Good day, ladies and gentlemen, and welcome to Inpixon’s First Quarter 2022 Business Update Call. All lines have been on a listen-only mode. [Operator Instructions] At this time it is my pleasure to turn the floor over to your host, David Waldman, investor relations. Sir, the floor is yours.

Thank you, and good afternoon, everyone. Thank you for joining today's conference call to discuss Inpixon’s corporate developments and financial results for its first quarter ended March 31, 2022. With us today are Nadir Ali, the company's CEO; and Wendy Lenderman, the company's Chief Financial Officer. Today, Inpixon released financial results for the first quarter ended March 31, 2022. 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 relating to future events and expectations. These statements are based on expectations and assumptions as of the date of this conference call and is 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 Safe Harbor section of today's press release and the periodic reports, the company files with the Securities and Exchange Commission. 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 financial measures in our discussion. The company believes these non-GAAP numbers provide meaningful supplemental information and are helpful in assessing our historical and future performance. The table reconciling the GAAP information to the non GAAP information is included in the company's financial release. I will now turn the call over to Nadir Ali, Inpixon's CEO. Please go ahead.

Thanks, David. Hello, everyone, and thanks for joining us today. Let's get started. So first of all, I'm pleased to report that Inpixon’s strong growth trajectory has continued through the first quarter of 2022 across multiple fronts. We saw a 77% increase in revenue over the same period of last year, primarily driven by an increase in sales related to our Indoor Intelligence segment, and particularly our enterprise employee experience app. We also saw continued high gross profit margins in the 73% range, and we expanded our customer base as compared to the same period last year, leveraging our indoor intelligence products to drive enhanced more connected employee experiences and smarter safer, more secure work environments. Many of these customers are among some of the largest organizations in the world and you can see some of them listed on our website. So today what I want to do is talk about where we are focusing our attention, both in order to capitalize on where we see the greatest opportunities, and also to address some of our challenges. But before I expand on this further, I do want to address a couple of things regarding the market impact on our stock price, and NASDAQ compliance. So I know many of you are frustrated with the stock price, and I share your frustration. It's the number one thing that keeps me up at night, because I know we're executing on the business. And yet it's not reflected in the stock price, given all of the macro economic trends that are happening. So what I've told my team is to focus on executing our business plan and our growth plans. Let's control what we can, and that a lot of what is happening has nothing to do with us. Right, the overall market…

Thank you Nadir. Revenues for the three months ended March 31, 2022 were $5.2 million, compared to $3 million for the comparable period in the prior year, for an increase of approximately $2.3 million, or approximately 77%. This increase is primarily attributed to the increase in indoor intelligence sales, particularly the addition of the CXApp product line during the second quarter of 2021. Gross profit for the three months ended March 31, 2022 was $3.8 million, compared to $2.1 million for 2021, representing an increase of about 86%. The gross profit margin for the three months ended March 31, 2022 was 73%, compared to 70% for the three months ended March 31, 2021. Net income or loss attributable to stockholders of Visualix for the three months ended March 31, 2022 was a loss of $11.2 million, compared to a loss of $12.6 million for the comparable period in the prior year. This decrease in loss of approximately $1.3 million was primarily attributed to the increased gross profit of $1.8 million, lower operating costs of approximately $26 million and higher non-controlling interests of $24 million offset by the $1.5 million unrealized loss on the Sysorex shares. Non-GAAP adjusted EBITDA for the three months ended March 31, 2022 was a loss of $8.8 million compared to a loss of $5.6 million in the prior year period. Non-GAAP adjusted EBITDA defined as net income or loss before interest, provision for income taxes, depreciation and amortization, plus adjustments for other income and expense items, non-recurring items and non-cash items including stock-based compensation. Pro forma non-GAAP net loss for basic and diluted common share for the three months ended March 31, 2022, was a loss of $0.07 per share, compared to a loss of $0.08 per share for the prior year period. Non-GAAP net loss per share is defined as net loss per basic and diluted share, adjusted for non-cash items including stock-based compensation, amortization of intangibles, onetime charges and other adjustments, including loss on the exchange of debt for equity, unrealized gains or losses on notes and acquisition costs. As of March 31, 2022, we have approximately $75.9 million in cash, cash equivalents and treasury securities. This concludes my comments. And I'd now like to turn the call back over to Nadir.

All right. Thanks, Wendy. David, would you please lead us through the Q&A discussion?

Great. Thanks, Nadir. Like last quarter at our conference and our press release, we suggested interested parties submit their questions in advance. We'd like to address those questions for you now. Some of them were duplicative. So we did our best to reconcile those where possible. If you have any further questions after the call please feel free to follow-up with investor relations. And we'll be sure to respond as quickly as possible. So our first question in December, the company announced that it received an indication of interest for a potential strategic transaction. Can you provide a status update?

Yeah, what I can say there is that the exploration process and discussions are still underway. But we have no new information to share at this time, except to note that we are evaluating strategic opportunities. And to the extent we believe they can maximize shareholder value. So we'll continue to evaluate and move forward on those as it makes sense.

Great, thank you. Our next question, which division is showing the greatest revenue gains and corporate demand?

Good question. Yeah. So we're currently seeing the most traction with our enterprise app solutions, which, given the return to office environment that we're in makes sense. And we're witnessing the most revenue growth within that part of our indoor intelligence segment. So indoor intelligence is obviously in terms of our business segments, the one that's seeing the most growth. Within that it's enterprise app and that's because customers care about their employees and wanted to have the technologies in place to deliver that experience. As I mentioned, they're at risk, if they don't, right. We've seen what can happen with this great resignation going on, when you don't prioritize the employee experience. And we're continuing to gain the attention of Fortune 500 companies across various industries. And as I indicated, we've historically been able to substantially expand our footprint in these accounts, once we land them. And I expect that that number will increase as we fully roll out to all the campuses there. So enterprise apps is definitely allowing us to build tremendous growth, with increased recurring revenue streams and more value for Inpixon shareholders.

Great, thanks. Our next question is why was $1.75 strike price warrant bought back rather than leaving them alone to eventually expire as more warrants were again issued at a $0.47 strike?

Yeah, fair question. So this was, done to and completed to really clean up some of the restrictions -- challenges related to those prior warrants, which would then allow us to more easily execute a strategic transaction if and when appropriate. So that was the main driver for that.

Okay, thanks. So our next question, can you provide us with an update on the IntraNav integration?

Sure, so as you guys know, we've completed the IntraNav acquisition in December 2021. They bring some great synergies and complementary technologies. And in fact, we're already integrating our Chirp technology into the IntraNav IoT platform because we see a strong opportunity for Chirp in what's referred to as the yard area. So just outside the manufacturing facility where many of their parts and materials are stored. And Chirp is particularly well suited for asset tracking in those areas, and to work with other technologies such as ultra-wideband. And as we discussed earlier, we see strong potential for growth in the IoT sector, right. And there's, there's a lot of spend in the industrial verticals. And so we're looking forward to executing on that. And our teams are very active in connecting with new prospective customers. In fact, we're just featured to speak at the Logistics Day event, put on by BVL, the German logistics Association next week. We're exhibiting and speaking at the Logistics and Distribution Trade Fair. And then I think DreamWorks Exhibiting at Embedded World. So there's a lot of conferences and trade associations that were attending and participating marketing activities to grow that side of the business. That one has been challenged by some supply chain issues and hardware side. But as you'll see, we're still seeing growth despite that. It will continue to build and integrate IntraNav into the rest of the organization. So we're pretty pleased with the progress on the acquisition integration front. And we're looking to grow this business over the next several quarters.

All right. Thank you, Nadir. That does conclude the Q&A and I'll turn it back over to you for the close.

All right. Well, thank you, everyone, for joining us today. We really appreciate your time. As I said, we're focused on executing and growing the business. And I'm pleased with the results that we showed today and we're building the enterprise app sign as well as the industrial apps. We've been fortunate enough to keep winning customers in the space. We just had a couple of Fortune 500s that we closed this month. So thank you for your support and interest and we'll be in touch soon. Thank you.

Ladies and gentlemen, this does conclude today's teleconference. You may now disconnect your lines at this time and enjoy the rest of your day.