ANAHEIM, CA - Phoenix Motor Inc. (NASDAQ:PEV), an electric vehicle (EV) manufacturer, disclosed today that it has received a delinquency notice from Nasdaq due to the late filing of its quarterly financial report. The company did not meet the deadline for submitting its Form 10-Q for the quarter ending September 30, 2024, violating Nasdaq Listing Rule 5250(c)(1).
The rule mandates that Nasdaq-listed entities file periodic financial statements with the Securities and Exchange Commission (SEC) in a timely manner. Phoenix Motor now has until January 21, 2025, to submit a plan to regain compliance. If Nasdaq accepts the plan, the company may be granted up to 180 days, until May 19, 2025, to file the overdue report and remain listed.
The notification does not immediately affect the trading of Phoenix Motor's common stock, which continues to be available on the Nasdaq Capital Market under the ticker PEV.
Phoenix Motor is working to complete and file the required Form 10-Q as soon as possible. The company has made this public announcement in line with the Nasdaq Listing Rule 5810(b), which necessitates prompt disclosure upon receipt of a deficiency notice.
Phoenix Motor operates under the brands "Phoenix" and "EdisonFuture," producing a range of EVs from heavy-duty transit buses to light-duty commercial vehicles. Despite the current setback, the company's long-term goal is to be a key player in the design, development, and manufacturing of electric vehicles and related technologies.
While the company has expressed its intention to comply with Nasdaq's requirements, there is no assurance that its plan will be accepted or that it will regain compliance within the given timeframe. The forward-looking statements in the press release indicate potential uncertainties and are not guarantees of future performance.
This news article is based on a press release statement from Phoenix Motor Inc.
In other recent news, Phoenix Motor Inc. has reported a significant surge in Q2 revenue, soaring by 937% to $12.03 million. This is in addition to a notable increase in gross profit and a decrease in net loss. The company has also strengthened its cash position, with cash and cash equivalents reaching $1.40 million. In operations, Phoenix Motor has delivered five 40' ZX5 battery electric buses to the University of California, Irvine and secured a contract to supply four all-electic transit buses to the University of California San Diego in 2025.
Phoenix Motor has also partnered with the Bay Area Founders Club to establish an Artificial Intelligence development center in Silicon Valley, aiming to advance initiatives in electric and autonomous bus technologies. Despite facing potential delisting from Nasdaq due to non-compliance with the exchange's minimum bid price requirement, the company has been granted an extension until April 7, 2025, to regain compliance. These are recent developments in Phoenix Motor's journey, emphasizing their commitment to innovation and growth in the electric vehicle market.
InvestingPro Insights
Phoenix Motor Inc.'s recent Nasdaq delinquency notice comes amid a challenging financial landscape for the company. According to InvestingPro data, Phoenix Motor's market capitalization stands at a modest $12.65 million, reflecting its current struggles. The company's revenue for the last twelve months as of Q2 2024 was $21.64 million, with a striking revenue growth of 324.3% over the same period. However, this growth hasn't translated into profitability.
InvestingPro Tips highlight several concerns for investors. The company is "operating with a significant debt burden" and "may have trouble making interest payments on debt." This financial strain could explain the delay in filing the quarterly report and underscores the importance of the upcoming compliance plan.
Another InvestingPro Tip notes that Phoenix Motor is "quickly burning through cash," which aligns with the reported operating income margin of -101.45% for the last twelve months as of Q2 2024. This rapid cash burn rate could pose challenges for the company's operations and its ability to meet Nasdaq's compliance requirements.
The stock price has also taken a significant hit, with InvestingPro data showing a one-year price total return of -73.41% as of the most recent data. This decline is reflected in another InvestingPro Tip stating that the stock is "trading near 52-week low."
For investors seeking a more comprehensive analysis, InvestingPro offers 15 additional tips for Phoenix Motor Inc., providing a deeper understanding of the company's financial health and market position.
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