Phoenix Motor Inc. Reports Revenue Surge to $4.77 Million in Q3 2024

Phoenix Motor Inc. reported significant financial developments in its latest 10-Q filing for the third quarter of 2024, showcasing a marked increase in revenue and a shift in profitability. For the three months ending September 30, 2024, the company generated total revenues of $4.77 million, a substantial increase from $288,000 in the same period last year. For the nine months ended September 30, 2024, revenues reached $26.22 million, compared to $3.23 million in the prior year. The gross profit for the third quarter was $1.12 million, a notable recovery from a loss of $5,000 in the previous year, while the nine-month gross profit stood at $5.45 million, up from $107,000.

The financial performance reflects significant changes compared to the previous fiscal period, particularly driven by the acquisition of Proterra's transit business unit and battery lease contracts. This acquisition, completed in early 2024, allowed Phoenix Motor to expand its product offerings and customer base, contributing to the increased revenue figures. However, the company also reported an operating loss of $8.36 million for the third quarter, compared to a loss of $2.54 million in the same quarter of 2023, primarily due to increased selling, general, and administrative expenses, which rose to $9.48 million from $2.53 million.

Operationally, Phoenix Motor has seen a significant increase in its customer base and product adoption rates. The company reported a total of 37.17 million shares outstanding as of September 30, 2024, up from 21.90 million shares at the end of 2023, indicating a potential increase in investor interest and market share. The company’s inventory levels also surged to $45.14 million from $1.80 million, reflecting increased production capabilities and anticipated demand for electric vehicles. Additionally, the company has engaged in strategic partnerships to enhance its operational efficiency and reduce costs.

Despite the positive revenue growth, the company faces challenges, including a net loss of $5.59 million for the third quarter and a recurring loss of $17.94 million for the nine months ended September 30, 2024, excluding a one-time bargain purchase gain. The company has indicated that it needs to raise additional funds to sustain operations and is exploring various strategies to improve liquidity, including cost control measures and potential financing through private stock offerings and debt instruments. The outlook remains cautious, as the company must navigate its financial obligations and operational challenges while striving for profitability in a competitive market.