Ideanomics, Inc. Reports Q2 2023 Financial Results

Rhea-AI Summary

Ideanomics announces Q2 2023 operating results with revenues of $8.2 million, a 13% decrease from last year

Positive

• Revenue for continuing operations in Q2 2023 was $8.2 million
• Gross Profit for continuing operations in Q2 2023 was $0.7 million with a Gross Margin of 8.4%

Negative

• Revenue for continuing operations in Q2 2023 decreased by 13% compared to the same period last year

- Revenues for the quarter ended June 30, 2023, were $8.2 million

NEW YORK, Aug. 25, 2023 /PRNewswire/ -- Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company"), a global company focused on accelerating the commercial adoption of electric vehicles, announced today its second quarter 2023 operating results for the period ended June 30, 2023.

During the second 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. 

Second Quarter Highlights

• Solectrac debuted their new tractor the E25H, while launching a tractor rental program.
• Energica and Plenitude partner together to provide new innovative solutions for electric mobility.
• Ideanomics finalizes divestments of Timios and JUSTLY.

Ideanomics Second Quarter 2023 Operating Results  

Revenue for continuing operations in the quarter was 8.2 million dollars, 13 percent lower than the same time last year. Revenue for continuing operations for the first half of 2023 was 13.8 million dollars, 19 percent higher than the same period last year.

Gross Profit 

Gross Profit for continuing operations in the second quarter was $0.7 million, which represented a Gross Margin of 8.4%. Gross Profit for continuing operations for the second quarter of 2022 was ($0.5) 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 June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Revenue from sales of products (including from a related party of $0, $0 and $4, $0, for the three and six months ended months ended June 30, 2023 and 2022, respectively)	$            7,828		$            8,888		$            12,964		$            10,529
Revenue from sales of services	349		418		429		953
Other revenue	6		79		444		133
Total revenue	8,183		9,385		13,837		11,615
Cost of revenue from sales of products (including from a related party of $0, $0 and $37, $0 for the three and six months ended months ended June 30, 2023 and 2022, respectively)	6,298		9,438		11,979		12,005
Cost of revenue from sales of services	577		356		465		832
Cost of other revenue	619		81		823		131
Total cost of revenue	7,494		9,875		13,267		12,968
Gross (loss) profit	689		(490)		570		(1,353)
Operating expenses:
Selling, general and administrative expenses	23,626		33,783		65,736		64,817
Research and development expense	3,408		680		8,033		1,694
Asset impairments	3,197		320		37,984		402
Depreciation and amortization	5,651		1,773		9,889		2,548
Other general expenses	—		—		(12,596)		(131)
Total operating expenses	35,882		36,556		109,046		69,330
Loss from operations	(35,193)		(37,046)		(108,476)		(70,683)
Interest and other income (expense):
Interest income	151		827		479		1,583
Interest expense	(942)		(488)		(2,265)		(1,067)
Gain on remeasurement of investment	—		—		—		10,965
Loss on disposal of investment	—		(41)		—		(188)
Other income, net	1,184		431		2,067		585
Loss before income taxes	(34,800)		(36,317)		(108,195)		(58,805)
Income tax benefit	467		124		3,382		339
Impairment of and equity in loss of equity method investees	—		(589)		—		(1,928)
Net loss from continuing operations	(34,333)		(36,782)		(104,813)		(60,394)
Net loss from discontinued operations, net of tax	(2,756)		(2,491)		(18,168)		(7,970)
Net loss	(37,089)		(39,273)		(122,981)		(68,364)
Net loss attributable to non-controlling interest	1,592		1,506		3,167		2,086
Net loss attributable to Ideanomics, Inc. common shareholders	$         (35,497)		$         (37,767)		$        (119,814)		$          (66,278)
Basic and diluted loss per share from continuing operations	$            (3.19)		$            (8.86)		$            (12.59)		$            (14.65)
Basic and diluted loss per share from discontinued operations	$            (0.27)		$            (0.63)		$              (2.25)		$              (2.00)
Basic and diluted loss per share	$            (3.46)		$            (9.49)		$            (14.84)		$            (16.65)
Weighted average shares outstanding:
Basic and diluted	10,271,290		3,982,340		8,071,870		3,980,619

 

IDEANOMICS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except share and per share data)	June 30, 2023		December 31, 2022
	(Unaudited)
ASSETS
Current assets
Cash and cash equivalents	$                       2,895		$                       3,759
Accounts receivable, net	6,556		5,783
Contract assets	373		3,579
Amount due from related parties	108		386
Notes receivable from third parties, net	42		31,653
Inventory, net	22,925		27,600
Prepaid expenses	9,535		10,382
Other current assets	3,237		5,592
Current assets of discontinued operations	15,089		25,304
Total current assets	60,760		114,038
Property and equipment, net	11,029		8,650
Intangible assets, net	150,652		43,624
Goodwill	51,237		37,775
Operating lease right of use assets	14,702		14,385
Long-term investments	—		7,500
Other non-current assets	3,147		2,825
Non-current assets of discontinued operations	1,110		14,004
Total assets	$                   292,637		$                   242,801
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK, AND EQUITY
Current liabilities
Accounts payable	$                     57,737		$                     28,022
Accrued salaries	9,663		7,328
Accrued expenses	3,381		2,842
Deferred revenue	2,759		2,110
Amount due to related parties	2,279		2,152
Current portion of operating lease liabilities	3,383		3,189
Promissory note due to related party	2,123		2,021
Promissory note due to third parties	7,003		5,814
Convertible note due to third party	6,212		3,928
Current contingent consideration	827		867
Other current liabilities	13,266		9,824
Current liabilities of discontinued operations	10,886		8,764
Total current liabilities	119,519		76,861
Promissory note due to third parties	1,819		1,957
Operating lease liabilities - long term	14,093		11,347
Non-current contingent liabilities	60,721		—
Deferred tax liabilities	3,677		2,511
Other long-term liabilities	1,457		1,634
Non-current liabilities of discontinued operations	828		1,928
Total liabilities	202,114		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 June 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 6,000,000 and 10,000,000 shares outstanding as of  June 30, 2023 and December 31, 2022, respectively	5,310		8,850
Series C - 2,000,000 shares authorized, 1,159,276 and 0 shares issued and 1,159,276 and 0 shares outstanding as of June 30, 2023 and December 31, 2022, respectively	4,825		—
Equity
Common stock - $0.001 par value; 12,000,000 shares authorized, 11,264,709 and 4,786,290 shares issued and 10,976,787 and 4,786,289.768 shares outstanding as of June 30, 2023 and December 31, 2022, respectively	1,408		597
Additional paid-in capital	1,068,697		1,004,082
Accumulated deficit	(986,596)		(866,450)
Accumulated other comprehensive loss	(5,185)		(6,104)
Total Ideanomics, Inc. stockholders' equity	78,324		132,125
Non-controlling interest	802		4,326
Total equity	79,126		136,451
Total liabilities, convertible redeemable preferred stock, and equity	$                   292,637		$                   242,801

 

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SOURCE Ideanomics