XTI Aerospace (XTIA) 10-Q 21 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 18, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	INPIXON
Entity Central Index Key	1,529,113
Trading Symbol	INPX
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		10,247,989

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current Assets
Cash and cash equivalents	$ 42	$ 1,821
Accounts receivable, net	6,047	11,788
Notes and other receivables	414	362
Inventory	793	1,061
Prepaid licenses and maintenance contracts	9,058	13,321
Assets held for sale	23	23
Prepaid assets and other current assets	1,244	1,768
Total Current Assets	17,621	30,144
Prepaid licenses and maintenance contracts, non-current	3,788	5,169
Property and equipment, net	1,105	1,385
Software development costs, net	2,269	2,058
Intangible assets, net	14,924	17,691
Goodwill	9,028	9,028
Other assets	969	998
Total Assets	49,704	66,473
Current Liabilities
Accounts payable	25,866	23,027
Accrued liabilities	3,447	4,169
Deferred revenue	10,633	15,043
Short-term debt	2,523	6,887
Derivative liabilities	3,775
Liabilities held for sale	2,049	2,041
Total Current Liabilities	48,293	51,167
Long Term Liabilities
Deferred revenue, non-current	4,346	5,960
Long-term debt	1,586	4,047
Other liabilities	349	371
Acquisition liability - Integrio	1,558	1,648
Acquisition liability - LightMiner		567
Total Liabilities	56,132	63,760
Commitments and Contingencies
Stockholders' (Deficit) Equity
Preferred Stock - $0.001 par value; 5,000,000 shares authorized; 4,060 issued and outstanding as of June 30, 2017
Convertible Series 1 Preferred Stock - $1,000 stated value; 0 issued and outstanding at June 30, 2017 and 2,250 issued and outstanding at December 31, 2016; Liquidation preference of $0 at June 30, 2017 and $2,250,000 December 31, 2016		1,340
Series 2 Convertible Preferred Stock - $1,000 stated value; 4,669 shares authorized; 4,060 issued and outstanding at June 30, 2017 and 0 issued and outstanding at December 31, 2016; Liquidation preference of $4,060,000 at June 30, 2017 and $0 at December 31, 2016	1,508
Common Stock - $0.001 par value; 50,000,000 shares authorized; 4,309,131 and 2,171,886 issued and 4,293,209 and 2,155,964 outstanding at June 30, 2017 and December 31, 2016, respectively	4	2
Additional paid-in capital	67,336	64,148
Treasury stock, at cost, 15,922 shares	(695)	(695)
Due from Sysorex Consulting Inc.	(666)	(666)
Accumulated other comprehensive income	41	52
Accumulated deficit (excluding $2,442 reclassified to additional paid in capital in quasi-reorganization)	(71,952)	(59,473)
Stockholders' (Deficit) Equity Attributable to Inpixon	(4,424)	4,708
Non-controlling Interest	(2,004)	(1,995)
Total Stockholders' (Deficit) Equity	(6,428)	2,713
Total Liabilities and Stockholders' (Deficit) Equity	$ 49,704	$ 66,473

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, shares issued	4,060
Preferred stock, shares outstanding	4,060
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	50,000,000	50,000,000
Common stock, shares issued	4,309,131	2,171,886
Common stock, shares outstanding	4,293,209	2,155,964
Treasury stock, shares	15,922	15,922
Accumulated deficit reclassified to additional paid in capital in quasi-reorganization	$ 2,442	$ 2,442
Convertible Series 1 Preferred Stock
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares issued	0	2,250
Preferred stock, shares outstanding	0	2,250
Preferred stock, liquidation preference	$ 0	$ 2,250,000
Series 2 Convertible Preferred Stock
Preferred stock, par value	$ 1,000	$ 1,000
Preferred stock, shares authorized	4,669	4,669
Preferred stock, shares issued	4,060	0
Preferred stock, shares outstanding	4,060	0
Preferred stock, liquidation preference	$ 4,060,000	$ 0

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues
Products	$ 12,210	$ 9,157	$ 21,659	$ 19,505
Services	2,886	4,175	6,919	7,914
Total Revenues	15,096	13,332	28,578	27,419
Cost of Revenues
Products	10,231	7,448	18,285	15,490
Services	1,481	2,440	3,620	4,538
Total Cost of Revenues	11,712	9,888	21,905	20,028
Gross Profit	3,384	3,444	6,673	7,391
Operating Expenses
Research and development	454	537	1,012	1,124
Sales and marketing	2,181	2,336	4,221	4,837
General and administrative	4,595	3,452	9,255	7,417
Acquisition related costs	2	10	5	30
Amortization of intangibles	1,382	1,057	2,767	2,113
Total Operating Expenses	8,614	7,392	17,260	15,521
Loss from Operations	(5,230)	(3,948)	(10,587)	(8,130)
Other Income (Expense)
Interest expense	(1,344)	(255)	(2,027)	(398)
Change in fair value of shares to be issued		9		8
Change in fair value of derivative liability	152		208
Other income		19	(65)	39
Total Other Income (Expense)	(1,192)	(227)	(1,884)	(351)
Net Loss from Continuing Operations	(6,422)	(4,175)	(12,471)	(8,481)
Income (Loss) from Discontinued Operations, Net of Tax	(9)		(17)
Net Loss	(6,431)	(4,175)	(12,488)	(8,481)
Net Loss Attributable to Non-controlling Interest	(4)	(4)	(9)	(8)
Net Loss Attributable to Stockholders of Inpixon	$ (6,427)	$ (4,171)	$ (12,479)	$ (8,473)
Net Loss Per Share - Basic and Diluted	$ (2.72)	$ (2.49)	$ (5.50)	$ (5.05)
Weighted Average Shares Outstanding
Basic and Diluted	2,372,637	1,675,267	2,272,330	1,674,490

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Comprehensive Loss (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net Loss	$ (6,431)	$ (4,175)	$ (12,488)	$ (8,481)
Unrealized foreign exchange gain/(loss) from cumulative translation adjustments	(21)	2	(11)	19
Comprehensive Loss	$ (6,452)	$ (4,173)	$ (12,499)	$ (8,462)

Condensed Consolidated Stateme6

Condensed Consolidated Statement of Changes in Stockholders' (Deficit) Equity (Unaudited) - 6 months ended Jun. 30, 2017 - USD ($) shares in Thousands, $ in Thousands	Total	Series 1 Convertible Preferred Stock	Series 2 Convertible Preferred Stock	Common Stock	Additional Paid-In Capital	Treasury Stock	Due from Sysorex Consulting, Inc.	Accumulated Other Comprehensive Income (Loss)	Accumulated Deficit	Non-Controlling Interest
Balance at Dec. 31, 2016	$ 2,713	$ 1,340		$ 2	$ 64,148	$ (695)	$ (666)	$ 52	$ (59,473)	$ (1,995)
Balance, shares at Dec. 31, 2016		2,250		2,171,886		(15,922)
Common shares issued for services	166				166
Common shares issued for services, shares				57,384
Stock options granted to employees for services	512				512
Stock options granted to employees for services, shares
Common shares issued for LightMiner Acquisition	567				567
Common shares issued for LightMiner Acquisition, shares				18,905
Fractional shares issued for stock split
Fractional shares issued for stock split, shares				1,496
Redemption of convertible series 1 preferred stock		$ (1,340)			1,340
Redemption of convertible series 1 preferred stock, shares		(2,250)		100,000
Common shares issued in lieu of interest	316				316
Common shares issued in lieu of interest, shares				110,000
Common and preferred shares issued for net cash proceeds from a public offering	5,570		$ 1,508	$ 2	4,060
Common and preferred shares issued for net cash proceeds from a public offering, shares			4,060	1,849,460
Reclassification of warrants to derivative liabilities	(3,773)				(3,773)
Cumulative Translation Adjustment	(11)							(11)
Net loss	(12,488)								(12,479)	(9)
Balance at Jun. 30, 2017	$ (6,428)		$ 1,508	$ 4	$ 67,336	$ (695)	$ (666)	$ 41	$ (71,952)	$ (2,004)
Balance, shares at Jun. 30, 2017			4,060	4,309,131		(15,922)

Condensed Consolidated Stateme7

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash Flows from Operating Activities
Net loss	$ (12,488)	$ (8,481)
Adjustment to reconcile net loss to net cash used in operating activities:
Depreciation and amortization	834	550
Amortization of intangible assets	2,767	2,113
Stock based compensation	993	711
Change in fair value of shares to be issued		(8)
Change in fair value of derivative liability	(208)
Amortization of technology	33
Amortization of deferred financing costs	102
Amortization of debt discount	1,251
Provision for doubtful accounts		212
Other	41	8
Changes in operating assets and liabilities:
Accounts receivable and other receivables	5,691	(777)
Inventory	267	(153)
Other current assets	523	241
Prepaid licenses and maintenance contracts	5,644	477
Other assets	(106)	(43)
Accounts payable	2,839	2,278
Accrued liabilities	(515)	(580)
Deferred revenue	(6,024)	3,483
Other liabilities	(101)	(149)
Total Adjustments	14,031	8,363
Net Cash Provided by (Used in) Operating Activities	1,543	(118)
Cash Flows Used in Investing Activities
Purchase of property and equipment	(86)	(146)
Investment in capitalized software	(718)	(817)
Net Cash Flows Used in Investing Activities	(804)	(963)
Cash Flows provided by Financing Activities
Net repayment of line of credit	(4,345)	(2,305)
Repayment of term loan		(333)
Advances to related party		(3)
Net proceeds from issuance of common stock, preferred stock and warrants	5,570
Repayment of debenture	(3,050)
Repayment of notes payable	(20)
Advances from related party		1
Net proceeds from convertible promissory notes	2,000
Repayment of convertible promissory notes	(2,662)
Net Cash Used In Financing Activities	(2,507)	(2,640)
Effect of Foreign Exchange Rate on Changes on Cash	(11)	19
Net Decrease in Cash and Cash Equivalents	(1,779)	(3,702)
Cash and Cash Equivalents - Beginning of period	1,821	4,060
Cash and Cash Equivalents - End of period	42	358
Cash paid for:
Interest	468	394
Income Taxes
Supplemental disclosures of non-cash operating, investing and financing activities:
Reclassification of warrants to derivative liabilities	3,773
Issuance of shares for acquisition	567
Issuance of shares for settlement of accrued interest	$ 316

Organization and Nature of Busi

Organization and Nature of Business and Going Concern	6 Months Ended
	Jun. 30, 2017
Organization and Nature of Business and Going Concern [Abstract]
Organization and Nature of Business and Going Concern	Note 1 - Organization and Nature of Business and Going Concern Inpixon, through its wholly-owned subsidiaries, Inpixon USA, Inpixon Federal, Inc. (“Inpixon Federal”), Inpixon Canada, Inc. (“Inpixon Canada”) and the majority-owned subsidiary, Sysorex Arabia LLC (“Sysorex Arabia”) (unless otherwise stated or the context otherwise requires, the terms “Inpixon” “we,” “us,” “our” and the “Company” refer collectively to Inpixon and the above subsidiaries), provides Big Data analytics and location based products and related services for the cyber-security and Internet of Things markets. The Company is headquartered in California, and has sales and subsidiary offices in Virginia, Hawaii, State of Washington, California, Vancouver, Canada and Riyadh, Saudi Arabia. On November 21, 2016, and as more fully described in Note 4, the Company completed the acquisition of substantially all of the assets and certain liabilities of Integrio Technologies, LLC, which is in the U.S. Federal Government IT contracts business. As of June 30, 2017, the Company has a working capital deficiency of approximately $26.9 million. For the six months ended June 30, 2017, the Company incurred a net loss of approximately $12.5 million. The aforementioned factors raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying condensed consolidated financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business. The financial statements do not include any adjustments relating to the recoverability and classification of asset amounts or the classification of liabilities that might be necessary should the Company be unable to continue as a going concern within one year after the date the financial statements are issued. On August 9, 2016, the Company entered into a Securities Purchase Agreement with Hillair Capital Investments L.P. pursuant to which it issued and sold (i) an 8% Original Issue Discount Senior Convertible Debenture in an aggregate principal amount of $5,700,000 due on August 9, 2018 and (ii) 2,250 shares of newly created Series 1 Convertible Preferred Stock, par value $0.001 per share, for an aggregate purchase price of $5,000,000. On June 30, 2017 the Company received proceeds from a public offering of $6 million of which $5.5 million was used to pay down outstanding indebtedness. The Company also has a credit facility with GemCap Lending I for up to $10 million (the “Credit Facility”) which we borrow against based on eligible assets of which approximately $2.4 million is utilized. The Credit Facility has a maturity date of November 14, 2018. During the third quarter of 2016, the Company implemented a cost cutting program that would reduce operating expenses by approximately $1.8 million on an annual basis. The Company’s capital resources as of June 30, 2017, availability on the unlimited Payplant Facility to finance purchase orders and invoices, higher margin business line expansion and credit limitation improvements, may not be sufficient to fund planned operations during 2017. The Company will need to raise $4-6 million outside capital under structures available to it including debt and/or equity offerings this year. The Company also has an effective registration statement on Form S-3 which will may allow it to raise additional capital from the sale of its securities, subject to certain limitations for registrants with a market capitalization of less than $75 million. The information in this Form 10-Q concerning the Company’s Form S-3 registration statement does not constitute an offer of any securities for sale. If these sources do not provide the capital necessary to fund the Company’s operations during the next twelve months, the Company may need to curtail certain aspects of its operating activities or consider other means of obtaining additional financing, such as through the sale of assets or of a business segment, although there is no guarantee that the Company could obtain the financing necessary to continue its operations.

Basis of Presentation

Basis of Presentation	6 Months Ended
	Jun. 30, 2017
Basis of Presentation/Summary of Significant Accounting Policies [Abstract]
Basis of Presentation	Note 2 - Basis of Presentation The accompanying unaudited condensed consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information, which are the accounting principles that are generally accepted in the United States of America. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. The results of the Company’s operations for the six month period ended June 30, 2017 is not necessarily indicative of the results to be expected for the year ending December 31, 2017. These interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and notes for the years ended December 31, 2016 and 2015 included in the annual report Form 10-K filed with the U.S. Securities and Exchange Commission on April 17, 2017.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2017
Basis of Presentation/Summary of Significant Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Note 3 - Summary of Significant Accounting Policies The Company’s complete accounting policies are described in Note 2 to the Company’s audited consolidated financial statements and notes for the years ended December 31, 2016 and 2015. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during each of the reporting periods. Actual results could differ from those estimates. The Company’s significant estimates consist of: ● the valuation of stock-based compensation; ● the allowance for doubtful accounts; ● the valuation allowance for the deferred tax asset; and ● impairment of long-lived assets and goodwill. Revenue Recognition The Company provides information technology, or IT, solutions and services to customers and derives revenues primarily from the sale of third-party hardware and software products, software, assurance, licenses and other consulting services, including maintenance services and recognizes revenue once the following four criteria are met: (1) persuasive evidence of an arrangement exists; (2) the price is fixed and determinable, (3) shipment (software and hardware) or fulfillment (maintenance) has occurred; and (4) there is reasonable assurance of collection of the sales proceeds (the “Revenue Recognition Criteria”). In addition, the Company also records revenues in accordance with Accounting Standards Codification (“ASC”) Topic 605-45 “Principal Agent Consideration” (“ASC 605-45”). The Company evaluates the sales of products and services on a case by case basis to determine whether the transaction should be recorded gross or net, including, but not limited to, assessing whether or not the Company: (1) is the primary obligor in the transaction; (2) has inventory risk with respect to the products and/or services sold; (3) has latitude in pricing; and (4) changes the product or performs part of the services sold. The Company evaluates whether revenues received from the sale of hardware and software products, licenses, and services, including maintenance and professional consulting services, should be recognized on a gross or net basis on a transaction by transaction basis. As of June 30, 2017, the Company has determined that all revenues received should be recognized on a gross basis in accordance with applicable standards. Cooperative reimbursements from vendors, which are earned and available, are recorded during the period the related transaction has occurred. Cooperative reimbursements are recorded as a reduction of cost of sales in accordance with ASC Topic 605-50 “Accounting by a Customer (including reseller) for Certain Consideration Received from a Vendor.” Provisions for returns are estimated based on historical collections and credit memo analysis for the period. The Company receives Marketing Development Funds from vendors based on quarterly or annual sales performance to promote the marketing of vendor products and services. The Company must file claims with vendors for these cooperative reimbursements by providing invoices and receipts for marketing expenses. Reimbursements are recorded as a reduction of marketing expenses and other applicable selling, general and administrative expenses ratably over the period in which the expenses are expected to occur. The Company receives vendor rebates which are recorded to cost of sales. The Company also enters into sales transactions whereby customer orders contain multiple deliverables, and reports its multiple deliverable arrangements under ASC 605-25 “Revenue Arrangements with Multiple Deliverables” (“ASC-605-25”). These multiple deliverable arrangements primarily consist of the following deliverables: the Company’s design, configuration, installation, integration, warranty/maintenance and consulting services; and third-party computer hardware, software and warranty maintenance services. In situations where the Company bundles all or a portion of the separate elements, Vendor Specific Objective Evidence (“VSOE”) is determined based on prices when sold separately. For the three months ended June 30, 2017 and 2016 revenues recognized as a result of customer contracts requiring the delivery of multiple elements were $6.6 million and $6.4 million, respectively. For the six months ended June 30, 2017 and 2016 revenues recognized as a result of customer contracts requiring the delivery of multiple elements were $9.7 million and $11.7 million, respectively. Hardware, Software and Licensing Revenue Recognition Generally, the Revenue Recognition Criteria are met with respect to the sales of hardware and software products when they are shipped to the customer. The delivery of products to our customers occurs in a variety of ways, including (i) as a physical product shipped from the Company’s warehouse, (ii) via drop-shipment by a third-party vendor, or (iii) via electronic delivery with respect to software licenses. The Company leverages drop-ship arrangements with many of its vendors and suppliers to deliver products to customers without having to physically hold the inventory at its warehouse. In such arrangements, the Company negotiates the sale price with the customer, pays the supplier directly for the product shipped, bears credit risk of collecting payment from its customers and is ultimately responsible for the acceptability of the product and ensuring that such product meets the standards and requirements of the customer. As a result, the Company recognizes the sale of the product and the cost of such upon receiving notification from the supplier that the product has shipped. Vendor rebates and price protection are recorded when earned as a reduction to cost of sales or merchandise inventory, as applicable. Vendor product price discounts are recorded when earned as a reduction to cost of sales. Maintenance and Professional Services Revenue Recognition With respect to sales of our maintenance, consulting and other service agreements including our digital advertising and electronic services, the Revenue Recognition Criteria is met once the service has been provided. Revenue on time and material contracts is recognized based on a fixed hourly rate as direct labor hours are expended. The fixed rate includes direct labor, indirect expenses, and profits. Materials, or other specified direct costs, are reimbursed as actual costs and may include markup. Anticipated losses are recognized as soon as they become known. For the three and six months ended June 30, 2017 and 2016, the Company did not incur any such losses. These amounts are based on known and estimated factors. Revenues from time and material or firm fixed price long-term and short-term contracts are derived principally with various United States government agencies and commercial customers. The Company recognizes revenue for sales of all services billed as a fixed fee ratably over the term of the arrangement as such services are provided. Billings for such services that are made in advance of the related revenue recognized are recorded as deferred revenue and recognized as revenue ratably over the billing coverage period. Amounts received as prepayments for services to be rendered are recognized as deferred revenue. Revenue from such prepayments is recognized when the services are provided. The Company’s storage and computing maintenance services agreements permit customers to obtain technical support from the Company and/or the manufacturer and to update, at no additional cost, to the latest technology when new software updates are introduced when and if available during the period that the maintenance agreement is in effect. Since the Company assumes certain responsibility for product staging, configuration, installation, modification, and integration with other client systems, or retains general inventory risk upon customer return or rejection and is most familiar with the customer and its required specifications, it generally serves as the initial contact with the customer with respect to any storage and computing maintenance services required and therefore will perform all or part of the required service. Typically, the Company sells maintenance contracts for a separate fee with initial contractual periods ranging from one to three years with renewal for additional periods thereafter. The Company generally bills maintenance fees in advance and records the amounts received as deferred revenue with respect to any portion of the fee for which services have not yet been provided. The Company recognizes the related revenue ratably over the term of the maintenance agreement as services are provided. In situations where the Company bundles all or a portion of the maintenance fee with products, VSOE for maintenance is determined based on prices when sold separately. Customers that have purchased maintenance/warranty services have a right to cancel and receive a refund of the amounts paid for unused services at any time during the service period upon advance written notice to the Company. Cancellation and refund privileges with respect to maintenance/warranty services lapse as to any period during the term of the agreement for which such services have already been provided. Customers do not have the right to a refund of paid fees for maintenance/warranty services that the Company has earned and recognized as revenue. Invoices issued for maintenance/warranty services not yet rendered are recorded as deferred revenue and then recognized as revenue ratably over the service period. As a result, (1) the warranty and maintenance service fees payable by each customer are separately accounted for in each customer purchase order as a separate line item, and (2) upon the Company’s receipt and acceptance of a request for refund of maintenance/warranty services not yet provided, the Company’s obligation to perform any additional maintenance/warranty services will end. Sales are recorded net of discounts and returns. Stock-Based Compensation The Company accounts for options granted to employees by measuring the cost of services received in exchange for the award of equity instruments based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award. Options and warrants granted to consultants and other non-employees are recorded at fair value as of the grant date and subsequently adjusted to fair value at the end of each reporting period until such options and warrants vest, and the fair value of such instruments, as adjusted, is expensed over the related vesting period. The Company incurred stock-based compensation charges, net of estimated forfeitures, of $710,000 and $347,000 for the three months ended June 30, 2017 and 2016, and $993,000 and $711,000 for the six-month period ended June 30, 2017 and 2016, respectively, which are included in general and administrative expenses. The following table summarizes the nature of such charges for the periods then ended (in thousands): For the Three Months Ended For the Six Months Ended 2017 2016 2017 2016 Compensation and related benefits $ 250 $ 336 $ 512 $ 674 Professional and legal fees 145 11 159 37 Acquisition transaction costs -- -- 7 -- Interest expense 315 -- 315 -- Totals $ 710 $ 347 $ 993 $ 711 Net Loss Per Share The Company computes basic and diluted earnings per share by dividing net loss by the weighted average number of common shares outstanding during the period. Basic and diluted net loss per common share were the same since the inclusion of common shares issuable pursuant to the exercise of options and warrants in the calculation of diluted net loss per common shares would have been anti-dilutive. The following table summarizes the number of common shares and common share equivalents excluded from the calculation of diluted net loss per common share for the six months ended June 30, 2017 and 2016: For the Six Months Ended 2017 2016 Options 366,825 392,288 Warrants 287,426 37,417 Shares accrued but not issued -- 121,800 Convertible debenture 117,778 -- Totals 772,029 551,505 Preferred Stock The Company applies the accounting standards for distinguishing liabilities from equity under GAAP when determining the classification and measurement of its convertible preferred stock. Preferred shares subject to mandatory redemption are classified as liability instruments and are measured at fair value. Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, preferred shares are classified as permanent equity. Reclassification Certain accounts in the prior year’s financial statements have been reclassified for comparative purposes to conform to the presentation in the current year’s financial statements. These reclassifications have no effect on previously reported earnings. Derivative Liabilities During the year ended December 31, 2016, the Company issued a convertible debenture that included reset provisions considered to be down-round protection. In addition, the Company issued warrants that include a fundamental transaction clause which provide for the warrant holders to be paid in cash the fair value of the warrants as computed under a Black Scholes valuation model. The Company determined that the conversion feature and warrants are derivative instruments pursuant to ASC 815 “Derivatives and Hedging” issued by the Financial Accounting Standards Board (“FASB”). The accounting treatment of derivative financial instruments requires that the Company bifurcate the conversion feature and record it as a liability at fair value and the fair value of the warrants were computed as defined in the agreement. The instruments are marked-to-market at fair value as of each balance sheet date. Any change in fair value is recorded as a change in the fair value of derivative liabilities for each reporting period. The fair value of the conversion feature was determined using the Binomial Lattice model. The Company reassesses the classification at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. As of June 30, 2017, the fair value of the derivative liability was $3.8 million and was included in short term liabilities on the balance sheet. Recent Accounting Standards In January 2017, the FASB issued ASU 2017-04: “Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which removes Step 2 from the goodwill impairment test. It is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed with a measurement date after January 1, 2017. The Company is currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements. Reverse Stock Split The board of directors was authorized by the Company’s stockholders to effect a 1 for 15 reverse stock split of its issued and outstanding shares of common stock which was effective March 1, 2017. The financial statements and accompanying notes give effect to the 1 for 15 reverse stock split as if it occurred at the beginning of the first period presented. Subsequent Events The Company evaluates events and/or transactions occurring after the balance sheet date and before the issue date of the condensed consolidated financial statements to determine if any of those events and/or transactions requires adjustment to or disclosure in the consolidated financial statements.

Integrio Technologies, LLC Asse

Integrio Technologies, LLC Asset Acquisition	6 Months Ended
	Jun. 30, 2017
Integrio Technologies, LLC [Member]
Business Acquisition [Line Items]
Integrio Technologies, LLC Asset Acquisition	Note 4 - Integrio Technologies, LLC Asset Acquisition On November 14, 2016, the Company and its wholly-owned subsidiary, Sysorex Government Services, Inc. (collectively, the “Buyer”), entered into an Asset Purchase Agreement, as amended by the Amendment No. 1 to Asset Purchase Agreement (as so amended, the “Purchase Agreement”) with Integrio Technologies, LLC (“Integrio”) and Emtec Federal, LLC, a wholly-owned subsidiary of Integrio, (collectively, the “Seller”) which are in the business of providing IT integration and engineering services to customers, primarily government agencies. The transaction closed on November 21, 2016. The consideration paid for the assets included an aggregate of (A) $1,800,000 in cash, of which $1,400,000 minus certain amounts payable to creditors of the Seller was paid upon the closing of the acquisition and $400,000 will be paid in two annual installments of $200,000 each on the respective anniversary dates of the closing, subject to certain set offs and recoupment by Buyer; (B) 35,333 unregistered restricted shares of the Company’s voting common stock valued at $22.50 per share; (C) certain specified assumed liabilities as detailed in the purchase price table below; and (D) up to an aggregate of $1,200,000 in earnout payments, of which up to $400,000 shall be payable to the Seller per year for the three years following the closing. Inpixon acquired these assets to pursue its previously stated strategy to expand its business into the federal government sector because of the large long-term contracts that the government sector offers. Inpixon started with bidding on government contracts directly and this acquisition provided an opportunity to accelerate this expansion. In addition, the acquisition allows Inpixon to offset the revenue softening in the commercial vertical for this business segment that it experienced in 2016. The total recorded purchase price for the transaction was $2,332,000 at closing on November 21, 2016 (“Closing”) which consisted of the cash paid at Closing of $753,000, $400,000 cash that will be paid in two annual installments of $200,000 each on the respective anniversary dates of the Closing, $1,078,000 in contingent earnout payments and $101,000 representing the fair value of the stock issued at Closing. The purchase price is allocated as follows (in thousands): Assets Acquired: Cash $ 189 Accounts receivable 2,365 Other receivables 377 Prepaid assets 4,164 Fixed assets 64 Other assets 34 Customer relationships 1,873 Supplier relationships 2,985 Goodwill (A) 3,261 15,312 Liabilities Assumed: Accounts payable $ 8,341 Accrued liabilities 344 Deferred revenue 4,252 Other long term liabilities 43 12,980 Total Purchase Price $ 2,332 (A) The goodwill will be deductible for tax purposes once the contingent and assumed liabilities are settled.

Proforma Financial Information

Proforma Financial Information	6 Months Ended
	Jun. 30, 2017
Proforma Financial Information [Abstract]
Proforma Financial Information	Note 5 - Proforma Financial Information The following unaudited proforma financial information presents the consolidated results of operations of the Company and Integrio for the six months ended June 30, 2016, as if the acquisition of Integrio had occurred on January 1, 2016 instead of November 21, 2016. The proforma information does not necessarily reflect the results of operations that would have occurred had the entities been a single company during those periods. The financial information for LightMiner was deminimis. (in thousands, except share amounts ) For the Six Months Ended Revenues $ 49,727 Net Loss Attributable to Common Shareholder $ (10,134 ) Weighted Average Number of Common Shares Outstanding, Basic and Diluted 1,709,629 Loss Per Common Share - Basic and Diluted $ (5.93 )

Related Party

Related Party	6 Months Ended
	Jun. 30, 2017
Related Party [Abstract]
Related Party	Note 6 - Related Party Due from Related Parties Non-interest bearing amounts due on demand from a related party were $666,000 as of June 30, 2017 and December 31, 2016, and consist primarily of amounts due from Sysorex Consulting, Inc. (“SCI”). Subsequent to December 31, 2014, SCI is no longer a direct shareholder or investor in the Company. The amounts due from SCI as of June 30, 2017 and December 31, 2016 have been classified in and as a reduction of stockholders’ equity. Subsequent to June 30, 2017, the Company is in negotiations with SCI for the repayment and settlement of this receivable through the purchase of Sysorex India, a wholly owned subsidiary of SCI. The Company cannot provide assurance it will be successful in the consummation of the arrangement.

Inventory

Inventory	6 Months Ended
	Jun. 30, 2017
Inventory [Abstract]
Inventory	Note 7 - Inventory Inventory at June 30, 2017 and December 31, 2016 consisted of the following (in thousands): June 30, December 31, Raw materials $ 220 $ 326 Work in process 10 238 Finished goods 563 497 Total Inventory $ 793 $ 1,061

Discontinued Operations

Discontinued Operations	6 Months Ended
	Jun. 30, 2017
Discontinued Operations [Abstract]
Discontinued Operations	Note 8 - Discontinued Operations As of December 31, 2015, the Company’s management decided to close its Saudi Arabia legal entity as business activities and operations have been strategically shifted according to the business plan of the Company. In accordance with ASC topic 360 “Property, Plant and Equipment”, the Company has classified the assets and liabilities as discontinued assets and liabilities in the accompanying consolidated financial statements. The major categories of assets and liabilities held for sale in the condensed consolidated balance sheets at June 30, 2017 and December 31, 2016 (in thousands): June 30, December 31, 2016 Assets Accounts receivable, net 1 1 Notes and other receivables 8 8 Other assets 14 14 Total Current Assets 23 23 Other assets -- -- Total Assets $ 23 $ 23 Liabilities and Stockholders’ Equity Current Liabilities Accounts payable $ 178 $ 178 Accrued liabilities 910 904 Deferred revenue 236 236 Due to related party 3 1 Short-term debt 722 722 Total Current Liabilities 2,049 2,041 Long Term Liabilities -- -- Total Liabilities $ 2,049 $ 2,041 The Company has entered into surety bonds with a financial institution in Saudi Arabia which guaranteed performance on certain contracts. Deposits for surety bonds amounted to $0 as of June 30, 2017 and December 31, 2016, as a reserve was placed against the deposit balance during the year ended December 31, 2016 due to the uncertainty of when the bond will be released. The Company did not recognize any depreciation or amortization expense related to discontinued operations during the three and six months ended June 30, 2017 and 2016. There were no significant capital expenditures or non-cash operating or investing activities of discontinued operations during the periods presented. The operations of Sysorex Arabia were insignificant for the three months and six ended June 30, 2017 and 2016. End of Service Indemnity Provision In accordance with local labor laws, Sysorex Arabia is required to accrue benefits payable to its employees at the end of their services with Sysorex Arabia. For the three and six months ended June 30, 2017 and 2016, no amounts were required to be accrued under this provision.

Debt

Debt	6 Months Ended
	Jun. 30, 2017
Debt [Abstract]
Debt	Note 9 - Debt Debt as of June 30, 2017 and December 31, 2016 consisted of the following (in thousands): June 30, 2017 December 31, 2016 Short-Term Debt Notes payable $ 150 $ 170 Revolving line of credit (A) 2,373 6,717 Total Short-Term Debt $ 2,523 $ 6,887 Long-Term Debt Notes payable $ 212 $ 212 Senior secured convertible debenture, less debt discount of $1,276 (B) 1,374 3,835 Total Long-Term Debt $ 1,586 $ 4,047 (A) Revolving Lines of Credit GemCap Loan and Security Agreement Amendment 2 On January 24, 2017, the Company, and its U.S. wholly-owned subsidiaries, Inpixon USA and Inpixon Federal, entered into Amendment Number 2 to the Loan and Security Agreement to amend that certain Loan and Security Agreement and Loan Agreement Schedule, both dated as of November 14, 2016, with GemCap Lending I, LLC whereby Section (21) of the definition of “Eligible Accounts” in Section 1.29 of the Loan Agreement was deleted and restated in its entirety as follows: Accounts that satisfy the criteria set forth in the foregoing items (1) – (20), which are owed by any other single Account Debtor or its Affiliates so long as such Accounts, in the aggregate, constitute no more than twenty percent (20%) of all Eligible Accounts, provided, that only for the period commencing on January 24, 2017 through and including April 24, 2017, Accounts in the aggregate only from and owed by Centene Corporation or its Affiliates may exceed twenty percent (20%) of all Eligible Accounts by an amount not to exceed $500,000, provided, further, that, from and after April 25, 2017, Accounts in the aggregate that are owed by Centene Corporation or its Affiliates that satisfy the criteria set forth in the foregoing items (1) – (20) shall not exceed twenty percent (20%) of all Eligible Accounts; and Borrower shall have paid to Lender an accommodation fee in the amount of $5,000 on February 2, 2017. (B) Senior Secured Debenture On June 2, 2017 the Company repaid $200,000 of the debenture. On June 30, 2017 after the close of the Capital Raise (see Note 10) the Company repaid $2.85 million of the senior secured debenture. (C) Subordinated Convertible Promissory Notes On May 31, 2017 the Company entered into a Securities Purchase Agreement with institutional accredited investors whereby the Company agreed to issue and sell to the buyers subordinated convertible promissory notes in an aggregate principal amount of $2,200,000 due on May 31, 2018 for an aggregate purchase price of $2,000,000, representing an approximately 9% original issue discount. Interest on the Notes accrues at a rate of 10.0% per annum and is payable on the maturity date or any applicable redemption date in cash, or upon notice to the holder and compliance with certain equity conditions as set forth in the Notes, in shares of the Company’s common stock, provided that the maximum aggregate amount of interest that the Company may elect to pay in Interest Shares will not exceed an amount equal to 5% of the total interest payable under the terms of the Notes. On June 30, 2017 the Company paid $2.7 million after the close of the Capital Raise (see Note 10) to settle the amounts owed under the promissory notes including all principal, interest and fees.

Capital Raise

Capital Raise	6 Months Ended
	Jun. 30, 2017
Capital Raise [Abstract]
Capital Raise	Note 10 - Capital Raise On June 30, 2017, the Company completed the previously announced registered underwritten public offering (the “Offering”) of an aggregate of (i) 1,849,460 Class A Units (the “Class A Units”), with each Class A Unit consisting of one share of Common Stock and one warrant to purchase one share of Common Stock at an exercise price of $1.3125 (the “Exercise Price”) and (ii) 4,060 Class B Units (the “Class B Units”), with each Class B Unit consisting of one share of Series 2 Preferred and one warrant to purchase the number of shares of Common Stock equal to the number of shares of Common Stock underlying the Series 2 Preferred at the Exercise Price. The net proceeds to the Company from the transactions, after deducting the placement agent’s fees and expenses but before paying the Company’s estimated offering expenses, and excluding the proceeds, if any, from the exercise of the Warrants was approximately $5,711,850. In connection with the Offering, the Company entered into that certain waiver and consent agreement, dated June 28, 2017, (the “Waiver and Consent Agreement”) with those purchasers (the “December 2016 Purchasers”) signatory to that certain securities purchase agreement, dated as of December 12, 2016 (the “December 2016 SPA”). Pursuant to the terms of the Waiver and Consent Agreement, the December 2016 Purchasers agreed to waive (the “Waiver”) the variable rate transaction prohibition contained in the December 2016 SPA, which, if not waived, prohibits the adjustment to the exercise price set forth in the Warrants. In consideration of the Waiver, the warrants held by the December 2016 Purchasers issued in accordance with the December 2016 SPA (the “December 2016 Warrants”) have been amended to equal the Exercise Price of the warrants issued in the Offering and to provide for an adjustment to the Exercise Price to the extent shares of Common Stock are issued or sold for a consideration per share that is less than the exercise price then in effect; provided, that the exercise price will not be less than $0.50 per share. The impact of the above modification was deminimis for the six months ended June 30, 2017.

Common Stock

Common Stock	6 Months Ended
	Jun. 30, 2017
Common Stock [Abstract]
Common Stock	Note 11 - Common Stock During the three months ended March 31, 2017, the Company issued 1,767 shares of common stock related to the acquisition of Integrio Technologies, LLC which were fully vested upon the date of grant. The Company recorded an expense of $7,050 for the fair value of those shares. During the three months ended March 31, 2017, the Company issued 3,613 shares of common stock for services which were fully vested upon the date of grant. The Company recorded an expense of $14,092 for the fair value of those shares. During the three months ended March 31, 2017, the Company issued 18,905 of common stock for the settlement of $567,000 of shares held in escrow related to the LightMiner asset acquisition. On April 19, 2017, Inpixon entered into an exchange agreement (the “Exchange Agreement”) with Hillair Capital Investments L.P. in connection with an interest payment due on May 9, 2017 pursuant to the Company’s 8% Original Issue Discount Senior Secured Convertible Debenture in the principal amount of $5,700,000. In accordance with the Exchange Agreement, solely in respect of the interest payment in the amount of $343,267 due on May 9, 2017, the parties agreed that $315,700 of such interest payment will be made in in the form of 110,000 shares of the Company’s common stock issued at an interest conversion rate equal to $2.87 per share. The shares were issued on April 20, 2017. On May 8, 2017, Hillair Capital Investments L.P. delivered a conversion notice to the Company pursuant to which it converted 2,250 shares of the Company’s Series 1 Convertible Preferred Stock into 100,000 shares of the Company’s common stock. Such shares of common stock were issued on May 9, 2017. On June 30, 2017, and as more fully described in Note 10, the Company issued 1,849,460 shares of common stock at $1.05 per share for proceeds of approximately $1.9 million. During the three months ended June 30, 2017, the Company issued 52,004 shares of common stock for services which were fully vested upon the date of grant. The Company recorded an expense of $144,790 for the fair value of those shares.

Series 2 Preferred Stock

Series 2 Preferred Stock	6 Months Ended
	Jun. 30, 2017
Series 2 Preferred Stock [Abstract]
Series 2 Preferred Stock	Note 12 - Series 2 Preferred Stock On June 29, 2017, Inpixon filed with the Secretary of State of the State of Nevada the Certificate of Designation that created the Series 2 Convertible Preferred Stock, par value $0.001 per share, authorized 4,669 shares of Series 2 Preferred and designated the preferences, rights and limitations of the Series 2 Preferred. The Series 2 Preferred is non-voting (except to the extent required by law). The Series 2 Preferred is convertible into the number of shares of the Company’s common stock, par value $0.001 per share, determined by dividing the aggregate stated value of the Series 2 Preferred of $1,000 per share to be converted by $1.05. On June 30, 2017, the Company completed the previously announced registered underwritten public offering and sold 4,060 Class B Units with each Class B Unit consisting of one share of Series 2 Preferred and one warrant to purchase the number of shares of common stock equal to the number of shares of common stock underlying the Series 2 Preferred. (See Note 10)

Stock Options

Stock Options	6 Months Ended
	Jun. 30, 2017
Stock Options [Abstract]
Stock Options	Note 13 - Stock Options In September 2011, the Company adopted the 2011 Employee Stock Incentive Plan which provides for the granting of incentive and non-statutory common stock options and stock based incentive awards to employees, non-employee directors, consultants and independent contractors. The plan was amended and restated in May 2014. Incentive stock options are granted at exercise prices not less than 100% of the estimated fair market value of the underlying common stock at date of grant. The exercise price per share for incentive stock options may not be less than 110% of the estimated fair value of the underlying common stock on the grant date for any individual possessing more that 10% of the total outstanding common stock of the Company. Unless terminated sooner by the Board of Directors, this plan will terminate on August 31, 2021. Options granted under the Company’s plan vest over periods ranging from immediately to four years and are exercisable over periods not exceeding ten years. The aggregate number of shares that may be awarded under the Company’s plan as of December 31, 2016 is 450,402. As of June 30, 2017, 366,825 of options were granted to employees and consultants of the Company (including 41,667 shares outside of our plan) and 125,244 options were available for future grant under our plan. During the three months ended March 31, 2017, the Company granted options for the purchase of 25,627 shares of common stock to employees and directors of the Company. These options vest pro-rata over 48 months and have a life of ten years and an exercise price of $3.90 per share. The Company valued the stock options using the Black-Scholes option valuation model and the fair value of the awards was determined to be $51,000. The fair value of the common stock as of the grant date was determined to be $3.90 per share. During the six months ended June 30, 2017 and 2016, the Company recorded a charge of $512,000 and $674,000, respectively, for the amortization of employee stock options. As of June 30, 2017, the fair value of non-vested options totaled $1,655,000 which will be amortized to expense over the weighted average remaining term of 1.12 years. The fair value of each employee option grant is estimated on the date of the grant using the Black-Scholes option-pricing model. Key weighted-average assumptions used to apply this pricing model during the six months ended June 30, 2017 and 2016 were as follows: For the Six Months Ended 2017 2016 Risk-free interest rate 2.27% 1.35% Expected life of option grants 7 years 7 years Expected volatility of underlying stock 47.34% 47.65% Dividends assumption $-- $-- The expected stock price volatility for the Company’s stock options was determined by the historical volatilities for industry peers and used an average of those volatilities. The Company attributes the value of stock-based compensation to operations on the straight-line single option method. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. The dividends assumptions was $0 as the Company historically has not declared any dividends and does not expect to.

Fair Value

Fair Value	6 Months Ended
	Jun. 30, 2017
Fair Value [Abstract]
Fair Value	Note 14 – Fair Value The Company measures the fair value of financial assets and liabilities based on the guidance of ASC 820 “Fair Value Measurements and Disclosures” (“ASC 820”) which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 describes three levels of inputs that may be used to measure fair value: Level 1 - Quoted prices available in active markets for identical assets or liabilities trading in active markets. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quotable prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. This includes certain pricing models, discounted cash flow methodologies and similar valuation techniques that use significant unobservable inputs. Financial instruments, including accounts receivable, accounts payable, and deferred revenues are carried at cost, which management believes approximates fair value due to the short-term nature of these instruments. The Company’s other financial instruments include debt payable, the carrying value of which approximates fair value, as the notes bear terms and conditions comparable to market for obligations with similar terms and maturities, as well as warrant and embedded conversion liabilities that are accounted for at fair value on a recurring basis as of June 30, 2017, by level within the fair value hierarchy (in thousands): Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total Warrant liability -- -- 3,775 3,775 Derivative liability – June 30, 2017 $ -- $ -- $ 3,775 $ 3,775 Financial assets are considered Level 3 when their fair values are determined using pricing models, discounted cash flow methodologies or similar techniques and at least one significant model assumption or input is unobservable. The Company’s level 3 liabilities shown in the above table consist of warrants that contain a cashless exercise feature that provides for their net share settlement at the option of the holder. Settlement at fair value upon the occurrence of a fundamental transaction would be computed using the Black Scholes Option Pricing Model. Assumptions utilized in the valuation of Level 3 liabilities are described as follows: For the Six Months Ended Risk-free interest rate 1.89% Expected life of option grants 5 years Expected volatility of underlying stock 46.58% Dividends assumption $-- The expected stock price volatility for the Company’s stock options was determined by the historical volatilities for industry peers and used an average of those volatilities. Risk free interest rates were obtained from U.S. Treasury rates for the applicable periods. The expected term used is the contractual life of the instrument being valued. The dividends assumptions was $0 as the Company historically has not declared any dividends and does not expect to. The following table presents the fair value reconciliation of Level 3 liabilities measured at fair value during the six months ended June 30, 2017 (in thousands): Warrant Liability Embedded Conversion Total Derivative Liabilities Balance at January 1, 2017 $ 209 $ 1 $ 210 Reclassification of warrants to derivative liabilities 3,773 -- 3,773 Change in fair value of derivative (207 ) (1 ) (208 ) Balance at June 30, 2017 $ 3,775 $ -- $ 3,775

Credit Risk and Concentrations

Credit Risk and Concentrations	6 Months Ended
	Jun. 30, 2017
Credit Risk and Concentrations [Abstract]
Credit Risk and Concentrations	Note 15 - Credit Risk and Concentrations Financial instruments that subject the Company to credit risk consist principally of trade accounts receivable and cash and cash equivalents. The Company performs certain credit evaluation procedures and does not require collateral for financial instruments subject to credit risk. The Company believes that credit risk is limited because the Company routinely assesses the financial strength of its customers and, based upon factors surrounding the credit risk of its customers, establishes an allowance for uncollectible accounts and, as a consequence, believes that its accounts receivable credit risk exposure beyond such allowances is limited. The Company maintains cash deposits with financial institutions, which, from time to time, may exceed federally insured limits. Cash is also maintained at foreign financial institutions for its Canadian subsidiary and its majority-owned Saudi Arabia subsidiary. Cash in foreign financial institutions as of June 30, 2017 and December 31, 2016 was immaterial. The Company has not experienced any losses and believes it is not exposed to any significant credit risk from cash. The following table sets forth the percentages of revenue derived by the Company from those customers which accounted for at least 10% of revenues during the six months ended June 30, 2017 and 2016 (in thousands): For the Six Months Ended For the Six Months Ended June 30, 2016 $ % $ % Customer A 5,264 18% 2,608 10% Customer B -- -- 8,717 32% The following table sets forth the percentages of revenue derived by the Company from those customers which accounted for at least 10% of revenues during the three months ended June 30, 2017 and 2016 (in thousands): For the Three Months Ended June 30, 2017 For the Three Months Ended $ % $ % Customer A 3,648 24% -- -- Customer B -- -- 3,508 27% As of June 30, 2017, there were no customer concentrations greater than 10% of total accounts receivable. As of June 30, 2016, Customer A represented approximately 31%, Customer B represented approximately 17%, and Customer C represented approximately 13% of total accounts receivable. As of June 30, 2017, one vendor represented approximately 40% of total gross accounts payable. Purchases from this vendor during the three months ended June 30, 2017 were $4.1 million. Purchases from this vendor during the six months ended June 30, 2017 were $5.8 million. As of June 30, 2016, one vendor represented approximately 53% of total gross accounts payable. Purchases from this vendor during the three months ended June 30, 2016 were $5.3 million. Purchases from this vendor during the six months ended June 30, 2016 were $9.8 million.

Segment Reporting and Foreign O

Segment Reporting and Foreign Operations	6 Months Ended
	Jun. 30, 2017
Segment Reporting and Foreign Operations [Abstract]
Segment Reporting and Foreign Operations	Note 16 - Segment Reporting and Foreign Operations Effective January 1, 2017 the Company has changed the way it analyzes and assesses divisional performance of the Company. The Company has therefore re-aligned its operating segments along those division business lines and has created the following operating segments. The Company has retroactively applied these new segment categories to the prior periods presented below for comparative purposes. ● Indoor Positioning Analytics: This segment includes Inpixon’s proprietary products and services delivered on premise or in the Cloud as well as our hosted Software-as-a-Service (SaaS) based solutions. Our Indoor Positioning Analytics product is based on a unique and patented sensor technology that detects and locates accessible cellular, Wi-Fi and Bluetooth devices and then uses a lightning fast data-analytics engine to deliver actionable insights and intelligent reports for security, marketing, asset management, etc. ● Infrastructure: This segment includes third party hardware, software and related maintenance/warranty products and services that Inpixon resells to commercial and government customers. It includes but is not limited to products for enterprise computing; storage; virtualization; networking; etc. as well as services including custom application/software design; architecture and development; staff augmentation and project management. The following tables present key financial information of the Company’s reportable segments before unallocated corporate expenses (in thousands): Indoor Positioning Infrastructure Consolidated For the Three Months Ended June 30, 2017: Net revenues $ 1,156 $ 13,940 $ 15,096 Cost of net revenues $ (380 ) $ (11,332 ) $ (11,712 ) Gross profit $ 776 $ 2,608 $ 3,384 Gross margin % 67 % 19 % 22 % Depreciation and amortization $ 93 $ 340 $ 433 Amortization of intangibles $ 864 $ 519 $ 1,383 For the Three Months Ended June 30, 2016: Net revenues $ 1,283 $ 12,049 $ 13,332 Cost of net revenues $ (291 ) $ (9,597 ) $ (9,888 ) Gross profit $ 992 $ 2,452 $ 3,444 Gross margin % 77 % 20 % 26 % Depreciation and amortization $ 90 $ 197 $ 287 Amortization of intangibles $ 865 $ 192 $ 1,057 For the Six Months Ended June 30, 2017: Net revenues $ 2,137 $ 26,441 $ 28,578 Cost of net revenues $ (723 ) $ (21,182 ) $ (21,905 ) Gross profit $ 1,414 $ 5,259 $ 6,673 Gross margin % 66 % 20 % 23 % Depreciation and amortization $ 168 $ 665 $ 833 Amortization of intangibles $ 1,729 $ 1,038 $ 2,767 For the Six Months Ended June 30, 2016: Net revenues $ 2,306 $ 25,113 $ 27,419 Cost of net revenues $ (577 ) $ (19,451 ) $ (20,028 ) Gross profit $ 1,729 $ 5,662 $ 7,391 Gross margin % 75 % 23 % 27 % Depreciation and amortization $ 167 $ 383 $ 550 Amortization of intangibles $ 1,729 $ 384 $ 2,113 Reconciliation of reportable segments’ combined income from operations to the consolidated loss before income taxes is as follows (in thousands): For the Three Months Ended For the Six Months Ended 2017 2016 2017 2016 Income from operations of reportable segments $ 3,384 $ 3,444 $ 6,673 $ 7,391 Unallocated operating expenses (8,614 ) (7,392 ) (17,260 ) (15,521 ) Interest expense (1,344 ) (255 ) (2,027 ) (398 ) Other income (expense) 152 28 143 47 Loss from discontinued operations (9 ) -- (17 ) -- Consolidated loss before income taxes $ (6,431 ) $ (4,175 ) $ (12,488 ) $ (8,481 ) The Company’s operations are located primarily in the United States, Canada and Saudi Arabia. Revenues by geographic area are attributed by country of domicile of our subsidiaries. The financial data by geographic area are as follows (in thousands): United Saudi States Canada Arabia Eliminations Total For the Three Months Ended June 30, 2017: Revenues by geographic area $ 15,025 $ 70 $ -- $ -- $ 15,096 Operating loss by geographic area $ (4,784 ) $ (447 ) $ -- $ -- $ (5,230 ) Net income (loss) by geographic area $ (5,975 ) $ (447 ) $ (9 ) $ -- $ (6,431 ) For the Three Months Ended June 30, 2016: Revenues by geographic area $ 13,326 $ 6 $ -- $ -- $ 13,332 Operating loss by geographic area $ (3,491 ) $ (450 ) $ (7 ) $ -- $ (3,948 ) Net loss by geographic area $ (3,718 ) $ (450 ) $ (7 ) $ -- $ (4,175 ) For the Six Months Ended June 30, 2017: Revenues by geographic area $ 28,452 $ 126 $ -- $ -- $ 28,578 Operating loss by geographic area $ (9,739 ) $ (848 ) $ -- $ -- $ (10,586 ) Net loss by geographic area $ (11,622 ) $ (848 ) $ (17 ) $ -- $ (12,487 ) For the Six Months Ended June 30, 2016: Revenues by geographic area $ 27,375 $ 44 $ -- $ -- $ 27,419 Operating loss by geographic area $ (7,282 ) $ (832 ) $ (16 ) $ -- $ (8,130 ) Net loss by geographic area $ (7,633 ) $ (832 ) $ (16 ) $ -- $ (8,481 ) As of June 30, 2017: Identifiable assets by geographic area $ 49,081 $ 600 $ 23 $ -- $ 49,704 Long lived assets by geographic area $ 26,919 $ 406 $ -- $ -- $ 27,325 As of December 31, 2016: Identifiable assets by geographic area $ 66,050 $ 400 $ 23 $ -- $ 66,473 Long lived assets by geographic area $ 29,843 $ 319 $ -- $ -- $ 30,162

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 17 - Commitments and Contingencies Litigation Certain conditions may exist as of the date the condensed consolidated financial statements are issued which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company, or unasserted claims that may result in such proceedings, the Company evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s consolidated financial statements. If the assessment indicates that a potentially material loss contingency is not probable, but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability and an estimate of the range of possible losses, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed, unless they involve guarantees, in which case the guarantees would be disclosed. There can be no assurance that such matters will not materially and adversely affect the Company’s business, financial position, and results of operations or cash flows. During the year ended December 31, 2011, a judgment in the amount of $936,000 was levied against Sysorex Arabia in favor of Creative Edge, Inc. in connection with amounts advanced for operations. Of that amount, $214,000 has been repaid, and the remaining $722,000 has been accrued and is included as a component of liabilities held for sale as of June 30, 2017 and December 31, 2016 in the condensed consolidated balance sheets. On May 30, 2017, HP Inc. (“HP”) filed a complaint in the Marin County Superior Court, California, against Inpixon USA for goods sold and delivered, account stated, and quantum meruit. The complaint alleges that Inpixon USA had purchased HP’s products on credit, which led to an unpaid balance in the sum of $744,184.12 as of December 13, 2016. The complaint further alleges that although Inpixon USA entered into two payment agreements with HP and made partial payments, it defaulted under the payment program and the unpaid amount totaled $636,046.60 as of January 17, 2017. In the complaint, HP demands that Inpixon USA pay damages in the principal amount of $636,046.60 plus any interest accruing from and after January 17, 2017 at the rate of 10% per annum. On the same day of filing the complaint, HP also applied for a right to attach order and order for issuance of writ of attachment from the court to prevent Inpixon USA from dissipating assets prior to the time of judgement. Inpixon USA is required to answer the complaint by September 11, 2017. The liability has been accrued and is included as a component of accounts payable as of June 30, 2017 and December 31, 2016 in the condensed consolidated balance sheets. On August 10, 2017, Embarcadero Technologies, Inc. (“Embarcedero”) and Idera, Inc. (“Idera”) filed a complaint in the U.S. Federal District Court for the Western District of Texas against Inpixon Federal, Inc. (“Inpixon”) and Integrio Technologies, LLC (“Integrio”) for failure to pay for purchased software and services pursuant to certain reseller agreements. The complaint alleges that Inpixon entered into an agreement with Integrio to acquire certain assets and assume certain liabilities of Integrio and are therefore responsible for any amounts due. In the complaint, Embarcadero and Idera demand that Inpixon and Integrio pay $1,100,000.00 in damages. The liability has been accrued and is included as a component of accounts payable as of June 30, 2017 and December 31, 2016 in the condensed consolidated balance sheets.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Note 18 - Subsequent Events On July 17, 2017, the Company issued 97,753 shares of common stock for services which were fully vested upon the date of grant. The Company recorded an expense of $87,000 for the fair value of those shares. During the months of July and August 2017 Series 2 Preferred shareholders converted 2,862 of preferred shares into 4,080,523 shares of common stock. There are currently 1,198 shares of Series 2 Preferred shares remaining outstanding. Agreement with Warrant Holders On August 9, 2017, the Company entered into a warrant exercise agreement (the “Warrant Exercise Agreement”) with certain participants in the June 30, 2017 Offering (collectively, the “Warrant Holders” and each, a “Warrant Holder”) pursuant to which the Warrant Holders agreed to exercise, for up to an aggregate of 1,095,719 shares of common stock, the warrants issued pursuant to a warrant agency agreement, dated as of June 30, 2017 provided that the Company will agree to: (a) amend the Warrant Agency Agreement to reduce the exercise price of the Warrants from $1.325 per share to $0.30 per share in accordance with the terms and conditions of Amendment No. 1 to the Warrant Agency Agreement, entered into on August 9, 2017, between the Company and the Warrant Agent (“Warrant Agreement Amendment”), with the consent of Aegis Capital Corp. and the registered holders of a majority of the outstanding Warrants; and (b) issue additional warrants to the Warrant Holders for the number of shares of common stock that will be equal to the number of exercised shares purchased by such Warrant Holder (the “Additional Warrant Shares”), at an exercise price of $0.55 per share (the “Additional Warrant”) for warrants to purchase up to an aggregate of 1,095,719 shares of common stock. The Warrant Holders agreed to exercise the Warrants for up to 1,095,719 shares of common stock (the “Exercised Shares”) for aggregate gross proceeds of $328,715.70 which was used for general working capital purposes, including the payment of outstanding debt and trade payables in the ordinary course of the Company’s business and prior practices. The Warrants and Exercised Shares were registered on the Registration Statement on Form S-1 filed by the Company (333-218173) and declared effective on June 28, 2017. On August 9, 2017, the Company and Hillair Capital Investments L.P. entered into a waiver and consent agreement (the “Hillair Waiver”) pursuant to which Hillair waived the prohibition on issuing any securities at an effective per share price that is less than $7.05 contained in the securities purchase agreement pursuant to which that certain 8% Original Issue Discount Senior Convertible Debenture was issued to Hillair and consented to the transactions contemplated by the Warrant Exercise Agreement and the Warrant Agreement Amendment. As a result of the transactions consummated pursuant to the Warrant Exercise Agreement, the Exercise Price of the December 2016 Warrants was reduced to $0.50 per share. Payplant Accounts Receivable Bank Line Pursuant to the terms of a Commercial Loan Purchase Agreement, dated as of August 14, 2017, Gemcap Lending I, LLC (“Gemcap”) sold and assigned to Payplant LLC, as agent for Payplant Alternatives Fund LLC, all of its right, title and interest to that certain revolving Secured Promissory Note in an aggregate principal amount of up to $10,000,000 issued in accordance with that certain Loan and Security Agreement, dated as of November 14, 2016 by and among Gemcap and the Company and its wholly-owned subsidiaries, Inpixon USA and Inpixon Federal, Inc. for an aggregate purchase price of $1,402,770.16. In connection with the purchase and assignment, the GemCap loan was amended and restated in accordance with the terms and conditions of the Payplant Loan and Security Agreement, dated as of August 14, 2017, between the Company and Payplant (the “Loan Agreement”) The Loan Agreement allows the Company to request loans from Payplant with a term of no greater than 360 days in amounts that are equivalent to 80% of the face value of purchase orders received. In connection with the assignment, the Company entered into the Payplant Client Agreement (the “Client Agreement”), pursuant to which the Company will offer to Payplant for purchase those receivables payable to the Company in connection with the purchase orders under which advances have been made pursuant to the Loan Agreement for the purposes of paying off any notes issued pursuant to the Loan Agreement. Under the Client Agreement, the Company cannot raise additional financings, without Payplant’s approval, which will not be unreasonably withheld by Payplant unless it is an equity financing or a convertible equity financing, where the Company can force conversion, while Payplant’s advances are outstanding. In accordance with the terms of the Loan Agreement, Inpixon Federal, Inc. issued a promissory note to Payplant with a term of 30 days in an aggregate principal amount of $995,472.61 in connection with a purchase order received. The promissory note is subject to the interest rates described in the Loan Agreement and is secured by the assets of the Company pursuant to the Loan Agreement and will be satisfied in accordance with the terms of the Client Agreement. Exchange Right Agreement with Hillair Capital Investments L.P. On August 14, 2017, the Company entered into an exchange right agreement (the “ Exchange Agreement” ) with Hillair Capital Investments L.P. (“ Hillair” ), pursuant to which the Company granted Hillair the right to exchange 1,850 of the Company’ s Series 2 Convertible Preferred Stock (the “Preferred Shares”) for up to an aggregate of 5,606,061 shares (the “Exchange Shares” ) of the Company’ s common stock. Pursuant to the Exchange Agreement, for so long as the Preferred Shares remain outstanding, each outstanding Preferred Share may be exchanged for the number of Exchange Shares equal to the quotient obtained by dividing $1,000 by $0.33. The exchange of the Preferred Shares will not be effected if, after giving effect to the exchange Hillair, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares of the Company’s common stock outstanding immediately after giving effect to the issuance of the Exchange Shares. Upon not less than 61 days’ prior notice to the Company, Hillair may increase or decrease the ownership limitation, provided that the ownership limitation in no event exceeds 9.99% of the number of shares of the Company’s common stock outstanding immediately after giving effect to the issuance of the Exchange Shares.

Summary of Significant Accoun26

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2017
Basis of Presentation/Summary of Significant Accounting Policies [Abstract]
Use of Estimates	Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during each of the reporting periods. Actual results could differ from those estimates. The Company’s significant estimates consist of: ● the valuation of stock-based compensation; ● the allowance for doubtful accounts; ● the valuation allowance for the deferred tax asset; and ● impairment of long-lived assets and goodwill.
Revenue Recognition	Revenue Recognition The Company provides information technology, or IT, solutions and services to customers and derives revenues primarily from the sale of third-party hardware and software products, software, assurance, licenses and other consulting services, including maintenance services and recognizes revenue once the following four criteria are met: (1) persuasive evidence of an arrangement exists; (2) the price is fixed and determinable, (3) shipment (software and hardware) or fulfillment (maintenance) has occurred; and (4) there is reasonable assurance of collection of the sales proceeds (the “Revenue Recognition Criteria”). In addition, the Company also records revenues in accordance with Accounting Standards Codification (“ASC”) Topic 605-45 “Principal Agent Consideration” (“ASC 605-45”). The Company evaluates the sales of products and services on a case by case basis to determine whether the transaction should be recorded gross or net, including, but not limited to, assessing whether or not the Company: (1) is the primary obligor in the transaction; (2) has inventory risk with respect to the products and/or services sold; (3) has latitude in pricing; and (4) changes the product or performs part of the services sold. The Company evaluates whether revenues received from the sale of hardware and software products, licenses, and services, including maintenance and professional consulting services, should be recognized on a gross or net basis on a transaction by transaction basis. As of June 30, 2017, the Company has determined that all revenues received should be recognized on a gross basis in accordance with applicable standards. Cooperative reimbursements from vendors, which are earned and available, are recorded during the period the related transaction has occurred. Cooperative reimbursements are recorded as a reduction of cost of sales in accordance with ASC Topic 605-50 “Accounting by a Customer (including reseller) for Certain Consideration Received from a Vendor.” Provisions for returns are estimated based on historical collections and credit memo analysis for the period. The Company receives Marketing Development Funds from vendors based on quarterly or annual sales performance to promote the marketing of vendor products and services. The Company must file claims with vendors for these cooperative reimbursements by providing invoices and receipts for marketing expenses. Reimbursements are recorded as a reduction of marketing expenses and other applicable selling, general and administrative expenses ratably over the period in which the expenses are expected to occur. The Company receives vendor rebates which are recorded to cost of sales. The Company also enters into sales transactions whereby customer orders contain multiple deliverables, and reports its multiple deliverable arrangements under ASC 605-25 “Revenue Arrangements with Multiple Deliverables” (“ASC-605-25”). These multiple deliverable arrangements primarily consist of the following deliverables: the Company’s design, configuration, installation, integration, warranty/maintenance and consulting services; and third-party computer hardware, software and warranty maintenance services. In situations where the Company bundles all or a portion of the separate elements, Vendor Specific Objective Evidence (“VSOE”) is determined based on prices when sold separately. For the three months ended June 30, 2017 and 2016 revenues recognized as a result of customer contracts requiring the delivery of multiple elements were $6.6 million and $6.4 million, respectively. For the six months ended June 30, 2017 and 2016 revenues recognized as a result of customer contracts requiring the delivery of multiple elements were $9.7 million and $11.7 million, respectively. Hardware, Software and Licensing Revenue Recognition Generally, the Revenue Recognition Criteria are met with respect to the sales of hardware and software products when they are shipped to the customer. The delivery of products to our customers occurs in a variety of ways, including (i) as a physical product shipped from the Company’s warehouse, (ii) via drop-shipment by a third-party vendor, or (iii) via electronic delivery with respect to software licenses. The Company leverages drop-ship arrangements with many of its vendors and suppliers to deliver products to customers without having to physically hold the inventory at its warehouse. In such arrangements, the Company negotiates the sale price with the customer, pays the supplier directly for the product shipped, bears credit risk of collecting payment from its customers and is ultimately responsible for the acceptability of the product and ensuring that such product meets the standards and requirements of the customer. As a result, the Company recognizes the sale of the product and the cost of such upon receiving notification from the supplier that the product has shipped. Vendor rebates and price protection are recorded when earned as a reduction to cost of sales or merchandise inventory, as applicable. Vendor product price discounts are recorded when earned as a reduction to cost of sales. Maintenance and Professional Services Revenue Recognition With respect to sales of our maintenance, consulting and other service agreements including our digital advertising and electronic services, the Revenue Recognition Criteria is met once the service has been provided. Revenue on time and material contracts is recognized based on a fixed hourly rate as direct labor hours are expended. The fixed rate includes direct labor, indirect expenses, and profits. Materials, or other specified direct costs, are reimbursed as actual costs and may include markup. Anticipated losses are recognized as soon as they become known. For the three and six months ended June 30, 2017 and 2016, the Company did not incur any such losses. These amounts are based on known and estimated factors. Revenues from time and material or firm fixed price long-term and short-term contracts are derived principally with various United States government agencies and commercial customers. The Company recognizes revenue for sales of all services billed as a fixed fee ratably over the term of the arrangement as such services are provided. Billings for such services that are made in advance of the related revenue recognized are recorded as deferred revenue and recognized as revenue ratably over the billing coverage period. Amounts received as prepayments for services to be rendered are recognized as deferred revenue. Revenue from such prepayments is recognized when the services are provided. The Company’s storage and computing maintenance services agreements permit customers to obtain technical support from the Company and/or the manufacturer and to update, at no additional cost, to the latest technology when new software updates are introduced when and if available during the period that the maintenance agreement is in effect. Since the Company assumes certain responsibility for product staging, configuration, installation, modification, and integration with other client systems, or retains general inventory risk upon customer return or rejection and is most familiar with the customer and its required specifications, it generally serves as the initial contact with the customer with respect to any storage and computing maintenance services required and therefore will perform all or part of the required service. Typically, the Company sells maintenance contracts for a separate fee with initial contractual periods ranging from one to three years with renewal for additional periods thereafter. The Company generally bills maintenance fees in advance and records the amounts received as deferred revenue with respect to any portion of the fee for which services have not yet been provided. The Company recognizes the related revenue ratably over the term of the maintenance agreement as services are provided. In situations where the Company bundles all or a portion of the maintenance fee with products, VSOE for maintenance is determined based on prices when sold separately. Customers that have purchased maintenance/warranty services have a right to cancel and receive a refund of the amounts paid for unused services at any time during the service period upon advance written notice to the Company. Cancellation and refund privileges with respect to maintenance/warranty services lapse as to any period during the term of the agreement for which such services have already been provided. Customers do not have the right to a refund of paid fees for maintenance/warranty services that the Company has earned and recognized as revenue. Invoices issued for maintenance/warranty services not yet rendered are recorded as deferred revenue and then recognized as revenue ratably over the service period. As a result, (1) the warranty and maintenance service fees payable by each customer are separately accounted for in each customer purchase order as a separate line item, and (2) upon the Company’s receipt and acceptance of a request for refund of maintenance/warranty services not yet provided, the Company’s obligation to perform any additional maintenance/warranty services will end. Sales are recorded net of discounts and returns.
Stock-Based Compensation	Stock-Based Compensation The Company accounts for options granted to employees by measuring the cost of services received in exchange for the award of equity instruments based upon the fair value of the award on the date of grant. The fair value of that award is then ratably recognized as expense over the period during which the recipient is required to provide services in exchange for that award. Options and warrants granted to consultants and other non-employees are recorded at fair value as of the grant date and subsequently adjusted to fair value at the end of each reporting period until such options and warrants vest, and the fair value of such instruments, as adjusted, is expensed over the related vesting period. The Company incurred stock-based compensation charges, net of estimated forfeitures, of $710,000 and $347,000 for the three months ended June 30, 2017 and 2016, and $993,000 and $711,000 for the six-month period ended June 30, 2017 and 2016, respectively, which are included in general and administrative expenses. The following table summarizes the nature of such charges for the periods then ended (in thousands): For the Three Months Ended For the Six Months Ended 2017 2016 2017 2016 Compensation and related benefits $ 250 $ 336 $ 512 $ 674 Professional and legal fees 145 11 159 37 Acquisition transaction costs -- -- 7 -- Interest expense 315 -- 315 -- Totals $ 710 $ 347 $ 993 $ 711
Net Loss Per Share	Net Loss Per Share The Company computes basic and diluted earnings per share by dividing net loss by the weighted average number of common shares outstanding during the period. Basic and diluted net loss per common share were the same since the inclusion of common shares issuable pursuant to the exercise of options and warrants in the calculation of diluted net loss per common shares would have been anti-dilutive. The following table summarizes the number of common shares and common share equivalents excluded from the calculation of diluted net loss per common share for the six months ended June 30, 2017 and 2016: For the Six Months Ended 2017 2016 Options 366,825 392,288 Warrants 287,426 37,417 Shares accrued but not issued -- 121,800 Convertible debenture 117,778 -- Totals 772,029 551,505
Preferred Stock	Preferred Stock The Company applies the accounting standards for distinguishing liabilities from equity under GAAP when determining the classification and measurement of its convertible preferred stock. Preferred shares subject to mandatory redemption are classified as liability instruments and are measured at fair value. Conditionally redeemable preferred shares (including preferred shares that feature redemption rights that are either within the control of the holder or subject to redemption upon the occurrence of uncertain events not solely within the Company’s control) are classified as temporary equity. At all other times, preferred shares are classified as permanent equity.
Reclassification	Reclassification Certain accounts in the prior year’s financial statements have been reclassified for comparative purposes to conform to the presentation in the current year’s financial statements. These reclassifications have no effect on previously reported earnings.
Derivative Liabilities	Derivative Liabilities During the year ended December 31, 2016, the Company issued a convertible debenture that included reset provisions considered to be down-round protection. In addition, the Company issued warrants that include a fundamental transaction clause which provide for the warrant holders to be paid in cash the fair value of the warrants as computed under a Black Scholes valuation model. The Company determined that the conversion feature and warrants are derivative instruments pursuant to ASC 815 “Derivatives and Hedging” issued by the Financial Accounting Standards Board (“FASB”). The accounting treatment of derivative financial instruments requires that the Company bifurcate the conversion feature and record it as a liability at fair value and the fair value of the warrants were computed as defined in the agreement. The instruments are marked-to-market at fair value as of each balance sheet date. Any change in fair value is recorded as a change in the fair value of derivative liabilities for each reporting period. The fair value of the conversion feature was determined using the Binomial Lattice model. The Company reassesses the classification at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. As of June 30, 2017, the fair value of the derivative liability was $3.8 million and was included in short term liabilities on the balance sheet.
Recent Accounting Standards	Recent Accounting Standards In January 2017, the FASB issued ASU 2017-04: “Intangibles — Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment” (“ASU 2017-04”), which removes Step 2 from the goodwill impairment test. It is effective for annual and interim periods beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed with a measurement date after January 1, 2017. The Company is currently evaluating the standard to determine the impact of its adoption on the consolidated financial statements.
Reverse Stock Split	Reverse Stock Split The board of directors was authorized by the Company’s stockholders to effect a 1 for 15 reverse stock split of its issued and outstanding shares of common stock which was effective March 1, 2017. The financial statements and accompanying notes give effect to the 1 for 15 reverse stock split as if it occurred at the beginning of the first period presented.
Subsequent Events	Subsequent Events The Company evaluates events and/or transactions occurring after the balance sheet date and before the issue date of the condensed consolidated financial statements to determine if any of those events and/or transactions requires adjustment to or disclosure in the consolidated financial statements.

Summary of Significant Accoun27

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2017
Basis of Presentation/Summary of Significant Accounting Policies [Abstract]
Schedule of stock-based compensation charges	For the Three Months Ended For the Six Months Ended 2017 2016 2017 2016 Compensation and related benefits $ 250 $ 336 $ 512 $ 674 Professional and legal fees 145 11 159 37 Acquisition transaction costs -- -- 7 -- Interest expense 315 -- 315 -- Totals $ 710 $ 347 $ 993 $ 711
Schedule of number of common shares and common share equivalents excluded from the calculation of diluted net loss per common share	For the Six Months Ended 2017 2016 Options 366,825 392,288 Warrants 287,426 37,417 Shares accrued but not issued -- 121,800 Convertible debenture 117,778 -- Totals 772,029 551,505

Integrio Technologies, LLC As28

Integrio Technologies, LLC Asset Acquisition (Tables)	6 Months Ended
	Jun. 30, 2017
Integrio Technologies, LLC [Member]
Business Acquisition [Line Items]
Schedule of assets acquired	Assets Acquired: Cash $ 189 Accounts receivable 2,365 Other receivables 377 Prepaid assets 4,164 Fixed assets 64 Other assets 34 Customer relationships 1,873 Supplier relationships 2,985 Goodwill (A) 3,261 15,312 Liabilities Assumed: Accounts payable $ 8,341 Accrued liabilities 344 Deferred revenue 4,252 Other long term liabilities 43 12,980 Total Purchase Price $ 2,332 (A) The goodwill will be deductible for tax purposes once the contingent and assumed liabilities are settled.

Proforma Financial Information

Proforma Financial Information (Tables)	6 Months Ended
	Jun. 30, 2017
Proforma Financial Information [Abstract]
Schedule of proforma financial information	(in thousands, except share amounts ) For the Six Months Ended Revenues $ 49,727 Net Loss Attributable to Common Shareholder $ (10,134 ) Weighted Average Number of Common Shares Outstanding, Basic and Diluted 1,709,629 Loss Per Common Share - Basic and Diluted $ (5.93 )

Inventory (Tables)

Inventory (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory [Abstract]
Schedule of inventory	June 30, December 31, Raw materials $ 220 $ 326 Work in process 10 238 Finished goods 563 497 Total Inventory $ 793 $ 1,061

Discontinued Operations (Tables

Discontinued Operations (Tables)	6 Months Ended
	Jun. 30, 2017
Discontinued Operations [Abstract]
Schedule of major categories of discontinued assets and liabilities	June 30, December 31, 2016 Assets Accounts receivable, net 1 1 Notes and other receivables 8 8 Other assets 14 14 Total Current Assets 23 23 Other assets -- -- Total Assets $ 23 $ 23 Liabilities and Stockholders’ Equity Current Liabilities Accounts payable $ 178 $ 178 Accrued liabilities 910 904 Deferred revenue 236 236 Due to related party 3 1 Short-term debt 722 722 Total Current Liabilities 2,049 2,041 Long Term Liabilities -- -- Total Liabilities $ 2,049 $ 2,041

Debt (Tables)

Debt (Tables)	6 Months Ended
	Jun. 30, 2017
Debt [Abstract]
Schedule of debt	June 30, 2017 December 31, 2016 Short-Term Debt Notes payable $ 150 $ 170 Revolving line of credit (A) 2,373 6,717 Total Short-Term Debt $ 2,523 $ 6,887 Long-Term Debt Notes payable $ 212 $ 212 Senior secured convertible debenture, less debt discount of $1,276 (B) 1,374 3,835 Total Long-Term Debt $ 1,586 $ 4,047 (A) Revolving Lines of Credit GemCap Loan and Security Agreement Amendment 2 On January 24, 2017, the Company, and its U.S. wholly-owned subsidiaries, Inpixon USA and Inpixon Federal, entered into Amendment Number 2 to the Loan and Security Agreement to amend that certain Loan and Security Agreement and Loan Agreement Schedule, both dated as of November 14, 2016, with GemCap Lending I, LLC whereby Section (21) of the definition of “Eligible Accounts” in Section 1.29 of the Loan Agreement was deleted and restated in its entirety as follows: Accounts that satisfy the criteria set forth in the foregoing items (1) – (20), which are owed by any other single Account Debtor or its Affiliates so long as such Accounts, in the aggregate, constitute no more than twenty percent (20%) of all Eligible Accounts, provided, that only for the period commencing on January 24, 2017 through and including April 24, 2017, Accounts in the aggregate only from and owed by Centene Corporation or its Affiliates may exceed twenty percent (20%) of all Eligible Accounts by an amount not to exceed $500,000, provided, further, that, from and after April 25, 2017, Accounts in the aggregate that are owed by Centene Corporation or its Affiliates that satisfy the criteria set forth in the foregoing items (1) – (20) shall not exceed twenty percent (20%) of all Eligible Accounts; and Borrower shall have paid to Lender an accommodation fee in the amount of $5,000 on February 2, 2017. (B) Senior Secured Debenture On June 2, 2017 the Company repaid $200,000 of the debenture. On June 30, 2017 after the close of the Capital Raise (see Note 10) the Company repaid $2.85 million of the senior secured debenture.

Stock Options (Tables)

Stock Options (Tables)	6 Months Ended
	Jun. 30, 2017
Stock Options [Abstract]
Schedule of weighted-average assumptions using Black-Scholes option-pricing model	For the Six Months Ended 2017 2016 Risk-free interest rate 2.27% 1.35% Expected life of option grants 7 years 7 years Expected volatility of underlying stock 47.34% 47.65% Dividends assumption $-- $--

Fair Value (Tables)

Fair Value (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value [Abstract]
Schedule of fair value on a recurring basis	Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs Total Warrant liability -- -- 3,775 3,775 Derivative liability – June 30, 2017 $ -- $ -- $ 3,775 $ 3,775
Schedule of assumptions utilized in the valuation of Level 3 liabilities	For the Six Months Ended Risk-free interest rate 1.89% Expected life of option grants 5 years Expected volatility of underlying stock 46.58% Dividends assumption $--
Schedule of fair value reconciliation of Level 3 liabilities measured at fair value	Warrant Liability Embedded Conversion Total Derivative Liabilities Balance at January 1, 2017 $ 209 $ 1 $ 210 Reclassification of warrants to derivative liabilities 3,773 -- 3,773 Change in fair value of derivative (207 ) (1 ) (208 ) Balance at June 30, 2017 $ 3,775 $ -- $ 3,775

Credit Risk and Concentrations

Credit Risk and Concentrations (Tables)	6 Months Ended
	Jun. 30, 2017
Credit Risk and Concentrations [Abstract]
Schedule of risk percentage of revenue from customers	For the Six Months Ended For the Six Months Ended June 30, 2016 $ % $ % Customer A 5,264 18% 2,608 10% Customer B -- -- 8,717 32% For the Three Months Ended June 30, 2017 For the Three Months Ended $ % $ % Customer A 3,648 24% -- -- Customer B -- -- 3,508 27%

Segment Reporting and Foreign36

Segment Reporting and Foreign Operations (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting and Foreign Operations [Abstract]
Schedule of financial data by business segment	Indoor Positioning Infrastructure Consolidated For the Three Months Ended June 30, 2017: Net revenues $ 1,156 $ 13,940 $ 15,096 Cost of net revenues $ (380 ) $ (11,332 ) $ (11,712 ) Gross profit $ 776 $ 2,608 $ 3,384 Gross margin % 67 % 19 % 22 % Depreciation and amortization $ 93 $ 340 $ 433 Amortization of intangibles $ 864 $ 519 $ 1,383 For the Three Months Ended June 30, 2016: Net revenues $ 1,283 $ 12,049 $ 13,332 Cost of net revenues $ (291 ) $ (9,597 ) $ (9,888 ) Gross profit $ 992 $ 2,452 $ 3,444 Gross margin % 77 % 20 % 26 % Depreciation and amortization $ 90 $ 197 $ 287 Amortization of intangibles $ 865 $ 192 $ 1,057 For the Six Months Ended June 30, 2017: Net revenues $ 2,137 $ 26,441 $ 28,578 Cost of net revenues $ (723 ) $ (21,182 ) $ (21,905 ) Gross profit $ 1,414 $ 5,259 $ 6,673 Gross margin % 66 % 20 % 23 % Depreciation and amortization $ 168 $ 665 $ 833 Amortization of intangibles $ 1,729 $ 1,038 $ 2,767 For the Six Months Ended June 30, 2016: Net revenues $ 2,306 $ 25,113 $ 27,419 Cost of net revenues $ (577 ) $ (19,451 ) $ (20,028 ) Gross profit $ 1,729 $ 5,662 $ 7,391 Gross margin % 75 % 23 % 27 % Depreciation and amortization $ 167 $ 383 $ 550 Amortization of intangibles $ 1,729 $ 384 $ 2,113
Schedule of reconciliation of reportable segments' combined income from operations to the consolidated loss before income taxes	For the Three Months Ended For the Six Months Ended 2017 2016 2017 2016 Income from operations of reportable segments $ 3,384 $ 3,444 $ 6,673 $ 7,391 Unallocated operating expenses (8,614 ) (7,392 ) (17,260 ) (15,521 ) Interest expense (1,344 ) (255 ) (2,027 ) (398 ) Other income (expense) 152 28 143 47 Loss from discontinued operations (9 ) -- (17 ) -- Consolidated loss before income taxes $ (6,431 ) $ (4,175 ) $ (12,488 ) $ (8,481 )
Schedule of financial data by geographic area	United Saudi States Canada Arabia Eliminations Total For the Three Months Ended June 30, 2017: Revenues by geographic area $ 15,025 $ 70 $ -- $ -- $ 15,096 Operating loss by geographic area $ (4,784 ) $ (447 ) $ -- $ -- $ (5,230 ) Net income (loss) by geographic area $ (5,975 ) $ (447 ) $ (9 ) $ -- $ (6,431 ) For the Three Months Ended June 30, 2016: Revenues by geographic area $ 13,326 $ 6 $ -- $ -- $ 13,332 Operating loss by geographic area $ (3,491 ) $ (450 ) $ (7 ) $ -- $ (3,948 ) Net loss by geographic area $ (3,718 ) $ (450 ) $ (7 ) $ -- $ (4,175 ) For the Six Months Ended June 30, 2017: Revenues by geographic area $ 28,452 $ 126 $ -- $ -- $ 28,578 Operating loss by geographic area $ (9,739 ) $ (848 ) $ -- $ -- $ (10,586 ) Net loss by geographic area $ (11,622 ) $ (848 ) $ (17 ) $ -- $ (12,487 ) For the Six Months Ended June 30, 2016: Revenues by geographic area $ 27,375 $ 44 $ -- $ -- $ 27,419 Operating loss by geographic area $ (7,282 ) $ (832 ) $ (16 ) $ -- $ (8,130 ) Net loss by geographic area $ (7,633 ) $ (832 ) $ (16 ) $ -- $ (8,481 ) As of June 30, 2017: Identifiable assets by geographic area $ 49,081 $ 600 $ 23 $ -- $ 49,704 Long lived assets by geographic area $ 26,919 $ 406 $ -- $ -- $ 27,325 As of December 31, 2016: Identifiable assets by geographic area $ 66,050 $ 400 $ 23 $ -- $ 66,473 Long lived assets by geographic area $ 29,843 $ 319 $ -- $ -- $ 30,162

Organization and Nature of Bu37

Organization and Nature of Business and Going Concern (Details) - USD ($) $ in Thousands	Aug. 09, 2016	Jun. 30, 2017	Sep. 30, 2016	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Organization and Nature of Business and Going Concern (Textual)
Working capital deficiency		$ 26,900			$ 26,900
Net loss		(6,431)		$ (4,175)	(12,488)	$ (8,481)
S-3 Market capitalization ceiling		$ 75,000			75,000
Credit facility, maximum borrowing capacity	$ 10,000
Credit facility, maturity date	Nov. 14, 2018
Reduction in operating expenses on an annual basis			$ 1,800
Proceeds from public offering received					$ 6,000
Capital resources, description					The Company's capital resources as of June 30, 2017, availability on the unlimited Payplant Facility to finance purchase orders and invoices, higher margin business line expansion and credit limitation improvements, may not be sufficient to fund planned operations during 2017. The Company will need to raise $4-6 million outside capital under structures available to it including debt and/or equity offerings this year.
Hillair Capital Investments L.P. [Member]
Organization and Nature of Business and Going Concern (Textual)
Securities purchase agreement, Description	(i) An 8% Original Issue Discount Senior Convertible Debenture in an aggregate principal amount of $5,700,000 due on August 9, 2018 and (ii) 2,250 shares of newly created Series 1 Convertible Preferred Stock, par value $0.001 per share, for an aggregate purchase price of $5,000,000.

Summary of Significant Accoun38

Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stock-based compensation charges
Compensation and related benefits	$ 250	$ 336	$ 512	$ 674
Professional and legal fees	145	11	159	37
Acquisition transaction costs			7
Interest expense	315		315
Totals	$ 710	$ 347	$ 993	$ 711

Summary of Significant Accoun39

Summary of Significant Accounting Policies (Details 1) - shares	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Totals	772,029	551,505
Options [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Totals	366,825	392,288
Warrants [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Totals	287,426	37,417
Shares accrued but not issued [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Totals		121,800
Convertible debenture [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Totals	117,778

Summary of Significant Accoun40

Summary of Significant Accounting Policies (Details Textual) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Summary of Significant Accounting Policies (Textual)
Revenues	$ 15,096	$ 13,332	$ 28,578	$ 27,419
Stock-based compensation	710	347	993	711
Fair value of the derivative liability	3,800		$ 3,800
Reverse stock split, Description			The board of directors was authorized by the Company's stockholders to effect a 1 for 15 reverse stock split of its issued and outstanding shares of common stock which was effective March 1, 2017. The financial statements and accompanying notes give effect to the 1 for 15 reverse stock split as if it occurred at the beginning of the first period presented.
Multiple deliverable elements [Member]
Summary of Significant Accounting Policies (Textual)
Revenues	$ 6,600	$ 6,400	$ 9,700	$ 11,700

Integrio Technologies, LLC As41

Integrio Technologies, LLC Asset Acquisition (Details) - Integrio Technologies, LLC [Member] $ in Thousands	Jun. 30, 2017USD ($)
Assets Acquired:
Cash	$ 189
Accounts receivable	2,365
Other receivables	377
Prepaid assets	4,164
Fixed assets	64
Other assets	34
Customer relationships	1,873
Supplier relationships	2,985
Goodwill (A)	3,261	[1]
Asset Acquired Total	15,312
Liabilities Assumed:
Accounts payable	8,341
Accrued liabilities	344
Deferred revenue	4,252
Other long term liabilities	43
Liabilities Assumed Total	12,980
Total Purchase Price	$ 2,332
[1]	The goodwill will be deductible for tax purposes once the contingent and assumed liabilities are settled.

Integrio Technologies, LLC As42

Integrio Technologies, LLC Asset Acquisition (Details Textual) - Integrio Technologies, LLC [Member] - USD ($)	Nov. 14, 2016	Jun. 30, 2017
Integrio Technologies, LLC Asset Acquisition (Textual)
Total purchase price of acquisition		$ 2,332,000
Cash paid to acquire company		753,000
Value of common shares issued for acquisition		$ 101,000
Purchase price of transaction, Description		The total recorded purchase price for the transaction was $2,332,000 at closing on November 21, 2016 ("Closing") which consisted of the cash paid at Closing of $753,000, $400,000 cash that will be paid in two annual installments of $200,000 each on the respective anniversary dates of the Closing, $1,078,000 in contingent earnout payments and $101,000 representing the fair value of the stock issued at Closing.
Asset Purchase Agreement [Member]
Integrio Technologies, LLC Asset Acquisition (Textual)
Asset purchase agreement, Description	The consideration paid for the assets included an aggregate of (A) $1,800,000 in cash, of which $1,400,000 minus certain amounts payable to creditors of the Seller was paid upon the closing of the acquisition and $400,000 will be paid in two annual installments of $200,000 each on the respective anniversary dates of the closing, subject to certain set offs and recoupment by Buyer; (B) 35,333 unregistered restricted shares of the Company's voting common stock valued at $22.50 per share; (C) certain specified assumed liabilities as detailed in the purchase price table below; and (D) up to an aggregate of $1,200,000 in earnout payments, of which up to $400,000 shall be payable to the Seller per year for the three years following the closing.

Proforma Financial Informatio43

Proforma Financial Information (Details) $ / shares in Units, $ in Thousands	6 Months Ended
	Jun. 30, 2016USD ($)$ / sharesshares
Proforma Financial Information [Abstract]
Revenues	$ 49,727
Net Loss Attributable to Common Shareholder	$ (10,134)
Weighted Average Number of Common Shares Outstanding, Basic and Diluted | shares	1,709,629
Loss Per Common Share - Basic and Diluted | $ / shares	$ (5.93)

Related Party (Details)

Related Party (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Related Party (Textual)
Due from Sysorex Consulting, Inc.	$ 666,000	$ 666,000

Inventory (Details)

Inventory (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventory [Abstract]
Raw materials	$ 220	$ 326
Work in process	10	238
Finished goods	563	497
Total Inventory	$ 793	$ 1,061

Discontinued Operations (Detail

Discontinued Operations (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Assets
Accounts receivable, net	$ 1	$ 1
Notes and other receivables	8	8
Other assets	14	14
Total Current Assets	23	23
Other assets
Total Assets	23	23
Current Liabilities
Accounts payable	178	178
Accrued liabilities	910	904
Deferred revenue	236	236
Due to related party	3	1
Short-term debt	722	722
Total Current Liabilities	2,049	2,041
Long Term Liabilities
Total Liabilities	$ 2,049	$ 2,041

Discontinued Operations (Deta47

Discontinued Operations (Details Textual) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Discontinued Operations (Textual)
Deposits for surety bonds	$ 0	$ 0

Debt (Details)

Debt (Details) - USD ($) $ in Thousands		Jun. 30, 2017	Dec. 31, 2016
Short-Term Debt
Notes payable		$ 150	$ 170
Revolving line of credit (A)	[1]	2,373	6,717
Total Short-Term Debt		2,523	6,887
Long-Term Debt
Notes payable		212	212
Senior secured convertible debenture, less debt discount of $1,276 (B)	[2]	1,374	3,835
Total Long-Term Debt		$ 1,586	$ 4,047
[1]	(A) Revolving Lines of Credit GemCap Loan and Security Agreement Amendment 2 On January 24, 2017, the Company, and its U.S. wholly-owned subsidiaries, Inpixon USA and Inpixon Federal, entered into Amendment Number 2 to the Loan and Security Agreement to amend that certain Loan and Security Agreement and Loan Agreement Schedule, both dated as of November 14, 2016, with GemCap Lending I, LLC whereby Section (21) of the definition of "Eligible Accounts" in Section 1.29 of the Loan Agreement was deleted and restated in its entirety as follows: Accounts that satisfy the criteria set forth in the foregoing items (1) (20), which are owed by any other single Account Debtor or its Affiliates so long as such Accounts, in the aggregate, constitute no more than twenty percent (20%) of all Eligible Accounts, provided, that only for the period commencing on January 24, 2017 through and including April 24, 2017, Accounts in the aggregate only from and owed by Centene Corporation or its Affiliates may exceed twenty percent (20%) of all Eligible Accounts by an amount not to exceed $500,000, provided, further, that, from and after April 25, 2017, Accounts in the aggregate that are owed by Centene Corporation or its Affiliates that satisfy the criteria set forth in the foregoing items (1) (20) shall not exceed twenty percent (20%) of all Eligible Accounts; and Borrower shall have paid to Lender an accommodation fee in the amount of $5,000 on February 2, 2017.
[2]	(B) Senior Secured Debenture On June 2, 2017 the Company repaid $200,000 of the debenture. On June 30, 2017 after the close of the Capital Raise (see Note 10) the Company repaid $2.85 million of the senior secured debenture.

Debt (Details Textual)

Debt (Details Textual) - USD ($)	Jun. 02, 2017	May 31, 2017	Jan. 24, 2017	Jun. 30, 2017	Dec. 31, 2016
Debt (Textual)
Debt discount				$ 1,276,000	$ 1,276,000
Repayment of debenture	$ 200,000
Senior Secured Debenture [Member]
Debt (Textual)
Senior secured debenture repaid				2,850,000
Loan and Security Agreement [Member] | Amendment 2 [Member]
Debt (Textual)
Description of loan amendment			The Loan Agreement was deleted and restated in its entirety as follows: Accounts that satisfy the criteria set forth in the foregoing items (1) - (20), which are owed by any other single Account Debtor or its Affiliates so long as such Accounts, in the aggregate, constitute no more than twenty percent (20%) of all Eligible Accounts, provided, that only for the period commencing on January 24, 2017 through and including April 24, 2017, Accounts in the aggregate only from and owed by Centene Corporation or its Affiliates may exceed twenty percent (20%) of all Eligible Accounts by an amount not to exceed $500,000, provided, further, that, from and after April 25, 2017, Accounts in the aggregate that are owed by Centene Corporation or its Affiliates that satisfy the criteria set forth in the foregoing items (1) - (20) shall not exceed twenty percent (20%) of all Eligible Accounts; and Borrower shall have paid to Lender an accommodation fee in the amount of $5,000 on February 2, 2017.
Subordinated Convertible Promissory Notes [Member]
Debt (Textual)
Aggregate principal amount		$ 2,200,000
Debt payment, description		Due on May 31, 2018.
Convertible promissory notes purchase price, description		Aggregate purchase price of $2,000,000, representing an approximately 9% original issue discount.
Payment of principal, interest and fees				$ 2,700,000
Payment of interest, description				Interest on the Notes accrues at a rate of 10.0% per annum and is payable on the maturity date or any applicable redemption date in cash, or upon notice to the holder and compliance with certain equity conditions as set forth in the Notes, in shares of the Company's common stock, provided that the maximum aggregate amount of interest that the Company may elect to pay in Interest Shares will not exceed an amount equal to 5% of the total interest payable under the terms of the Notes.

Capital Raise (Details)

Capital Raise (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Capital Raise (Textual)
Warrants exercise	$ 5,711,850
Warrants [Member]
Capital Raise (Textual)
Exercise price of warrants		$ 0.50
Offering [Member]
Capital Raise (Textual)
Underwritten public offering, Description	(i) 1,849,460 Class A Units (the "Class A Units"), with each Class A Unit consisting of one share of Common Stock and one warrant to purchase one share of Common Stock at an exercise price of $1.3125 (the "Exercise Price") and (ii) 4,060 Class B Units (the "Class B Units"), with each Class B Unit consisting of one share of Series 2 Preferred and one warrant to purchase the number of shares of Common Stock equal to the number of shares of Common Stock underlying the Series 2 Preferred at the Exercise Price.

Common Stock (Details)

Common Stock (Details) - USD ($)	May 08, 2017	Apr. 19, 2017	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2017
Common Stock (Textual)
Common shares issued for services, shares				3,613
Fair value of shares issued for services				$ 14,092
Issuance of common stock under LightMiner acquisition remain in escrow, shares				18,905
Issuance of common stock under LightMiner acquisition remain in escrow				$ 567,000
Common stock issued, value					$ 5,570,000
Common stock issued for services, value					166,000
Exchange Agreement [Member]
Common Stock (Textual)
Amount of interest payable on debenture		$ 343,267
Due date of interest payment		May 9, 2017
Value of interest payment paid by company stock		$ 315,700
Number of shares issued in settlement of interest payable		110,000
Conversion rate		$ 2.87
Common stock issuance date		Apr. 20, 2017
Hillair Capital Investments L.P. [Member]
Common Stock (Textual)
Number of common shares the convertible shares were converted into shares	2,250
Common stock issued, value					$ 1,900,000
Common shares issued					1,849,460
Common stock issued for services, value			$ 144,790
Common stock issued for services, shares			52,004
Common stock price per share			$ 1.05		$ 1.05
Hillair Capital Investments L.P. [Member] | Series 1 Convertible Preferred Stock [Member]
Common Stock (Textual)
Number of common shares the convertible shares were converted into shares	100,000
Hillair Capital Investments L.P. [Member] | Exchange Agreement [Member]
Common Stock (Textual)
Original issue discount percentage rate		8.00%
Principal amount of debt		$ 5,700,000
Integrio Technologies, LLC [Member]
Common Stock (Textual)
Issuance of common stock share for acquisition				1,767
Issuance of common stock value for acquisition				$ 7,050

Series 2 Preferred Stock (Detai

Series 2 Preferred Stock (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 29, 2017	Dec. 31, 2016
Series Preferred Stock (Textual)
Preferred stock, par value	$ 0.001		$ 0.001
Preferred stock, shares authorized	5,000,000		5,000,000
Aggregate stated value of Series 2 Preferred Stock
Common stock, par value	$ 0.001		$ 0.001
Series 2 Preferred Stock [Member]
Series Preferred Stock (Textual)
Preferred stock, par value		$ 0.001
Preferred stock, shares authorized		4,669
Aggregate stated value of Series 2 Preferred Stock		$ 1,000
Common stock, par value		$ 0.001
Series 2 Preferred Stock conversion value		$ 1.05
Conversion of stock, Description	The Company completed the previously announced registered underwritten public offering and sold 4,060 Class B Units with each Class B Unit consisting of one share of Series 2 Preferred and one warrant to purchase the number of shares of Common Stock equal to the number of shares of Common Stock underlying the Series 2 Preferred.

Stock Options (Details)

Stock Options (Details) - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Schedule of weighted-average assumptions using Black-Scholes option-pricing model
Risk-free interest rate	2.27%	1.35%
Expected life of option grants	7 years	7 years
Expected volatility of underlying stock	47.34%	47.65%
Dividends assumption

Stock Options (Details Textual)

Stock Options (Details Textual) - USD ($)	Sep. 11, 2011	Mar. 31, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Stock options (Textual)
Options exercise price as a % of FMV of underlying common stock	100.00%
Options exercise price as a % of FMV of underlying common stock for a individual owning 10% or more of Company	110.00%
Fair value of non-vested options			$ 1,655,000
Dividends assumption
Weighted average remaining term of non-vested options			1 year 1 month 13 days
Options granted outside of the plan			41,667
Stock options [Member]
Stock options (Textual)
Amortization of employee stock options			$ 512,000	$ 674,000
Employees and directors [Member]
Stock options (Textual)
Total options granted at end of period		25,627
Options vest pro-rata		48 months
Option grant life		10 years
Options exercise price		$ 3.90
Fair value of options granted		$ 51,000
Fair value of the stock option as of grant date		$ 3.90
Employees and consultants [Member]
Stock options (Textual)
Total options granted at end of period			366,825
Options [Member]
Stock options (Textual)
Aggregate number of shares available to be awarded on the company stock option plan					450,402
Options available for future grant			125,244

Fair Value (Details)

Fair Value (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financial Liabilities Fair Value Disclosure [Abstract]
Warrant liability	$ 3,775
Derivative liability - June 30, 2017	3,775	$ 210
Quoted Prices in Active Markets for Identical Assets or Liabilities (Level 1) [Member]
Financial Liabilities Fair Value Disclosure [Abstract]
Warrant liability
Derivative liability - June 30, 2017
Significant Other Observable Inputs (Level 2) [Member]
Financial Liabilities Fair Value Disclosure [Abstract]
Warrant liability
Derivative liability - June 30, 2017
Significant Unobservable Inputs (Level 3) [Member]
Financial Liabilities Fair Value Disclosure [Abstract]
Warrant liability	3,775
Derivative liability - June 30, 2017	$ 3,775

Fair Value (Details 1)

Fair Value (Details 1) - Fair Value, Inputs, Level 3 [Member]	6 Months Ended
	Jun. 30, 2017$ / shares
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Risk-free interest rate	1.89%
Expected life of option grants	5 years
Expected volatility of underlying stock	46.58%
Dividends assumption

Fair Value (Details 2)

Fair Value (Details 2) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Derivative Instruments, Gain (Loss) [Line Items]
Balance at January 1, 2017	$ 210
Reclassification of warrants to derivative liabilities	3,773
Change in fair value of derivative	(208)
Balance at June 30, 2017	3,775
Embedded Conversion Feature [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Balance at January 1, 2017	1
Reclassification of warrants to derivative liabilities
Change in fair value of derivative	(1)
Balance at June 30, 2017
Warrant Liability [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Balance at January 1, 2017	209
Reclassification of warrants to derivative liabilities	3,773
Change in fair value of derivative	(207)
Balance at June 30, 2017	$ 3,775

Fair Value (Details Textual)

Fair Value (Details Textual) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Fair Value (Textual)
Dividends assumptions	$ 0

Credit Risk and Concentration59

Credit Risk and Concentrations (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Concentration Risk [Line Items]
Net revenues	$ 15,096,000	$ 13,332,000	$ 28,578,000	$ 27,419,000
Customer concentration risk [Member] | Customer A [Member]
Concentration Risk [Line Items]
Net revenues	$ 3,648,000		$ 5,264,000	$ 2,608,000
Concentration risk, percentage	24.00%		18.00%	10.00%
Customer concentration risk [Member] | Customer B [Member]
Concentration Risk [Line Items]
Net revenues		$ 3,508		$ 8,717,000
Concentration risk, percentage		27.00%		32.00%

Credit Risk and Concentration60

Credit Risk and Concentrations (Details Textual) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Jun. 30, 2017USD ($)Vendor	Jun. 30, 2016USD ($)Vendor
Accounts payable [Member]
Credit Risk and Concentrations (Textual)
Number of vendors | Vendor			1	1
Accounts payable [Member] | Vendor One [Member]
Credit Risk and Concentrations (Textual)
Concentration risk, percentage			40.00%	53.00%
Purchases from vendors	$ 4.1		$ 5.8
Accounts payable [Member] | Vendor Two [Member]
Credit Risk and Concentrations (Textual)
Purchases from vendors		$ 5.3		$ 9.8
Accounts Receivable [Member]
Credit Risk and Concentrations (Textual)
Concentrations percentage, description			Greater than 10
Accounts Receivable [Member] | Customer A [Member]
Credit Risk and Concentrations (Textual)
Concentration risk, percentage				31.00%
Accounts Receivable [Member] | Customer B [Member]
Credit Risk and Concentrations (Textual)
Concentration risk, percentage				17.00%
Accounts Receivable [Member] | Customer C [Member]
Credit Risk and Concentrations (Textual)
Concentration risk, percentage				13.00%

Segment Reporting and Foreign61

Segment Reporting and Foreign Operations (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Net revenues	$ 15,096	$ 13,332	$ 28,578	$ 27,419
Cost of net revenues	(11,712)	(9,888)	(21,905)	(20,028)
Gross profit	$ 3,384	$ 3,444	$ 6,673	$ 7,391
Gross margin %	22.00%	26.00%	23.00%	27.00%
Depreciation and amortization	$ 433	$ 287	$ 833	$ 550
Amortization of intangibles	1,382	1,057	2,767	2,113
Indoor Positioning Analytics [Member]
Segment Reporting Information [Line Items]
Net revenues	1,156	1,283	2,137	2,306
Cost of net revenues	(380)	(291)	(723)	(577)
Gross profit	$ 776	$ 992	$ 1,414	$ 1,729
Gross margin %	67.00%	77.00%	66.00%	75.00%
Depreciation and amortization	$ 93	$ 90	$ 168	$ 167
Amortization of intangibles	864	865	1,729	1,729
Infrastructure [Member]
Segment Reporting Information [Line Items]
Net revenues	13,940	12,049	26,441	25,113
Cost of net revenues	(11,332)	(9,597)	(21,182)	(19,451)
Gross profit	$ 2,608	$ 2,452	$ 5,259	$ 5,662
Gross margin %	19.00%	20.00%	20.00%	23.00%
Depreciation and amortization	$ 340	$ 197	$ 665	$ 383
Amortization of intangibles	$ 519	$ 192	$ 1,038	$ 384

Segment Reporting and Foreign62

Segment Reporting and Foreign Operations (Details 1) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting and Foreign Operations [Abstract]
Income from operations of reportable segments	$ 3,384	$ 3,444	$ 6,673	$ 7,391
Unallocated operating expenses	(8,614)	(7,392)	(17,260)	(15,521)
Interest expense	(1,344)	(255)	(2,027)	(398)
Other income (expense)	152	28	143	47
Loss from discontinued operations	(9)		(17)
Consolidated loss before income taxes	$ (6,431)	$ (4,175)	$ (12,488)	$ (8,481)

Segment Reporting and Foreign63

Segment Reporting and Foreign Operations (Details 2) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geographic area	$ 15,096	$ 13,332	$ 28,578	$ 27,419
Operating loss by geographic area	(5,230)	(3,948)	(10,587)	(8,130)
Net loss by geographic area	(6,431)	(4,175)	(12,488)	(8,481)
Identifiable assets by geographic area	49,704		49,704		$ 66,473
Long lived assets by geographic area	27,325		27,325		30,162
United States [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geographic area	15,025	13,326	28,452	27,375
Operating loss by geographic area	(4,784)	(3,491)	(9,739)	(7,282)
Net loss by geographic area	(5,975)	(3,718)	(11,622)	(7,633)
Identifiable assets by geographic area	49,081		49,081		66,050
Long lived assets by geographic area	26,919		26,919		29,843
Canada [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geographic area	70	6	126	44
Operating loss by geographic area	(447)	(450)	(848)	(832)
Net loss by geographic area	(447)	(450)	(848)	(832)
Identifiable assets by geographic area	600		600		400
Long lived assets by geographic area	406		406		319
Saudi Arabia [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geographic area
Operating loss by geographic area		(7)		(16)
Net loss by geographic area	(9)	(7)	(17)	(16)
Identifiable assets by geographic area	23		23		23
Long lived assets by geographic area
Eliminations [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Revenues by geographic area
Operating loss by geographic area
Net loss by geographic area
Identifiable assets by geographic area
Long lived assets by geographic area

Commitments and Contingencies (

Commitments and Contingencies (Details) - USD ($)	1 Months Ended	6 Months Ended	12 Months Ended
	May 30, 2017	Jun. 30, 2017	Dec. 31, 2011	Aug. 10, 2017	Jan. 17, 2017	Dec. 31, 2016	Dec. 13, 2016
Commitments and Contingencies (Textual)
Litigation settlement in favor of Creative Edge, Inc.			$ 936,000
Amount paid towards loss contingency		$ 214,000
Litigation amount accrued as advances payable		$ 722,000				$ 722,000
HP Inc [Member]
Commitments and Contingencies (Textual)
Unpaid amount					$ 636,046.60		$ 744,184.12
Principal amount	$ 636,046.60
Interest rate per annum	10.00%
Subsequent Event [Member] | Embarcadero Technologies, Inc. / Idera, Inc [Member]
Commitments and Contingencies (Textual)
Non-payment due				$ 1,100,000

Subsequent Events (Details)

Subsequent Events (Details) - USD ($)	Aug. 14, 2017	Aug. 09, 2017	Aug. 31, 2017	Jul. 31, 2017	Jul. 17, 2017	Jun. 30, 2017	Dec. 31, 2016	Nov. 14, 2016
Subsequent Events (Textual)
Proceeds of warrants exercise						$ 5,711,850
Warrant [Member]
Subsequent Events (Textual)
Exercise price of warrants							$ 0.50
Loan and Security Agreement [Member]
Subsequent Events (Textual)
Aggregate principal amount								$ 10,000,000
Subsequent Events [Member]
Subsequent Events (Textual)
Fair value of shares issued for services					$ 87,000
Common stock issued for services, shares					97,753
Subsequent Events [Member] | Inpixon USA and Inpixon Federal, Inc. [Member]
Subsequent Events (Textual)
Aggregate purchase price	$ 1,402,770.16
Subsequent Events [Member] | Hillair Capital Investments L.P. [Member]
Subsequent Events (Textual)
Description of exchange right agreement	The Company granted Hillair the right to exchange 1,850 of the Company' s Series 2 Convertible Preferred Stock (the "Preferred Shares") for up to an aggregate of 5,606,061 shares (the "Exchange Shares" ) of the Company' s common stock. Pursuant to the Exchange Agreement, for so long as the Preferred Shares remain outstanding, each outstanding Preferred Share may be exchanged for the number of Exchange Shares equal to the quotient obtained by dividing $1,000 by $0.33. The exchange of the Preferred Shares will not be effected if, after giving effect to the exchange Hillair, together with its affiliates, would beneficially own in excess of 4.99% of the number of shares of the Company's common stock outstanding immediately after giving effect to the issuance of the Exchange Shares. Upon not less than 61 days' prior notice to the Company, Hillair may increase or decrease the ownership limitation, provided that the ownership limitation in no event exceeds 9.99% of the number of shares of the Company's common stock outstanding immediately after giving effect to the issuance of the Exchange Shares.
Subsequent Events [Member] | Agreement with Warrant Holders [Member]
Subsequent Events (Textual)
Maximum number of warrants available to be exercised		1,095,719
Number of warrants exercised		1,095,719
Exercise price of warrants		$ 0.55
Proceeds of warrants exercise		$ 328,715.70
Description of waiver and consent agreement		The Company and Hillair Capital Investments L.P. entered into a waiver and consent agreement (the "Hillair Waiver") pursuant to which Hillair waived the prohibition on issuing any securities at an effective per share price that is less than $7.05 contained in the securities purchase agreement pursuant to which that certain 8% Original Issue Discount Senior Convertible Debenture was issued to Hillair and consented to the transactions contemplated by the Warrant Exercise Agreement and the Warrant Agreement Amendment.
Subsequent Events [Member] | Warrant Agency Agreement [Member] | Maximum [Member]
Subsequent Events (Textual)
Exercise price of warrants		$ 1.325
Subsequent Events [Member] | Warrant Agency Agreement [Member] | Minimum [Member]
Subsequent Events (Textual)
Exercise price of warrants		$ 0.30
Subsequent Events [Member] | Loan and Security Agreement [Member]
Subsequent Events (Textual)
Aggregate principal amount	$ 995,472.61
Debt Instrument, Description	The Loan Agreement allows the Company to request loans from Payplant with a term of no greater than 360 days in amounts that are equivalent to 80% of the face value of purchase orders received.
Promissory note issued term	30 days
Subsequent Events [Member] | Series 2 Preferred Stock [Member]
Subsequent Events (Textual)
Shares of preferred stock converted to common stock			2,862	2,862
Common shares issued for converted preferred shares			4,080,523	4,080,523
Preferred shares remaining outstanding			1,198	1,198