New York-based Ideanomics, the company that’s begun demolition work at the former UConn West Hartford campus in preparation for its planned $400 million “FinTech Village” project, saw its third-quarter losses climb as revenue fell to its lowest level of 2019.
Ideanomics, which has said it will file formal FinTech Village plans with West Hartford officials by year’s end, reported a loss of $13.7 million, or 11 cents per diluted share, for the three months ended Sept. 30. That’s compared to a loss of $7.2 million, or 10 cents per share, in the same quarter of 2018.
The company shifted its business model at the end of 2018, stating its aim to move toward a fintech business model and away from crude-oil trading and other logistics-related businesses that had proven unprofitable.
The evolving model produced profits during the first two quarters of this year. The recent quarter represented the company’s first unprofitable quarter of 2019.
Ideanomics’ stock was trading at 75 cents a share late Thursday morning, down from Wednesday’s close of $1.07.
A relatively new division that provides financing and energy management services for electric vehicle commercial fleets brought in the bulk of the third-quarter revenue.
Meanwhile, Ideanomics’ digital asset management segment brought in none, after representing a majority of its revenue in the prior two quarters.
Also driving the third-quarter loss were higher operating expenses, which climbed from $7.2 million to $12.3 million. That was driven mainly by higher general and administrative expenses, as well as a $2.3 million impairment charge related to Ideanomics’ plans to demolish more buildings than initially hoped on the West Hartford campus.
CEO Alf Poor told HBJ last month that the added costs would also mean a speedier project timeline.