Phoenix Motor Inc. Files Q1 2024 10-Q

TL;DR

Phoenix Motor Inc. Q1 2024 10-Q filed. Financials for EV truck maker out.

AI Summary

Phoenix Motor Inc. filed its 10-Q for the period ending March 31, 2024. The company, based in Ontario, California, is involved in the truck and bus bodies industry. The filing includes financial data for the first quarter of 2024, comparing it to the same period in 2023 and year-end 2023 figures.

Why It Matters

This filing provides investors with the latest financial performance and position of Phoenix Motor Inc., crucial for understanding the company's operational health and future prospects in the electric vehicle sector.

Risk Assessment

Risk Level: medium — As a company in the rapidly evolving electric vehicle manufacturing sector, Phoenix Motor Inc. faces inherent market and operational risks.

Key Numbers

• Q1 2024 — Reporting Period (Financials for the first quarter of 2024 are detailed.)
• 2023-03-31 — Prior Year Period (Comparison data for Q1 2023 is included.)
• 2023-12-31 — Prior Year End (Comparison data for year-end 2023 is included.)

Key Players & Entities

• Phoenix Motor Inc. (company) — Filer of the 10-Q
• 0001879848 (company) — Central Index Key for Phoenix Motor Inc.
• 20240331 (date) — End of the reporting period
• 20241003 (date) — Filing date
• 401 SOUTH DOUBLEDAY AVENUE, ONTARIO, CA 91761 (location) — Business and mailing address

FAQ

Key Financial Figures

• $0.0004 — ch Registered Common Stock, par value $0.0004 per share PEV The Nasdaq Stock Mark

Filing Documents

• form10-q.htm (10-Q) — 841KB
• ex31-1.htm (EX-31.1) — 18KB
• ex31-2.htm (EX-31.2) — 18KB
• ex32.htm (EX-32) — 11KB
• 0001493152-24-039366.txt ( ) — 5322KB
• pev-20240331.xsd (EX-101.SCH) — 52KB
• pev-20240331_cal.xml (EX-101.CAL) — 75KB
• pev-20240331_def.xml (EX-101.DEF) — 177KB
• pev-20240331_lab.xml (EX-101.LAB) — 391KB
• pev-20240331_pre.xml (EX-101.PRE) — 299KB
• form10-q_htm.xml (XML) — 634KB

Interim Financial Statements

Item 1. Interim Financial Statements Condensed Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 F-1 Unaudited Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024, and 2023 F-2 Unaudited Condensed Consolidated Statements of Changes in Stockholders' Equity for the Three Months Ended March 31, 2024, and 2023 F-3 Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024, and 2023 F-4 Notes to Unaudited Condensed Consolidated Financial Statements F-5

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 3

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 11

Controls and Procedures

Item 4. Controls and Procedures 11 Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 12 Item 1A. Risk Factors 12

Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

Item 2. Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities 14

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 14

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 14

Other Information

Item 5. Other Information. 14

Exhibits

Item 6. Exhibits 14

Signatures

Signatures 15 2 PART I - FINANCIAL INFORMATION Item 1. Interim Financial Statements PHOENIX MOTOR INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except for share and per share data) March 31, 2024 December 31, 2023 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 2,796 $ 31 Restricted cash — 3,252 Accounts receivable, net 4,974 451 Inventories 56,216 1,796 Prepaid expenses and other current assets, net 633 356 Amount due from a related party 84 130 Assets held-for-sale 6,370 — Total current assets 71,073 6,016 Property and equipment, net 5,054 1,119 Operating lease right-of-use assets 2,431 — Net investment in leases 176 230 Goodwill — 4,271 Total assets $ 78,734 $ 11,636 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,629 $ 3,529 Accrued liabilities 1,781 926 Advance from customers, current 733 167 Deferred income 357 362 Warranty reserve, current 4,222 289 Lease liabilities, current 2,296 1,303 Amounts due to a related party 178 863 Short-term borrowing 4,262 961 Derivative liability 1,070 1,156 Convertible note, current 2,910 1,320 Income tax payable 4,943 — Long-term borrowing, current 6 5 Total current liabilities 25,387 10,881 Lease liabilities, noncurrent 3,883 2,696 Warranty reserve, noncurrent 10,796 — Advance from customers, noncurrent 2,066 2,214 Convertible notes, noncurrent — 540 Long-term borrowings 143 144 Deferred tax liabilities 12,787 — Total liabilities $ 55,062 16,475 Commitments and contingencies (Note 16) - - Equity: Common stock, par $ 0.0004 , 450,000,000 shares authorized, 34,452,220 and 21,900,918 shares issued and outstanding as of March 31, 2024, and December 31, 2023, respectively 14 9 Additional paid-in capital 58,066 44,359 Accumulated deficit ( 34,408 ) ( 49,207 ) Total stockholders' equity/(deficit) 23,

Business

Business combinations are recorded using the acquisition method of accounting and, accordingly, the acquired assets and liabilities are recorded at their fair market value at the date of acquisition. Any excess of acquisition cost over the fair value of the acquired assets and liabilities, including identifiable intangible assets, is recorded as goodwill. The Group charges acquisition related costs that are not part of the purchase price consideration to general and administrative expenses as they are incurred. Those costs typically include transaction and integration costs, such as legal, accounting, and other professional fees. F-7 According to Business Combination (Topic 805) the Group performs a screen test to evaluate whether a transaction should be accounted for as an acquisition and/or disposal of a business versus assets. In order for a purchase to be considered an acquisition of a business, and receive business combination accounting treatment, the set of transferred assets and activities must include, at a minimum, an input and a substantive process that together significantly contribute to the ability to create outputs. If substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets, then the set of transferred assets and activities is not a business. (e) Fair Value Measurement The Group measures at fair value certain of its financial and non-financial assets and liabilities by using a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, essentially an exit price, based on the highest and best use of the asset or liability. The levels of the fair value hierarchy are: Level 1 — Quoted market prices in active markets for identical assets

View Full Filing

View this 10-Q filing on SEC EDGAR