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(NASDAQ: IDEX)
Ideanomics, Inc. Reports Q3 2023 Financial Results

NEW YORK, NY / ACCESSWIRE / November 21, 2023 / Ideanomics (NASDAQ:IDEX) ("Ideanomics" or the "Company"), a global company focused on accelerating the commercial adoption of electric vehicles, announced today its third quarter 2023 operating results for the period ended September 30, 2023.

During the third quarter Ideanomics continued executing its commitment to shareholders to exit non-core businesses and finalize a reorganization of the business to focus on last-mile and local delivery vehicles and associated charging products.

Third Quarter Highlights

  • Energica selected by police services in France and Barbados to provide electric motorcycles for police fleets.
  • WAVE completes an OEM-approved installation of wireless charging on a Kenworth truck in collaboration with Kenworth and Dana.
  • WAVE continues testing with major logistics fleet customer.

Ideanomics Third Quarter 2023 Operating Results

Revenue for continuing operations in the quarter, excluding a change in accounting estimate, was $3.5 million, 57 percent lower than the same time last year. Revenue for continuing operations for the first nine months of 2023, excluding a change in accounting estimate, was 14.5 million dollars, 24 percent lower than the same period last year.

Gross Profit

Gross Profit from continuing operations, excluding the change in accounting estimate, was a loss of 0.5 million dollars, representing a gross margin of negative 14.8% percent. This is an increase of roughly 0.1 million dollars compared to a loss of 0.6 million dollars last year.

Note: As described in the company's 10-Q filing, some business components have been classified as discontinued operations, and a change in accounting estimate occurred as a result of new sales data. The figures above represent continuing operations only and exclude the change in accounting estimate, to ensure an appropriate comparison between periods.

Conference Call Information

Ideanomics' management, including Alf Poor (Chief Executive Officer) and Scott Morrison (Chief Financial Officer), will host a live earnings release conference call at 4:30 pm ET, Tuesday, November 21, 2023. Time permitting, Ideanomics management will answer questions during the Q&A session. A replay of the earnings call will be available soon after the conclusion of the event.

To join the call, please visit https://investors.ideanomics.com/Q32023 for dial-in information.

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 https://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 September 30,     Nine Months Ended September 30,  
 
  2023     2022     2023     2022  
Revenue from sales of products
  $ 583     $ 7,625     $ 11,038     $ 17,428  
Revenue from sales of services
    19       426       99       1,205  
Other revenue
    63       170       506       310  
Total revenue
    665       8,221       11,643       18,943  
Cost of revenue from sales of products
    1,047       8,712       11,841       17,834  
Cost of revenue from sales of services
    255       110       451       829  
Cost of other revenue
    816       56       1,639       198  
Total cost of revenue
    2,118       8,878       13,931       18,861  
Gross (loss) profit
    (1,453 )     (657 )     (2,288 )     82  
 
                               
Operating expenses:
                               
Selling, general and administrative expenses
    8,146       31,024       69,830       91,604  
Research and development expense
    1,540       830       9,563       2,420  
Asset impairments
    104,386       298       142,370       699  
Goodwill impairments
    10,712       -       10,712       -  
Depreciation and amortization
    5,635       1,652       15,399       4,011  
Change in fair value of contingent consideration, net
    (61,469 )     -       (74,416 )     (131 )
Other general expenses
    (261 )     -       89       -  
Total operating expenses
    68,689       33,804       173,547       98,603  
 
                               
Loss from operations
    (70,142 )     (34,461 )     (175,835 )     (98,521 )
 
                               
Interest and other income (expense):
                               
Interest income
    -       941       401       2,522  
Interest expense
    (1,366 )     (222 )     (2,636 )     (1,256 )
Gain on remeasurement of investment
    -       -       -       10,965  
Loss on disposal of investment
    (1,153 )     (30 )     (1,153 )     (218 )
Other income, net
    9,560       567       11,598       1,143  
Loss before income taxes
    (63,101 )     (33,205 )     (167,625 )     (85,365 )
 
                               
Income tax benefit
    876       312       4,258       742  
Impairment of and equity in loss of equity method investees
    -       (429 )     -       (2,357 )
 
                               
Net loss from continuing operations
    (62,225 )     (33,322 )     (163,367 )     (86,980 )
Net loss from discontinued operations, net of tax
    (2,368 )     (5,531 )     (24,206 )     (20,237 )
Net loss
    (64,593 )     (38,853 )     (187,573 )     (107,217 )
 
                               
Net loss attributable to non-controlling interest
    1,586       1,439       4,753       3,525  
 
                               
Net loss attributable to Ideanomics, Inc. common shareholders
  $ (63,007 )   $ (37,414 )   $ (182,820 )   $ (103,692 )
 
                       
Basic and diluted loss per share from continuing operations
  $ (5.19 )   $ (8.07 )   $ (17.07 )   $ (21.02 )
Basic and diluted loss per share from discontinued operations
  $ (0.20 )   $ (1.40 )   $ (2.61 )   $ (5.10 )
Basic and diluted loss per share
  $ (5.39 )   $ (9.47 )   $ (19.68 )   $ (26.11 )
Weighted average shares outstanding:
                               
Basic and diluted
    11,692,394       3,952,490       9,291,974       3,971,139  

IDEANOMICS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

(in thousands, except share and per share data)
  September 30, 2023     December 31, 2022  
 
  (Unaudited)        
ASSETS
           
Current assets
           
Cash and cash equivalents
  $ 1,884     $ 3,245  
Accounts receivable, net
    3,066       4,269  
Contract assets
    1,926       3,579  
Amount due from related parties
    90       90  
Notes receivable from third parties, net
    41       31,653  
Inventory, net
    16,781       23,192  
Prepaid expenses
    6,863       9,618  
Other current assets
    5,046       5,096  
Current assets of discontinued operations
    10,463       33,296  
Total current assets
    46,160       114,038  
Property and equipment, net
    11,128       7,845  
Intangible assets, net
    39,980       43,622  
Goodwill
    37,254       37,775  
Operating lease right of use assets
    10,814       10,533  
Long-term investments
    -       7,500  
Other non-current assets
    2,866       2,276  
Non-current assets of discontinued operations
    3,082       19,212  
Total assets
  $ 151,284     $ 242,801  
 
               
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK, AND EQUITY
               
Current liabilities
               
Accounts payable
  $ 56,271     $ 25,448  
Accrued salaries
    4,119       6,851  
Accrued expenses
    2,436       2,674  
Deferred revenue
    2,900       2,105  
Amount due to related parties
    1,942       1,927  
Current portion of operating lease liabilities
    2,828       2,031  
Promissory note due to related party
    2,286       2,021  
Promissory note due to third parties
    7,957       5,814  
Convertible note due to third party
    6,149       3,928  
Current contingent consideration
    78       867  
Other current liabilities
    14,874       9,288  
Current liabilities of discontinued operations
    7,499       13,909  
Total current liabilities
    109,339       76,863  
Promissory note due to third parties
    1,673       1,957  
Operating lease liabilities - long term
    11,244       8,566  
Deferred tax liabilities
    2,841       2,511  
Other long-term liabilities
    1,116       1,131  
Non-current liabilities of discontinued operations
    1,938       5,210  
Total liabilities
    128,151       96,238  
Commitments and contingencies (Note 14)
               
Convertible redeemable preferred stock
               
Series A - 7,000,000 shares issued and outstanding, liquidation and deemed liquidation preference of $3,500,000 as of September 30, 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 2,105,200 and 10,000,000 shares outstanding as of September 30, 2023 and December 31, 2022, respectively
    1,863       8,850  
Series C - 2,000,000 shares authorized, 1,159,276 and 0 shares issued and 608,680 and 0 shares outstanding as of September 30, 2023 and December 31, 2022, respectively
    4,825       -  
Equity
               
Common stock - $0.001 par value; 12,000,000 shares authorized, 11,992,765 and 4,786,290 shares issued and 11,923,955 and 4,786,290 shares outstanding as of September 30, 2023 and December 31, 2022, respectively
    1,499       597  
Additional paid-in capital
    1,071,219       1,004,082  
Accumulated deficit
    (1,049,603 )     (866,450 )
Accumulated other comprehensive loss
    (6,684 )     (6,104 )
Total Ideanomics, Inc. stockholders' equity
    16,431       132,125  
Non-controlling interest
    (1,248 )     4,326  
Total equity
    15,183       136,451  
Total liabilities, convertible redeemable preferred stock, and equity
 
  $ 151,284     $ 242,801  

SOURCE: Ideanomics, Inc.

 

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