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

/EIN News/ -- 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
ir@ideanomics.com

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