Ideanomics, Inc. Reports Q3 2021 Financial Results

-- Launched a voluntary conditional tender offer in concert with the Founders of Energica for shares of Energica Motor Company S.p.A. (Energica)

-- Entered into an agreement to acquire VIA Motors

-- Hired Aaron Gillmore and Mani Iyer to lead WAVE and Solectrac respectively

-- Revenues for the quarter ended September 30, 2021, were $27.0 million and gross profit of $4.5 million

-- $256.9 million cash at quarter end providing a deep pool of capital for investment in our Ideanomics Mobility & Capital business units

News provided by

Ideanomics

Nov 23, 2021, 07:53 ET

NEW YORK, Nov. 23, 2021 /PRNewswire/ -- 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

  • People
    • Aaron Gillmore (former BYD and Tesla executive) appointed as CEO of WAVE
    • Mani Iyer (former CEO of Mahindra Agriculture Americas) appointed as CEO of Solectrac
  • Selected Business Unit Deals
    • WAVE received order from AVTA for vehicle-side charging equipment for 28 buses
    • US Hybrid delivered EV power electronics components to several OEMs, including CAT, Pratt & Miller, FEV, and Nova Bus, as well as several powertrain kits for battery electric street sweepers deployed nation-wide
    • Ideanomics China delivered 652 vehicles, with a large order backlog due to supply chain constraints, and entered into agreements to secure first access to thousands of new electric vehicles as they roll off assembly lines
  • Technology & Manufacturing
    • WAVE made substantial progress toward final testing of 125kW and 500kW wireless charging systems, which will broaden WAVE's market reach to additional applications
    • US Hybrid moved to new larger facility to support greater scale of innovation and manufacturing
    • Treeletrik moved to a new office and assembly plant to support manufacturing and delivery of its orders

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 Ideanomics’ Current Report on Form 8-K (the “8-K”), errors in the previously issued financial statements for the Restated Periods were related to revenue reported by Ideanomics’ affiliate Timios Holding Corp. that provides title and agency services. Ideanomics amended the 8-K on November 16, 2021 disclosing certain errors relating to purchase price allocations with respect to certain acquisitions completed by Ideanomics during 2021, and several additional immaterial revisions to the previously issued financial statements for the Restated Periods . The correction of these errors resulted in a restatement of the previously issued financial statements and financial data for the Restated Periods. The restatements had 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 had 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 resulted 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.

About Ideanomics
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: [email protected]

Jeremy Ertl
Skyya for Ideanomics
507-458-9404
[email protected]

 

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-
CONTROLLING INTEREST AND EQUITY

      

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,
respectively)

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
September 30, 2021 and December 31, 2020

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
and outstanding as of September 30, 2021 and December 31, 2020, respectively

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,
2021

  

September 30,
2020

  

September 30,
2021

  

September 30,
2020

Revenue from sales of products (including from a related party of $0, $2,
$1 and $9 for the three and nine months ended September 30, 2021 and
2020, respectively)

$

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 ,$0, $20 and $2 for the three and nine months ended September 30, 2021
and 2020, respectively)

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

  

SOURCE Ideanomics

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