated approach to the market with our indoor intelligence offering which is:

Our 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.

Some competitors determine positioning primarily using BLE or Wi-Fi and, therefore, we believe they cannot achieve the same accuracy that we do and so cannot meet some customers' needs.

Many Inpixon competitors are focused on one technology and/or vertical and, at this time, we believe none of them have as complete an offering of tags, anchors, positioning, engine, software, integrations and analytics.

We believe we offer a unique and differentiated approach to the market with our industrial RTLS which is:

• Comprehensive .

We offer full-stack RTLS solutions which seamlessly integrates tracking tags, anchors, sensors, positioning engine, software, and connections to third-party systems.

We integrate a myriad of indoor data inputs and outputs.

The technology supports a multitude of use cases including workplace experience, asset tracking, navigation, facility management, analytics, and security across numerous industries in both the private and public sector.

We are built to support customers’ expanding needs and use cases.

Unlike other competitive point-solutions, we can offer expansion paths and support for a wide variety of location based use cases.

Our multi-layered depiction of indoor data allows users to see the information layer(s) most relevant to their role, in the optimal format for them (e.g., charts, tables, maps, etc.).

• Technology-agnostic .

With a single platform we can support a multitude of use cases across numerous industries in both the private and public sector.

Our solutions are built to support customers’ expanding needs and use cases.

Unlike many other competitive point-solutions, we can offer expansion paths and support for a wide variety of location-based use cases at large, multi-size, global enterprises.

Our 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 .

We embrace an ecosystem of hardware, software, integration and distribution partners welcoming integration and synchronization with third party data and systems in combination with our platform.

Our open architecture is designed to enable the integration of disparate technologies, preserve investment and avoid obsolesce.

APIs make it possible to move data in and out of our platform.

Our SDKs enable developers to build new apps or to integrate location data into their existing mobile apps, websites or kiosks.

Our 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 our platform to enable a plethora of opportunities and benefits.

MerlinOne and PressTeligence compete with the functionality of our Shoom products, but typically provide information only for the specific customer and not for the customer’s competitors or for the industry.

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We own title to any Modifications.

In connection with the Enterprise Apps Spin-off and the terms of the Separation Agreement (defined below), 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.

Government Regulation

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On April 30, 2021, we acquired over 99.9% of the outstanding capital stock of Design Reactor, Inc., a California corporation (“The CXApp”), the provider of a leading SaaS app platform that enables corporate enterprise organizations to provide a custom-branded, location-aware employee app focused on enhancing the workplace experience and hosting virtual and hybrid events pursuant to the terms of a Stock Purchase Agreement.

On May 10, 2021, we acquired the remaining interest of The CXApp and now own 100% of the outstanding capital stock of The CXApp.

On December 9, 2021, through our wholly-owned subsidiary, Nanotron Technologies GmbH, a limited liability company incorporated under the laws of Germany (the “Purchaser”), we entered into a Share Sale and Purchase Agreement (the “Purchase Agreement”) with the shareholders of IntraNav GmbH, a limited liability company incorporated under the laws of Germany (“IntraNav”), pursuant to which we acquired 100% of the outstanding capital stock (the “IntraNav Shares”) of IntraNav, a leading industrial IoT (“IIoT”), real-time location system (“RTLS”), and sensor data services provider.

On May 10, 2021, we acquired the remaining interest of The CXApp.

On December 9, 2021, through our wholly-owned subsidiary, Nanotron Technologies GmbH, a limited liability company incorporated under the laws of Germany, we entered into a Share Sale and Purchase Agreement (the “Purchase Agreement”) with the shareholders of IntraNav GmbH, a limited liability company incorporated under the laws of Germany (“IntraNav”), pursuant to which we acquired 100% of the outstanding capital stock (the “IntraNav Shares”) of IntraNav, a leading industrial IoT (“IIoT”), real-time location system (“RTLS”), and sensor data services provider.

On September 25, 2022, we entered into an Agreement and Plan of Merger (the "Merger Agreement") by and among Inpixon, KINS Technology Group Inc., a Delaware corporation (renamed CXApp Inc., "KINS" or "New CXApp"), CXApp Holding Corp., a Delaware corporation and wholly-owned subsidiary of New CXApp (formerly a wholly-owned subsidiary of Inpixon, "CXApp"), and KINS Merger Sub Inc., a Delaware corporation and a wholly-owned subsidiary of KINS ("Merger Sub"), pursuant to which KINS would acquire Inpixon's enterprise apps business (including its workplace experience technologies, indoor mapping, events platform, augmented reality and related business solutions) (the "Enterprise Apps Business") through the merger of Merger Sub with and into CXApp (the “Merger”), with CXApp continuing as the surviving company and as a wholly-owned subsidiary of KINS, in exchange for the issuance of shares of KINS capital stock valued at $69 million (the "Business Combination").

Immediately prior to the Merger and pursuant to a Separation and Distribution Agreement, dated as of September 25, 2022, among KINS, Inpixon, Design Reactor, Inc., a California corporation ("Design Reactor") and CXapp (the "Separation Agreement"), and other ancillary conveyance documents, Inpixon would, among other things and on the terms and subject to the conditions of the Separation Agreement, transfer the Enterprise Apps Business, including certain related subsidiaries of Inpixon, including Design Reactor, to CXApp (the "Reorganization").

Following the Reorganization, Inpixon would distribute 100% of the common stock of CXApp, par value $0.00001, to certain holders of Inpixon securities as of the record date of March 6, 2023 (the "Enterprise Apps Spin-Off").

On March 14, 2023, we completed the Enterprise Apps Spin-off and subsequent Business Combination (the "Closing") In connection with the Closing, KINS was renamed CXApp Inc.

(“New CXApp”).

Pursuant to the Transaction Agreements, Inpixon contributed to CXApp cash and certain assets and liabilities constituting the Enterprise Apps Business, including certain related subsidiaries of Inpixon, to CXApp (the “Contribution”).

In consideration for the Contribution, CXApp issued to Inpixon additional shares of CXApp common stock such that the number of shares of CXApp common stock then outstanding equaled the number of shares of CXApp common stock necessary to effect the Distribution.

Pursuant to the Distribution, Inpixon shareholders as of the Record Date received one share of CXApp common stock for each share of Inpixon common stock held as of such date.

Pursuant to the Merger Agreement, each share of Legacy CXApp common stock was thereafter exchanged for the right to receive 0.09752221612415190 of a share of New CXApp Class A common stock (with fractional shares rounded down to the nearest whole share) and 0.3457605844401750 of a share of New CXApp Class C common stock (with fractional shares rounded down to the nearest whole share).

New CXApp Class A common stock and New CXApp Class C common stock are identical in all respects, except that New CXApp Class C common stock is not listed and will automatically convert into New CXApp Class A common stock on the earlier to occur of (i) the 180th day following the closing of the Merger and (ii) the day that the last reported sale price of New CXApp Class A common stock equals or exceeds $12.00 per share for any 20 trading days within any 30-trading day period following the closing of the Merger.

Upon the closing of the

Transactions, Inpixon’s existing securityholders held approximately 50.0% of the shares of New CXApp common stock outstanding.

The transaction is expected to be tax-free to Inpixon and its stockholders for U.S.

federal income tax purposes.

On March 15, 2023, New CXApp began regular-way trading on NASDAQ under the ticker symbol “CXAI.” Inpixon continues to trade under the ticker symbol “INPX.”

Effective as of October 7, 2022, we effected a reverse stock split of our authorized and issued and outstanding common stock at a ratio of 1-for-75, for the purpose of complying with Nasdaq Listing Rule 5550(a)(2).

Corporate Information

We have six operating subsidiaries:

As of December 31, 2022, we had seven operating subsidiaries:

(i) Inpixon Canada, Inc.

(100% ownership) based in Coquitlam, British Columbia (“Inpixon Canada”);

(i) Inpixon Limited (100% ownership) based in Slough, United Kingdom;

(100% ownership) based in Toronto, Canada (“Inpixon Canada”);

(ii) Inpixon Limited (100% ownership) based in Slough, United Kingdom;

(iii) Inpixon GmbH (100% ownership) based in Ratingen, Germany;

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(v) Game Your Game, Inc., based in Palo Alto, CA (55.4%);

and (vi) Inpixon India Limited (82.5% ownership) based in Hyderabad, India.

(vi) Inpixon India Limited (82.5% ownership) based in Hyderabad, India;

and (vii) Inpixon Philippines, Inc.

(99.97% ownership), based in Manila, Philippines.

In addition, Active Mind Technology Ltd.

is an indirect subsidiary of the Company and the wholly-owned subsidiary of Game Your Game, Nanotron Technologies GmBh ("Nanotron"), based in Berlin, Germany is an indirect subsidiary of the Company and the wholly owned subsidiary of Inpixon GmbH and IntraNav GmbH, based in Eschborn, Germany is an indirect subsidiary of the Company and the wholly owned subsidiary of Nanotron.

and Active Mind Technology R&D, both based in Galway, Ireland, are indirect subsidiaries of the Company and the wholly-owned subsidiaries of Game Your Game Inc.

Nanotron Technologies GmBh ("Nanotron"), based in Berlin, Germany is an indirect subsidiary of the Company and the wholly owned subsidiary of Inpixon GmbH and IntraNav GmbH, based in Eschborn, Germany ("IntraNav") is an indirect subsidiary of the Company and the wholly owned subsidiary of Nanotron.

In connection with the Enterprise Apps Spin-off, the following subsidiaries were disposed of:

Inpixon Canada, Inc., Design Reactor, Inc.

(The CXApp) and Inpixon Philippines, Inc.

Our principal executive offices are located at 2479 E.

Bayshore Road, Suite 195, Palo Alto, CA 94303, and our telephone number is (408) 702-2167.

Our subsidiaries maintain offices in Coquitlam, British Columbia, New Westminster, British Columbia, Toronto, Ontario, Hyderabad, India, Berlin Germany, Ratingen, Germany, Eschborn, Germany and Slough, UK.

As of December 31, 2022, our subsidiaries maintained offices in Toronto, Ontario, Hyderabad, India, Berlin Germany, Ratingen, Germany, Eschborn, Germany, Manila, Philippines and Slough, UK.

Our Internet website is www.inpixon.com.

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Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business