Investors
(NASDAQ: IDEX)

Ideanomics, Inc. Reports Full Year 2020 Financial Results
- Revenues for the year ended December 31, 2020, were $26.8 million
- Significant Resources Available to Drive Long-Term Growth Plan
- Continued strength in the EV industry, progress in our Mobility unit activities as the value of its S2F2C business model gains traction in the EV industry

NEW YORK, March 31, 2021 /PRNewswire/ -- Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company"), a global company focused on driving the adoption of commercial electric vehicles and associated energy consumption, announced today its Full Year 2020 operating results for the period ended December 31, 2020 (a full copy of the Company's annual 10-K report is available at www.sec.gov). 

Conference Call: Ideanomics' management, including Alf Poor (Chief Executive Officer), Conor McCarthy (Chief Financial Officer) and Tony Sklar (SVP of Investor Relations), will host live an earnings release conference call at 4:30 pm ET, Wednesday, March 31, 2021. Time permitting, Ideanomics management will answer questions during the live Q&A session. A replay of the earnings call will be available soon after the conclusion of the event. 

To join the webcast, please visit the 'Events & Presentations' section of the Ideanomics corporate website (http://www.ideanomics.com/), or copy/paste this link: https://78449.themediaframe.com/dataconf/productusers/ssc/mediaframe/43504/indexl.html

"We are very pleased with the transformation that took place this past year," said Alf Poor, CEO of Ideanomics. "Despite a year highlighted by COVID-19, we were able to build the groundwork for 2021 and beyond for Ideanomics and we are excited for what the future holds with our recent activity across the EV ecosystem and developments in EV charging infrastructure."

Ideanomics Full Year 2020 Operating Results

Revenue for the year was $26.8 million with sequential quarter over quarter growth demonstrating the growing strength of Ideanomics' business.  EV revenue in 2020 was $19.5 million versus $2.7 million in 2019, an increase of $16.8 million or more than 600%.  The 2020 revenues included our first sales of charging & battery systems, a part of the EV ecosystem that is very important to Ideanomics' S2F2C (Sales 2 Financing 2 Charging) business model.  We expect revenues from charging systems to grow as WAVE, our inductive charging business acquired in January 2021, is included in our financial results starting this quarter.  Revenues for the full year 2019 were $44.6 million, however $40.7 million was generated from the Digital Asset Management Services contract that produced no revenues in 2020 and this contract is not expected to produce any revenues for the foreseeable future.   

Gross Profit

Gross profit for 2020 was $2.1 million which represented a Gross Margin of 7.7%. Gross profit for 2019 was $43.1 million principally from the sale of digital asset management services which had a gross margin of almost 100%. 

Selected Business Updates and Highlights

  • MEG Announces Purchase Agreement for 2,000 Units of D1, BYD's Custom Electric Ride-hailing Vehicle in December 2020
  • Acquired cash flow positive Timios Holding Corp. in January 2021
  • Invested in leading electric tractor company Solectrac in October 2020
  • Bolstered Cash position to $166M as of December 31, 2020

About Ideanomics
Ideanomics is a global company focused on the convergence of financial services and industries experiencing technological disruption. Our Ideanomics Mobility division is a service provider which facilitates the adoption of electric vehicles by commercial fleet operators through offering vehicle procurement, finance and leasing, and energy management solutions under our innovative sales to financing to charging (S2F2C) business model. Ideanomics Capital is focused on disruptive fintech solutions for the financial services industry. Together, Ideanomics Mobility and Ideanomics Capital provide our global customers and partners with leading technologies and services designed to improve transparency, efficiency, and accountability, and our shareholders with the opportunity to participate in high-potential, growth industries.

The company is headquartered in New York, NY, with offices in Beijing, Hangzhou, and Qingdao, and operations in the U.S., China, Ukraine, and Malaysia.

Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements". 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 statements regarding our intention to transition our business model to become a next-generation financial technology company, our business strategy and planned product offerings, our intention to phase out our oil trading and consumer electronics businesses, and potential future financial results. 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 continue as a going concern; our ability to raise additional financing to meet our business requirements; the transformation of our business model; fluctuations in our operating results; strain to our personnel management, financial systems and other resources as we grow our business; our ability to attract and retain key employees and senior management; competitive pressure; our international operations; 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.

Investor Relations and Media Contact

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

Valerie Christopherson / Lora Wilson
Global Results Communications (GRC)
+1 949 306 6476
valeriec@globalresultspr.com

 

IDEANOMICS, INC.

CONSOLIDATED BALANCE SHEETS (USD in thousands)

 

As of December 31, 


2020


2019

ASSETS







Current assets:







Cash and cash equivalents


$

165,764


$

2,633

Accounts receivable, net (including due from related parties of $0 and $2,284 as of December 31, 2020 and 2019, respectively)



7,400



2,405

Amount due from related parties



240



1,256

Prepaid expenses



2,629



572

Other current assets



3,726



587

Total current assets



179,759



7,453

Property and equipment, net



330



378

Fintech Village



7,250



12,561

Intangible assets, net



29,705



52,771

Goodwill



1,165



23,344

Long-term investments



8,570



22,621

Operating lease right of use assets



7,117



6,934

Other non-current assets



516



883

Total assets


$

234,412


$

126,945








LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK , REDEMABLE NON-CONTROLLING INTEREST AND EQUITY







Current liabilities







Accounts payable


$

5,057


$

3,380

Deferred revenue



1,129



477

Accrued salaries



1,750



923

Amount due to related parties



882



3,962

Other current liabilities



1,920



6,466

Current portion of operating lease liabilities



430



1,113

Current contingent consideration



1,325



12,421

Promissory note-short term



568



3,000

Convertible promissory note due to third-parties-short term





1,753

Convertible promissory note due to related parties-short term





3,260

Total current liabilities



13,061



36,755








Asset retirement obligations



4,653



5,094

Convertible promissory note due to third-parties-long term





5,089

Convertible promissory note due to related parties-long term





1,551

Operating lease liability-long term



6,759



6,222

Non-current contingent liabilities



7,635



12,235

Other long-term liabilities



535



Total liabilities



32,643



66,946

Commitments and contingencies (Note 19)







Convertible redeemable preferred stock and Redeemable non-controlling interest:







Series A - 7,000,000 shares issued and outstanding, liquidation and deemed liquidation preference of $3,500,000 as of December 31, 2020 and 2019, respectively



1,262



1,262

Redeemable non-controlling interest



7,485



Equity:







Common stock - $0.001 par value; 1,500,000,000 shares authorized, 344,906,295 and 149,692,953 shares issued and outstanding as of December 31, 2020 and 2019, respectively



345



150

Additional paid-in capital



531,866



282,556

Accumulated deficit



(346,883)



(248,483)

Accumulated other comprehensive loss



1,256



(664)

Total IDEX shareholder's equity



186,584



33,559

Non-controlling interest



6,438



25,178

Total equity



193,022



58,737

Total liabilities, convertible redeemable preferred stock, redeemable non-controlling interest and equity


$

234,412


$

126,945

 

IDEANOMICS, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (USD in thousands, except per share data)

 

For the years ended December 31, 


2020


2019

Revenue from third-parties


$

26,749


$

1,295

Revenue from related parties



10



43,271

Total revenue



26,759



44,566

Cost of revenue from third-parties



24,701



991

Cost of revenue from related parties



1



467

Gross profit



2,057



43,108








Operating expenses:







Selling, general and administrative expenses



32,399



24,862

Research and development expense



1,635



Professional fees



12,541



5,828

Depreciation and amortization



5,310



2,229

Change in fair value of contingent consideration, net



(5,503)



5,094

Impairment losses



42,554



73,669

Total operating expenses



88,936



111,682








Loss from operations



(86,879)



(68,574)








Interest and other income (expense):







Interest expense, net



(15,970)



(5,616)

Expense due to conversion of notes



(2,266)



Gain (loss) on extinguishment of debt



8,891



(3,940)

Impairment of and equity in loss of equity method investees



(16,698)



(13,718)

Gain (loss) on disposal of subsidiaries, net



276



(952)

Loss on remeasurement of DBOT investment





(3,179)

Other income (expense), net



6,603



(433)

Loss before income taxes and non-controlling interest



(106,043)



(96,412)








Income tax (expense) benefit





(417)








Net loss



(106,043)



(96,829)








Deemed dividend related to warrant repricing



(184)



(827)








Net loss attributable to common stockholders



(106,227)



(97,656)








Net (income) loss attributable to non-controlling interest



7,827



(852)








Net loss attributable to IDEX common shareholders


$

(98,400)


$

(98,508)








Basic and diluted loss per share


$

(0.46)


$

(0.82)








Weighted average shares outstanding:














Basic and diluted



213,490,535



119,766,859

 

 

SOURCE Ideanomics

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