Ideanomics, Inc. Reports Q1 2023 Financial Results

Rhea-AI Summary

Ideanomics announces its first quarter 2023 operating results, with revenues of $10.6 million, a 58% decrease compared to the same time last year.

Positive

• Revenues for the quarter ended March 31, 2023, were $10.6 million.
• Ideanomics finalized the VIA transaction and announced partnerships for all-electric solutions in aviation, marine, and off-road uses.
• 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.
• Ideanomics consolidated all energy and charging solutions under one brand, WAVE Charging.

Negative

• Revenue decreased by $9.5 million or 62% compared to 2022.
• Gross Profit for the first quarter was ($0.6) million, with a Gross Margin of (5.4%), compared to $0.02 million in 2022.

- 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 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 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

FAQ

What were Ideanomics' revenues for the first quarter of 2023?

Ideanomics' revenues for the first quarter of 2023 were $10.6 million.

What was the decrease in revenue compared to the same time last year?

The revenue decreased by 58% compared to the same time last year.

What partnerships were announced for all-electric solutions?

Ideanomics announced partnerships to develop all-electric solutions for aviation, marine, and off-road uses.

What partnership was formed to develop hydrogen-powered rubber tire gantry crane?

US Hybrid partnered with Mi-Jack to develop hydrogen-powered rubber tire gantry crane.

How many zero-emission street sweepers are being manufactured?

US Hybrid and Global Environmental Products began manufacturing 18 zero-emission street sweepers for Caltrans.

What brand did Ideanomics consolidate all energy and charging solutions under?

Ideanomics consolidated all energy and charging solutions under the brand WAVE Charging.