XTI Aerospace, Inc. Q2 FY2022 earnings call

• Revenue increased 37% in Q2 2022 and 55% for six months compared to prior year, with focus on organic growth and recurring revenue. - Added new Fortune 100 customers, average contract value for experienced app products over $135,000. - Industrial business had strongest quarter in new bookings since start of last year. - Workplace technologies critical for hybrid work, with Inpixon's solution applicable to all work scenarios. - Inpixon Events platform delivering rich experiences, won multiple awards. - Obtained ISO/IEC security certification. - Joined SAP's Partner Program, working to enter SAP store. - Received multiyear orders from customers to smooth supply chain, looking at joint sales/marketing for RTLS and IoT solutions. - Board authorized review of strategic alternatives to maximize shareholder value.

For the three months ended June 30, 2022, revenue was $4.7 million, and for the six months ended June 30, 2022, revenue was $10.0 million. This is an increase of approximately 37% for the three months and 55% for the six months compared to the prior year periods. Gross profit for the three months ended June 30, 2022 was $3.3 million, and for the six months was $7.2 million, an increase of 30% and 55% respectively. The gross profit margin for the three months was 70% and for the six months was 72%, down slightly from prior year due to sales mix. Non-GAAP adjusted EBITDA for the three months ended June 30, 2022 was a loss of $9.9 million, and for the six months was a loss of $18.7 million, compared to prior year losses of $6.3 million and $11.8 million respectively.

• Evaluating operating expenditures to increase efficiencies and conserve cash. - Focused on maintaining strong financial position and moving towards positive cash flow. - Continuing to execute on growth objectives while addressing economic uncertainties.

• Macroeconomic challenges, supply chain issues. - Escalating inflation, strengthening U.S. dollar, concerns about global recession. - Geopolitical tensions. - Stock market volatility impacting stock price. - NASDAQ minimum bid requirement compliance issues.

Q: Can you provide an update on the strategic transactions mentioned in your December 2021 press release?

A: Board authorized review of strategic alternatives to maximize shareholder value, ongoing process with no definitive decisions yet, evaluating current and new opportunities.

Q: What are your plans to address the NASDAQ minimum bid requirement?

A: Intend to explore all options to regain compliance, continue executing business strategy to have market recognize value.

Q: Can we expect some insider buying from management?

A: Management team explores purchasing stock outside blackout periods when time permits.

Q: Has the company considered workforce reductions as a way to reduce costs?

A: Evaluating options to reduce costs, conserve cash, increase operating efficiencies, balancing cost reduction with continuing growth execution.

Q: What can the company do to avoid the stock being shorted?

A: Share frustration with undervaluation, increasing shareholder value is a priority through evaluating expenditures and strategic options, but can't control stock trading.