Good day, ladies and gentlemen, and welcome to your Inpixon First Quarter 2020 Conference Call. [Operator Instructions]. As a reminder, today's call is being recorded. At this time, it is my pleasure to turn the floor over to David Waldman. Sir, the floor is yours.

Good afternoon, and welcome to the Inpixon earnings conference call for the 3 months ended March 31, 2020. [Operator Instructions]. I'm sorry. Thank you for joining today's call to discuss the corporate developments and financial results for the 3 months ended March 31, 2020. With us today are Nadir Ali, the company's CEO; and Wendy Loundermon, the company's Chief Financial Officer. Today, Inpixon released financial results for the 3 months ended March 31, 2020. If you have any -- if you have not received Inpixon's earnings release, please visit the company's Investor Relations page at ir.inpixon.com. During the course of this conference call, the company will be making forward-looking statements. The company cautions you that any statement that is not a statement of historical fact is a forward-looking statement. This includes any projections of earnings, revenues, cash or other statements relating to the company's future financial results, any statements about plans, strategies or objectives of management for future operations, any statements regarding completed or planned acquisitions or strategic partnerships and the anticipated impact of those transactions on our business, any statements concerning proposed new products or solutions, any statements regarding anticipated new customers, relationships or agreements, any statements regarding expectations for the success of the company's products in the U.S. and international markets, any statements regarding future economic conditions or performance, including, but not limited to, the impact of COVID-19 on our operations, any statements of belief and any statements of assumptions underlying any of the foregoing. These statements are based on expectations and assumptions as of the date of this conference call and are subject to numerous risks and uncertainties that could cause actual results to differ materially from those described in the forward-looking statements. Some of these risks are described in the section of today's press release titled Cautionary Note on forward-looking statements and the public periodic reports the company files with the Securities and Exchange Commission. Investors or potential investors should read these risks. Inpixon assumes no obligation to update these forward-looking statements to reflect future events or actual outcomes and does not intend to do so. In addition, to supplement the GAAP numbers, the company has provided non-GAAP adjusted net loss and net loss per share information in addition to non-GAAP adjusted EBITDA information. The company believes that these non-GAAP numbers provide meaningful supplemental information and are helpful in assessing our historical and future performance. A table reconciling the GAAP information to the non-GAAP information is included in the company's financial release. I'll now turn the call over to Nadir Ali, Inpixon's CEO. Please go ahead.

Thank you, David, and good afternoon, everyone. First, I'd like to thank everyone for taking the time to join our conference call today, especially during this challenging time. I hope that all of you, your families and friends are healthy and doing well. We are pleased to be here with you to discuss our first quarter financial results and accomplishments and update you on our plans and outlook for the quarters to come. Today, we are all living and working in what are an unprecedented time. During the first quarter of 2020, we, like all of you, have had to learn to adapt and change in what is a constantly evolving situation for every industry throughout the world. When the government stay-at-home orders went into effect, we were able to make necessary adjustments to ensure our employees' safety and adherence to guidelines by quickly and efficiently transitioning to remote work across all of our locations. Not only have our employees adapted smoothly to working from home, I am proud to report that because of the dedication of all of our employees, who are working harder than ever before to balance work responsibilities with the challenge of family life during these extremely difficult times, we have been able to continue business operations remotely with minimal impact on our day-to-day operations. Our customer support team is readily available and in full operation, actively engaging with customers and prospects every day. And all of our employees from engineering, operations, to sales, marketing and finance are doing their part so we can quickly deliver new relevant solutions to help our customers, communities and society at large. The challenges that our customers are facing vary by industry. Clearly, those that have been categorized as nonessential have been heavily impacted, while certain essential businesses, government and…

Thank you, Nadir, and thanks to everyone for joining us today. Revenues for the first quarter ended March 31, 2020 were $1.8 million compared to $1.36 million for the comparable period in the prior year, for an increase of $441,000 or approximately 32%. The revenue increase was primarily due to an increase in revenue from mapping services. Gross profit for the 3 months ended March 31, 2020, was $1.3 million compared to $1 million for the comparable period in the prior year for an increase of 26%, while gross margin for the 3 months ended March 31, 2020 was 72% compared to 75% for the 3 months ended March 31, 2019. This decrease in margin was primarily due to lower margins associated with the increase in our mapping services as a percentage of revenue during the first quarter ended March 31, 2020. Loss from operations for the 3 months ended March 31, 2020 was $5.6 million as compared to $4.9 million for the comparable period in the prior year. This increase of approximately $700,000 was primarily attributable to the higher gross profit, offset by higher operating expenses during the 3 months ended March 31, 2020. Net loss attributable to stockholders for the 3 months ended March 31, 2020 was $6.2 million compared to a loss of $5.2 million for the comparable period in the prior year. The higher loss of approximately $1 million was primarily attributable to higher gross profit, offset by higher operating and interest expense during the first quarter ended March 31, 2020. Non-GAAP adjusted EBITDA for the 3 months ended March 31, 2020 was a loss of $3.9 million compared to a loss of $2.6 million for the prior period in 2019. Non-GAAP adjusted EBITDA is defined as net income or loss before interest, provision for income taxes and depreciation and amortization plus adjustments for other income or expense items, nonrecurring items and noncash items including stock-based compensation. Pro forma non-GAAP net loss per basic and diluted common share for the 3 months ended March 31, 2020 was a loss of $0.92 per share compared to a loss of $31.98 per share for the prior period in 2019. Non-GAAP net loss per share is defined as net loss per basic and diluted share adjusted for stock-based compensation, amortization of intangibles, provision for doubtful accounts, severance costs, acquisition costs, costs associated with public offerings and onetime charges, including the loss on exchange of debt for equity. Cash on hand at March 31, 2020 was $6.1 million. This concludes my comments. And now I'd like to turn the call back over to Nadir.

Thanks, Wendy. I'd like to thank everyone for participating on our first quarter conference call. As I mentioned earlier, we believe we can fill a critical need in today's world, and we are proud to have built a company with the essential technologies to assist organizations during one of the most difficult times in history, with solutions to make it easier to bring employees back to work and transition to what will be a new normal. Our products and services are geared towards large enterprise organizations, government agencies and educational institutions worldwide that can use indoor intelligence to improve lives and experiences, and to enhance the safety, security and well-being of their employees and visitors. We believe we offer a valuable platform with the ability to analyze and monitor what is useful, actionable and essential data in today's world. While some aspects of the future are uncertain for every business, I am convinced that organizations will invest to ensure this never happens again. An economic shutdown of the proportion experienced this year will likely be impossible to ever endure again. Our organizations will have to take action to adapt to transform our businesses, economy and society to become better prepared for future similar events. Investing in solutions that help to identify contagion threats, decrease transmission and mitigate the impact of such outbreaks will be critical. We are honored to be in a position to help our customers create a safer, healthier environment for their employees and visitors with solutions that support efforts to comply with best practice recommendations for effective policies that address the needs for things such as physical distancing, intelligent cleaning, contact tracing and other relevant use cases. Efforts taken to minimize transmission of viruses in the workplace where people spend most hours of their day will help to mitigate the spread of the virus through the broader community. We believe this is an opportunity for Inpixon to truly do good with indoor data by helping organizations across America reopen for a safer, more resilient future. I'd like to thank all of our shareholders, customers, partners and our amazing employees across the globe for your continued support. We look forward to providing additional updates in the weeks and months ahead. I will now turn the call over for questions. Operator?

[Operator Instructions]. And we'll take our first question from Ellen Litvack [ph] with Forest Capital.

Can you deploy your workplace readiness during the times where the shelter in place orders still continue?

Ellen [ph], yes, thanks for the question. Absolutely. So most of our products can be deployed remotely, the mapping products, the analytics products. And as I mentioned, we can capture data from existing Wi-Fi access points that our customers may have or if they have beacons deployed. So there's existing infrastructure that they may have that we'll tap into and bring into our mapping and analytics platforms. Our sensors will deploy as shelters in place restrictions loosen, but the other pieces can be done remotely.

Got it. So have you already seen interest already for this solution? I mean it sounds like it can help with physical distancing and contact tracing. Did I understand that correctly?

That's absolutely right. So it is -- these are existing products that Inpixon has had deployed with large customers, both government and commercial, and it's now reformatting these products, providing new dashboards using that same data that we were capturing for our general indoor intelligence solutions for this purpose. So we are definitely getting lots of inquiries and people asking how can we repurpose this data to help with not only just physical distancing, but contract tracing, understanding which zones may require additional cleaning, also to help direct folks. Consider if it's a hospital, you may want certain patients going to a COVID ward, if you have a setup like that, and others going to other parts of the building. But same for enterprise and government agencies, they may want -- it used to be we used to provide the shortest path from point A to point B. Now we're going to focus on maybe which is the least crowded path. So we're able to help our clients using the same products we have but solving a new use case, given where we are in the world today.

At this time, there are no further questions. The floor returns to Nadir Ali for additional remarks.

Thank you, everyone. Please stay safe and healthy, and we look forward to talking to you soon.

Thank you. This does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time. Have a great day.