Ideanomics, Inc. Reports Q1 2023 Financial Results
- 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, | $ 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 | 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. | |||
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, | 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 | 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 | 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 | 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