NEW YORK, Aug. 10, 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 second quarter 2020 operating results for the period
ended June 30, 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, August 10, 2020.
http://investors.ideanomics.com. 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/39249/indexl.html
"We are very pleased with the pace of our sales growth in the
new energy vehicle industry," said Alf
Poor, CEO of Ideanomics. "As the rate of global electric
vehicle (EV) adoption continues to rise and technology advancements
make EVs more accessible, our Sales to Financing to Charging
(S2F2C) business model is positioned to add value for commercial
fleet operators in all areas of their business."
Ideanomics Second Quarter 2020 Operating Results
Revenue for the three months ended June
30, 2020, was $4.7 million.
The second quarter revenues are the largest revenues from MEG since
the Company commenced EV sales demonstrating the underlying
strength of MEG's business, particularly as these revenues were
earned during a period when China's economy was still returning to normal
after the Covid-19 lockdown.
Performance on a sequential basis, revenues saw improvement in
the second quarter of $4.7 million
versus $378,000 in the first quarter
ending March 31, 2020.
Gross Profit
Gross profit for second quarter was $255,000 which represented a gross margin of
4.9%. Second quarter operating expense was $16.5 million as compared to $8.0 million in the same period in 2019. The
increase was due principally to a one-time non-cash impairment
charge of $6.2 million related to the
decision to terminate our office lease at 55 Broadway.
Excluding the impairment charge, operating expenses for the second
quarter was $10.3 million versus
$8.0 million in the prior year.
Operating Loss
The loss from operations was $16.3
million, however, excluding the one-time impairment charge,
the loss would have been $10.1
million as compared to $5.7
million in the prior period. Management continues to look
for ways to reduce costs and allocate spending to the projects with
the highest rate of return. Expenses for the current period include
$17.4 million of non-cash expense
related to impairment charges, interest expense, and debt
conversion.
About Ideanomics
Ideanomics 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 group
purchasing discounts on commercial electric vehicles, EV batteries
and electricity as well as financing and charging solutions.
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 and Qingdao,
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
55 Broadway, 19th Floor New York, New York 10006
Email: ir@ideanomics.com
Valerie Christopherson /
Lora Wilson
Global Results Communications (GRC)
+1 949 306 6476
valeriec@globalresultspr.com
IDEANOMICS,
INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS (Unaudited) (USD in
thousands)
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
36,384
|
|
$
|
2,633
|
Accounts receivable,
net (due from related parties were $1,127 and $2,284 as of June 30,
2020 and December 31, 2019, respectively)
|
|
|
1,242
|
|
|
2,405
|
Prepayments
|
|
|
1,389
|
|
|
572
|
Amount due from
related parties
|
|
|
1,328
|
|
|
1,256
|
Notes
receivable
|
|
|
1,931
|
|
|
—
|
Other current
assets
|
|
|
263
|
|
|
587
|
Total current
assets
|
|
|
42,537
|
|
|
7,453
|
Property and
equipment, net
|
|
|
177
|
|
|
378
|
Fintech
Village
|
|
|
12,562
|
|
|
12,561
|
Intangible assets,
net
|
|
|
51,479
|
|
|
52,771
|
Goodwill
|
|
|
10,460
|
|
|
23,344
|
Long-term
investments
|
|
|
22,644
|
|
|
22,621
|
Operating lease right
of use assets
|
|
|
7,579
|
|
|
6,934
|
Other non-current
assets
|
|
|
552
|
|
|
883
|
Total
assets
|
|
$
|
147,990
|
|
$
|
126,945
|
|
|
|
|
|
|
|
LIABILITIES,
CONVERTIBLE REDEEMABLE PREFERRED STOCK, REDEMABLE NON-CONTROLLING
INTEREST AND EQUITY
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
2,313
|
|
$
|
3,380
|
Deferred
revenue
|
|
|
593
|
|
|
477
|
Accrued
salaries
|
|
|
910
|
|
|
923
|
Amount due to related
parties
|
|
|
596
|
|
|
3,962
|
Other current
liabilities
|
|
|
6,045
|
|
|
6,466
|
Current portion of
operating lease liabilities
|
|
|
1,618
|
|
|
1,113
|
Current acquisition
earn-out liability
|
|
|
6,474
|
|
|
12,421
|
Promissory note-short
term
|
|
|
3,704
|
|
|
3,000
|
Convertible
promissory note due to third-parties
|
|
|
7,066
|
|
|
1,753
|
Convertible
promissory note due to related parties
|
|
|
—
|
|
|
3,260
|
Total current
liabilities
|
|
|
29,319
|
|
|
36,755
|
Asset retirement
obligations
|
|
|
4,653
|
|
|
5,094
|
Convertible
promissory note due to third-parties-long term
|
|
|
—
|
|
|
5,089
|
Convertible
promissory note due to related parties–long term
|
|
|
—
|
|
|
1,551
|
Operating lease
liability-long term
|
|
|
11,717
|
|
|
6,222
|
Non-current
acquisition earn-out liability
|
|
|
10,428
|
|
|
12,235
|
Total
liabilities
|
|
|
56,117
|
|
|
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 June 30, 2020 and December 31,
2019
|
|
|
1,262
|
|
|
1,262
|
Redeemable
non-controlling interest
|
|
|
7,260
|
|
|
—
|
Equity:
|
|
|
|
|
|
|
Common stock - $0.001
par value; 1,500,000,000 shares authorized, 237,008,159 shares and
149,692,953 shares issued and outstanding as of June 30, 2020 and
December 31, 2019, respectively
|
|
|
237
|
|
|
150
|
Additional paid-in
capital
|
|
|
357,720
|
|
|
282,554
|
Accumulated
deficit
|
|
|
(287,407)
|
|
|
(248,481)
|
Accumulated other
comprehensive loss
|
|
|
(508)
|
|
|
(664)
|
Total IDEX
shareholder's equity
|
|
|
70,042
|
|
|
33,559
|
Non-controlling
interest
|
|
|
13,309
|
|
|
25,178
|
Total
equity
|
|
|
83,351
|
|
|
58,737
|
Total liabilities,
convertible redeemable preferred stock, redeemable non-controlling
interest and equity
|
|
$
|
147,990
|
|
$
|
126,945
|
IDEANOMICS,
INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD in
thousands)
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
June 30,
2020
|
|
June 30,
2019
|
|
June 30,
2020
|
|
June 30,
2019
|
Revenue from
third-parties
|
|
$
|
4,685
|
|
$
|
354
|
|
$
|
5,063
|
|
$
|
700
|
Revenue from related
parties
|
|
|
7
|
|
|
14,100
|
|
|
7
|
|
|
40,700
|
Total
revenue
|
|
|
4,692
|
|
|
14,454
|
|
|
5,070
|
|
|
41,400
|
Cost of revenue from
third-parties
|
|
|
4,435
|
|
|
250
|
|
|
4,769
|
|
|
507
|
Cost of revenue from
related parties
|
|
|
2
|
|
|
466
|
|
|
2
|
|
|
467
|
Gross
profit
|
|
|
255
|
|
|
13,738
|
|
|
299
|
|
|
40,426
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
6,725
|
|
|
6,485
|
|
|
12,552
|
|
|
10,672
|
Professional
fees
|
|
|
2,372
|
|
|
1,169
|
|
|
4,128
|
|
|
2,530
|
Impairment
loss
|
|
|
6,200
|
|
|
—
|
|
|
7,088
|
|
|
—
|
Acquisition earn-out
expense, net
|
|
|
746
|
|
|
—
|
|
|
1,279
|
|
|
—
|
Depreciation and
amortization
|
|
|
481
|
|
|
370
|
|
|
957
|
|
|
614
|
Total operating
expenses
|
|
|
16,524
|
|
|
8,024
|
|
|
26,004
|
|
|
13,816
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(16,269)
|
|
|
5,714
|
|
|
(25,705)
|
|
|
26,610
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(8,890)
|
|
|
(581)
|
|
|
(12,047)
|
|
|
(1,316)
|
Equity in loss of
equity method investees
|
|
|
(12)
|
|
|
(286)
|
|
|
(15)
|
|
|
(566)
|
Conversion
expense
|
|
|
(2,266)
|
|
|
—
|
|
|
(2,266)
|
|
|
—
|
Other income
(expense)
|
|
|
1,015
|
|
|
2
|
|
|
989
|
|
|
(56)
|
Income (loss)
before income taxes and non-controlling interest
|
|
|
(26,422)
|
|
|
4,849
|
|
|
(39,044)
|
|
|
24,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
|
—
|
|
|
428
|
|
|
|
|
|
514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(26,422)
|
|
|
5,277
|
|
|
(39,044)
|
|
|
25,186
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed dividend
related to warrant repricing
|
|
|
(184)
|
|
|
—
|
|
|
(184)
|
|
|
—
|
Net loss
attributable to common stockholders
|
|
|
(26,606)
|
|
|
5,277
|
|
|
(39,228)
|
|
|
25,186
|
Net loss attributable
to non-controlling interest
|
|
|
28
|
|
|
15
|
|
|
300
|
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to IDEX common shareholders
|
|
$
|
(26,578)
|
|
$
|
5,292
|
|
$
|
(38,928)
|
|
$
|
25,219
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.15)
|
|
$
|
0.05
|
|
$
|
(0.23)
|
|
$
|
0.24
|
Diluted
|
|
|
(0.15)
|
|
|
0.05
|
|
|
(0.23)
|
|
|
0.22
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
180,034,278
|
|
|
108,694,719
|
|
|
168,946,960
|
|
|
107,029,448
|
Diluted
|
|
|
180,034,278
|
|
|
112,461,401
|
|
|
168,946,960
|
|
|
117,605,184
|
View original content to download
multimedia:http://www.prnewswire.com/news-releases/ideanomics-inc-reports-q2-2020-financial-results-301109358.html
SOURCE Ideanomics