Phoenix Motor Inc. Reports Significant Financial Growth in Q2 2024, Completes Proterra Acquisition

Phoenix Motor Inc. reported significant financial growth in its Q2 2024 results, reflecting a transformative period for the company. As of June 30, 2024, total assets surged to $67,470 thousand, a substantial increase from $11,636 thousand at the end of 2023. This growth was primarily driven by a rise in total current assets, which reached $60,524 thousand, up from $6,016 thousand. Notably, cash and cash equivalents rose to $1,401 thousand from $31 thousand, while accounts receivable increased to $3,656 thousand from $451 thousand. Inventories also saw a dramatic rise, reaching $47,833 thousand compared to $1,796 thousand at the end of 2023.

Revenue for Q2 2024 was reported at $12,032 thousand, a remarkable increase from $1,158 thousand in Q2 2023. For the six months ended June 30, 2024, total revenue reached $21,452 thousand, compared to $2,939 thousand in the same period of the previous year. Gross profit for Q2 2024 was $1,829 thousand, a turnaround from a loss of $(61,000) in Q2 2023. However, the company reported an operating loss of $(7,100 thousand) for Q2 2024, compared to $(3,161 thousand) in Q2 2023, indicating ongoing challenges in operational efficiency.

The net loss for Q2 2024 was $(2,258 thousand), an improvement from $(3,177 thousand) in Q2 2023. For the six months ended June 30, 2024, the net income was $12,541 thousand, a significant recovery from a net loss of $(5,955 thousand) in the same period of 2023. This positive shift was largely attributed to a bargain purchase gain from the acquisition of Proterra's transit business unit.

In terms of strategic developments, Phoenix Motor completed the acquisition of Proterra's transit business unit and battery lease contracts in early 2024 for $10,000 thousand, assuming a warranty liability of $14,994 thousand. This acquisition is expected to enhance the company's capabilities in designing and selling electric transit buses for North American public transit agencies. The company also plans to sell all acquired battery lease agreements, indicating a strategic focus on optimizing its asset portfolio.

Total stockholders’ equity improved to $21,857 thousand as of June 30, 2024, from a deficit of $(4,839 thousand) at the end of 2023. The accumulated deficit also showed improvement, decreasing to $(36,666 thousand) from $(49,207 thousand). The company’s strategic focus for the next 12 months includes enhancing liquidity, controlling costs, and improving operational efficiency.