Phoenix Motor Inc. reported significant financial developments in its 10-Q filing for the quarter ending March 31, 2024. The company experienced a substantial increase in total current assets, which rose to $71,073 thousand from $6,016 thousand at the end of 2023. This growth was primarily driven by a dramatic increase in inventories, which surged to $56,216 thousand from $1,796 thousand. Cash and cash equivalents also saw a notable rise, reaching $2,796 thousand compared to just $31 thousand at the end of the previous year.

Total assets for the company reached $78,734 thousand, up from $11,636 thousand, while total liabilities increased to $55,062 thousand from $16,475 thousand. Current liabilities also rose to $25,387 thousand from $10,881 thousand. Despite these increases in liabilities, total stockholders’ equity improved significantly to $23,672 thousand, recovering from a deficit of $(4,839) thousand at the end of 2023.

In terms of revenue, Phoenix Motor reported $9,420 thousand for the three months ended March 31, 2024, a substantial increase from $1,781 thousand in the same period of 2023. The gross profit for the quarter was $2,505 thousand, compared to $173 thousand a year earlier. However, the company reported an operating loss of $(10,415) thousand, which widened from $(3,673) thousand in the prior year. Notably, the income before income taxes showed a significant turnaround, reporting $19,742 thousand compared to a loss of $(2,778) thousand in the previous year. The net income for the quarter was $14,799 thousand, a stark contrast to the net loss of $(2,778) thousand reported in Q1 2023.

The company’s cash flow dynamics also shifted, with net cash used in operating activities increasing to $(3,902) thousand from $(1,086) thousand in the same period last year. The acquisition of Proterra's transit business unit and battery lease contracts in early 2024 for a total cash consideration of $10,000 thousand contributed to the financial landscape, alongside a bargain purchase gain that positively impacted net income.

Phoenix Motor's revenue from the Proterra transit bus business for the quarter was $8,979 thousand, reflecting the strategic acquisition's immediate impact. The company plans to sell all Battery Lease Agreements acquired from Proterra and has entered into an asset purchase agreement to sell battery lease receivables, indicating a focus on liquidity and cost control moving forward.