Ideanomics, Inc. Reports Q2 2023 Financial Results
- 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