Ideanomics, Inc. Reports Q1 2023 Financial Results

Revenues for the quarter ended March 31, 2023, were $10.6 million

NEW YORK, Aug. 4, 2023 /PRNewswire/ — Ideanomics (NASDAQ: IDEX) (“Ideanomics” or the “Company”), a global company focused on accelerating the commercial adoption of electric vehicles, announced today its first quarter 2023 operating results for the period ended March 31, 2023.

During the first quarter Ideanomics began executing its commitment to shareholders to exit non-core businesses with its exit from low margin Chinese operations, the announcement of the sale of Timios which was concluded in the second quarter and the shutdown of our Justly financial services business.

First Quarter Highlights

  • Finalized VIA transaction end of January.
  • Energica Inside announced partnerships to develop all-electric solutions for aviation, marine, and off-road uses.
  • Solectrac continued to expand their dealer network and subsidy program for their all-electric tractors.
  • US Hybrid partnered with Mi-Jack to develop hydrogen powered rubber tire gantry crane.
  • US Hybrid and Global Environmental Products began manufacturing 18 zero-emission street sweepers for Caltrans.
  • Consolidated all energy and charging solutions under one brand WAVE Charging.

Ideanomics First Quarter 2023 Operating Results  

Revenue for the quarter was $10.6 million, 58 percent lower than the same time last year. This was primarily due to a decrease in revenue from Timios the title & escrow services business, and a decrease in revenue from the China-based EV resale business.  EV revenue was $5.9 million versus $15.4 million in 2022, a decrease of $9.5 million or 62%. 

Gross Profit 

Gross Profit for the first quarter was ($0.6) million, which represented a Gross Margin of (5.4%). Gross Profit for the first quarter of 2022 was $0.02 million.   

About Ideanomics  
Ideanomics (NASDAQ: IDEX) is a global group with a simple mission: to accelerate the commercial adoption of electric vehicles. By bringing together vehicles and charging technology with design, implementation, and financial services, we provide the completeness of solutions needed for the commercial world to commit to an EV future. To keep up with Ideanomics, please follow the company on social @ideanomicshq or visit http://ideanomics.com

Safe Harbor Statement 
This press release contains “forward-looking statements” within the meaning of the federal securities laws. All statements other than statements of historical fact included herein are “forward-looking statements.” These forward-looking statements are often identified by the use of forward-looking terminology such as “believes,” “expects,” or similar expressions, involve known and unknown risks and uncertainties, and include the statement regarding the completion of the business combination within a certain period of time, if ever. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks, and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company’s actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of risks and uncertainties, such as risks related to: our ability to obtain necessary regulatory approvals and other risks and uncertainties disclosed under the sections entitled “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our most recent Form 10-K and Form 10-Q filed with the Securities and Exchange Commission, and similar disclosures in subsequent reports filed with the SEC, which are available on the SEC website at www.sec.gov. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these risk factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements. 

Contact:
Tony Sklar, SVP of Investor Relations
1441 Broadway, Suite 5116, New York, NY 10018
ir@ideanomics.com

 

IDEANOMICS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

(in thousands, except per share data)

Three Months Ended March 31,

2023

2022

Revenue from sales of products (including from a related party of $4 and $0, for the three months ended March 31,
   2023 and 2022, respectively)

$              5,756

$            14,877

Revenue from sales of services

4,369

10,460

Other revenue

437

$                  54

Total revenue

10,562

25,391

Cost of revenue from sales of products (including from a related party of $37 and $0 for the three months ended
   March 31, 2023 and 2022, respectively)

6,391

15,738

Cost of revenue from sales of services

4,537

9,583

Cost of other revenue

203

50

Total cost of revenue

11,131

25,371

Gross (loss) profit

(569)

20

Operating expenses:

Selling, general and administrative expenses

46,245

37,095

Research and development expense

4,625

1,014

Asset impairments

44,113

81

Depreciation and amortization

4,510

1,285

Other general expenses

(12,596)

(131)

Total operating expenses

86,897

39,344

Loss from operations

(87,466)

(39,324)

Interest and other income (expense):

Interest income

340

763

Interest expense

(1,349)

(579)

Gain on remeasurement of investment

10,965

Other income, net

2,382

43

Loss before income taxes and non-controlling interest

(86,093)

(28,132)

Income tax benefit

2,985

378

Impairment of and equity in loss of equity method investees

(2,784)

(1,338)

Net loss

(85,892)

(29,092)

Net loss attributable to non-controlling interest

1,575

580

Net loss attributable to Ideanomics, Inc. common shareholders

$          (84,317)

$          (28,512)

Basic and diluted loss per share

$              (0.12)

$              (0.06)

Weighted average shares outstanding:

Basic and diluted

731,001,467

497,359,747

 

IDEANOMICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD in thousands)

March 31, 2023

December 31, 2022

(Unaudited)

ASSETS

Current assets

Cash and cash equivalents

$                     18,880

$                     21,929

Accounts receivable, net

6,835

5,855

Contract assets

1,142

3,579

Amount due from related parties

539

899

Notes receivable from third parties, net

44

31,653

Inventory, net

27,353

28,246

Prepaid expenses

10,535

13,341

Other current assets

10,185

8,536

Total current assets

75,513

114,038

Property and equipment, net

11,414

9,072

Intangible assets, net

156,090

52,768

Goodwill

51,371

37,775

Operating lease right of use assets

19,626

15,979

Long-term investments

10,284

Other non-current assets

2,974

2,885

Total assets

$                   316,988

$                   242,801

LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK, AND EQUITY

Current liabilities

Accounts payable

$                     57,598

$                     29,699

Accrued salaries

11,982

9,848

Accrued expenses

6,024

4,167

Deferred revenue

2,498

2,749

Amount due to related parties

2,443

2,376

Current portion of operating lease liabilities

3,984

4,082

Promissory note due to related party

2,014

2,021

Current portion of promissory note due to third parties

6,223

7,270

Convertible promissory note due to third-parties

1,650

3,928

Warrant liabilities

18,553

Other current liabilities

15,174

10,721

Total current liabilities

128,143

76,861

Promissory note due to third parties, net of current portion

1,894

1,957

Operating lease liabilities, net of current portion

15,288

12,273

Non-current contingent liabilities

60,721

Deferred tax liabilities

4,203

3,000

Other long-term liabilities

2,022

2,147

Total liabilities

212,271

96,238

Commitments and contingencies (Note 15)

Convertible redeemable preferred stock

Series A – 7,000,000 shares issued and outstanding, liquidation and deemed liquidation preference of $3,500,000 as of March 31,
   2023 and December 31, 2022

1,262

1,262

Series B – 50,000,000.00 shares authorized, 20,000,000 and 10,000,000 shares issued and 10,000,000 and 10,000,000 shares
outstanding as of  March 31, 2023 and December 31, 2022, respectively

8,850

8,850

Series C – 2,000,000 shares authorized, 1,159,276 and 0 shares issued and 0 and 0 shares outstanding as of March 31, 2023
and December 31, 2022, respectively

4,825

Equity

Common stock – $0.001 par value; 1,500,000,000 shares authorized,  and 598,286,221 shares issued and 790,072,216 and
   598,286,221 shares outstanding as of March 31, 2023 and December 31, 2022, respectively

916

597

Additional paid-in capital

1,041,955

1,004,082

Accumulated deficit

(951,099)

(866,450)

Accumulated other comprehensive loss

(5,048)

(6,104)

Total stockholders’ equity

86,724

132,125

Non-controlling interest

3,056

4,326

Total equity

89,780

136,451

Total liabilities, convertible redeemable preferred stock, and equity

$                   316,988

$                   242,801

 

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SOURCE Ideanomics

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