Restructuring

3 Months Ended

Mar. 31, 2023

Restructuring and Related Activities [Abstract]

Restructuring

Restructuring

On September 12, 2022, the Board authorized management to pursue a plan to restructure the current EV resale activities in China. While the current operational activities will decline in scale during 2023, the company will continue to source materials from Chinese suppliers through its procurement team in China and evaluate opportunities for the sale of current Ideanomics' subsidiaries technologies in China. We believe that this change in the scope of activities in China will result in a significant reduction in the number of operating entities, a simplification of the legal entity structure and a pivot to margin expansion opportunities.

For the three months ending March 31, 2023 and 2022, the company generated $0.7 million and $13.2 million in revenues in the PRC, primarily from the sale of EV products, respectively. The carrying value of long lived assets in the PRC for the period ended March 31, 2023 and December 31, 2022, was $0.03 million and $0.1 million, respectively. Cash held in the PRC was approximately $15.0 million and $15.5 million for the period ended March 31, 2023 and December 31, 2022, respectively.

As of March 31, 2023 and December 31, 2022, the Company recorded charges of $1.0 million and $1.2 million in connection with its restructuring actions on the consolidated balance sheet. The restructuring charges consist of employee termination costs of $1.0 million and $1.1 million, respectively. Employee termination benefits were recorded based on statutory requirements, completed negotiations and Company policy.

The following table summarizes the charges in connection with its employee termination cost (in thousands):

	Three Months Ended
	March 31, 2023		March 31, 2022
Balance at the beginning of the period	$	1,056	$	—
Increase/(decrease)	—		—
Payment	$	(35)	$	—
Balance at the end of the period	$	1,021	$	—