Noteworthy Stock: Ideanomics, Inc. (NASDAQ:IDEX)

Shares of Ideanomics, Inc. (NASDAQ:IDEX) fluctuated between $1.8300 and $2.1300 before finishing off the trading period lower/higher with +2.11% at $+0.0400. The shares cited a trading volume 1,264,563 shares as compared to its three months average volume of 514,317 shares.

Ideanomics (IDEX) reported recently its Full Year 2018 operating results for the period ended December 31, 2018.

Our gross profit for the year ended December 31, 2018 was about $3.2M, as contrast to $7.2M during the same period in 2017.

Our current crude oil and consumer electronics trading business operates in highly competitive global markets characterized by aggressive price competition, resulting in downward pressure on already low gross margins.

Our selling, general and administrative expense for the year ended December 31, 2018was $22.5M as contrast to $13.1M for the same period in 2017, an raise of about $9.3M or 71%. The majority of the raise was Because of:

  • an raise in headcounts and relevant traveling expense in the amount of $2.5M;
  • an raise of about of $2.1M in share based compensation that were paid to our employees;
  • an raise of about of $3.0M in consulting, legal, and professional service fees that were paid to our external consultants who provided various consulting services with respect to our Fintech and Platform-as-a-Service business; and
  • an raise in our sales and marketing expense in the amount of $0.9M relating to the introduction and promotion of our business models to various potential investors and business partners, as well as the marketing of Wecast Services business.
  • an raise in rent expense by $1M mainly for our office in New York City.

Most of the costs are one time, associated with the departure of certain executives and are importantly reduced for 2019.

Professional fees are generally related to public company reporting and governance expenses as well as legal fees related to business transition and expansion. Our professional fees raised about by $1.5M, or 48%, for the year ended December 31, 2018, contrast with the same period in 2017. The raise was related to an raise in legal, valuation, audit and tax as well as fees associated with continuing to build out our technology ecosystem and establishing planned joint ventures and M&A activity as part of this technology ecosystem.

Our loss from operations was raised by $16.1M to $26.2M for the year ended December 31, 2018, from $10.1M during 2017. This was mostly Because of the decrease in gross profit from our Wecast Services section and the raise of operating expenses for the development of Wecast Service business.

Loss per share for 2018 was $0.35 as contrast to $0.17 in 2017.

As of December 31, 2018 the company had cash of $3.1M, total assets of $94.2M, total equity of $43.2M.

From 2019 onwards, the Company has officially transformed into a strong AI improved financial advisory and asset management model, that is now positioned to deliver important value to its shareholders and strong economics.

Over the past year Ideanomics has been able to continue its transformation from its legacy business, to be a prominent player for fintech services and asset digitization through establishing a global compliant network of financial technology, user community, and digital asset production. Our team of seasoned digital strategists and technology leaders has positioned the Company towards a path of unlocking unlocking FinTech services related revenue for 2019.  We have several signed consumer revenue deals in the areas of CleanTech, EV bus sales and asset backed securitization, and others in our pipeline, and our product and tech teams are diligently building out these new digital products to unlock this revenue in the near term and position the company towards a strong 2019. The stock RSI amounts to 65.74. IDEX debt to equity ratio was 0.22 while current ratio was 0.60. The company has the institutional ownership of 1.70% while the Beta factor was 2.04. The stock’s RSI amounts to 65.74.

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