Discontinued Operations

12 Months Ended

Dec. 31, 2023

Discontinued Operations and Disposal Groups [Abstract]

During the year ended December 31, 2023, our business components Timios, US Hybrid, Tree Technologies, Justly and China met the criteria for classification as discontinued operations and are no longer presented as continuing operations. Assets and liabilities associated with these components are presented in our consolidated balance sheets as Discontinued Operations. The results of operations related to these components are included in the consolidated statements of operations as "Loss from discontinued operations, net of tax." The cash flows of these components are also presented separately in our consolidated statements of cash flows. All corresponding prior year periods presented in our financial statements and related information in the accompanying notes have been reclassified to reflect the Discontinued Operations presentation.

On July 25, 2023, we completed the sale of the Timios Operations for cash proceeds of $0.5 million (net of $0.2 million in transactions costs paid for by the buyer) and the extinguishment of outstanding payables to YA PN II of $2.4 million. There was no material gain or loss on the sale of the Timios operations. On November 7, 2023, the Company received the deposit of

$0.5 million from a potential buyer of US Hybrid, the details of this transaction are included as a subsequent event in our Note 25. As of December 31, 2023, the China business component completed all commercial vehicle resale activities and does not expect to generate material revenues prior to the wind up of the legal entities in China.

The following table summarizes the operating results of the discontinued operations for the periods indicated:


	Years ended
	December 31, 2023		December 31, 2022
Total revenue	$	16,412	$	75,835
Cost of revenue	15,418		73,261
Gross profit	994		2,574
Selling and administrative expenses	20,219		35,105
Depreciation and amortization	455		2,409
Asset impairments	10,519		43,694
Other operating costs	31		1,233
Operating loss	(30,230)		(79,867)
Non-operating income (expense)	814		5,278
Income tax benefit	140		6,137
Loss from discontinued operations, net of tax	$	(29,276)	$	(68,452)

The following table summarizes the assets and liabilities of the Discontinued Operations included in the consolidated balance sheets for the periods indicated:


	December 31, 2023		December 31, 2022
Cash and cash equivalents	$	1,180	$	19,015
Accounts Receivables, net	382		1,614
Inventory, net	2,667		5,054
Prepaid expenses and other current assets	807		8,020
Current assets of discontinued operations	$	5,036	$	33,703
Property and equipment, net	177		1,227
Intangible assets, net	6		9,147

Operating lease right of use assets	2,232		5,446
Other noncurrent assets	428		3,392
Noncurrent assets of discontinued operations	$	2,843	$	19,212

Accounts payable and accrued expenses	$	2,947	$	8,970
Current portion of operating lease liabilities	941		469
Other current liabilities	3,834		4,805
Current liabilities of discontinued operations	$	7,722	$	14,244
Operating lease liabilities – long term	1,317		—
Deferred tax liabilities	355		454
Other noncurrent liabilities	—		4,758
Noncurrent liabilities of discontinued operations	$	1,672	$	5,212

Assets Held for Sale

During the year ended December 31, 2023, our business components Energica, Solectrac and IDEX Spain (the “held for sale businesses”) met the criteria for classification as assets held for sale and discontinued operations. However, as the held for sale businesses comprise the substantial majority of assets, liabilities, revenues and operating costs of the Company’s continuing operations and the period of time over which the disposal events are expected to occur, we have continued to present these operations as continuing operations. We believe this provides more relevant information in the primary financial statements. While these assets are classified as held for sale as we assess active third-party interest, we do not anticipate the sale of all of these businesses. For those that we do decide to sell, it is expected that the majority of the balances attributable to the held for sale businesses will not be divested until the second half of 2024.

The following table summarizes the operating results of the held for sale businesses for the periods indicated:


	Years ended
	December 31, 2023		December 31, 2022
Total revenue	$	11,732	$	16,341
Cost of revenue	15,284		19,128
Gross profit	(3,552)		(2,787)
Selling and administrative expenses	21,738		21,199
Depreciation and amortization	4,954		4,173
Asset impairments	20,001		22,673
Other operating costs	2,270		3,449
Operating loss	$	(52,515)	$	(54,281)

The following table summarizes the assets and liabilities of the held for sale businesses included in the consolidated balance sheets for the periods indicated:


	December 31, 2023		December 31, 2022
Cash and cash equivalents	$	1,221	$	2,168
Accounts Receivables, net	408		1,741
Inventory, net	17,349		25,000
Prepaid expenses and other current assets	2,288		7,482
Current assets of businesses held for sale	$	21,266	$	36,391
Property and equipment, net	5,616		5,671
Intangible assets, net	23,512		43,471
Goodwill	35,894		37,775
Operating lease right of use assets	6,095		6,533
Other noncurrent assets	2,262		1,818
Noncurrent assets of businesses held for sale	$	73,379	$	95,268

Accounts payable and accrued expenses	14,703		16,339
Current portion of operating lease liabilities	808		768
Other current liabilities	22,096		18,335
Current liabilities of businesses held for sale	$	37,607	$	35,442
Operating lease liabilities – long term	5,415		5,846
Deferred tax liabilities	1,007		2,648
Other noncurrent liabilities	4,786		2,773
Noncurrent liabilities of businesses held for sale	$	11,208	$	11,267

Balance Sheet View if Excluding the Held for Sale Businesses Noted Above

While the sale of the businesses noted above is contingent on the ability to reach a mutually acceptable price with an unrelated arms-length buyer, in the event these business components are divested in the next twelve months, the Company will experience a material change in the assets its owns and operates. The following table presents a balance sheet as of December 31, 2023 as if the sale of Energica, Wave Technologies, and Solectrac were complete and such businesses were presented as discontinued operations. In this event, the balance sheet below would reflect the assets and liabilities of the parent company Ideanomics, Inc. and VIA Motors as the sole remaining continuing operations in that hypothetical situation. However, the balance sheet below presents historical financial information and does not include cash or other assets we would receive from the sale of the businesses held for sale, nor does it show any liabilities that may be reduced or discharged with cash received. Additionally, as described above, we may decide not to sell one or more of the businesses held for sale.


	December 31, 2023		December 31, 2022
Cash and cash equivalents	$	28	$	746
Accounts Receivables, net	629		366
Inventory, net	2,489		4,309
Prepaid expenses and other current assets	3,148		42,505
Current assets of discontinued operation and businesses held for sale	26,302		70,095
Total current assets	32,596		118,021
Property and equipment, net	7,288		2,174
Intangible assets, net	155		151
Goodwill	—		—
Operating lease right of use assets	22		4,000
Other noncurrent assets	601		8,098
Noncurrent assets of discontinued operation and businesses held for sale	76,222		114,481
Total assets	$	116,884	$	246,925

Accounts payable and accrued expenses	$	49,634	$	18,405
Current portion of operating lease liabilities	2,415		1,264
Other current liabilities	20,256		11,457
Current liabilities of discontinued operation and businesses held for sale	45,329		49,687
Total current liabilities	117,634		80,813
Operating lease liabilities – long term	5,474		2,720
Deferred tax liabilities	938		—
Non current contingent Liabilities	—		—
Other noncurrent liabilities	229		321
Noncurrent liabilities of discontinued operation and businesses held for sale	12,880		16,476
Total liabilities	137,155		100,330

Series A	1,262		1,262
Series B	1,863		8,850
Series C	4,825		—
Equity:
Common stock	1,499		597
Additional paid-in capital	1,071,520		1,004,082
Accumulated deficit	(1,090,579)		(866,418)
Accumulated other comprehensive loss	(4,553)		(6,104)
Total Ideanomics, Inc. shareholder’s equity	(22,113)		132,157
Non-controlling interest	(6,108)		4,326
Total equity	(28,221)		136,483
Total liabilities, convertible redeemable preferred stock and equity	$	116,884	$	246,925