Ideanomics, Inc. Reports Q3 2022 Financial Results

News provided by

Ideanomics

Nov 09, 2022, 16:10 ET

  • Revenues for the quarter ended September 30, 2022, were $24.3 million
  • Energica provided 88 motorcycles for the upcoming G20 Summit in Bali, Indonesia.
  • US Hybrid supplying technology for 62 zero emission street sweepers to GEP

NEW YORK, Nov. 9, 2022 /PRNewswire/ -- Ideanomics (NASDAQ: IDEX) ("Ideanomics" or the "Company"), a global company focused on accelerating the commercial adoption of electric vehicles, announced today its third quarter 2022 operating results for the period ended September 30, 2022.

"In the third quarter Ideanomics showed the value and strength of our growing EV businesses, highlighted by Energica's deal to provide motorcycles for the Indonesian National Police, which will be utilized at the upcoming G20 summit. Solectrac, like Energica, is also experiencing demand based growth and has expanded its manufacturing capacity resulting in a significant increase in unit production, while US Hybrid is on track towards profitability by the end of 2023. Furthermore, our WAVE business secured its first fleet customer in Q3. We look forward to continuing to demonstrate how our differentiated products and technologies drive revenue growth across our EV brands," said Alf Poor, CEO of Ideanomics. 

Selected Business Updates and Highlights

  • Energica announced that it will provide 88 motorcycles for the upcoming G20 Summit in Bali, Indonesia.
  • US Hybrid announced it is supplying Global Environmental Products with its proprietary electric and hybrid electric propulsion kits for use in the construction of 62 zero emission street sweepers
  • Ideanomics announced eleven new dealer partnerships to enhance the availability of Solectrac electric tractors across the United States
  • Solectrac partners with Nolan Manufacturing to produce Solectrac's e25 electric tractors with additional models slated for future production
  • Ideanomics announced an agreement with ABC Companies, a leading provider of motorcoach, transit and specialty passenger transport equipment in the USA and Canada allowing them to become a certified reseller of WAVE's industry-leading wireless inductive charging technology in North America.
  • WAVE successfully tested its 500kW wireless charger at the Port of Los Angeles
  • Ideanomics launched a product design studio to create a new generation of high-performance electric mobility and charging solutions
  • Ideanomics welcomed new Chief Financial Officer Stephen Johnston

Ideanomics Third quarter 2022 Operating Results  

Revenue for the third quarter was $24.3 million, demonstrating strong year-over-year in Ideanomics' growing EV business.  Revenue from electric vehicle and charging product and services in the third quarter of 2022 was $16.2 million versus $10.5 million in the third quarter of 2021, an increase of 54.7%. Revenue from the US in the third quarter of 2022 was $12.7 million versus $18.0 million in the third quarter of 2021, a decrease of $5.3 million. EV, charging and battery revenue from the U.S. and Europe was $8.8 million, four times higher than Q3 of last year. We expect EV revenues from the US and Europe to continue to grow as we shift spending to focus on increasing operating capacity and fulfilling market demand.

Gross Profit 

Gross profit for the third quarter was $(0.7) million, which represented a Gross Margin of (2.7%). Gross profit for the third quarter of 2021 was $4.0 million.   

Conference Call Information

Ideanomics' management, including Alf Poor (Chief Executive Officer), Stephen Johnston (Chief Financial Officer), Robin Mackie (President, Ideanomics Mobility) and Tony Sklar (SVP of Investor Relations), will host live an earnings release conference call at 4:30 pm ET, Wednesday, November 9, 2022. 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: [email protected]

Theodore Rolfvondenbaumen
Communications Director
Email: [email protected]

IDEANOMICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD in thousands)


Three Months Ended

Nine Months Ended

September 30,
2022

September 30,
2021

September 30,
2022

September 30,
2021

Revenue from sales of products (including from a related party of $10, $0 and
     $10, $1, for the three and nine months ended September 30, 2022 and 2021,
     respectively)

$           15,746

$            9,676

$            55,157

$            21,149

Revenue from sales of services

8,412

16,336

28,461

64,339

Other revenue

120

$               569

253

$              1,159

Total revenue

24,278

26,581

83,871

86,647

Cost of revenue from sales of products (including from a related party of $0, $4 and
     $0, $8 for  the three and nine months ended September 30, 2022 and 2021,
     respectively)

18,198

9,934

58,963

20,445

Cost of revenue from sales of services

6,691

12,165

23,879

41,441

Cost of other revenue

48

531

179

1,063

Total cost of revenue

24,937

22,630

83,021

62,949

Gross profit

(659)

3,951

850

23,698








Operating expenses:






Selling, general and administrative expenses

37,710

37,750

113,555

74,419

Research and development expense

849

184

2,543

429

Asset impairment

378

15,183

1,030

15,183

Goodwill impairment

—

5,850

—

5,850

Change in fair value of contingent consideration, net

—

(5,099)

(131)

(7,006)

Litigation settlement

2

216

44

5,216

Depreciation and amortization

2,271

1,779

5,838

4,548

Total operating expenses

41,210

55,863

122,879

98,639








Loss from operations

(41,869)

(51,912)

(122,029)

(74,941)








Interest and other income (expense):






Interest income

957

417

2,560

812

Interest expense

(456)

(308)

(1,523)

(1,683)

Gain on extinguishment of debt

—

300

—

300

Loss on disposal of subsidiaries, net

(30)

—

(218)

(1,264)

Gain on remeasurement of investment

—

—

10,965

2,915

Other income, net

2,574

8

4,460

507

Loss before income taxes and non-controlling interest

(38,824)

(51,495)

(105,785)

(73,354)








Income tax benefit

400

944

925

9,971

Impairment of and equity in gain (loss) of equity method investees

(429)

(1,447)

(2,357)

(2,062)








Net loss

(38,853)

(51,998)

(107,217)

(65,445)








Net loss attributable to common shareholders

(38,853)

(51,998)

(107,217)

(65,445)








Net loss attributable to non-controlling interest

1,439

187

3,525

459








Net loss attributable to Ideanomics, Inc. common shareholders

$         (37,414)

$         (51,811)

$        (103,692)

$          (64,986)








Earnings (loss) per share






Basic

$             (0.08)

$             (0.11)

$              (0.21)

$              (0.15)

Diluted

$             (0.08)

$             (0.11)

$              (0.21)

$              (0.15)








Weighted average shares outstanding:






Basic

494,061,205

473,829,962

496,392,410

432,989,602

Diluted

494,061,205

473,829,962

496,392,410

432,989,602

IDEANOMICS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD in thousands)


September 30, 2022

December 31, 2021

ASSETS


Current assets:


Cash and cash equivalents

$                     25,186

$                   269,863

Accounts receivable, net

6,000

3,338

Contract assets

3,767

2,772

Amount due from related parties

534

266

Notes receivable from third parties

83,863

54,907

Notes receivable from related party

400

697

Inventory

29,530

6,159

Prepaid expenses

15,075

20,015

Other current assets

5,673

4,490

Total current assets

170,028

362,507

Property and equipment, net

10,170

2,905

Intangible assets, net

78,645

42,546

Goodwill

68,711

16,161

Operating lease right of use assets

16,835

12,827

Financing  lease right of use assets

1,376

—

Long-term investments

23,319

35,588

Other non-current assets

1,235

903

Total assets

$                   370,319

$                   473,437




LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK, REDEEMABLE NON-CONTROLLING INTEREST AND EQUITY


Current liabilities


Accounts payable

$                     22,782

$                       6,674

Deferred revenue (including customer deposits of $2,681 and $3,163 as of September 30, 2022 and December 31, 2021,
respectively)

3,540

5,392

Accrued salaries

7,916

8,957

Amount due to related parties

2,223

1,102

Other current liabilities

8,831

7,137

Current portion of operating lease liabilities

3,878

3,086

Current portion of financing lease liabilities

348

—

Current contingent consideration

767

648

Promissory note-short term

2,424

312

Convertible promissory note due to third-parties-short term

9,250

57,809

Total current liabilities

61,959

91,117

Promissory note-long term

1,559

—

Operating lease liability-long term

12,808

9,647

Financing lease liability-long term

1,253

—

Non-current contingent consideration

100

350

Deferred tax liabilities

7,972

5,073

Other long-term liabilities

770

620

Total liabilities

86,421

106,807

Commitments and contingencies (Note 19)


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, 2022 and December 31, 2021

1,262

1,262

Equity:


Common stock - $0.001 par value; 1,500,000,000 shares authorized, 517,134,223 shares issued and outstanding as
     of September 30, 2022 and 497,272,525 and 344,861,295 shares issued and outstanding as of December 31, 2021,

517

497

Treasury Stock

4,639

—

Additional paid-in capital

980,232

968,066

Accumulated deficit

(709,451)

(605,758)

Accumulated other comprehensive income

(13,162)

222

Total Ideanomics, Inc. shareholders' equity

262,775

363,027

Non-controlling interest

19,861

2,341

Total equity

282,636

365,368

Total liabilities, convertible redeemable preferred stock, redeemable non-controlling interest and equity

$                  370,319

$                  473,437

IDEANOMICS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) (USD in thousands)


Three Months Ended

Nine Months Ended

September 30,
2022

September 30,
2021

September 30,
2022

September 30,
2021

Net loss

$       (38,853)

$       (51,998)

$     (107,217)

$       (65,445)

Other comprehensive income (loss), net of nil tax:






Changes in fair value of available-for-sale securities

—

4

—

(16)

Foreign currency translation adjustments

(8,127)

(951)

(15,930)

(1,683)

Comprehensive loss

(46,980)

(52,945)

(123,147)

(67,144)

Comprehensive loss (gain) attributable to non-controlling
interest

3,075

273

6,756

864

Comprehensive loss attributable to Ideanomics, Inc. common
shareholders

$        (43,905)

$        (52,672)

$     (116,391)

$        (66,280)

SOURCE Ideanomics

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

icon3
440k+
Newsrooms &
Influencers
icon1
9k+
Digital Media
Outlets
icon2
270k+
Journalists
Opted In
GET STARTED