Restatement of Previously Reported Condensed Consolidated Financial Statements (Tables)

6 Months Ended

Jun. 30, 2021

Restatement of Previously Reported Condensed Consolidated Financial Statements

Schedule of restatement adjustments recorded in connection with the restatement

The following reflects the restatement adjustments recorded in connection with the Company’s restatement of its condensed consolidated financial statements:

	Consolidated Balance Sheet
	June 30, 2021
	As
	Previously
	Reported		Adjustment		As Restated		Notes
Assets
Cash and cash equivalents	$	395,642	$	—	$	395,642
Accounts receivable, net		4,039		—		4,039
Available for sale security		15,360		—		15,360
Inventory		3,573		—		3,573
Prepaid expenses		12,069		—		12,069
Amount due from related parties		294		—		294
Other current assets		1,291		—		1,291
Current assets held for sale		7,068		—		7,068
Total current assets		439,336		—		439,336
Property and equipment, net		1,058		—		1,058
Intangible assets, net		107,352		(17,400)		89,952	C
Goodwill		104,193		12,879		117,072	C
Long-term investments		32,457		(281)		32,176	B
Operating lease – right of use assets		12,423		(6,774)		5,649	*
Other noncurrent assets		1,232		6774		8,006	*
Total assets	$	698,051	$	(4,802)	$	693,249
Liabilities and Stockholders’ Equity
Accounts payable	$	8,456	$	—	$	8,456
Deferred revenue		1,707		—		1,707
Accrued salaries		5,710		—		5,710
Due to related party		1,111		—		1,111
Other current liabilities		8,210		47		8,257	*, E
Current portion of lease liabilities		1,940		(322)		1,618	*
Current contingent consideration		11,712		—		11,712
Note payable		1,228		—		1,228
Note payable – related party		—		—		—
Convertible promissory note to third parties		81,224		—		81,224
Asset retirement obligations		4,653		—		4,653
Total current liabilities		125,971		(275)		125,696
Asset retirement obligations		—		—		—
Deferred tax liabilities		2,971		(1,215)		1,756	C, D, E
Operating lease liability – long term		10,530		(6,577)		3,953	*
Non-current contingent consideration		4,637		—		4,637
Other long-term liabilities		1,284		6,577		7,861	*
Total liabilities		145,393		(1,490)		143,903
Convertible redeemable preferred stock and Redeemable non-controlling interest:
Series A Preferred stock		1,262		—		1,262
Redeemable non-controlling interest		7,716		—		7,716
Stockholders’ equity:
Preferred stock, $0.0001 par value		—		—		—
Common stock, $0.0001 par value		466		—		466
Additional paid-in capital		894,285		—		894,285
Accumulated deficit		(357,245)		(3,312)		(360,557)
Accumulated other comprehensive income		730		—		730
Total IDEX stockholders’ equity		538,236		(3,312)		534,294
Noncontrolling interests		5,444		—		5,444
Total stockholders’ equity		543,680		(3,312)		540,368
Total liabilities and stockholders’ equity	$	698,051	$	(4,802)	$	693,249

* Represents revision for immaterial error correction – see Note 1

Condensed Consolidated State of Operations for three months ended June 30, 2021

	As		Restatement		As
	Reported **		Adjustments		Restated		Notes
Revenue - sales of products	$	7,410	$	—	$	7,410
Revenue - sales of services		25,807		(2,371)		23,436	A
Total Revenue		33,217		(2,371)		30,846
Cost of revenue - sales of products		6,591		—		6,591
Cost of revenue - sales of services		17,325		(2,371)		14,954	A
Total Cost of revenue		23,916		(2,371)		21,545
Gross Profit		9,301		—		9,301
Operating Expenses
Selling, general and administrative		13,076		(154)		12,922	(1)
Research and development		235		—		235
Professional fees		7,439		—		7,439
Impairment losses		—		—		—
Change -fair value of contingent consideration		(2,402)		—		(2,402)
Litigation settlement		_		—		_
Depreciation and amortization		1,635		—		1,635
Total operating expenses		19,983		(154)		19,829
Loss from operations		(10,682)		154		(10,528)
Interest and other income (expense):
Interest expense, net		(563)		—		(563)
Loss on disposal of subsidiaries		(1,234)		—		(1,234)
Conversion expense		—		—		—
Gain on measurement of investments		2,915		—		2,915
Other income, net		990		(154)		836	(1)
Loss before income taxes and non-controlling interest		(8,574)		—		(8,574)
Income tax (expense) benefit		(1,061)		2,631		1,570	C, D, E
Equity in loss of equity method investees		(358)		(103)		(461)	B
Net loss		(9,993)		2,528		(7,465)
Deemed dividend related to warrant repricing		—		—		—	—
Net loss attributable to common shareholders		(9,993)		2,528		(7,465)
Net loss attributable to non-controlling interest		203		—		203
Net loss attributable to IDEX common shareholders	$	(9,790)	$	2,528	$	(7,262)
Earnings per share, basic & fully diluted	$	(0.02)	$	—	$	(0.02)
Weighted average number of common shares		433,098,279		0		433,098,279

Condensed Consolidated Statement of Operations for Six Months ended June 30, 2021

	As		Restatement		As
	Reported **		Adjustments		Restated		Notes
Revenue - sales of products	$	11,957	$	—	$	11,957
Revenue - sales of services		53,969		(5,141)		48,828	A
Total Revenue		65,926		(5,141)		60,785
Cost of revenue - sales of products		10,945		—		10,945
Cost of revenue - sales of services		34,838		(5,141)		29,697	A
Total Cost of revenue		45,783		(5,141)		40,642
Gross Profit		20,143		—		20,143
Operating Expenses
Selling, general and administrative		25,081		(308)		24,773	(1)
Research and development		245		—		245
Professional fees		12,607		—		12,607
Impairment losses		—		—		—
Change -fair value of contingent consideration		(1,907)		—		(1,907)
Litigation settlement		5,000		—		5,000
Depreciation and amortization		2,763		—		2,763
Total operating expenses		43,789		(308)		43,481
Loss from operations		(23,646)		308		(23,338)
Interest and other income (expense):
Interest expense, net		(980)		—		(980)
Loss on disposal of subsidiaries		(1,446)		—		(1,446)
Conversion expense		—		—		—
Gain on measurement of investments		2,915		—		2,915
Other income, net		988		(308)		680	(1)
Loss before income taxes and non-controlling interest		(22,169)		—		(22,169)
Income tax benefit		11,855		(3,030)		8,825	C, .D,E,
Equity in loss of equity method investees		(417)		(281)		(698)	B
Net loss		(10,731)		(3,311)		(14,042)
Deemed dividend related to warrant repricing		—		—		—	—
Net loss attributable to common shareholders		(10,731)		(3,311)		(14,042)
Net loss attributable to non-controlling interest		367		—		367
Net loss attributable to IDEX common shareholders	$	(10,364)	$	(3,311)	$	(13,675)
Earnings per share, basic & fully diluted	$	(0.03)	$	—	$	(0.03)
Weighted average number of common shares		412,230,966		0		412,230,966

** Reflects the presentation of equity in loss of equity method as a separate financial statement caption below income tax (expense) benefit.

(1) Reflects immaterial error correction for the classification of other income.

Condensed Consolidated Statement of Comprehensive Loss for the Three Months ended June 30, 2021

	As		Restatement		As
	Reported		Adjustments		Restated		Notes
Net loss	$	(9,993)	$	2,528	$	(7,465)
Other comprehensive loss, net of tax:
Change in fair value of AFS securities		(20)				(20)
Foreign currency translation adjustments		(41)		—		(41)
Comprehensive loss		(10,054)		2,528		(7,526)
Comprehensive loss attributable to non-controlling interest		210		—		210
Comprehensive loss attributable to IDEX	$	(9,844)		2,528	$	(7,316)

Condensed Consolidated Statement of Comprehensive Loss for the Six Months Ended June 30, 2021

	As		Restatement		As
	Reported		Adjustments		Restated		Notes
Net loss	$	(10,731)	$	(3,311)	$	(14,042)
Other comprehensive loss, net of tax:
Change in fair value of AFS securities		(20)				(20)
Foreign currency translation adjustments		(901)		—		(901)
Comprehensive loss		(11,652)		(3,311)		(14,963)
Comprehensive loss attributable to non-controlling interest		763		—		763
Comprehensive loss attributable to IDEX	$	(10,889)		(3,311)	$	(14,200)

Condensed Consolidated Statement of Equity for the Six Months Ended June 30, 2021

	Common	Par				Accumulated				IDEX				Total
	Stock	Value		APIC		Deficit		AOCI		Equity		NCI		Equity
Balance - March 31, 2021 (as reported)	419,469,800	$	419	$	761,155	$	(347,457)	$	784	$	414,901	$	5,770	$	420,671
Adjustments
Equity method investment							(178)				(178)				(178)
Income tax effects							(5,660)				(5,660)				(5,660)
Balance - March 31, 2021 (as restated)	419,469,800	$	419	$	761,155	$	(353,295)	$	784	$	409,063	$	5,770	$	414,833
Balance - June 30, 2021 (as reported)	466,354,487	$	466	$	894,285	$	(357,245)	$	730	$	538,236	$	5,444	$	543,680
Adjustments
Equity method investment							(281)				(281)				(281)
Income tax effects							(3,030)				(3,030)				(3,030)
Balance - June 30, 2021 (as restated)	466,354,487	$	466	$	894,285	$	(360,556)	$	730	$	534,925	$	5,444	$	540,369

Condensed Consolidated Statement of Cash Flows for the Six Months Ended June 30, 2021

	As		Restatement		As
	Reported		Adjustments		Restated		Notes
Cash flows from operating activities:
Net loss	$	(10,731)	$	(3,311)	$	(14,042)	B, C, D, E
Adjustments to reconcile net loss to net cash used in operating activities:
Share-based compensation		4,047		—		4,047
Depreciation and amortization		2,763		—		2,763
Non-cash interest expense		991		—		991
Allowance for doubtful accounts		340		—		340
Litigation settlement		5,000		(5,000)		—	(1)
Income tax benefit		(12,222)		(3,030)		(9,192)	C, D, E
Loss on disposal of subsidiaries		1,446		—		1,446
Equity in losses of equity method investees		417		281		698	B
Issuance of common stock for professional fees		—		1,819		1,819	(1)
Gain on extinguishment of liability		(777)		—		(777)
Gain on remeasurement of investment		(2,915)		—		(2,915)
Impairment losses		—		—		—
Settlement of ROU operating lease liabilities		—		—		—
Change in fair value of contingent consideration		(1,907)		—		(1,907)
Change in assets and liabilities:
Accounts receivable		5,503		—		5,503
Inventory		379		—		379
Prepaid expenses and other assets		(7,711)				(7,711)
Accounts payable		(60)				(60)
Deferred revenue		(1,497)				(1,497)
Amount due to related parties		770				770
Accrued expenses, salary and other current liabilities		5,794		3,181		8,975	(1)
Net cash used in operating liabilities		(10,370)		—		(10,370)
Cash flows from investing activities:
Acquisition of property and equipment		(603)				(603)
Disposal of subsidiaries		(44)				(44)
Acquisition of subsidiaries		(100,579)				(100,579)
Investment in long-term investment		(26,083)				(26,083)
Notes receivable		—				—
Investment in debt securities		(15,528)				(15,528)
Net cash used in investing activities		(142,837)		—		(142,837)
Cash flows from financing activities
Proceeds from issuance of convertible notes		220,000				220,000
Proceeds from exercise of options and warrants		163,046				163,046
Proceeds from noncontrolling interest shareholder		—				—
Borrowings from SBA PPP		—				—
Repayment of amounts due to related parties		—				—
Net cash provided by financing activities		383,046		—		383,046
Effect of exchange rate changes on cash		39				39
Net increase in cash and cash equivalents		229,878		—		229,878
Cash and cash equivalents - beginning of period		165,764		—		165,764
Cash and cash equivalents - end of period	$	395,642		—	$	395,642