Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company"), a global company focused on driving the adoption of commercial electric vehicles and associated energy services, announced today its third quarter 2021 operating results for the period ended September 30, 2021 along with updated results from the first and second quarter of 2021 (a full copy of the Company's quarterly 10-Q and 10-Q/A reports are available at www.sec.gov).
Conference Call: Ideanomics' management, including Alf Poor (Chief Executive Officer), Conor McCarthy (Chief Financial Officer), Kristen Helsel (Chief Revenue Officer) and Tony Sklar (SVP of Investor Relations), will host live an earnings release conference call at 8:30 am ET, Tuesday, November 23, 2021. 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://78449.themediaframe.com/dataconf/productusers/ssc/mediaframe/47453/indexl.html
"This quarter was highlighted by two very important strategic planned acquisitions of VIA Motors and Energica both scheduled to close in the first quarter," said Alf Poor, CEO of Ideanomics. "The integration of these two companies provides Ideanomics with full OEM capabilities across vehicle types, and positions Ideanomics as one of the only full-service, turnkey, offerings in the market today."
Selected Business Updates and Highlights
Ideanomics Third Quarter 2021 Operating Results
Revenue for the quarter was $27 million. Revenue from our Mobility Unit was $11.5 million up from $8.7 million in the second quarter of 2021. This is the third consecutive quarter over quarter growth for the Mobility Unit.
Gross Profit
Gross profit for the third quarter was $4.5 million which represented a Gross Margin of 16.7%. Gross profit for the third quarter of 2020 was $0.7 million.
Completion of Financial Restatement
Ideanomics has completed the restatement of its previously issued financial statements for the fiscal quarters ended March 31, 2021 and June 30, 2021 (the "Restated Periods"), and has filed amended Quarterly Reports on Form 10-Q/A for the Restated Periods with the SEC. As previously disclosed in its Current Reports on Form 8-K and Form 8-K/A filed on November 16, 2021 and November 22, 2021, respectively, errors in the condensed consolidated financial statements were related to revenue reported by Ideanomics' affiliate Timios Holding Corp. that provides title and agency services and to purchase price allocations with respect to certain acquisitions completed by the Company during 2021. The correction of these errors resulted in a restatement of Ideanomics' unaudited condensed interim financial statements and financial data for the Restated Periods. The restatements are expected to have an impact on the financial statements for the Restated Periods, with changes reflected in the relevant financial statements, due to changes in accounting treatment of revenues. No changes due to the restatement are expected to have any impact on our gross profit because revenues in the title and agency business will be lower by approximately $5.1 million with an offsetting reduction in cost of goods sold. The aggregate amount of the restatement in connection with the purchase price allocations is estimated to result in an increase in goodwill of approximately $17.4 million and a corresponding reduction in definite-lived intangibles with a net tax impact of $1.2 million.
Ideanomics is a global company focused on the convergence of financial services and industries experiencing technological disruption. The Ideanomics Mobility division is a service provider which facilitates the adoption of electric vehicles by commercial fleet operators through offering vehicle procurement, finance and leasing, and energy management solutions under an innovative sales to financing to charging (S2F2C) business model. Ideanomics Capital is focused on disruptive fintech solutions for the financial services industry. Together, Ideanomics Mobility and Ideanomics Capital provide global customers and partners with leading technologies and services designed to improve transparency, efficiency, and accountability, and offer shareholders the opportunity to participate in high-potential growth industries.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements". 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 statements regarding our intention to transition our business model to become a next-generation financial technology company, our business strategy and planned product offerings, our intention to phase out our oil trading and consumer electronics businesses, and potential future financial results. 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 continue as a going concern; our ability to raise additional financing to meet our business requirements; the transformation of our business model; fluctuations in our operating results; strain to our personnel management, financial systems and other resources as we grow our business; our ability to attract and retain key employees and senior management; competitive pressure; our international operations; 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: This email address is being protected from spambots. You need JavaScript enabled to view it.
Jeremy Ertl
Skyya for Ideanomics
507-458-9404
This email address is being protected from spambots. You need JavaScript enabled to view it.
IDEANOMICS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD in thousands) | |||||||
September 30, 2021 | December 31, 2020 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 256,930 | $ | 165,764 | |||
Accounts receivable, net | 4,494 | 7,400 | |||||
Available-for-sale securities | 58,441 | — | |||||
Inventory | 3,819 | — | |||||
Prepaid expenses | 23,384 | 2,629 | |||||
Amount due from related parties | 554 | 240 | |||||
Other current assets | 1,617 | 3,726 | |||||
Held for sale assets (Fintech Village) | 7,068 | — | |||||
Total current assets | 356,307 | 179,759 | |||||
Property and equipment, net | 1,627 | 330 | |||||
Fintech Village | — | 7,250 | |||||
Intangible assets, net | 74,246 | 29,705 | |||||
Goodwill | 111,458 | 1,165 | |||||
Long-term investments | 35,549 | 8,570 | |||||
Operating lease right of use assets | 8,759 | 155 | |||||
Other non-current assets | 7,933 | 7,478 | |||||
Total assets | $ | 595,879 | $ | 234,412 | |||
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK, REDEEMABLE NON- | |||||||
Current liabilities | |||||||
Accounts payable | $ | 6,943 | $ | 5,057 | |||
Deferred revenue (including customer deposits of $3,527 and $31 as of September 30, 2021 and December 31, 2020, | 4,464 | 1,129 | |||||
Accrued salaries | 5,487 | 1,750 | |||||
Amount due to related parties | 1,112 | 882 | |||||
Other current liabilities | 8,670 | 2,235 | |||||
Current portion of operating lease liabilities | 2,308 | 115 | |||||
Current contingent consideration | 2,775 | 1,325 | |||||
Promissory note-short term | 417 | 568 | |||||
Asset retirement obligations | 4,653 | — | |||||
Redeemable non-controlling interest | 7,832 | — | |||||
Total current liabilities | 44,661 | 13,061 | |||||
Asset retirement obligations | — | 4,653 | |||||
Deferred tax liabilities | 826 | — | |||||
Operating lease liability-long term | 6,479 | 19 | |||||
Non-current contingent consideration | 2,337 | 7,635 | |||||
Other long-term liabilities | 7,710 | 7,275 | |||||
Total liabilities | 62,013 | 32,643 | |||||
Commitments and contingencies (Note 18) | |||||||
Convertible redeemable preferred stock and Redeemable non-controlling interest: | |||||||
Series A - 7,000,000 shares issued and outstanding, liquidation and deemed liquidation preference of $3,500,000 as of | 1,262 | 1,262 | |||||
Redeemable non-controlling interest | — | 7,485 | |||||
Equity: | |||||||
Common stock - $0.001 par value; 1,500,000,000 shares authorized, 481,901,523 shares and 344,861,295 shares issued | 483 | 345 | |||||
Additional paid-in capital | 938,006 | 531,866 | |||||
Accumulated deficit | (411,409) | (346,883) | |||||
Accumulated other comprehensive income | 546 | 1,256 | |||||
Total Ideanomics, Inc. shareholders' equity | 527,626 | 186,584 | |||||
Non-controlling interest | 4,978 | 6,438 | |||||
Total equity | 532,604 | 193,022 | |||||
Total liabilities, convertible redeemable preferred stock, redeemable non-controlling interest and equity | $ | 595,879 | $ | 234,412 | |||
IDEANOMICS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD in thousands) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | September 30, | September 30, | ||||||||||||
Revenue from sales of products (including from a related party of $0, $2, | $ | 9,977 | $ | 10,140 | $ | 21,934 | $ | 14,728 | |||||||
Revenue from sales of services | 17,070 | 480 | 65,898 | 962 | |||||||||||
Total revenue | 27,047 | 10,620 | 87,832 | 15,690 | |||||||||||
Cost of revenue from sales of products (including from a related party of | 9,893 | 9,455 | 20,838 | 13,779 | |||||||||||
Cost of revenue from sales of services | 12,626 | 451 | 42,323 | 897 | |||||||||||
Total cost of revenue | 22,519 | 9,906 | 63,161 | 14,676 | |||||||||||
Gross profit | 4,528 | 714 | 24,671 | 1,014 | |||||||||||
Operating expenses: | |||||||||||||||
Selling, general and administrative expenses | 28,876 | 7,636 | 53,650 | 20,188 | |||||||||||
Research and development expense | 184 | 1,318 | 429 | 1,318 | |||||||||||
Professional fees | 9,387 | 3,968 | 21,994 | 8,096 | |||||||||||
Impairment losses | 21,033 | 3,275 | 21,033 | 10,363 | |||||||||||
Change in fair value of contingent consideration, net | (5,099) | (4,179) | (7,006) | (2,900) | |||||||||||
Litigation settlement | — | — | 5,000 | — | |||||||||||
Depreciation and amortization | 1,682 | 695 | 4,445 | 1,651 | |||||||||||
Total operating expenses | 56,063 | 12,713 | 99,545 | 38,716 | |||||||||||
Loss from operations | (51,535) | (11,999) | (74,874) | (37,702) | |||||||||||
Interest and other income (expense): | |||||||||||||||
Interest income (expense), net | 109 | (2,014) | (871) | (14,061) | |||||||||||
Loss on disposal of subsidiaries, net | — | — | (1,446) | — | |||||||||||
Conversion expense | — | — | — | (2,266) | |||||||||||
Gain on remeasurement of investment | — | — | 2,915 | — | |||||||||||
Gain on extinguishment of debt | 300 | — | 300 | — | |||||||||||
Other income, net | 8 | 5,283 | 689 | 6,272 | |||||||||||
Loss before income taxes and non-controlling interest | (51,118) | (8,730) | (73,287) | (47,757) | |||||||||||
Income tax benefit | 842 | — | 9,667 | — | |||||||||||
Equity in gain (loss) of equity method investees | (819) | 7 | (1,517) | (8) | |||||||||||
Net loss | (51,095) | (8,723) | (65,137) | (47,765) | |||||||||||
Deemed dividend related to warrant repricing | — | — | — | (184) | |||||||||||
Net loss attributable to common shareholders | (51,095) | (8,723) | (65,137) | (47,949) | |||||||||||
Net loss attributable to non-controlling interest | 244 | 437 | 611 | 737 | |||||||||||
Net loss attributable to Ideanomics, Inc. common shareholders | $ | (50,851) | $ | (8,286) | $ | (64,526) | $ | (47,212) | |||||||
Earnings (loss) per share | |||||||||||||||
Basic | $ | (0.11) | $ | (0.03) | $ | (0.15) | $ | (0.25) | |||||||
Diluted | $ | (0.11) | $ | (0.03) | $ | (0.15) | $ | (0.25) | |||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 473,829,962 | 237,535,999 | 432,989,602 | 191,976,856 | |||||||||||
Diluted | 473,829,962 | 237,535,999 | 432,989,602 | 191,976,856 | |||||||||||
| Last Trade: | US$0.02 |
| Daily Change: | -0.86 -97.73 |
| Daily Volume: | 58 |
| Market Cap: | US$240K |
May 23, 2024 January 30, 2024 January 16, 2024 | |
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