Fri, Jun 27, 8:13 PM (17 days ago)
**Summary of Phoenix Motor Inc. (PEVM) Q1 2025 Financial Performance** Phoenix Motor Inc. (PEVM) reported a net loss of $3.6 million for Q1 2025, a significant decline compared to the net income of $16.8 million in Q1 2024. Revenue decreased by 53% to $4.4 million, primarily due to the sale of pre-owned buses in the previous year. Gross margin improved to 30.9% from 26.6%, driven by higher margins in EV and transit bus sales. Operating expenses decreased to $3.3 million, largely due to reduced salary expenses. The company faced liquidity challenges, with cash used in operating activities at $2.6 million. To address this, Phoenix Motor plans to raise additional funds, cut costs, and improve operational efficiency. The company also reported an event of default under a convertible note, leading to an additional $1.03 million in interest expense. Phoenix Motor's stock was delisted from Nasdaq and now trades on the OTC Pink Market. The company is taking steps to regain compliance with Nasdaq's listing requirements, including a proposed 1-for-5 reverse stock split. Despite these challenges, Phoenix Motor remains committed to its strategic goals and improving its financial position.