NEW YORK, May 11, 2020 /PRNewswire/ -- Ideanomics
(NASDAQ: IDEX) ("Ideanomics" or the "Company"), a global company
focused on monetizing the adoption of commercial electric vehicles
and associated energy consumption, as well as enabling the next
generation of financial services and fintech products, announced
today its First Quarter 2020 operating results for the period ended
March 31, 2020 (a full copy of the
Company's 10-Q report is available at www.sec.gov).
Conference Call: Ideanomics' management, including
Alf Poor (Chief Executive Officer),
Conor McCarthy (Chief Financial
Officer) and Tony Sklar (VP of
Communications and Head of Investor Relations), will host live an
earnings release conference call at 4:30 pm
ET, Monday, May 11, 2020
(4:30am Tuesday, May 12, 2020
Beijing/Hong Kong Time). Click here for details.
To join the webcast, please visit the 'Events &
Presentations' section of the Ideanomics corporate website
(http://www.ideanomics.com/), or Dial-in Number:
(Toll-Free US & Canada):
877-407-3107 or 201-493-6796; for China: +86-400-120-2840. 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.
"While we were impacted through the Covid-19 lockdown in
China during Q1, we were able to
push forward with developing our pipeline and even processed some
deliveries to show our systems and procedures are ready to fulfill
orders at scale. To have achieved any deliveries in China during the first quarter is a testament
to the determination and tenacity of our teams on the ground," said
Alf Poor, CEO of Ideanomics. "We
look forward to Q2 and beyond, including an AGM in the summer of
this year to showcase both the MEG business and the formal
ribbon-cutting on our new 1MM square feet EV center in Qingdao."
Ideanomics First Quarter 2020 Operating Results
Revenue for the three months ended March
31, 2020 was $0.4 million as
compared to $26.9 million for the
same period in 2019, a decrease of $26.6
million, or 99%. The revenue in the first quarter of 2019
included $26.8M from the provision of
Digital Asset Management Services, there was no revenue from this
source in the current quarter. In the current quarter we
recorded US$55,000 from the sale of
EV taxis, achieving these sales during a period when almost all
economic activity in China was at
a standstill is a testament to the dedication and innovation of our
China based sales and operations
team. The US$55,000 of EV
revenue was recorded on a Net basis as under the US GAAP rules
relating to revenue recognition it was determined that Ideanomics
acted in an agent capacity for these sales rather than as
principal. For information purposes only, if we had acted in
a Principal capacity the Revenues would have been approximately
US$300,000, with a related Cost of
Revenue of approximately US$245,000
with a Gross Profit on the EV transactions of US$55,000
Performance on a sequential basis, revenues saw improvement in
the first quarter of $0.4 million
versus $63,000 in the fourth quarter
ending December 31,
2019.
In March 2019, the Company entered
into an agreement with GTD whereby the Company provided digital
asset management services. The revenue was recognized based on the
progress of completion of services. The Company recognized
$26.6 million for the period ended
March 31, 2019 and the remaining
$14.1 million was recognized in the
remainder of 2019.
In the first quarter of 2020, the Company is gradually ramping
up its business related to EVs and recognized $0.1 million revenue from the sales of EVs. The
EV revenues for the current quarter were recorded on an Agency
(Net) basis because the Company acted as an agent rather than
principal in these transactions.
Gross Profit
Gross profit for the three months ended March 31, 2020 was $44,000, as compared to gross profit in the
amount of $26.7 million during the
same period in 2019. The gross profit ratio for the three months
ended March 31, 2020 was 12%, while
in 2019, it was 99%. The decrease was mainly due to: 1)
digital asset management service revenue recognized in 2019 has
higher gross margin than the gross margin in EVs; and 2) the
negative gross margin from the Delaware Board of Trade or DBOT business for
the three months ended March 31, 2020
due to the business is still in development stage.
Operating Expenses in Q1 were $9.5
million dollars versus $5.8
million in the prior year – and increase of $3.7 million which was largely driven by one-time
non-operating charges as we transitioned the
business.
Operating expenses, excluding one-time charges in the fourth
quarter, declined from $14.2 million
to $9.5 million in the first
quarter.
Operating Loss
The loss from operations for the quarter ending March 31, 2020 was $9.4
million compared a gain of $20.9
million in the first quarter of 2019 and a loss of
$13.6 million in the fourth quarter
of 2019, excluding one-time charges.
About Ideanomics
Ideanomics (Nasdaq: IDEX) is a global company focused on
facilitating the adoption of commercial electric vehicles and
developing next generation financial services and Fintech products.
Its electric vehicle division, Mobile Energy Global (MEG) provides
financial services and incentives for commercial fleet operators,
including group purchasing discounts and battery buy-back programs,
in order to acquire large-scale customers with energy needs which
are monetized through pre-paid electricity and EV charging
offerings. Ideanomics Capital includes DBOT ATS and Intelligenta
which provide innovative financial services solutions powered by AI
and blockchain. MEG and Ideanomics Capital provide our global
customers and partners with better efficiencies and technologies
and greater access to global markets.
The company is headquartered in New
York, NY, and has offices in Beijing, China.
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
Tony Sklar, VP of Communications at
Ideanomics
55 Broadway, 19th Floor New York, New
York 10006 Email: ir@ideanomics.com
www.ideanomics.com
Tel: +1.212.206.1216
IDEANOMICS,
INC.
|
CONSOLIDATED
BALANCE SHEETS (Unaudited) (USD in thousands)
|
|
|
|
March 31,
2020
|
|
|
December 31,
2019
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,914
|
|
|
$
|
2,633
|
|
Accounts receivable,
net (due from related parties were $1,688 and $2,284 as of March
31, 2020 and December 31, 2019, respectively)
|
|
|
1,833
|
|
|
|
2,405
|
|
Prepayments
|
|
|
477
|
|
|
|
572
|
|
Amount due from
related parties
|
|
|
1,280
|
|
|
|
1,256
|
|
Other current
assets
|
|
|
588
|
|
|
|
587
|
|
Total current
assets
|
|
|
10,092
|
|
|
|
7,453
|
|
Property and
equipment, net
|
|
|
355
|
|
|
|
378
|
|
Fintech
Village
|
|
|
12,561
|
|
|
|
12,561
|
|
Intangible assets,
net
|
|
|
51,595
|
|
|
|
52,771
|
|
Goodwill
|
|
|
10,789
|
|
|
|
23,344
|
|
Long-term
investments
|
|
|
22,618
|
|
|
|
22,621
|
|
Operating lease right
of use assets
|
|
|
6,051
|
|
|
|
6,934
|
|
Other non-current
assets
|
|
|
883
|
|
|
|
883
|
|
Total
assets
|
|
$
|
114,944
|
|
|
$
|
126,945
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
CONVERTIBLE REDEEMABLE PREFERRED STOCK, REDEMABLE NON-CONTROLLING
INTEREST AND EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
3,656
|
|
|
$
|
3,380
|
|
Deferred
revenue
|
|
|
500
|
|
|
|
477
|
|
Accrued
salaries
|
|
|
952
|
|
|
|
923
|
|
Amount due to related
parties
|
|
|
1,842
|
|
|
|
3,962
|
|
Other current
liabilities
|
|
|
6,029
|
|
|
|
6,466
|
|
Current portion of
operating lease liabilities
|
|
|
1,289
|
|
|
|
1,113
|
|
Current acquisition
earn-out liability
|
|
|
5,952
|
|
|
|
12,421
|
|
Promissory note-short
term
|
|
|
3,045
|
|
|
|
3,000
|
|
Convertible
promissory note due to third parties
|
|
|
6,015
|
|
|
|
1,753
|
|
Convertible
promissory note due to related parties
|
|
|
1,566
|
|
|
|
3,260
|
|
Total current
liabilities
|
|
|
30,846
|
|
|
|
36,755
|
|
Asset retirement
obligations
|
|
|
5,094
|
|
|
|
5,094
|
|
Convertible
promissory note due to third parties-long term
|
|
|
5,120
|
|
|
|
5,089
|
|
Convertible
promissory note due to related parties-long term
|
|
|
3,290
|
|
|
|
1,551
|
|
Operating lease
liability-long term
|
|
|
6,010
|
|
|
|
6,222
|
|
Non-current
acquisition earn-out liability
|
|
|
10,701
|
|
|
|
12,235
|
|
Total
liabilities
|
|
|
61,061
|
|
|
|
66,946
|
|
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 March 31, 2020 and December 31,
2019
|
|
|
1,262
|
|
|
|
1,262
|
|
Redeemable
non-controlling interest
|
|
|
7,153
|
|
|
|
-
|
|
Equity:
|
|
|
|
|
|
|
|
|
Common stock - $0.001
par value; 1,500,000,000 shares authorized, 163,460,045 shares and
149,692,953 shares issued and outstanding as of March 31, 2020 and
December 31, 2019, respectively
|
|
|
163
|
|
|
|
150
|
|
Additional paid-in
capital
|
|
|
293,345
|
|
|
|
282,554
|
|
Accumulated
deficit
|
|
|
(260,829)
|
|
|
|
(248,481)
|
|
Accumulated other
comprehensive loss
|
|
|
(680)
|
|
|
|
(664)
|
|
Total IDEX
shareholder's equity
|
|
|
31,999
|
|
|
|
33,559
|
|
Non-controlling
interest
|
|
|
13,469
|
|
|
|
25,178
|
|
Total
equity
|
|
|
45,468
|
|
|
|
58,737
|
|
Total liabilities,
convertible redeemable preferred stock, redeemable non-controlling
interest and equity
|
|
$
|
114,944
|
|
|
$
|
126,945
|
|
|
The accompanying
notes are an integral part of these unaudited consolidated
financial statements.
|
IDEANOMICS,
INC.
|
CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited) (USD in
thousands)
|
|
|
|
Three Months
Ended
|
|
|
|
March 31,
2020
|
|
|
March 31,
2019
|
|
|
|
|
|
|
|
|
Revenue from
third-parties
|
|
$
|
378
|
|
|
$
|
346
|
|
Revenue from related
parties
|
|
|
-
|
|
|
|
26,600
|
|
Total
revenue
|
|
|
378
|
|
|
|
26,946
|
|
Cost of revenue from
third-parties
|
|
|
334
|
|
|
|
258
|
|
Cost of revenue from
related parties
|
|
|
-
|
|
|
|
-
|
|
Gross
profit
|
|
|
44
|
|
|
|
26,688
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
5,827
|
|
|
|
4,188
|
|
Professional
fees
|
|
|
1,757
|
|
|
|
1,360
|
|
Impairment
loss
|
|
|
887
|
|
|
|
-
|
|
Acquisition earn-out
expense
|
|
|
532
|
|
|
|
-
|
|
Depreciation and
amortization
|
|
|
476
|
|
|
|
244
|
|
Total operating
expenses
|
|
|
9,479
|
|
|
|
5,792
|
|
|
|
|
|
|
|
|
|
|
Income (Loss) from
operations
|
|
|
(9,435)
|
|
|
|
20,896
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense):
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(3,156)
|
|
|
|
(735)
|
|
Equity in loss of
equity method investees
|
|
|
(3)
|
|
|
|
(280)
|
|
Others
|
|
|
(26)
|
|
|
|
(58)
|
|
Income (Loss)
before income taxes and non-controlling interest
|
|
|
(12,620)
|
|
|
|
19,823
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
|
-
|
|
|
|
86
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(12,620)
|
|
|
|
19,909
|
|
|
|
|
|
|
|
|
|
|
Net loss attributable
to non-controlling interest
|
|
|
272
|
|
|
|
18
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to IDEX common shareholders
|
|
$
|
(12,348)
|
|
|
$
|
19,927
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.08)
|
|
|
$
|
0.19
|
|
Diluted
|
|
|
(0.08)
|
|
|
$
|
0.18
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
Basic
|
|
|
157,859,642
|
|
|
|
105,345,673
|
|
Diluted
|
|
|
157,859,642
|
|
|
|
116,301,236
|
|
|
The accompanying
notes are an integral part of these unaudited consolidated
financial statements.
|
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SOURCE Ideanomics