D-Wave Quantum falls nearly 3% as earnings miss overshadows revenue beat
ONTARIO, CA – Phoenix Motor Inc. (NASDAQ:PEV), a manufacturer of truck and bus bodies, has received notification from the Nasdaq Listing Qualifications Department that it is currently not in compliance with the exchange's minimum bid price requirement, which could lead to the delisting of its common stock.
The company, which is headquartered in Ontario, California, was first notified on April 12, 2024, that its stock price had fallen below the required $1 per share threshold for 30 consecutive business days. Phoenix Motor was given 180 days, until October 9, 2024, to meet this requirement but has not been able to do so.
Despite the deficiency, the company's stock continues to trade on The Nasdaq Capital Market as it considers its options to regain compliance. Phoenix Motor may seek additional time to meet the requirement by potentially conducting a reverse stock split if necessary.
In a separate issue disclosed on April 17, 2024, Phoenix Motor was also found to be below the Nasdaq's minimum stockholders' equity requirement based on its annual report for the year ended December 31, 2023. However, subsequent filings indicate that the company's stockholders' equity has improved, with approximately $23.7 million reported as of March 31, 2024, and an expected $18 million as of June 30, 2024, based on current projections.
Nasdaq will continue to monitor the company's compliance with the stockholders' equity requirement. If Phoenix Motor does not demonstrate compliance in its next periodic report, it may face delisting, although it would have the right to appeal any such decision.
In other recent news, Phoenix Motor has announced record-breaking Q1 results, marking a significant turnaround from the previous year. The company reported a substantial increase in net revenues and net income, earning $9.4 million and $14.8 million respectively. This success was largely attributed to the acquisition of a leading zero-emission bus manufacturer, which has helped Phoenix Motor secure a 40% market share in North America's electric transit bus market.
Moreover, Phoenix Motor's total assets have grown to $78.7 million, meeting NASDAQ's listing standards. The recent developments also indicate a robust order backlog of $200 million, anticipated to contribute significantly to future revenues. However, it's worth noting that cash flow constraints have impacted the number of deliveries completed in Q1.
Despite these constraints, Phoenix Motor has delivered over 1,000 buses and continues to expand its product offerings and production capabilities. The company's first order post-acquisition from Raleigh Durham International Airport demonstrates growing confidence in their product line. These recent developments underscore Phoenix Motor's strategic focus on the electric vehicle market and its potential for continued growth.
InvestingPro Insights
Phoenix Motor Inc.'s (NASDAQ:PEV) current financial situation aligns with the challenges outlined in the article regarding its Nasdaq listing compliance. According to InvestingPro data, the company's market capitalization stands at a modest $26.91 million, reflecting its small-cap status and potentially contributing to its listing difficulties.
InvestingPro Tips highlight that PEV is "quickly burning through cash" and "may have trouble making interest payments on debt," which could explain the company's struggle to meet Nasdaq's minimum bid price requirement. These financial pressures are further evidenced by the fact that PEV is "not profitable over the last twelve months," with a negative operating income margin of -167.35% for the last twelve months as of Q1 2024.
Despite these challenges, PEV has shown a "significant return over the last week" and a "strong return over the last month," with a 108.37% one-week price total return and a 72.4% one-month price total return as of the latest data. This recent stock performance might provide some optimism for the company's efforts to regain compliance with Nasdaq's requirements.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for PEV, providing deeper insights into the company's financial health and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.