ANAHEIM, CA - Phoenix Motor Inc. (NASDAQ:PEV), a company specializing in the manufacturing of electric vehicles (EVs), has received a delinquency notification from the Nasdaq Stock Market due to a failure to file its required quarterly financial report. The notice, dated August 16, 2024, indicates non-compliance with Nasdaq's Listing Rule 5250(c)(1) after the company did not submit its Quarterly Report on Form 10-Q for the period ending June 30, 2024.
This recent notification follows a prior delinquency alert from Nasdaq on May 22, 2024, regarding the company's missed filing for the quarter ended March 31, 2024. To maintain its listing, Phoenix Motor must submit both delinquent filings by November 18, 2024, and provide an updated plan to regain compliance by September 3, 2024.
The current status does not immediately impact the trading of Phoenix Motor's common stock on the Nasdaq Capital Market, where it continues to be listed under the ticker symbol "PEV." The company has expressed its intent to file the overdue financial reports promptly and is currently working towards completing the necessary documentation.
Phoenix Motor is known for its production of heavy-duty transit buses and medium to light-duty commercial EVs. The company operates under two main brands, "Phoenix" for commercial products and "EdisonFuture" for light-duty EVs. Despite the compliance setback, Phoenix Motor remains committed to its role as a designer, developer, and manufacturer of electric vehicles and technologies.
The announcement is made in accordance with Nasdaq Listing Rule 5810(b), which mandates the prompt disclosure of any deficiency notifications. As the company works to resolve its filing delinquencies, it has not yet provided a definitive timeline for when it will achieve compliance.
This report is based on a press release statement and contains forward-looking statements that involve risks and uncertainties. Phoenix Motor has not assured that Nasdaq will accept its compliance plan or that it will meet the listing standards in the future. The company's filings with the SEC are available for those interested in further details on its financial status and compliance efforts.
In other recent news, Phoenix Motor Inc. has reported significant developments in its financial performance and strategic growth. The company has projected record Q1 revenue of $9.4 million, a substantial increase from the previous year's $1.8 million, attributed to the acquisition of Proterra's Transit business. Phoenix Motor also announced a record surge in Q2 revenue, expecting figures between $14 million and $16 million.
However, the integration process has caused delays in regulatory filings, leading to the rescheduling of the Q1 2024 earnings call. The company received a Nasdaq compliance warning due to a delayed quarterly report and was given 60 days to submit a plan to regain compliance. Amid these developments, Phoenix Motor's CEO, Xiaofeng Denton Peng, was suspended due to allegations of a breach of fiduciary duty and unauthorized related-party transactions. As a result, former CFO J. Mark Hastings was appointed as interim CEO.
Phoenix Motor has also made strides in sustainable transportation by delivering five new 40' ZX5 battery electric buses to the University of California, Irvine (UCI), as part of UCI's ongoing commitment to an eco-friendly campus. The company launched a new brand, PhoenixEV, merging with the recently acquired Proterra transit bus division, aiming to strengthen its position in the North American sustainable transportation market. These are recent developments and reflect Phoenix Motor's commitment to corporate governance and strategic growth.
InvestingPro Insights
Phoenix Motor Inc. (NASDAQ:PEV) is navigating through turbulent times, and recent data from InvestingPro provides a clearer picture of the company's financial health. As of the last twelve months ending Q4 2023, Phoenix Motor has a market capitalization of $16.56 million, indicating a relatively small player in the electric vehicle industry. The company's revenue during this period was $3.12 million, but it faced a significant decline in revenue growth, plummeting by 27.9%. These figures underscore the challenges Phoenix Motor is facing in generating sales and expanding its market share.
InvestingPro Tips highlight that Phoenix Motor is quickly burning through cash and has trouble making interest payments on debt. This financial strain is reflected in the company's negative gross profit margin of -8.84%, revealing inefficiencies in its operations. Moreover, the company's stock price has experienced considerable volatility, with a 19.04% decline over the last week alone.
For investors and stakeholders, these metrics and tips suggest that Phoenix Motor is in a precarious financial position, emphasizing the importance of the company's efforts to regain compliance with Nasdaq's listing requirements. For a more comprehensive analysis, there are additional InvestingPro Tips available at https://www.investing.com/pro/PEV, offering in-depth insights into Phoenix Motor's financial situation and stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.