NEW YORK, Nov. 14, 2019 /PRNewswire/ -- Ideanomics, Inc.
(Nasdaq: IDEX) has today announced its 2019 Q3 operating results
for the period ended September 30,
2019 (a full copy of the Company's quarterly report on Form
10-Q will be 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 the
earnings release conference call at 8:30 am
ET, Thursday, November 14,
2019 (9:30pm Thursday November 14,
2019 Singapore).
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.
Ideanomics Third Quarter 2019 Operating Results
Revenue for the three months ended September 30, 2019 was $3.1 million as compared to $43.7 million for the same period in 2018, a
decrease of approximately $40.6
million, or 93%. The decrease was mainly due to a change to
our business focus from logistics management to Electric Vehicles
and Fintech businesses. Our business strategy and the primary
goal for entering the crude oil and electronic trading businesses
was to learn about the needs of buyers and sellers in these
industries that rely heavily on the shipment of goods. Our
activities in the crude oil trading and electronic trading business
have been successful in various aspects in 2018, and for strategic
reasons we have now phased out of our crude oil trading business
and electronics trading business so that we can work towards
enabling the application of our Fintech Ecosystem for other useful
cases that we have identified.
Cost of revenues was approximately $0.2
million for the three months ended September 30, 2019, as compared to $42.8 million for the three months ended
September 30, 2019, a decrease of
approximately $42.6 million, or 99%.
From a comparability perspective, the cost of revenue during 2018
is not necessarily indicative of the Electric Vehicles and Fintech
businesses in 2019. The cost of revenue during 2018 was primarily
associated with the logistics management business (oil trading and
electronics trading), which traditionally has a very high cost of
revenue and low gross margin, while the cost of revenue during the
third quarter of 2019 is primarily associated with subsidiaries
including Grapevine and DBOT.
Our gross profit for the three months ended September 30, 2019 was approximately $2.9 million, as compared to $0.9 million during the same period in 2018,
representing an increase of 231%. The gross profit ratio for the
three months ended September 30, 2019
was 92%, as compared to 2% during the same period in 2018.
Selling, general and administrative expenses for the three
months ended September 30, 2019 was
$7.8 million as compared to
$4.3 million for the same period in
2018, an increase of approximately $3.5
million or 79%. Majority of the increase was due to:
- an increase of $2.6 million in
share-based compensation expense primarily related to the stock
options granted to employees and directors during Q1 2019;
- an increase of $0.3 million in
office related expenses; and
- an increase of $0.3 million in
insurance expenses
Professional fees are generally related to public company
reporting and governance expenses as well as legal fees related to
business transition and expansion. Our professional fees for the
three months ended September 30, 2019
was $1.4 million as compared to
$1.9 million for the same period in
2018, a decrease of approximately $0.5
million. The decrease was related to a decrease in legal,
valuation, audit and tax as well as fees associated with continuing
to build out our technology ecosystem and establishing strategic
partnerships and M&A activity as part of this technology
ecosystem.
Net loss per share for the quarter ended September 30, 2019 was $(0.11) per share, as compared to a loss per
share for the same period in 2018 of $(0.10) per share. As of September 30, 2019, the company had cash of
$1.7 million, total assets of
$164.8 million, total liabilities of
$47.3 million and total equity of
$116.2 million.
About Ideanomics
Ideanomics is a global Financial Technology (Fintech) company for
transformative industries. Ideanomics combines deal origination and
enablement with the application of technologies such as artificial
intelligence, blockchain, and others as part of the next-
generation of smart financial services. Our projects in New Energy
Vehicle markets, Fintech, and advisory services provide our
customers and partners better efficiencies, technologies, and
access to global markets.
Ideanomics, through its investments, along with its partners
curate innovation around the globe through hubs and centers that
foster a pipeline of technological excellence in cleantech,
fintech, tradetech, agritech, regtech, insuretech, playtech,
healthtech, cyber security, and more.
The company is headquartered in New
York, NY, and has offices in Beijing, China. It also has a planned global
center for Technology and Innovation in West Hartford, CT, named Fintech Village.
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
www.ideanomics.com
Tel: +1.212.206.1216
IDEANOMICS,
INC. CONSOLIDATED BALANCE SHEETS
(Unaudited)
|
|
|
|
September 30,
2019
|
|
|
December 31,
2018
|
|
ASSETS
|
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
1,686,596
|
|
|
$
|
3,106,244
|
|
Accounts receivable,
net
|
|
|
2,941,245
|
|
|
|
19,370,665
|
|
Licensed content,
current
|
|
|
-
|
|
|
|
16,958,149
|
|
Prepayments
|
|
|
1,013,384
|
|
|
|
2,042,041
|
|
Other current
assets
|
|
|
2,371,913
|
|
|
|
3,594,942
|
|
Total current
assets
|
|
|
8,013,138
|
|
|
|
45,072,041
|
|
Property and
equipment, net
|
|
|
14,504,993
|
|
|
|
15,029,427
|
|
Intangible assets,
net
|
|
|
81,960,331
|
|
|
|
3,036,352
|
|
Goodwill
|
|
|
10,028,073
|
|
|
|
704,884
|
|
Long-term
investments
|
|
|
42,159,313
|
|
|
|
26,408,609
|
|
Operating lease right
of use assets
|
|
|
6,845,031
|
|
|
|
-
|
|
Other non-current
assets
|
|
|
1,252,797
|
|
|
|
3,983,799
|
|
Total
assets
|
|
$
|
164,763,676
|
|
|
$
|
94,235,112
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES,
CONVERTIBLE REDEEMABLE PREFERRED
STOCK AND EQUITY
|
|
|
|
|
|
|
|
|
Current
liabilities: (including amounts of the consolidated VIEs
without
recourse to Ideanomics, Inc. See Note 4)
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
1,543,291
|
|
|
$
|
19,265,094
|
|
Deferred
revenue
|
|
|
458,894
|
|
|
|
405,929
|
|
Amount due to related
parties
|
|
|
2,565,812
|
|
|
|
800,822
|
|
Other current
liabilities
|
|
|
9,141,870
|
|
|
|
5,321,697
|
|
Current portion of
operating lease liabilities
|
|
|
912,271
|
|
|
|
-
|
|
Convertible
promissory note due to related parties
|
|
|
1,288,032
|
|
|
|
4,140,055
|
|
Total current
liabilities
|
|
|
15,910,170
|
|
|
|
29,933,597
|
|
Deferred tax
liabilities
|
|
|
-
|
|
|
|
513,935
|
|
Asset retirement
obligations
|
|
|
6,392,500
|
|
|
|
8,000,000
|
|
Convertible
promissory note due to related parties – long term
|
|
|
3,000,000
|
|
|
|
-
|
|
Convertible note -
long term
|
|
|
12,627,531
|
|
|
|
11,313,770
|
|
Promissory note -
long term
|
|
|
3,000,000
|
|
|
|
-
|
|
Operating lease
liability-long term
|
|
|
6,329,533
|
|
|
|
-
|
|
Total
liabilities
|
|
|
47,259,734
|
|
|
|
49,761,302
|
|
Commitments and
contingencies (Note 18)
|
|
|
|
|
|
|
|
|
Convertible
redeemable preferred stock:
|
|
|
|
|
|
|
|
|
Series A - 7,000,000
shares issued and outstanding, liquidation and
deemed liquidation preference of $3,500,000 as of September
30, 2019
and December 31, 2018
|
|
|
1,261,995
|
|
|
|
1,261,995
|
|
Equity:
|
|
|
|
|
|
|
|
|
Common stock - $0.001
par value; 1,500,000,000 shares authorized,
132,696,071 shares and 102,766,006 shares issued and outstanding
as
of September 30, 2019 and December 31,
2018, respectively
|
|
|
132,696
|
|
|
|
102,765
|
|
Additional paid-in
capital
|
|
|
255,737,318
|
|
|
|
195,779,576
|
|
Accumulated
deficit
|
|
|
(138,468,441)
|
|
|
|
(149,975,302)
|
|
Accumulated other
comprehensive loss
|
|
|
(1,557,346)
|
|
|
|
(1,664,598)
|
|
Total IDEX
shareholder's equity
|
|
|
115,844,227
|
|
|
|
44,242,441
|
|
Non-controlling
interest
|
|
|
397,720
|
|
|
|
(1,030,626)
|
|
Total
equity
|
|
|
116,241,947
|
|
|
|
43,211,815
|
|
Total liabilities,
convertible redeemable preferred stock and equity
|
|
$
|
164,763,676
|
|
|
$
|
94,235,112
|
|
IDEANOMICS,
INC.
CONSOLIDATED
STATEMENTS OF OPERATIONS (Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2019
|
|
|
2018
|
|
|
2019
|
|
|
2018
|
|
Revenue from third
parties
|
|
$
|
249,512
|
|
|
$
|
43,707,937
|
|
|
$
|
949,384
|
|
|
$
|
362,628,296
|
|
Revenue from related
party
|
|
|
2,854,178
|
|
|
|
-
|
|
|
|
43,554,178
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
3,103,690
|
|
|
|
43,707,937
|
|
|
|
44,503,562
|
|
|
|
362,628,296
|
|
Cost of revenue from
third parties
|
|
|
243,360
|
|
|
|
42,844,876
|
|
|
|
750,290
|
|
|
|
115,729,433
|
|
Cost of revenue from
related parties
|
|
|
-
|
|
|
|
-
|
|
|
|
466,894
|
|
|
|
244,110,132
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
2,860,330
|
|
|
|
863,061
|
|
|
|
43,286,378
|
|
|
|
2,788,731
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expense
|
|
|
7,769,503
|
|
|
|
4,333,259
|
|
|
|
18,442,280
|
|
|
|
16,861,425
|
|
Research and
development expense
|
|
|
-
|
|
|
|
667,416
|
|
|
|
-
|
|
|
|
1,393,025
|
|
Professional
fees
|
|
|
1,388,842
|
|
|
|
1,927,431
|
|
|
|
3,918,461
|
|
|
|
3,280,729
|
|
Impairment of
property and equipment
|
|
|
2,298,887
|
|
|
|
-
|
|
|
|
2,298,887
|
|
|
|
-
|
|
Depreciation and
amortization
|
|
|
806,481
|
|
|
|
291,512
|
|
|
|
1,420,480
|
|
|
|
314,737
|
|
Total operating
expense
|
|
|
12,263,713
|
|
|
|
7,219,618
|
|
|
|
26,080,108
|
|
|
|
21,849,916
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) from
operations
|
|
|
(9,403,383)
|
|
|
|
(6,356,557)
|
|
|
|
17,206,270
|
|
|
|
(19,061,185)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and other
income (expense)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
(639,395)
|
|
|
|
(145,610)
|
|
|
|
(1,955,476)
|
|
|
|
(201,782)
|
|
Equity in
loss of equity method investees
|
|
|
(40,369)
|
|
|
|
(13,882)
|
|
|
|
(606,390)
|
|
|
|
(44,316)
|
|
Gain on disposal of
subsidiaries
|
|
|
1,057,363
|
|
|
|
-
|
|
|
|
1,057,363
|
|
|
|
-
|
|
Loss on remeasurement
of DBOT investment
|
|
|
(3,178,702)
|
|
|
|
-
|
|
|
|
(3,178,702)
|
|
|
|
-
|
|
Other
|
|
|
(99,997)
|
|
|
|
(925,771)
|
|
|
|
(155,946)
|
|
|
|
(558,271)
|
|
Income (loss)
before income taxes and non-
controlling
interest
|
|
|
(12,304,483)
|
|
|
|
(7,441,820)
|
|
|
|
12,367,119
|
|
|
|
(19,865,554)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
benefit
|
|
|
-
|
|
|
|
-
|
|
|
|
513,935
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
|
(12,304,483)
|
|
|
|
(7,441,820)
|
|
|
|
12,881,054
|
|
|
|
(19,865,554)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net (income) loss
attributable to non-controlling
interest
|
|
|
(1,407,384)
|
|
|
|
254,973
|
|
|
|
(1,374,193)
|
|
|
|
637,314
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to IDEX common
shareholders
|
|
$
|
(13,711,867)
|
|
|
$
|
(7,186,847)
|
|
|
$
|
11,506,861
|
|
|
$
|
(19,228,240)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss)
per share
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.11)
|
|
|
$
|
(0.10)
|
|
|
$
|
0.10
|
|
|
$
|
(0.27)
|
|
Diluted
|
|
$
|
(0.11)
|
|
|
$
|
(0.10)
|
|
|
$
|
0.10
|
|
|
$
|
(0.27)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
127,609,748
|
|
|
|
74,063,495
|
|
|
|
113,964,933
|
|
|
|
71,574,303
|
|
Diluted
|
|
|
127,609,748
|
|
|
|
74,063,495
|
|
|
|
118,319,893
|
|
|
|
71,574,303
|
|
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SOURCE Ideanomics