Acquisitions and Divestitures (Tables)

9 Months Ended

Sep. 30, 2022

Business Combination and Asset Acquisition [Abstract]

Schedule of assets acquired and liabilities assumed

These preliminary estimates of the fair value are subject to revisions, which may result in an adjustment to the preliminary values presented below.

(Dollars in thousands)
Cash paid at closing, including working capital estimates	$	58,140
Fair value of previously held interest	22,183
Fair value of non-controlling interest	24,778
Purchase price	$	105,101
Allocated to:
Current assets	$	19,708
Property and equipment, net	1,927
Intangible assets –Customer relationships	14,226
Intangible assets – Development technology	18,603
Intangible assets – Trademark and trade name	14,496
Goodwill	58,643
Other assets	2,775
Current liabilities	(16,894)
Other liabilities	(8,383)
Fair value of assets acquired, less liabilities assumed	$	105,101

The table below reflects the Company’s final purchase price allocations of the acquisition date fair values of the assets acquired and liabilities assumed for the 2021 Acquisitions (in thousands):

	Solectrac		US Hybrid		Timios		WAVE
Purchase Price
Cash paid at closing, including working capital estimates	$	18,025	$	30,139	$	46,576	$	15,000
Fair value of previously held interest	5,287		—		—		—
Fair value of common stock	—		20,877		—		28,616
Fair value of contingent consideration	1,640		—		—		11,418
Total purchase consideration	$	24,952	$	51,016	$	46,576	$	55,034
Purchase Price Allocation
Assets acquired
Current assets	2,700		3,793		7,292		2,820
Property, plant and equipment	30		5		429		—
Other assets	45		52		48		—
Intangible assets – tradename	4,210		1,740		8,426		12,630
Intangible assets – lender relationships	—		—		16,600		—
Intangible assets - technology	2,350		5,110
Intangible assets – patents	—		—		—		13,000
Intangible assets - non-compete	—		520		—		—
Intangible assets – licenses	—		—		1,000		—
Indefinite lived title plant	—		—		500		—
Goodwill	17,714		42,218		21,824		35,689
Total assets acquired	27,049		53,438		56,119		64,139
Liabilities assumed:
Current liabilities	(509)		(1,602)		(4,306)		(4,578)
Deferred tax liability	(1,588)		(820)		(5,237)		(4,527)
Total liabilities assumed	(2,097)		(2,422)		(9,543)		(9,105)
Net assets acquired	$	24,952	$	51,016	$	46,576	$	55,034

Schedule of useful lives of the intangible assets acquired

The useful lives of the intangible assets acquired is as follows:

	Energica
Intangible assets – customer relationships	13.0
Intangible assets – development technology	8.0
Intangible assets – trademark and tradename	25.0
Weighted average	14.7

The table below represents the useful lives for the remaining intangibles assets related to the 2021 Acquisitions:

	Timios
Intangible assets – tradename	15
Intangible assets – lender relationships	7
Intangible assets – licenses	15
Weighted average useful life	10

Schedule of estimated amortization expense related to intangible assets

The estimated amortization expense related to these intangible assets for each of the years subsequent to September 30, 2022, is as follows (amounts in thousands):

2022 remaining	$	809
2023	4,000
2024	4,000
2025	4,000
2026	4,000
2027 and beyond	28,145
Total	$	44,954

The estimated amortization expense adjusted for the impairment related to the remaining intangible assets for each of the years subsequent to September 30, 2022 is as follows (amounts in thousands):

2022 remaining	$	358
2023	1,433
2024	1,433
2025	933
2026	933
2026 and beyond	5,307
Total	$	10,397

The following table summarizes the expected amortization expense for the following years (in thousands):

Years ending September 30,	Amortization to be recognized
2022 (excluding the nine months ended September 30, 2022)	$	1,566
2023	6,255
2024	5,987
2025	5,480
2026	5,315
2026 and thereafter	53,517
Total	$	78,120

Summary of unaudited pro forma financial information

	Three Months Ended				Nine Months Ended
	September 30, 2022		September 30, 2021		September 30, 2022		September 30, 2021
(Amounts in thousands, except per share and share data)
Total revenue	$	24,278	$	37,502	$	87,003	$	99,451
Net loss attributable to IDEX common shareholders	(45,850)		(54,568)		(112,555)		(76,217)
Earnings (loss) per share
Basic and Diluted	$	(0.09)	$	(0.11)	$	(0.23)	$	(0.17)
Weighted average shares outstanding
Basic and Diluted	494,061,205		477,214,431		496,392,410		440,151,607