Ideanomics(US:IDEX)2023-08-24 16:00Revenue and Profitability - For the three months ended June 30, 2023, revenue decreased to $8.183 million, down 12.8% from $9.385 million in the same period of 2022[209] - Gross profit improved to $689,000 compared to a loss of $490,000 in the prior year, indicating a significant turnaround[209] - Revenue for the six months ended June 30, 2023, was $13.8 million, an increase of $2.2 million or 19.1% compared to $11.6 million for the same period in 2022[211] - The company reported a gross profit of $570,000 for the six months ended June 30, 2023, compared to a gross loss of $1.35 million for the same period in 2022, an improvement of $1.92 million[211] - Gross profit for the three months ended June 30, 2023 was $689,000, compared to a loss of $490,000 for the same period in 2022, representing a change of $1,179,000[220] - The gross profit ratio for the three months ended June 30, 2023 was 8.4%, an increase from (5.2)% in the same period of 2022[222] Operating Expenses - Operating expenses decreased by 1.9% to $35.882 million from $36.556 million in the previous year, primarily due to a reduction in selling, general, and administrative expenses[209] - Total operating expenses for the six months ended June 30, 2023, were $109.0 million, an increase of $39.7 million or 57.3% compared to $69.3 million for the same period in 2022[211] - Selling, general and administrative expenses decreased to $23.6 million for the three months ended June 30, 2023, down from $33.8 million in the same period of 2022, a decrease of $10.2 million[224] - Research and development expenses increased to $3.4 million for the three months ended June 30, 2023, compared to $0.7 million for the same period in 2022, an increase of $2.7 million[225] Net Loss and Financial Position - The net loss from continuing operations was $34.333 million, a 6.7% improvement from a loss of $36.782 million in the same quarter of 2022[209] - Net loss for the six months ended June 30, 2023, was $122.98 million, an increase of $54.62 million or 79.9% compared to a net loss of $68.36 million for the same period in 2022[211] - Net loss from discontinued operations was $2.8 million for the three months ended June 30, 2023, compared to a net loss of $2.5 million for the same period in 2022[237] - Net loss attributable to non-controlling interests was $3.2 million for the six months ended June 30, 2023, compared to a net loss of $2.1 million for the same period in 2022[238] Interest Income and Expense - Interest income decreased significantly by 69.6% to $151,000, while interest expense increased by 72.5% to $942,000, reflecting rising interest rates[209] - Interest income decreased from $1.6 million in Q2 2022 to $0.5 million in Q2 2023, a decrease of $1.1 million or 69.7%[211] - Interest expense increased to $0.9 million for the three months ended June 30, 2023, up from $0.5 million in the same period of 2022, an increase of $0.4 million[230] Business Operations and Strategy - The company is focused on expanding its EV business through Ideanomics Mobility and Ideanomics Capital, with a strategic emphasis on financing EV sales and infrastructure[194] - The Ideanomics Mobility business unit aims to accelerate the commercial adoption of electric vehicles, focusing on local and last-mile delivery vehicles[252] - The company is actively considering divestitures of subsidiaries, including Energica and Wave Technologies, to raise capital and strengthen its financial position[247] - The company has classified several business components as discontinued operations, including Timios and China, impacting the overall financial presentation[197] Cash Flow and Financing - Cash used in operating activities decreased to $38.8 million for the six months ended June 30, 2023, from $82.4 million in the same period of 2022[244] - Cash used in investing activities was $2.3 million for the six months ended June 30, 2023, significantly lower than $76.3 million for the same period in 2022[245] - The company received $31.0 million from financing activities in the six months ended June 30, 2023, compared to a repayment of $24.4 million in the same period of 2022[246] - As of June 30, 2023, the company had cash of $11.8 million, with $2.9 million in continuing operations and $8.9 million in discontinued operations[241] Market Conditions - The rate of EV adoption has been negatively impacted by supply chain constraints and rising interest rates, affecting demand for the company's products[201] - The company expects to face challenges from macroeconomic conditions and global supply chain slowdowns affecting its operations[254] Other Financial Metrics - Impairment losses for the six months ended June 30, 2023 totaled $27.4 million, primarily related to VIA notes receivable and SAFE[226] - Other income, net increased to $1.2 million for the three months ended June 30, 2023, from $0.4 million in the same period of 2022, an increase of $0.8 million[232] - The company recorded foreign currency exchange losses of $0.2 million for the six months ended June 30, 2023, compared to $3.1 million for the same period in 2022[259] - The company had $6.2 million of fixed rate 4.0% convertible debt outstanding as of June 30, 2023, which is not currently subject to fluctuations in interest rates[257]