Risk Factors Update Summary

• Revenue from Electric Vehicle products decreased significantly from $114 million to $3 million.
• The Company missed business development targets in 2022 and is expected to continue missing targets in 2023, resulting in a decrease in enterprise value.
• Restatement of Revenue: Revenue now recognized upon delivery of products to end-customers.
• Tree Technologies Contingent Consideration was remeasured as of June 30, 2023, and not December 31, 2022.
• Electric vehicle products were expanded to include electric vehicle services, with a decrease in electric motorcycle products. This change might result in a shift in revenue streams.
• Added 'EV and charging businesses' to risk factors, highlighting significant competitive pressure and limited intellectual property rights. This change might result in increased competition and potential revenue challenges.
• Base salary increased from $550,000 to $600,000 per year, subject to required withholdings.
• The Company recorded a $2.8 million default judgment in the Osirius Group lawsuit, with $1.3 million paid and $1.5 million remaining.
• The Company entered into a promissory note with Tillou for $2.0 million, payable on demand after April 20, 2023, with a 20% interest rate.
• Introduction of new employment agreements and stock purchase agreements with specific dates.
• Net loss attributable to Ideanomics, Inc. common shareholders increased from $223.8 million to $260.6 million.
• Goodwill impairment charges of €2.7 million ($3.0 million) were recorded in 2023 due to the decline in fair value of reporting units.
• Expanded relationships covered under the policy to include grandchildren, parents, stepparents, and more.
• Mentioned the wind-down of PRC business, impacting operations and revenue sources. This change might result in operational disruptions and revenue loss until completion.
• Introduced a new section on Material Nonpublic Information, defining what constitutes material information.
• The Company reduced NEO annual compensation by 21%-23% and amended applicable change in control provisions to six months. This change might impact executive retention and cost savings significantly.
• Andrea Hayward appointed as independent director, bringing over 31 years of experience and $1.5 billion P&L oversight.
• The Company's deferred tax assets decreased from $3.0 million in 2022 to $1.9 million in 2023.
• A significant increase in deferred revenue from contracts with customers from $2,392 million to $5,537 million. This change might indicate a change in revenue recognition or contract terms.
• Assets Held for Sale: Energica, Solectrac, IDEX Spain met criteria, continued as continuing operations.
• Solectrac Contingent Consideration was reduced to zero as of December 31, 2023, due to projection changes.
• VIA Motors is discussing licensing its skateboard technology for vehicle electrification projects, reducing costs.
• Wind Down of PRC Operations authorized to restructure electric vehicle resale activities in China.
• The Company granted a promissory note to Therese Lee Carabillo for $1.0 million, maturing on June 6, 2023, with a 20% interest rate.
• The Company's loss per common share decreased from $(0.57) in 2022 to $(0.47) in 2023.
• Added a section on Equity Compensation, detailing the types of securities covered by the policy.
• Policy now applies to insiders instead of specific individuals like consultants and contractors.
• VIA Contingent Consideration value was reduced to $0 as of December 31, 2023, from $73.6 million.
• Research and development expenses increased from $3.8 million to $10.2 million.
• Solectrac shifted focus to direct-to-consumer strategy, enhancing customer service and support.
• Scott Morrison appointed CFO, previously CFO of Wave Charging, LLC, with experience in finance and aviation.
• Addition of multiple agreements and amendments related to secured convertible promissory notes and debentures.
• Discontinued Operations: Timios, US Hybrid, Tree Technologies, Justly met criteria, no longer presented.
• The Company fully impaired the goodwill to zero in 2023 related to the VIA acquisition, impacting future economic benefits.
• Sale of Timios Operations completed for $0.5 million, no material gain or loss.
• A decrease in notes receivable from third parties from $89,550 million to $60,513 million. This change might indicate a change in investment strategy or risk assessment.
• Noted the increase in authorized preferred stock shares from 50 million to 60 million. This change might result in dilution of common stock and impact shareholder value.
• The Company did not award any annual cash incentives to NEOs for fiscal year 2023. This change affects incentive alignment and executive performance evaluation.
• Inclusion of updated dates for various agreements and policies, impacting legal responsibilities.
• Intangible asset impairment increased from $21 million to $121 million, impacting financials significantly.
• The Company reduced management staff annual compensation by 21%-23% as part of restructuring efforts.
• Material Errors: Underestimation of high probability of returns, incomplete disclosure of contractual terms.
• Revenue Recognition: Revenue recognized when dealer sells inventory, loan agreement satisfied.
• The Company's defined contribution plans' matching contributions decreased from $0.7 million in 2022 to $0.1 million in 2023.
• An increase in the fair value of notes receivable from $31,608 million to $31,653 million. This change might indicate a change in the valuation of these assets.
• The Company reduced the base salaries of Messrs. Poor, Johnston, and Sklar to $800,000, $525,000, and $475,000 per year, respectively. This change impacts executive compensation structures and cost management.
• The Company disposed of Shangdong, no longer considered a related party, on November 29, 2022.
• Included a section on Insider Trading Compliance Officer and Annual Bonus criteria, emphasizing performance metrics.
• Policy now covers all transactions, including securities, common stock, options, and more.
• Paul Hancock, with 25 years of experience, appointed as Deputy CEO & CFO, specializing in electric batteries.
• The Company recorded an impairment charge of $104 million in 2023 related to internally generated software.
• Asset impairments and goodwill impairments increased significantly, with losses of $121.7 million and $50.4 million.
• Loss from operations decreased from $217.5 million to $95.4 million.
• Executive salaries were reduced, with Mr. Poor and Mr. Morrison granted $175,000 and $125,000 in shares, respectively.
• The Company recorded an impairment charge of $18.6 million in 2023 due to disputes with Acuitas regarding warrant exercises.
• The Company increased the number of shares available under the 2010 Stock Option Plan to 37,500,000 in 2023. This change affects stock-based compensation and aligns with stockholder interests.
• The Company decided to wind down its China operations and Tree Technology business. This change might result in cost savings or strategic realignment.
• Inventory valuation changes: work-in-process decreased from $10.9 million to $9.4 million.
• The Company entered into employment agreements with Mr. Morrison and Mr. Hancock, adjusting their annual salaries. This change impacts executive compensation and retention strategies.
• Raw materials inventory increased from $6 million to $6.8 million, affecting overall inventory valuation.
• The Company issued 1.1 million shares of common stock in 2023, impacting equity transactions.
• The Company entered into a Standby Equity Purchase Agreement with YA II PN, LTD for up to 10,000,000 shares.
• Interest income increased from $1.2 million to $4.3 million.
• Fixed-rate convertible debt decreased from $79 million to $37 million, impacting financial obligations.
• The Company entered into various amendments and agreements related to promissory notes, impacting outstanding amounts and interest rates.
• The Company executed an Amended and Restated Promissory Note with Tillou for $7,217,095, including an additional $3,000,000 advance.
• The Company adopted a written policy for reviewing and approving related person transactions, enhancing transparency and governance.
• Cash used in operating activities increased from $52.7 million to $129.9 million.
• The Company provided information on the CEO pay ratio, with the ratio of the CEO's total compensation to the median employee's compensation being 10 to 1.
• Equity investments decreased from $35.7 million to $5.8 million, affecting investment portfolio.