NEW YORK, Nov. 9, 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 third quarter 2020 operating results for the period ended
September 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 (SVP of Investor
Relations), will host live an earnings release conference call at
4:30 pm ET, Monday, November 9, 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/41438/indexl.html
"We reported our third consecutive quarter of MEG revenue
growth, and our pipeline gives us confidence that we can maintain
this momentum through our product and service offerings and global
footprint," said Alf Poor, CEO of
Ideanomics. "The MEG division in China, Treeletrik in Malaysia, and Medici Motor Works and Solectrac
in the U.S. are all progressing towards our objectives for the
remainder of 2020, and into 2021 and beyond. Strong growth in our
taxi and ridesharing business is continuing and we are beginning to
bring other revenues online in Q4, including activity in the bus
segment of our business."
Ideanomics Third Quarter 2020 Operating Results
Revenue for the three months ended September 30, 2020, was $10.6 million, of which $10.1 million were generated by the Company's MEG
business unit; this represents the largest revenues earned by MEG
since the Company commenced business.
In the third quarter of 2020, the Company continued to develop
its MEG business and recognized $10.6
million revenue from the sales of vehicles, which included
revenue of $1.3 million from the sale
of traditional combustion engine vehicles. In the third quarter of
2020 the Company acted in both a Principal and Agent capacity in
relation to vehicle sales. For those contracts in which it acted in
a Principal capacity revenues were recorded on a Gross basis and
for those contracts where it acted in an Agent capacity the
revenues were recorded on a Net basis.
Gross Profit
Gross profit for the three months ended September 30, 2020 was $0.7 million, as compared to gross profit in the
amount of $2.9 million during the
same period in 2019.
Operating Loss
The Loss from Operations was $12.0
million as compared to $9.4
million in the prior period. The increased Operating Loss is
almost entirely due to the lower gross profit in the current
quarter.
About Ideanomics
Ideanomics is a global company that facilitates the adoption of
commercial electric vehicles and supports next-generation financial
services and fintech products. Our 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; we refer to this business
model as sales to financing to charging (S2F2C). Ideanomics Capital
provides intelligent and innovative services for the fintech
industry. Together, MEG and Ideanomics Capital provide our global
customers and partners with more efficient solutions.
The company is headquartered in New
York, NY, with offices in Beijing, Hangzhou, and Qingdao, and operations in the U.S.,
China, Ukraine, and Malaysia.
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
1441 Broadway, Suite 5116, New York,
NY 10018
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)
|
|
|
|
|
|
|
|
|
|
|
September 30, 2020
|
|
December 31, 2019
|
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
27,605
|
|
$
|
2,633
|
|
Accounts receivable,
net (including due from related parties of $586 and $2,284 as of
September 30, 2020 and December 31, 2019, respectively)
|
|
|
4,315
|
|
|
2,405
|
|
Prepayments
|
|
|
999
|
|
|
572
|
|
Amount due from related
parties
|
|
|
1,601
|
|
|
1,256
|
|
Notes
receivable
|
|
|
464
|
|
|
—
|
|
Other current
assets
|
|
|
581
|
|
|
587
|
|
Total current
assets
|
|
|
35,565
|
|
|
7,453
|
|
Property and equipment,
net
|
|
|
165
|
|
|
378
|
|
Fintech
Village
|
|
|
9,337
|
|
|
12,561
|
|
Intangible assets,
net
|
|
|
52,398
|
|
|
52,771
|
|
Goodwill
|
|
|
10,472
|
|
|
23,344
|
|
Long-term
investments
|
|
|
22,651
|
|
|
22,621
|
|
Operating lease right
of use assets
|
|
|
7,357
|
|
|
6,934
|
|
Other non-current
assets
|
|
|
519
|
|
|
883
|
|
Total
assets
|
|
$
|
138,464
|
|
$
|
126,945
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
CONVERTIBLE REDEEMABLE PREFERRED STOCK, REDEEMABLE NON-CONTROLLING
INTEREST AND EQUITY
|
|
|
|
|
|
|
|
Current
liabilities
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
4,738
|
|
$
|
3,380
|
|
Deferred
revenue
|
|
|
1,178
|
|
|
477
|
|
Accrued
salaries
|
|
|
906
|
|
|
923
|
|
Amount due to related
parties
|
|
|
1,333
|
|
|
3,962
|
|
Other current
liabilities
|
|
|
4,195
|
|
|
6,466
|
|
Current portion of
operating lease liabilities
|
|
|
520
|
|
|
1,113
|
|
Current contingent
consideration
|
|
|
4,082
|
|
|
12,421
|
|
Promissory note-short
term
|
|
|
3,750
|
|
|
3,000
|
|
Convertible promissory
note due to third-parties
|
|
|
9,033
|
|
|
1,753
|
|
Convertible promissory
note due to related parties
|
|
|
—
|
|
|
3,260
|
|
Total current
liabilities
|
|
|
29,735
|
|
|
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
|
|
Other long-term
liabilities
|
|
|
514
|
|
|
—
|
|
Operating lease
liability-long term
|
|
|
6,820
|
|
|
6,222
|
|
Non-current contingent
consideration
|
|
|
7,608
|
|
|
12,235
|
|
Total
liabilities
|
|
|
49,330
|
|
|
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 September 30, 2020 and
December 31, 2019
|
|
|
1,262
|
|
|
1,262
|
|
Redeemable
non-controlling interest
|
|
|
7,370
|
|
|
—
|
|
Equity:
|
|
|
|
|
|
|
|
Common stock
- $0.001 par value; 1,500,000,000 shares
authorized, 238,871,366 shares
and 149,692,953 shares issued and outstanding as
of September 30, 2020 and December 31, 2019 ,
respectively
|
|
|
239
|
|
|
150
|
|
Additional paid-in
capital
|
|
|
362,346
|
|
|
282,554
|
|
Accumulated
deficit
|
|
|
(295,693)
|
|
|
(248,481)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
290
|
|
|
(664)
|
|
Total IDEX
shareholders' equity
|
|
|
67,182
|
|
|
33,559
|
|
Non-controlling
interest
|
|
|
13,320
|
|
|
25,178
|
|
Total
equity
|
|
|
80,502
|
|
|
58,737
|
|
Total liabilities,
convertible redeemable preferred stock, redeemable non-controlling
interest and equity
|
|
$
|
138,464
|
|
$
|
126,945
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements.
|
IDEANOMICS, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (USD in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
|
September 30, 2020
|
|
September 30, 2019
|
|
September 30, 2020
|
|
September 30, 2019
|
|
Revenue from
third-parties
|
|
$
|
10,618
|
|
$
|
250
|
|
$
|
15,681
|
|
$
|
950
|
|
Revenue from related
parties
|
|
|
2
|
|
|
2,854
|
|
|
9
|
|
|
43,554
|
|
Total
revenue
|
|
|
10,620
|
|
|
3,104
|
|
|
15,690
|
|
|
44,504
|
|
Cost of revenue from
third-parties
|
|
|
9,906
|
|
|
244
|
|
|
14,674
|
|
|
751
|
|
Cost of revenue from
related parties
|
|
|
—
|
|
|
—
|
|
|
2
|
|
|
467
|
|
Gross
profit
|
|
|
714
|
|
|
2,860
|
|
|
1,014
|
|
|
43,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
7,636
|
|
|
7,770
|
|
|
20,188
|
|
|
18,443
|
|
Research and
development
|
|
|
1,318
|
|
|
—
|
|
|
1,318
|
|
|
—
|
|
Professional
fees
|
|
|
3,968
|
|
|
1,389
|
|
|
8,096
|
|
|
3,918
|
|
Impairment
loss
|
|
|
3,275
|
|
|
2,299
|
|
|
10,363
|
|
|
2,299
|
|
Change in fair value
of contingent consideration, net
|
|
|
(4,179)
|
|
|
—
|
|
|
(2,900)
|
|
|
—
|
|
Depreciation and
amortization
|
|
|
695
|
|
|
806
|
|
|
1,651
|
|
|
1,420
|
|
Total operating
expenses
|
|
|
12,713
|
|
|
12,264
|
|
|
38,716
|
|
|
26,080
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(11,999)
|
|
|
(9,404)
|
|
|
(37,702)
|
|
|
17,206
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(2,014)
|
|
|
(639)
|
|
|
(14,061)
|
|
|
(1,955)
|
|
Equity in income
(loss) of equity method investees
|
|
|
7
|
|
|
(40)
|
|
|
(8)
|
|
|
(606)
|
|
Gain on disposal of
subsidiaries
|
|
|
—
|
|
|
1,057
|
|
|
—
|
|
|
1,057
|
|
Loss on remeasurement
of DBOT investment
|
|
|
—
|
|
|
(3,179)
|
|
|
—
|
|
|
(3,179)
|
|
Conversion
expense
|
|
|
—
|
|
|
—
|
|
|
(2,266)
|
|
|
—
|
|
Other income
(expense)
|
|
|
5,283
|
|
|
(100)
|
|
|
6,272
|
|
|
(156)
|
|
Income (loss)
before income taxes and non-controlling interest
|
|
|
(8,723)
|
|
|
(12,305)
|
|
|
(47,765)
|
|
|
12,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(8,723)
|
|
|
(12,305)
|
|
|
(47,765)
|
|
|
12,881
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deemed dividend
related to warrant repricing
|
|
|
—
|
|
|
—
|
|
|
(184)
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss (income)
attributable to non-controlling interest
|
|
|
437
|
|
|
(1,408)
|
|
|
737
|
|
|
(1,374)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to IDEX common shareholders
|
|
$
|
(8,286)
|
|
$
|
(13,713)
|
|
$
|
(47,212)
|
|
$
|
11,507
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.03)
|
|
$
|
(0.11)
|
|
$
|
(0.25)
|
|
$
|
0.10
|
|
Diluted
|
|
|
(0.03)
|
|
|
(0.11)
|
|
|
(0.25)
|
|
|
0.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
237,535,999
|
|
|
127,609,748
|
|
|
191,976,856
|
|
|
113,964,933
|
|
Diluted
|
|
|
237,535,999
|
|
|
127,609,748
|
|
|
191,976,856
|
|
|
118,319,893
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The accompanying
notes are an integral part of these unaudited condensed
consolidated financial statements.
|
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SOURCE Ideanomics