Ideanomics, Inc. Reports Q4 and Full Year 2023 Financial Results

NEW YORK, June 18, 2024 (GLOBE NEWSWIRE) — Ideanomics (NASDAQ: IDEX) (“Ideanomics” or the “Company”), a global company focused on accelerating the commercial adoption of electric vehicles, announced today its fourth quarter and full year 2023 operating results for the period ended December 31, 2023.

Throughout 2023 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.

Full Year Highlights

  • Energica Inside announced partnerships to develop all-electric solutions for aviation, marine, and off-road uses.
  • Energica selected by police services in France and Barbados to provide electric motorcycles for police fleets.
  • WAVE completes an industry-first OEM-approved installation of wireless charging.
  • WAVE continues its initial projects with major logistics fleet customers.

Ideanomics Full Year 2023 Operating Results  

Revenue for the Full Year was $15.5 million, 18.7 percent lower compared to 2022.

Gross Profit 

Gross profit for the Full Year was negative $2.7 million compared to negative $3.4 million for the Full Year of 2022.

Conference Call Information

Ideanomics’ management, including Alf Poor (Chief Executive Officer) and Ryan Jenkins (Chief Financial Officer), recorded an earnings conference call. Please visit www.ideanomics.com and follow the link to listen to the call.

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
[email protected]

IDEANOMICS, INC. OPERATIONS (USD in thousands, except per share data)

For the years ended December 31,   2023     2022  
Revenue from sales of products   $13,710     $14,754  
Revenue from sales of services   985     3,917  
Other revenue   764     344  
Total revenue   15,459     19,015  
Cost of revenue from sales of products   17,765     20,257  
Cost of revenue from sales of services   58     1,742  
Cost of other revenue   350     374  
Total cost of revenue   18,173     22,373  
Gross profit   (2,714 )   (3,358 )
         
Operating expenses:        
Selling, general and administrative expenses   83,780     113,573  
Research and development expense   10,191     3,792  
Asset impairments   163,984     63,847  
Goodwill impairments   13,712     22,662  
Change in fair value of contingent consideration, net   (73,768 )   (131 )
Litigation settlements   89     225  
Depreciation and amortization   16,752     5,308  
Total operating expenses   214,740     209,276  
         
Loss from operations   (217,454 )   (212,634 )
         
Interest and other income (expense):        
Interest income   316     3,449  
Interest expense   (4,307 )   (2,909 )
Loss on disposal of subsidiaries, net   (1,152 )   (217 )
Gain on remeasurement of investment       10,965  
Other income, net   12,505     865  
Loss before income taxes and non-controlling interest   (210,092 )   (200,481 )
         
Income tax benefit   5,242     1,574  
Impairment of and equity in loss of equity method investees       (14,726 )
         
Net loss from continuing operations   (204,850 )   (213,633 )
Net loss from discontinued operations, net of tax   (29,276 )   (68,452 )
Net loss   (234,126 )   (282,085 )
         
Net loss attributable to common shareholders   (234,126 )   (282,085 )
         
Net loss attributable to non-controlling interest   10,297     21,425  
         
Net loss attributable to Ideanomics, Inc. common shareholders   $(223,829 )   $(260,660 )
         
Basic and diluted loss per share from continuing operations   $(20.59 )   $(52.10 )
Basic and diluted loss per share from discontinued operations   $(2.94 )   $(16.69 )
Basic and diluted loss per share   $(23.53 )   $(68.79 )
Weighted average shares outstanding:        
Basic and diluted   9,971,038     4,101,624  
             

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

As of December 31,   2023     2022  
ASSETS        
Current assets:        
Cash and cash equivalents   $1,249     $2,914  
Accounts receivable, net   1,037     2,107  
Contract assets   34     3,579  
Amount due from related parties       90  
Notes receivable from third parties, net   42     31,653  
Inventory   19,838     29,309  
Prepaid expenses   3,481     9,569  
Other current assets   1,882     5,096  
Current assets of discontinued operations   5,036     33,703  
Total current assets   32,599     118,020  
Property and equipment, net   12,904     7,845  
Intangible assets, net   23,667     43,622  
Goodwill   35,894     37,775  
Operating lease right of use assets   6,117     10,533  
Long-term investments       7,500  
Other non-current assets   2,861     2,276  
Non-current assets of discontinued operations   2,842     19,212  
Total assets   $116,884     $246,783  
LIABILITIES, CONVERTIBLE REDEEMABLE PREFERRED STOCK AND EQUITY        
Current liabilities        
Accounts payable   $55,208     $25,224  
Deferred revenue (including customer deposits of $1,891 and $1,786 as of December 31, 2023 and 2022, respectively)   2,537     2,186  
Accrued salaries   5,347     6,851  
Accrued expenses   3,784     2,669  
Amount due to related parties   1,419     1,927  
Other current liabilities   13,181     9,287  
Current portion of operating lease liabilities   3,222     2,031  
Current contingent consideration   727     867  
Promissory note due to related party-short term   2,348     2,021  
Promissory note due to third parties-short term   14,615     9,578  
Convertible promissory note due to third-parties   7,524     3,928  
Current liabilities of discontinued operations   7,721     14,244  
Total current liabilities   117,633     80,813  
Promissory note-long term   3,943     1,957  
Operating lease liability-long term   10,890     8,566  
Deferred tax liabilities   1,946     2,509  
Other long-term liabilities   1,071     1,131  
Non-current liabilities of discontinued operations   1,672     5,212  
Total liabilities   137,155     100,188  
Commitments and contingencies (Note 19)        
Convertible redeemable preferred stock:        
Series A – 7,000,000 shares issued and outstanding, liquidation and deemed liquidation preference of $3,500,000 as of December 31, 2023 and 2022, respectively   1,262     1,262  
Series B – 60,000,000 shares authorized, 20,000,000 and 10,000,000 shares issued and 2,105,200 and 10,000,000 shares outstanding as of December 31, 2023 and 2022, respectively   1,863     8,850  
Series C – 2,000,000 shares authorized, 1,159,210 and 0 shares issued and 613,039 and 0 shares outstanding as of December 31, 2023 and 2022, respectively   4,825      
Equity:        
Common stock – $0.001 par value; 1,500,000,000 shares authorized, 11,985,268 and 4,781,930 shares issued and outstanding as of December 31, 2023 and 2022, respectively   1,499     597  
Additional paid-in capital   1,071,520     1,004,082  
Accumulated deficit   (1,090,579 )   (866,418 )
Accumulated other comprehensive (income) loss   (4,553 )   (6,104 )
Total Ideanomics, Inc. shareholder’s equity   (22,113 )   132,157  
Non-controlling interest   (6,108 )   4,326  
Total equity   (28,221 )   136,483  
Total liabilities, convertible redeemable preferred stock and equity   $116,884     $246,783  


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