Ideanomics, Inc. Reports Q4 and Full Year 2022 Financial Results

Rhea-AI Summary

Ideanomics (NASDAQ: IDEX) reported its Full Year 2022 results, showcasing a 70% increase in revenue from electric vehicles (EVs) and charging solutions, totaling $68.3 million compared to $39.9 million in 2021. However, overall revenue fell 11% to $100.9 million. The gross profit turned negative at $0.8 million, a decline from $23.2 million in the previous year. Despite challenges in the EV sector, the company is strategically investing in production capacity and management, indicating readiness for the growing demand for zero-emission transportation. Key highlights include a significant $170 million order for VIA Motors and sales of over 850 branded electric vehicles.

Positive

• Achieved a 70% revenue increase in EVs and charging solutions from 2021.
• Secured a $170 million order with Pegasus Specialty Vehicles.
• Sales of over 850 branded EVs through Solectrac and Energica.

Negative

• Overall revenue declined by 11% to $100.9 million.
• Gross profit was negative at $0.8 million compared to $23.2 million in 2021.

Company achieves consecutive revenue growth from the sale of EV and Charging Solutions for the third year in a row

NEW YORK, March 30, 2023 /PRNewswire/ -- Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company"), a global company focused on accelerating the commercial adoption of electric vehicles, announced today its Full Year 2022 operating results for the period ended December 31, 2022.

"Last year was challenging for the entire EV industry. Despite the headwinds, Ideanomics generated approximately 70% more revenue from the sale of EVs and charging solutions compared to 2021, We achieved this by reducing costs, and through smart, targeted investments to increase production capacity, enhancing our sales and distribution channels, and strengthening our management team. This demonstrates that we are on the right track, and are ready to meet growing demand for our EV and charging solutions as the transition to zero-emission transportation accelerates," said Alf Poor, CEO of Ideanomics.

Highlights

• VIA Motors secured a $170 million order with Pegasus Specialty Vehicles and established a partnership with EAVX (part of JB Poindexter) to develop an electric class 2b delivery van.
• Combined, Solectrac and Energica sold more than 850 branded electric vehicles. Solectrac established a U.S. coast-to-coast certified dealer network, and Energica reached 140 certified dealerships across five continents.
• Announced high-value commercial deals including the delivery of 88 Energica motorcycles to the Indonesia National Police, US Hybrid supplying power train solutions for 62 zero-emission street sweepers, and a WAVE inductive wireless charging project with a major e-commerce company.

Ideanomics Full Year 2022 Operating Results  

Revenue for the Full Year was $100.9 million, 11 percent lower compared to 2021.  Revenue from the sale of electric vehicles and charging products and services in 2022 was $68.3 million versus $39.9 million in 2021, representing continued year-on-year growth.

Gross Profit 

Gross profit for the Full Year was negative $0.8 million compared to $23.2 million for the Full Year of 2021.

Conference Call Information

Ideanomics' management, including Alf Poor (Chief Executive Officer), Stephen Johnston (Chief Financial Officer), Robin Mackie (Chief Operating Officer) and Tony Sklar (SVP of Investor Relations), will host live an earnings release conference call at 8:30 am ET, Thursday, March 30, 2023. Time permitting, Ideanomics management will answer questions from the Say platform and 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://event.choruscall.com/mediaframe/webcast.html?webcastid=UtFdo7X5 

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.

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

Theodore Rolfvondenbaumen
Communications Director
Email: trolfvondenbaumen@ideanomics.com

 

IDEANOMICS, INC. CONSOLIDATED BALANCE SHEETS (USD in thousands)
As of December 31,		2022		2021
ASSETS
Current assets:
Cash and cash equivalents		$21,929		$269,863
Accounts receivable, net		5,855		3,338
Contract assets		3,579		2,772
Amount due from related parties		899		266
Notes receivable from third parties, net		31,653		54,907
Notes receivable from related party		—		697
Inventory		28,246		6,159
Prepaid expenses		13,341		20,015
Other current assets		8,536		4,490
Total current assets		114,038		362,507
Property and equipment, net		9,072		2,905
Intangible assets, net		52,768		42,546
Goodwill		37,775		16,161
Operating lease right of use assets		15,979		12,827
Financing lease right of use assets		1,565		—
Long-term investments		10,284		35,588
Other non-current assets		1,320		903
Total assets		$242,801		$473,437
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK AND EQUITY
Current liabilities
Accounts payable		$29,699		$6,674
Deferred revenue (including customer deposits of $2,280 and $3,163 as of December 31, 2022 and 2021, respectively)		2,749		5,392
Accrued salaries		9,848		8,957
Amount due to related parties		2,376		1,102
Other current liabilities		13,676		7,137
Current portion of operating lease liabilities		4,082		3,086
Current portion of financing lease liabilities		345		—
Current contingent consideration		867		648
Promissory note due to related party-short term		2,021		—
Promissory note due to third parties-short term		7,270		312
Convertible promissory note due to third-parties		3,928		57,809
Total current liabilities		76,861		91,117
Promissory note-long term		1,957		—
Operating lease liability-long term		12,273		9,647
Financing lease liabilities-long term		1,188		—
Non-current contingent liabilities		—		350
Deferred tax liabilities		3,000		5,073
Other long-term liabilities		959		620
Total liabilities		96,238		106,807
Commitments and contingencies (Note 19)
Convertible redeemable preferred stock:
Series A - 7,000,000 shares issued and outstanding, liquidation and deemed liquidation preference of $3,500,000 as of December 31, 2022 and 2021, respectively		1,262		1,262
Series B - 5,000,000 shares issued and outstanding		8,850		—
Equity:
Common stock - $0.001 par value; 1,500,000,000 shares authorized, 598,286,221 and 497,272,525 shares issued and outstanding as of December 31, 2022 and 2021, respectively		597		497
Additional paid-in capital		1,004,082		968,066
Accumulated deficit		(866,450)		(605,758)
Accumulated other comprehensive (income) loss		(6,104)		222
Total Ideanomics, Inc. shareholder's equity		132,125		363,027
Non-controlling interest		4,326		2,341
Total equity		136,451		365,368
Total liabilities, convertible redeemable preferred stock and equity		$242,801		$473,437

The accompanying notes are an integral part of these consolidated financial statements.

 

IDEANOMICS, INC. OPERATIONS (USD in thousands, except per share data)
For the years ended December 31,		2022		2021		2020
Revenue from sales of products (including from a related party of $10, $1 and $10 for the years ended December 31, 2022, 2021 and 2020, respectively)		$64,452		$37,009		$25,128
Revenue from sales of services		36,070		75,766		1,631
Other revenue		414		1,305		—
Total revenue		100,936		114,080		26,759
Cost of revenue from sales of products (including from a related party of $0, $36 and $13 for the years ended December 30, 2022, 2021 and 2020, respectively)		72,047		37,845		23,644
Cost of revenue from sales of services		29,330		51,562		1,058
Cost of other revenue		374		1,445		—
Total cost of revenue		101,751		90,852		24,702
Gross profit		(815)		23,228		2,057
Operating expenses:
Selling, general and administrative expenses		148,678		107,535		44,940
Research and development expense		3,888		760		1,635
Asset impairments		91,333		71,070		33,230
Goodwill impairments		38,868		101,470		18,089
Change in fair value of contingent consideration, net		(131)		(9,600)		(5,503)
Litigation settlements		1,362		5,432		—
Depreciation and amortization		7,717		6,118		5,310
Total operating expenses		291,715		282,785		97,701
Loss from operations		(292,530)		(259,557)		(95,644)
Interest and other income (expense):
Interest income		3,504		1,502		108
Interest expense		(2,950)		(2,139)		(16,078)
Expense due to conversion of notes		—		—		(2,266)
Gain on extinguishment of debt		—		300		8,891
(Loss) Gain on disposal of subsidiaries, net		(276)		(1,264)		276
Gain on remeasurement of investment		10,965		2,915		—
Other income, net		6,478		1,261		6,604
Loss before income taxes and non-controlling interest		(274,809)		(256,982)		(98,109)
Income tax benefit		7,711		11,786		3,308
Impairment of and equity in loss of equity method investees		(15,018)		(11,529)		(16,780)
Net loss		(282,116)		(256,725)		(111,581)
Deemed dividend related to warrant repricing		—		—		(184)
Net loss attributable to common shareholders		(282,116)		(256,725)		(111,765)
Net loss attributable to non-controlling interest		21,424		716		10,501
Net loss attributable to Ideanomics, Inc. common shareholders		$(260,692)		$(256,009)		$(101,264)
Basic and diluted loss per share		$(0.51)		$(0.57)		$(0.47)
Weighted average shares outstanding:
Basic and diluted		512,702,986		447,829,204		213,490,535

The accompanying notes are an integral part of these consolidated financial statements.

 

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SOURCE Ideanomics

FAQ

What were Ideanomics' revenue figures for 2022?

Ideanomics reported total revenue of $100.9 million for the Full Year 2022, an 11% decrease compared to 2021.

How much revenue did Ideanomics generate from EV sales in 2022?

Revenue from the sale of electric vehicles and charging products in 2022 was $68.3 million, up from $39.9 million in 2021.

What is the gross profit of Ideanomics for 2022?

Ideanomics reported a gross profit of negative $0.8 million for the Full Year 2022.

What significant partnerships did Ideanomics announce in 2022?

Ideanomics announced a $170 million order for VIA Motors and established partnerships for developing electric delivery vans.

When will Ideanomics hold the earnings release conference call?

Ideanomics will host a conference call on March 30, 2023, at 8:30 am ET to discuss its earnings results.