Ideanomics, Inc.

Welcome everyone to the Ideanomics fourth quarter and full year 2023 earnings conference call. Joining me today I am pleased to have Mr. Alf Poore, Chief Executive Officer and Mr. Ryan Jenkins, Chief Financial Officer. A recording of today's call will be archived and available in the events and presentation section or other section of the corporate website for a minimum of 30 days. During the call, we will make forward-looking statements such as dialogue regarding our revenue expectations or forecast for 2024. These statements are based on our current expectations and information available as of today and are subject to a variety of risks and uncertainties and assumptions. Actual results may differ materially as a 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 new information or future events except as required by law. In addition, other risks are more fully described in the Audionomics public filings with the U.S. Securities and Exchange Commission and can be viewed at www.sec.gov. Today, June 18th, the company filed with the SEC its Form 10-K for 2023 and afterwards issued a press release announcing those financial results. So participants who are listening to this call who have not already done so may wish to look at those documents as we provide a summary of the results on this call. The format of today's call will be as followed. Mr. Alpore will begin our comments today and speak to the company's progress and strategic developments. Mr. Ryan Jenkins will speak to the company's operating and financial results for the fourth quarter and full year 2023. And then finally, Mr. Alpore will make some closing remarks. I will now hand the floor over to Mr. Alpore, Ideonomics CEO.

Thank you, Tony, and thank you all for joining us today for the Ideonomics Q4 and full year 2023 earnings call. I'd like to start off by saying thank you to our investors for their patience in getting these results to you. As you are likely aware, we divested from several businesses and investments from Q1 of 2023 through Q1 of this year. That added a significant workload to the annual audit. 2023 was an interesting and challenging year for all companies in the commercial EV sector. and Ideonomics was no exception. In addition to the operational adjustments made throughout the year to manage our costs, we focused on winning customers that could provide us with the potential for scalable future revenues. I'm happy to report that we closed initial deals at our Waze business with two Fortune 50 customers, and these give Ideonomics the opportunity to be successful in 2024 and beyond. To expand on that, We continue to believe our largest opportunity lies in middle-mile and last-mile delivery vehicles, along with the associated charging infrastructure. Our products are tailor-made for round-the-clock fleet operations and deliver our customers the confidence that EVs can affordably and reliably meet their business requirements. The local delivery market continues growing rapidly as more retailers enhance customer convenience through faster fulfillment options and our products are an important part of what the delivery industry needs to service customer demand. Our conviction around our businesses and our focus on commercial fleets has proven to be the correct decision for Ideonomics businesses at this time. Our customers are choosing to work with us as we have proprietary and differentiated technologies that serve their needs today, but also just as importantly, are designed to meet the challenges and technological change of tomorrow. Despite the difficult environment, we have made progress on the significant investments in the design and engineering of our products, and as a result, we believe we are ready to scale to meet our customer needs. I'll speak more in a few minutes, but for now, I'll turn it over to Ryan to review our financial performance for the period. Ryan?

Thank you, Alf, and hello, everyone. Revenue for 2023 was $15.5 million, a decrease of 18.7% from $19 million of revenue in 2022. 2023 gross profit was a loss of $2.7 million, representing a gross margin of negative 19.2%. This is an increase of roughly $0.6 million compared to a loss of $3.4 million in 2022. 2023 operating expenses were $214.7 million, an increase of 2.6% from operating expenses of $209.3 million in 2022. The majority of the 2023 operating expenses were due to one-time non-cash impairment charges. In 2023, we reduced costs and effectively managed resources enabling us to navigate the current challenges that Alf discussed and has positioned the company to use our capital more effectively to benefit both Ideanomics and our shareholders in 2024 and beyond. Now back to Alf Poore for closing remarks.

Thank you, Ryan. I'd like to touch on a few last items before we close the call today. Firstly, thank you to our chairman, Shane, and his family office for supporting the business in recent weeks and for believing in the opportunity we have in front of us. Secondly, and our core focus for the remainder of 2024, is to demonstrate confidence to investors. We plan to achieve this through increased communications and activities such as providing key insight into our successful customer deployments and partnerships. We believe this much needed transparency will showcase how and why our products are important to fleet operators. These types of activities will help restore investor confidence, and in turn, we would expect to see positive gains in our respective share price. Our share price is beaten down, along with many of our peers, and as a result, we believe our enterprise is significantly undervalued. Finally, a big thank you to our investors for remaining with us through the difficult times the EB industry has endured for the past two to three years. We've built some amazing products that customers can rely on for their transition to zero emission transportation. And we'd like you all to come on the next stage of the journey with us as we mature our business lines and strive to profitably grow our business. Please be sure to tune into our Q1 2024 earnings call, which will be coming up shortly now that our annual report has been completed and filed. I'll be providing you some additional insight into the progress and developments of our business at that time. Thank you all for tuning in today. And from everyone at Ideanomics, thank you for your continued interest and support. Tony.

This is all the time we have for today, and this concludes the Ideanomics fourth quarter and full year 2023 investors conference call. We encourage our community to continue to reach out to us, and we can answer any questions that you may have individually. You can send your questions in to us at ir.ideanomics.com. We'd like to thank all of our listeners, shareholders, analysts, and others who have taken the time to listen to our earnings call. We urge you to refer to our latest SEC filings for any information that you need. This call will be available from our website at And you can find the link on the front page or in the investors and presentation section. To be alerted to news events and other information in a timely manner, we recommend you following us on social media channels and sign up for our newsletter and explore our website at www.ideanomics.com. Thank you, everyone, for participating and listening in today's call.