Phoenix Motor (US:PEV)2025-06-27 20:10Financial Performance - For the three months ended March 31, 2025, the company's revenues were $4.4 million, a decrease of $5.0 million or 53% compared to $9.4 million for the same period in 2024[139]. - For the three months ended March 31, 2024, the company reported a net income of $16.8 million, compared to a net loss of $3.6 million for the three months ended March 31, 2025[152][151]. - The company recorded a goodwill impairment of $4.3 million due to a decrease in stock price[148]. - Other income for the three months ended March 31, 2024, was $32.1 million, primarily from a gain on the bargain purchase of Proterra transit business unit of $32.9 million[150]. - Net cash used in operating activities was $2.6 million for the three months ended March 31, 2025, compared to $3.9 million for the same period in 2024[160][162]. Operational Highlights - The company delivered a total of 140 EVs to more than 48 customers as of March 31, 2025, representing the largest number of Class 4 cutaway medium duty electric shuttle bus deployments in the U.S.[133]. - The company completed the acquisition of the Proterra transit business unit on January 11, 2024, and delivered a total of 34 transit buses to various customers as of March 31, 2025[134]. - The company has accumulated over four million zero-emission miles driven by the vehicles delivered, showcasing significant industry experience and expertise[133]. Cost and Expenses - The gross margin for the three months ended March 31, 2025, was 30.9%, an increase from 26.6% in the same period in 2024, primarily due to higher margins for both EV sales and transit bus sales[145]. - Selling, general, and administrative expenses decreased to $3.3 million for the three months ended March 31, 2025, from $8.6 million in the same period in 2024, largely due to a reduction in salary expenses[147]. - The cost of revenues for the three months ended March 31, 2025, was $3.0 million, down from $6.9 million in the same period in 2024, primarily due to decreased transit bus sales[143]. - Capital expenditures were nil for the three months ended March 31, 2025, compared to $10.1 million for the same period in 2024, primarily due to the acquisition of Proterra assets[167][163]. Future Outlook - The company expects ongoing supply chain challenges to impact its ability to obtain parts and components on a timely basis, affecting operations in 2024 and possibly beyond[136]. - The company anticipates significant capital and operating expenditures to increase as it continues to invest in technology and expand production capabilities[136]. - Government subsidies and incentive policies are expected to drive growth in the company's addressable market, with key regulations mandating zero-emission transportation options in states like California[137]. - The Inflation Reduction Act of 2023 is expected to impact customer orders due to uncertainties regarding tax credits for electric vehicles[168]. - Supply chain challenges continue to affect the company, leading to longer lead times and increased working capital requirements[168]. Liquidity and Financing - The company had $0.8 million in cash and cash equivalents as of March 31, 2025, with significant reliance on equity financing and various types of debt financing[160]. - The company plans to implement strategies to improve liquidity, including cost-cutting measures and seeking additional funding through public or private offerings[159]. - The company experienced a net cash generated from financing activities of $2.6 million for the three months ended March 31, 2025, primarily from convertible senior notes[165].