Ideanomics, Inc.

Greetings and welcome to the Ideanomics second quarter 2021 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note that this conference is being recorded. I will now turn the conference over to our host, Tony Sklar, Senior Vice President of Investor Relations. Thank you. You may begin.

Thank you, Operator, and welcome everybody to the Ideanomics Second Quarter 2021 Earnings Conference Call. Joining me today, I'm pleased to have Mr. Alf Poor, our Chief Executive Officer, Ms. Kristen Halsall, our Chief Revenue Officer, and Mr. Connor McCarthy, our Chief Financial Officer. A webcast of today's call will be archived and available in the events and presentation section of our corporate website for a minimum of 30 days. And as a reminder, this conference is being recorded. During the call, we will make forward-looking statements such as dialogue regarding our revenue expectations or forecast for the quarters and full fiscal year 2021 and 2022 related to our business. These statements are based on our current expectations and information available as of today and are subject to a variety of risks, uncertainties, and assumptions. Actual results may differ materially as the result of various risk factors that have been described in our periodic filings with the SEC. As a result, we caution you against placing undue reliance on these forward-looking statements. We assume no obligation to update any forward-looking statement as a result of any new information or future events, except as required by law. In addition, other risks are more fully described in the ID Anomics public filings with the U.S. Securities and Exchange Commission, which can be viewed at www.sec.gov. Today, August 16, 2021, the company filed its 10-Q with the SEC and afterwards issued a press release announcing its financial results. So participants on this call who may not have already done so may wish to look at those documents as we provide a summary of the results on this call. The format for today's call will be as follows. Mr. Alfpour, our CEO, will speak to the company's overview, business strategy, and contacts around the activities and developments for the second quarter of 2021 and into Q3 so far. Ms. Kristin Halsall will speak to the company's second quarter revenues and further revenue growth opportunities. Mr. Connor McCarthy, our CFO, will speak to the company's operating and financial results for the second quarter of 2021. It is now my pleasure to hand over the conversation to our CEO, Mr. Alfred Poor.

Thank you, Tony, and thank you, everyone, for joining our Q2 earnings call. We're excited to be in front of our investor community today. We have come out of the blocks hard and fast in 2021. driving and upgrading all aspects of our business, and this has us well positioned for the continued execution of our strategy. Ideonomics has continued to strengthen its business quarter over quarter, and Q2 was another significant quarter for the company. We operate two distinct business units, Ideonomics Mobility and Ideonomics Capital, and both are positioned to take advantage of the growth opportunities in their respective sectors. Our M&A and investment strategy has remained steadfast and has brought some incredible companies and leadership teams into the Ideonomics Mobility family in 2021, including Wave, Energica, Selectrac, US Hybrid, and P. This gives Ideonomics the most complete offering to meet the needs for commercial fleet operators in the transition to zero-emission vehicles. I will begin my update with the Ideonomics Mobility Business Unit and the operating companies onshore here in the U.S., Ideonomics is executing on what we believe is one of the most compelling, vertically integrated offerings in the EV sector. We have best-in-class leading technologies and the talent required to leverage our presence in the most significant global markets. These, coupled with innovative financing and cross-selling opportunities, are enabling us to unlock demand from fleet operators. We're a global company with operations in several companies, so as I said, I will start with our U.S.-based operations and WAVE. our wireless inductive charging business, which is benefiting from assimilating into the Idenomics family, and we are seeing the uptick in orders and interest that we anticipated when making the acquisition. In terms of pipeline development, which Kristen will elaborate on, we are working with a number of transit authorities, port systems, and commercial fleet operators who recognize the advantages of utilizing high-power wireless charging systems. This has us confident we will achieve significant revenues from these types of commercial customers. Fleet operators are also showing heightened interest in Wave systems for use in conjunction with autonomous vehicles, as wireless charging is a critical part of making driverless commercial fleets a reality. In recognition of the incredible potential of Wave, we are also investing in our IP and patent strategy for both the existing and future Wave products. We completed the acquisition of US Hybrid late in Q2 And this provides us with access to a very meaningful set of technologies and components, from hydrogen fuel cells through to vehicle integration capabilities. And we are preparing to help them scale their capacity to service both Amadichi brand, as well as developing their ability to service OEM partners at scale. This is an outstanding acquisition by Ideonomics Mobility, and like Wave and Selectrack, is transformative for us, as well as the value of its contributions to the broader group. We also completed the acquisition of Selectrac late in Q2, which means Ideonomics Mobility has the only made-in-America EV tractor in market at this time. We have invested in an exceptional CEO and management team to help scale the Selectrac business to meet the market demand, as Kristen will speak to shortly. Our Medici Motorworks division continues to work with OEM partners to bring a range of competitive commercial vehicles to market. with an emphasis on those commercial vehicles which offer us attractive margins, such as buses, tour buses, yard tractors, trucks, and other types of vehicles in the heavy commercial sector. In addition to the OEM partner capabilities, we are working to integrate wave and U.S. hybrid capabilities into our vehicles, and we anticipate having those vehicles in market in 2022. We will begin to start to show some of this over our social media channels. In the meantime, we will continue our marketing and homologation efforts, which you will be seeing more of in the coming weeks and months ahead. And to that end, the first 125 kilowatt wave unit has been delivered to an OEM partner for integration into the yard tractor product. This integration is an important milestone for future sales in the port and warehousing markets and keeps us on schedule for our 2022 plans. Looking at our overseas businesses, Our MEG business has been entirely reorganized in the first two quarters of the year, and we are now referring to it as Ideonomics China as we begin to extend the products and services available beyond MEG's current scope and offering. We are progressing our introduction of the Wave charging system in China, and this is in response to market interest. The process for Wave to enter the region will take us into 2022, as high-power charging systems are subject to local certification standards. To help us market WAVE more broadly in Asia, we have developed new partnerships and other strategic OEM relationships, and we are pleased with the level of interest in our vehicle procurement, financing, and now WAVE systems from ports, transit authorities, and commercial fleet operators. The deal we had previously announced with BYD and DD for 2,000 units of the D1 ride-hailing vehicle is being restructured at this time, as the timing for proceeding was interrupted by conditions on the ground in the PRC. We'll provide further updates in the future. And in the meantime, the deposit for this deal remains held at BYD and will be satisfied in the future restructured deal. In our two and three-wheeled businesses, Treelectric has been impacted on an ongoing basis in COVID-19, the Delta variant specifically, but has been able to make progress despite the challenges the pandemic introduced. And Kristen will elaborate further on that during her remarks. Our investment in Energica has performed well, with an increase in the value of the share price up around 70% since our investment, based on our investing at 1.78 euros and the stock's current trading range of 3 plus euros. They continue to lead the EV performance motorbike industry globally. We recently visited with Energica and Silk EV in Italy, and we are pleased to report that both companies are building exceptional products for the performance market, supported by what I would consider to be the strongest technical teams available anywhere globally. As you will see from our recent announcement, we concluded the investment into P, which is a division of Predil, a German global tier one supplier of electronics and components to some of the world's largest automotive manufacturers. The deal includes an agreement to be the exclusive sales distributor in North America for P. In addition to the association with Predil, which is arguably among our strongest partnerships to date, given their tier one OEM clients, Their technology is best in class and will be an important entrant into the grid-edge sector, with energy storage and ultra-high-power smart charging systems, which can be deployed on a temporary, semi-permanent, and permanent basis, using a blend of clean, renewable, and grid-based energy. This is an important product for the charging market and one which will be a key revenue driver for our new infrastructure division, which will be announced in the coming weeks. I want to conclude the United Dynamics Mobility Division by stating that that we have put together an exceptional offering across the full value chain of commercial EV and zero-emission vehicles. This offers our shareholders the ability to participate in the tremendous potential of the entire commercial fleet sector, with the added advantage of being diversified within a single stock. We have purposely assembled over the course of the past couple of years, and more specifically the past 12 months, the most comprehensive offering of EV assets anywhere globally, and we are now in the execution phase of what will be exciting times for the company and its shareholders going into 2022 and beyond. Our vision for the next 36 months is to help shape the future of commercial fleet operations across the three key areas evolving as part of the transition into zero-emission transportation, which are vehicles, charging, and energy. In addition to the reduction on carbon emissions and the reduced total cost of ownership benefit versus gasoline and diesel-based fleet, we are also introducing innovative financial products which will enable fleet operators to switch their capital investment model from capex to opex by offering charging as a service and vehicle as a service and also energy as a service in deregulated markets. We believe the shift from capex to opex will have a profound effect on fleet operators, accelerating the adoption of zero-emission fleets by removing the obvious barrier to entry of having to invest in new products and infrastructure. Turning our attention to Ideonomics Capital, I want to start with Timios, who had a record quarter in Q1, a strong quarter in Q2, and has got Q3 off to a strong start as well. Kristen will speak more about their business in her segment, but it has been a pleasure working with the Timios team through the acquisition and assimilation into the Ideonomics family, and we have some exciting initiatives that we'll be working on in the coming weeks and months to further increase their revenues, including working with the MDI Keepers Fund, which we recently invested in. MDI Keepers is a for-profit fund with partnerships at more than 100 minority banks and lenders, and that initiative will see Ideonomics and Timios working to help our minority communities through both cost savings and wealth creation, while bringing in revenues for Timios. So we're excited to be working with the fund on such a meaningful project. Delaware Border Trade, or DBOT for short, is going to relaunch later in the year as Justly, an impact investing platform focused on ESG-based investments. We will have more on that for you in the coming weeks, but I would like to share with you that we've recruited exceptional talent to come in and support the relaunch, and I'm excited to see this project underway. We have recently concluded the follow-on investment with TM2 after their successful launch of their technology metals exchange after a couple of months ago, and many of the metals they are helping to bring to market are essential for the development of the EV automotive and aerospace sectors, and providing the supply and demand sides of pricing discovery for these metals for the first time is going to help the market manage the ever-increasing demand for increasingly important metals such as indium and rhenium. In addition to the increasing value of their business and, in turn, Ideonomics investment, this provides Ideonomics with informational access into the supply chain and pricing for the raw materials which are becoming prominent in the markets we are active, including precious metals in batteries, electric motors, and hydrogen fuel cells, the insight into which helps inform planning and decision-making within Ideonomics mobility. TM2 has the potential to become a market leader in this space, and their team has impressed us with their ability to navigate the launch of their platform, which included NASDAQ as their partner, and the growth they are currently experiencing. As I have outlined today, Ideonomics is in an extremely privileged position, and I want to say a big thank you to everyone involved in helping us build a world-class organization, and that includes, of course, our large and diverse investor base. Shane McMahon has recently taken on the role of chairman. has come in to help us with the anticipated growth by bringing his energy, his network, and his public profile for the benefit of Ideonomics and its shareholders. I would like to say finally to our shareholders, your interest in our business has provided us with the ability to pursue our strategy, and we are both humbled and thankful for the tremendous investor support we receive. We're here first and foremost for our shareholders, and I want to thank you for joining us on this journey as we enter the next phase of our business and unlock the full potential of our family of synergistic operating companies. and deliver back to you the share price appreciation you joined us for. Thank you again for joining us on today's call. I will now hand you over to Kristen Helsall, Ideanomics Chief Revenue Officer.