The following management's discussion and analysis is presented in four sections as below and should be read in conjunction with the condensed consolidated financial statements and the notes thereto and the other financial information appearing elsewhere in this report on Form 10-Q. In addition to historical information, the following discussion contains certain forward-looking information. See "Cautionary Note Regarding Forward Looking Statements" above for certain information concerning those forward-looking statements.
•Overview
•Results of Operations
•Liquidity and Capital Resources
•Outlook
OVERVIEW
Through
Immaterial Corrections of Prior Period Financial Statements
The accompanying Management's Discussion and Analysis of Financial Condition and
Results of Operations gives effect to the prior period adjustments made to the
previously reported Condensed Consolidated Financial Statements as of and for
the periods ended
Significant Transactions in the Three Months Ended
Energica Loan Agreement
On
Energica Tender Offer
On
On
20
--------------------------------------------------------------------------------
Table of Contents
Disposition of
On
Principal Factors Affecting the Company's Financial Performance
The business is expected to be impacted by both macroeconomic and
•The Company's ability to access the equity and debt markets to obtain the working capital and investment capital required to fund its EV operations. The Company's EV businesses are in the development stage, are not profitable, and are not expected to be profitable and cash generative in the short to medium term. Consequently, the EV businesses are highly dependent on the Company's ability to access the equity & debt capital markets to provide sufficient cash for these businesses to continue to develop their products, build large scale manufacturing capacity and invest in sales and marketing infrastructure.
•The Company's ability to remain competitive. The Company will continue to face intense competition: these new technologies are constantly evolving, and the Company's competitors may introduce new platforms and solutions that are superior. In addition, the Company's competitors may be able to adapt more quickly to new technologies or may be able to devote greater resources to the development, marketing and sale of their products than the Company can. The Company may never establish and maintain a competitive position in the hybrid financing and logistics management businesses.
•The fluctuation in earnings from the deployment of the Company's services through acquisitions, strategic equity investments, the formation of joint ventures, and through licenses of technology. The Company's results of operations may fluctuate from period to period based on the entry into new transactions to expand the business. In addition, while management intends to contribute cash and other assets to the Company's various investments, the Company does not intend for its holding company to conduct significant research and development activities. The Company intends research and development activities to be conducted by its technology partners and licensors. These fluctuations in growth or costs and in the Company's various investments may contribute to significant fluctuations in the results of the Company's operations.
Effects of COVID 19
COVID-19 is an infectious disease cause by severe acute respiratory syndrome
coronavirus. The disease was first identified in
The spread of COVID-19 has caused significant disruption to society as a whole, including the workplace. The resulting impact on the global supply chain has disrupted most aspects of national and international commerce, with government-mandated social distancing measures imposing stay-at-home and work-from-home orders in almost every country. The effects of social distancing have shut down significant parts of the local, regional, national, and international economies, for limited or extended periods of time, with the exception of government designated essential services.
In many parts of the world, stay-at-home and work-from-home orders were relaxed
during the summer of 2020 as the effects of the Coronavirus appeared to lessen,
and economic activity began to recover. However, commencing in the autumn and
fall of 2020, the
The future effects of the virus are difficult to predict, due to uncertainty about the course of the virus, different variants that may evolve, and the supply of the vaccine on a local, regional, and global basis, as well as the ability to implement vaccination programs in a short time frame.
21
--------------------------------------------------------------------------------
Table of Contents
The Company does not anticipate significant adverse effects on its operations'
revenue as compared to its business plan in the near- or mid-term, although the
future effects of COVID-19 may result in regional restrictive measures which may
constrain the Company's operations, and supply chain shortages of various
materials may have a negative effect on our EV sales or production capacity in
the longer-term. The Company's Tree Technologies business, which focuses on the
sale of motorbikes in the
The Company continues to monitor the overall situation with COVID-19 and its effects on local, regional and global economies.
Information about Segment Presentation
The Company's chief operating decision maker has been identified as the chief
executive officer, who reviews consolidated results when making decisions about
allocating resources and assessing performance of the Company. The Company
operates in one segment with two business units:
Ideanomics Mobility will drive EV adoption by assembling a synergistic ecosystem
of subsidiaries and investments across the three key pillars of EV: Vehicles,
Charging, and Energy. These three pillars provide the foundation for Ideanomics
Mobility's planned offering of unique business solutions such as CaaS and
Our Unconsolidated Equity Investments
The investments where the Company exercises significant influence, but not control, are classified as long-term equity investments and accounted for using the equity method. Under the equity method, the investment is initially recorded at cost and adjusted for its share of undistributed earnings or losses of the investee. Investment losses are recognized until the investment is written down to nil, provided that the Company does not guarantee the investee's obligations or is committed to provide additional funding. Refer to Note 11 of the notes to unaudited condensed consolidated financial statements included in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information.
22
--------------------------------------------------------------------------------
Table of Contents
© Edgar Online, source