Ideanomics, Inc. Reports Q2 2021 Financial Results

- Revenues for the quarter ended June 30, 2021, was $33.2 million and gross profit of $9.3 million

- $396 million cash at quarter end providing a deep pool of capital for investment in our Ideanomics Mobility & Capital business units

- Ideanomics has the only made in America EV tractor in the market at this time

- US Hybrid relocates to new, larger, Headquarters to accommodate the expected commercial demand

- Ideanomics Capital and Ideanomics Mobility teams began working together, changing the business model for our customers from the CapEx to OpEx line, including VaaS, CaaS and Energy as a service (EaaS)

- WAVE announces adoption of its inductive wireless charging system by Twin Transit Authority in Washington

- Ideanomics positions to WAVE to become the "Charger of Choice"

- Dr. Abas Goodarzi, Ideanomics Chief Scientist, Receives IEEE PELS Vehicle and Transportation Systems Achievement Award

- Ideanomics is executing on one of the most compelling, vertically integrated, offerings in the EV sector.

News provided by

Ideanomics

Aug 16, 2021, 16:05 ET

NEW YORK, Aug. 16, 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 second quarter 2021 operating results for the period ended June 30, 2021 (a full copy of the Company's quarterly 10-Q report is 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 4:30 pm ET, Monday, August 16, 2021. Time permitting, Ideanomics management will answer questions 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/45816/indexl.html

"Ideanomics is executing on what we believe is one of the most compelling, vertically integrated, offerings in the EV sector." said Alf Poor, CEO of Ideanomics. "We have best-in-class, leading technologies, with the talent to leverage our presence in the most significant global markets."

Selected Business Updates and Highlights

  • People
    • Kristen Helsel joins as Chief Revenue Officer
    • Dr. Abas Goodarzi joins as Chief Scientist via US Hybrid acquisition
  • Significant Deals
    • WAVE's inductive chargers to power Twin Transit Authority in WA State
    • Treeletrik signs deal to supply 200,000 E-Motorbikes to Indonesia
  • Technology & Product
    • US Hybrid acquisition – Hydrogen Fuel Cells, Vehicle Integration, DC DC and other components
    • Solectrac acquisition – EV tractor with battery swapping

Ideanomics Second Quarter 2021 Operating Results

Revenue for the quarter was $33.2 million which represents the sixth consecutive quarter of growth demonstrating the increasing strength of Ideanomics' business.  This quarter includes the first revenues from US Hybrid and Solectrac.  Both of these businesses were acquired late in the second quarter and consequently their financial results are only included from the date of acquisition. Revenue from Electric Vehicles was $6.1 million up from $0.7 million in the second quarter of 2020. Revenue from charging, batteries and powertrains was $2.7 million, there were no revenues in this category in the corresponding quarter in 2020.

Gross Profit

Gross profit for the second quarter was $9.3 million which represented a Gross Margin of 28%.  Gross profit for the second quarter of 2020 was $0.3 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]

IDEANOMICS, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD in thousands)
 
 

Three Months Ended

  

Six Months Ended
 

June 30, 2021

  

June 30, 2020

  

June 30, 2021

  

June 30, 2020

Revenue from sales of products (including from a related party of $1, $7, $2 and $7 for the three and six months ended June 30, 2021 and 2020, respectively)

$

7,410

    

$

4,585

    

$

11,957

    

$

4,588

  

Revenue from sales of services

25,807

    

107

    

53,969

    

482

  

Total revenue

33,217

    

4,692

    

65,926

    

5,070

  

Cost of revenue from sales of products (including from a  related party of $4 ,$2, $11 and $2 for the three  and  six months ended June 30, 2021 and 2020, respectively)

6,591

    

4,323

    

10,945

    

4,325

  

Cost of revenue from sales of services

17,325

    

114

    

34,838

    

446

  

Total cost of revenue

23,916

    

4,437

    

45,783

    

4,771

  

Gross profit

9,301

    

255

    

20,143

    

299

  
               

Operating expenses:

              

Selling, general and administrative expenses

13,076

    

6,725

    

25,081

    

12,552

  

Research and development expense

235

    

—

    

245

    

—

  

Professional fees

7,439

    

2,372

    

12,607

    

4,128

  

Impairment losses

—

    

6,200

    

—

    

7,088

  

Change in fair value of contingent consideration, net

(2,402)

    

746

    

(1,907)

    

1,279

  

Litigation settlement

—

    

—

    

5,000

    

—

  

Depreciation and amortization

1,635

    

481

    

2,763

    

957

  

Total operating expenses

19,983

    

16,524

    

43,789

    

26,004

  
               

Loss from operations

(10,682)

    

(16,269)

    

(23,646)

    

(25,705)

  
               

Interest and other income (expense):

              

Interest expense, net

(563)

    

(8,890)

    

(980)

    

(12,047)

  

Equity in loss of equity method investees

(358)

    

(12)

    

(417)

    

(15)

  

Loss on disposal of subsidiaries, net

(1,234)

    

—

    

(1,446)

    

—

  

Conversion expense

—

    

(2,266)

    

—

    

(2,266)

  

Gain on remeasurement of investment

2,915

    

—

    

2,915

    

—

  

Other income (expense, net)

990

    

1,015

    

988

    

989

  

Loss before income taxes and non-controlling interest

(8,932)

    

(26,422)

    

(22,586)

    

(39,044)

  
               

Income tax benefit (expense)

(1,061)

    

—

    

11,855

    

—

  
               

Net loss

(9,993)

    

(26,422)

    

(10,731)

    

(39,044)

  
               

Deemed dividend related to warrant repricing

—

    

(184)

    

—

    

(184)

  
               

Net loss attributable to common shareholders

(9,993)

    

(26,606)

    

(10,731)

    

(39,228)

  
               

Net loss attributable to non-controlling interest

203

    

28

    

367

    

300

  
               

Net loss attributable to IDEX common shareholders

$

(9,790)

    

$

(26,578)

    

$

(10,364)

    

$

(38,928)

  
               

Earnings (loss) per share

              

Basic

$

(0.02)

    

$

(0.15)

    

$

(0.03)

    

$

(0.23)

  

Diluted

$

(0.02)

    

$

(0.15)

    

(0.03)

    

$

(0.23)

  
               

Weighted average shares outstanding:

              

Basic

433,098,279

    

180,034,278

    

412,230,966

    

168,946,960

  

Diluted

433,098,279

    

180,034,278

    

412,230,966

    

168,946,960

  

IDEANOMICS, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD in thousands)
 
 

June 30, 2021

  

December 31, 2020

ASSETS

      

Current assets:

      

Cash and cash equivalents

$

395,642

    

$

165,764

  

Accounts receivable, net

4,039

    

7,400

  

Available-for-sale security

15,360

    

—

  

Inventory

3,573

    

—

  

Prepaid expenses

12,069

    

2,629

  

Amount due from related parties

294

    

240

  

Other current assets

1,291

    

3,726

  

Held for sale assets (Fintech Village)

7,068

    

—

  

Total current assets

439,336

    

179,759

  

Property and equipment, net

1,058

    

330

  

Fintech Village

—

    

7,250

  

Intangible assets, net

107,352

    

29,705

  

Goodwill

104,193

    

1,165

  

Long-term investments

32,457

    

8,570

  

Operating lease right of use assets

12,423

    

7,117

  

Other non-current assets

1,232

    

516

  

Total assets

$

698,051

    

$

234,412

  
       

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

      

Current liabilities

      

Accounts payable

$

8,456

    

$

5,057

  

Deferred revenue

1,707

    

1,129

  

Accrued salaries

5,710

    

1,750

  

Amount due to related parties

1,111

    

882

  

Other current liabilities

8,210

    

1,920

  

Current portion of operating lease liabilities

1,940

    

430

  

Current contingent consideration

11,712

    

1,325

  

Promissory note-short term

1,228

    

568

  

Convertible promissory note due to third parties

81,244

    

—

  

Asset retirement obligations

4,653

    

—

  

Total current liabilities

125,971

    

13,061

  

Asset retirement obligations

—

    

4,653

  

Deferred tax liabilities

2,971

    

—

  

Operating lease liability-long term

10,530

    

6,759

  

Non-current contingent consideration

4,637

    

7,635

  

Other long-term liabilities

1,284

    

535

  

Total liabilities

145,393

    

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 June 30, 2021 and December 31, 2020

1,262

    

1,262

  

Redeemable non-controlling interest

7,716

    

7,485

  

Equity:

      

Common stock - $0.001 par value; 1,500,000,000 shares authorized, 466,354,487 shares and 344,906,295 shares issued and outstanding as of June 30, 2021 and December 31, 2020, respectively

466

    

345

  

Additional paid-in capital

894,285

    

531,866

  

Accumulated deficit

(357,245)

    

(346,883)

  

Accumulated other comprehensive income

730

    

1,256

  

Total IDEX shareholder's equity

538,236

    

186,584

  

Non-controlling interest

5,444

    

6,438

  

Total equity

543,680

    

193,022

  

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

$

698,051

    

$

234,412

  

SOURCE Ideanomics