Full Year 2024 Phoenix Motor Inc Earnings Call
Operator: This meeting is being recorded.
This meeting is being recorded.
Craig Brelsford: Hello, everyone. This is Craig with Red Chip Companies. Thank you for joining today's event with Phoenix Motor, which trades under the ticker PEVM.
Craig: Hello, everyone. This is Craig with Red Chip companies. Thank you for joining today's event with Phoenix Motor, which trades under the ticker P. E. B M with US today, we have Denton Peng Chief Executive Officer of Phoenix Motor, We have Joe's Paul Chief Commercial officer, and we have Michael Yung Chief financial.
Unknown Executive: With us today, we have Denton Peng, Chief Executive Officer of Phoenix Motor. We have Jose Paul, Chief Commercial Officer, and we have Michael Yung, Chief Financial Officer.
Officer, we will begin with a brief presentation in a moment and then we will answer your questions users may submit a question at any time by using the Q&A tool at the bottom of the zoom window before we begin please allow me to read the Safe Harbor statements. This call may contain forward looking statements within the meaning of the private Securities Litigation Reform Act of <unk>.
Operator: We will begin with a brief presentation in a at any time by using the Q&A tool at the bottom of the Zoom window.
Operator: Before we begin, please allow me to read the safe harbor statements. This call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements pertaining to future financial and or operating results, along with other statements about the future expectations, beliefs, goals, plans, or prospects expressed by management constitute forward-looking statements. Any statements that are not historical fact should also be considered forward-looking statements. Of course, forward-looking statements involve risks and uncertainties.
1995, all statements pertaining to future financial and operating results along with other statements about the future expectations beliefs goals plans or prospects expressed by management constitute forward looking statements any statements that are not historical fact should also be considered forward looking statements of course forward looking statements involve risks and.
Unknown Executive: I now turn the webinar over to the Phoenix Motor team. Please go ahead. Thank you, Craig. And thank you to everyone for joining us on the call today.
Speaker Change: Uncertainties I now turn the webinar over to the Phoenix Motor team. Please go ahead.
Speaker Change: Thank you Greg.
Speaker Change: Thank you to everyone for joining us on our call today.
Denton Peng: I'm thrilled to share our financials and operation highlights from the fiscal year 2024 and our strategic outlook for 2025. Our extensive lineup now includes electric transit buses, shuttle and school buses, utility trucks and delivery vans. Beyond manufacturing, we are evolving into a technology-driven company by integrating artificial intelligence, autonomous mobility and advanced electrification solutions into our products. The year 2024 was truly transformative. We significantly expanded our product portfolio through the strategic acquisition of Proterra Transit Bus Business, enhancing our heavy duty electric buses offering. Our revenue surging nearly 900% year-over-year to $31.1 million, reflecting strong market demand and successful exclusion across the company.
Speaker Change: Illustrates with share Alpha insurers and operational highlights for the fiscal year 'twenty journey for us.
Speaker Change: As our strategic outlook for 2025.
Speaker Change: Our expense saves landlocked now in closing, let electric transit buses charter school buses utility chalk until everyone.
Speaker Change: The other manufacturing we are evolving into a tailor to JV company by integrating artificial intelligence.
Speaker Change: Other members of our ability, although the vials electrification solution into our products.
Speaker Change: Yeah, Tien Tsin, you call was truly transformative.
Speaker Change: We significantly expanded our product portfolio strode as charging acquisition.
Speaker Change: Potatoes transit bus Venus, a heightened thing out heavy duty electric buses offerings.
Speaker Change: Our roaming revenues surged nearly 900% year over year to 31 point or 1 billion.
Speaker Change: Reflecting strong market demand and a successful execution across the company.
Denton Peng: We achieved probability with a net income of $7.9 million and remarkable turnover from a net loss of $20.6 million the prior year. Additionally, our gross profit improved to $7.1 million and our gross margin expanded to dramatically to 23.6%. Operationally, we launched the world's first wireless charging middle-duty shutter in partnership with Inductive EV and introduced our first generation jibing chain. We also changed our leadership team, enhanced our financial position by raising capital, reducing debts, and initiated a share repurchase program.
Speaker Change: We achieved profitability with a net income of $7 9 million and.
Speaker Change: And remarkable turn it on the phone a net loss of 20 politics, William the prior year.
Speaker Change: Additionally, our gross profit improved to seven 1 billion and our gross margin expanded to Joe message to 23, 6%.
Speaker Change: Operationally, we launched the worlds first wireless charging medium duty shutter in partnership with inductive EV and introduce our first generation Jabeen Cheng.
Speaker Change: We also changed our leadership team a highest our financial position by raising capital reducing beds and initiated a share repurchase program.
Denton Peng: As we look ahead, we are confident in our trajectory for year 2025. We are projecting the revenue to grow to between $40 million and $50 million. Driven by continuous innovation, a robust order book, and increased market adoption of our EV products portfolios.
Speaker Change: As we look ahead.
Speaker Change: We are confident in our trajectory.
Speaker Change: For 10 year can you quantify we are projecting our revenue to grow to a <unk> 40 million and the $50 million.
Speaker Change: Javelin by continuous innovation.
Speaker Change: Robust order book and increased market adoption of our EV product portfolios.
Denton Peng: I want to reactivate the competitive investment initiative that Phoenix Motor represents. Our journey has been marked by the consistent innovation, strategic growth, and steadfast dedication to transforming commercial transportation through electrification.
Speaker Change: I wont jewelry airplanes, and a compelling investment and negative there Phoenix motto represents.
Speaker Change: Our journey has been marked by the transitioning of waging Jack.
Speaker Change: Strategic grows and our steadfast dedication to transforming commercial transportation.
Speaker Change: Electrification.
Jose Paul: I will now pass the call over to our Chief Commercial Officer, Jose Paul, to provide updates on our commercial strategies. Thank you, Denton. I'll give a quick summary of our recent focus and successes. Phoenix has grown to proudly serve over 200 customers with more than 1300 vehicles operating in 43 states and provinces, a testament to our customers trust and the reliability of our product. We are continuing to strengthen our product offerings both in the US and also globally. In the U.S. market, we were recently awarded the California Department of General Services contract for both our ZX-5 transit bus and our medium-duty shuttle bus.
Speaker Change: I will now pass the call over our checks Chief commercial officer, Jos power to provide updates on our commercial strategies Jos.
Jos: Thank you lindon.
Jos: I'll give a quick summary of our recent focus and successes.
Speaker Change: Phoenix has grown to proudly serve over 200 customers that more than 1300 vehicles operating in 43 states and provinces.
Speaker Change: A testament to our customers' trust and the reliability of our products.
Speaker Change: Continuing to strengthen our product offerings, both in the U S and also globally.
Speaker Change: In the U S market. We were recently awarded the California Department of General services contract for both our zinc five transit bus and our medium duty shuttle buses.
Jose Paul: We also recently secured an order for five Phoenix E400 electric shuttle buses from Los Angeles County. These electric shuttle buses will enhance our transit options for residents living in the Los Angeles County Development Authority public housing sites, offering a more sustainable way to connect. Our commitment to domestic manufacturing through our Buy America program and compliance strategically aligns with federal funding programs, enhancing our competitive advantage and simplifying procurement for transit agents.
Speaker Change: We also recently secured an order for five Phoenix Z 400 electric shuttle buses from Los Angeles County.
These electric shuttle buses will enhance our transit option for residents living in the Los Angeles County, Debacle Development Authority public housing site offering a more sustainable way to connect our.
Speaker Change: Our commitment to domestic manufacturing to our buy America program and compliance strategically alliance that federal funding programs enhancing our competitive advantage and simplifying procurement for transit agencies.
Jose Paul: Internationally, we are especially focused on growth opportunities in Latin America and the Caribbean markets, where government and transit agencies are accelerating their shift to sustainable The region represents a compelling market for electric transit, driven by rising urban air pollution, high fuel prices and access to global finance mechanisms. And Phoenix EV is well positioned to meet this demand. We've established an expanded product portfolio under the Edison Future brand, covering transit buses, vans, coach buses, and also light-duty EVs targeted at commercial applications. We are planning an EF Product Portfolio Unveiling event at our Anaheim facility in July.
Speaker Change: Internationally, we are especially focused on growth opportunities in Latin America, and the Caribbean market, where government and transit agencies are accelerating their shift to sustainable mobility.
Speaker Change: <unk> represents a compelling market for electric transit driven by rising urban air pollution high fuel prices and access to global finance mechanisms.
Speaker Change: Phoenix EV is well positioned to meet this demand we.
Speaker Change: We've established an expanded product portfolio under the Edison future brand covering sounded buses van coach buses and also light duty Evs are targeted at commercial applications. We are planning an ear product portfolio unveiling event at our Anaheim facility in July.
Jose Paul: We're also engaged in early-stage discussions with regional partners and potential customers to explore distribution and support models that will enable us to serve these markets. As mentioned previously, we have set up Edison Future International in Hong Kong to start international business, and we hope to see results in the coming quarter. The external regulatory environment globally is favorable, and with various government mandates and incentives accelerating the shift to electric transportation, Phoenix Motor is exceptionally well positioned to benefit from these tailwinds bolstered by our comprehensive product offer. Our strategic focus is a key driver of profitability and position Phoenix Motor at the forefront of next-generation transportation technologies, including autonomous vehicles and AI-driven fleet management.
Speaker Change: Also engaged in early stage discussions with regional partners and potential customers to explore distribution and support models that will enable us to serve these markets with skin.
Speaker Change: As mentioned previous figure setup Edison future International at Hong Kong to start International business, and we hope to see results in the coming quarters.
Speaker Change: The external regulatory environment globally is favorable and with various government mandates and incentives accelerating the shift to electric transportation Phoenix voted exceptionally well positioned to benefit from these tailwind bolstered by our comprehensive product offering.
Speaker Change: Our strategic focus is a key driver of profitability and position Phoenix motor at the forefront of next generation transportation technologies, including autonomous vehicles, and AI driven fleet management.
Jose Paul: These innovations further solidify our leadership and create long-term growth opportunities for us.
Speaker Change: These innovations further solidify our leadership and create long term growth opportunities for us.
Jose Paul: I'm also happy to share that we will have a Greenville factory open day in the middle of June, and if anybody is interested in visiting our facilities, please contact us or Red Chip.
Speaker Change: I'm also happy to share that we will have our Greenville factory open day or.
Speaker Change: In the middle of June and if anybody's interested in visiting our facilities. Please contact us.
Speaker Change: Sure Richard.
Michael Young: I'll now pass the call over to our Chief Financial Officer, Michael Young, for a deeper dive into the financial. Thank you, Joe. Physical 2024 marks an exceptional year of financial progress and operational expansion for Phoenix Motor. As Danta mentioned, our total revenues surged nearly 900%, reached $31.1 million, compared to just over $3 million in 2023. driven significantly by our strategic acquisition of Proterra Transit Bus. This acquisition alone contributed $30 million in new revenue, underscoring our strength in market position in electric transit bus sector. Our gross profit improved dramatically, reaching $7.1 million, a substantial turnaround from a gross loss in a prior year.
Speaker Change: I'll now pass the call over to our Chief Financial Officer, Michael Young for a deeper dive into the financial details.
Speaker Change: Thank you Jos.
Speaker Change: Physical 'twenty 'twenty four marks an exceptional years, our financial progress in operational expansion for Phoenix noted.
Speaker Change: I sent them mentioned, our total revenues. So it's nearly 900% reached 71.1 million compared to just over 3 million in 2023.
Speaker Change: Driven significantly by our strategic acquisition of Preterm Transit bus unit.
Speaker Change: This acquisition along contributed $30 million in new revenue.
Speaker Change: Underscoring our strengthened market position electric tens of by segment.
Speaker Change: Our gross.
Speaker Change: Profit improved dramatically, reaching $7 1 million a substantial turnaround from a gross loss in a prior year.
Michael Young: Our gross margin expanded significantly to 23.6%. highlight our ability to effectively manage costs and capitalize on the higher margin opportunity, particularly through rapid inventory turnover following the acquisition. Notably, our net income reached $7.9 million, marking a significant milestone as we transitioned from a substantial loss the previous year. This improvement underscores our successful operation integration efforts. Enhance product efficiency and strategic financial management throughout 2024. Additionally, we made substantial improvement in our liquidity and equity position.
Speaker Change: Our gross margin expanded significantly to 23.6%.
Speaker Change: Highlight our ability to effectively manage costs and capitalize on the higher margin opportunity.
Speaker Change: Particularly through rapid inventory turnover following the acquisition.
Speaker Change: Notably our net income reached 7.9 million, marking a significant milestone as we transition from a substantial loss the prop the previous year.
Speaker Change: This improvement underscore our successful operation integration effort.
Speaker Change: Enhanced product efficiency and strategic financial management throughout 2024.
Speaker Change: Additionally, we made substantial improvement in our liquidity and equity position.
Michael Young: We successfully raised $11.1 million through private placement and secure additional loan financing and significantly strengthen our balance Our total equity grew to $10.3 million, a considerable improvement from a negative equity position at the end of 2023. Looking ahead, the continued growth in demand for zero emission commercial vehicle, combined with our expanded capacity, improve financial strength.
Speaker Change: We successfully raised $11 1 million through private placement and secure additional long financing and significantly strengthened our balance sheet.
Speaker Change: Our total equity grew to 10.3 million a considerable improvement from a negative equity position.
Speaker Change: At the end of 2023.
Speaker Change: Looking ahead, the continued growth and demand for zero emission commercial vehicle.
Speaker Change: Combined with our expanded capacity in.
Speaker Change: Improved financial strain.
Michael Young: position Phoenix Motor strongly for substantial success, and will confidently project revenue between $40 million and $50 million in fiscal 2025. Thank you all for your continued support. We are excited about the future and confident in our path ahead.
Speaker Change: Vision Phoenix motor strongly for substantial success.
Speaker Change: We're confidently project revenue between 40 million and $50 million in physical 2025.
Speaker Change: Thank you all for your continued support we are excited about the future and confident in our path ahead.
Operator: We're now open the floor for your questions.
Speaker Change: When now.
Speaker Change: Open the floor for your questions.
Operator: Thank you very much, Michael and the team.
Speaker Change: Thank you very much Michael and the team.
Operator: To speak to the team, please use that raise hand button at the bottom of your zoom window, click it, I will then grant you permission to speak and then you will need to unmute your line to speak to the Phoenix team. You may also type in your question using the Q&A button nearby, click it, a text box will appear. And then you can type in your question as some have already done.
Speaker Change: To speak to the team please use that raise hands button at the bottom of your zoom window cricket I will then granted permission to speak and then you will need to mute your line to speak to the Phoenix team. You May also type in your question using the Q&A button nearby cricket a textbox will appear and then <unk>.
Speaker Change: You can type in your question as some have already done.
Unknown Executive: Gentlemen, How many employees in June 2025 are working at the Greenville, South Carolina plant? I will answer that question. Currently, we have approximately about between 60 to 70 employees in the Greenville, South Carolina.
Speaker Change: Gentlemen.
Speaker Change: How many employees in June 2025 are working at the Greenville, South Carolina plant.
Speaker Change: I'll answer that question.
Speaker Change: Currently we have approximately about between 60 to 70 employee in the Greenville, South Carolina.
Operator: Thank you.
Speaker Change: Thank you.
Unknown Executive: Have you purchased back any shares to date? Okay, I'll answer that. As of this moment, we have not repurchased any share yet because there were some restrictions for us to purchase shares.
Speaker Change: Have you purchased back any shares to date.
Speaker Change: Okay I'll answer that as of this moment, we have not repurchased any shares yet because we are there are some restrictions for us to purchase shares at this moment.
Unknown Executive: Are there any updates on getting listed back on the NASDAQ? Yes. We have spoken with NASDAQ and the three items that they were looking for had all been completed today.
Speaker Change: Are there any updates on getting listed back on the NASDAQ.
Speaker Change: Hi.
Speaker Change: Yes.
Speaker Change: We have we have we have spoken with NASDAQ and the three items that they were looking for at all be completed today. The reason that we have now the reverse split we are hoping to had a completed last week. The reason we have not being reversed we have not been back on the rig on Nasdaq.
Unknown Executive: The reason that we have not, the reverse plan, we were hoping to have it completed last week. The reason we have not been reversed, we have not been back on the regular NASDAQ is because FINRA, as of today, normally takes 10 days to do the reverse. And as of right now, it's taking them over three weeks. So as soon as FINRA finish reviewing the document, we should be back on the regular NASDAQ.
Speaker Change: Is because FINRA era as of today normally take 10 day to do deliveries and as of right now is taking them over three weeks. So I soon as FINRA odd finished reviewing the document we should be back on the regular Nasdaq.
Unknown Executive: Are there any updates about strengthening the company's cash position? We are always looking to strengthen the company's cash. We currently have nine buses sitting in our lot that's completed, but we're aggressively trying to sell these buses. At the same time, we are always looking at the capital market, either debt offering, equity offering, and possibility combination of both. So if they don't want to add something, please go ahead. Yeah, definitely we will try to increase our you know, our liquidity, our inventory, definitely to get more and more cash on our position. And we still have a lot of orders, try to finish a lot of get more cash in.
Speaker Change: Are there any updates about strengthening the company's cash position.
Speaker Change: Okay.
Speaker Change: We are always looking to strengthen the company's cash. We currently have nine buses sitting them in in a lock is completed by somewhere altra aggressively trying to sell this buses at the same time, we are always looking at the capital market either be either debt offering equity offering and possibility of combination of both.
Speaker Change: So if they don't want to add something please go.
Speaker Change: Yes.
Speaker Change: Yeah definitely we will try to increase our you know down our liquidity.
Speaker Change: Our inventory theft, atrial, you'll get more and more cash earn out obligations.
Speaker Change: And the trade we have still have a lot of our orders tend to finish in order to.
Speaker Change: Get them on.
Unknown Executive: This is definitely the first priority. We are still a big backlog of orders and we are still a big inventory of firm paths and inventory paths.
Speaker Change: Caching dishes are definitely the first probably June.
Speaker Change: We are still a big bag logo of orders out of U S. D O a big inventory outperform from PA side of inventory Pos.
Unknown Attendee: A person who is new to the story, the Phoenix story, wrote in, I did not hear that Phoenix has a consumer model, only buses. Did I miss that? Do they have a consumer model?
Speaker Change: A person who is new to the story the Phoenix story wrote in I did not hear that Phoenix has a consumer model only buses did I Miss that do they have a consumer model for the new investors out there gentlemen, could you give an overview.
Unknown Executive: For the new investors out there, gentlemen, could you give an overview? Yeah, we had a commercial EV company. So most of our customers is for B, we have two B. If you're building for the electrification, the EV business to the Phoenix government and, you know, to most of them, to be Phoenix.
Speaker Change: Yeah, we have we had a commercial UV company. So most of our customers. He said four be weird to beam. If your Tesla most opinions to see and then you know for Feeney season, really let beans to beat so most albeit modest building pool that you leveraged station the EV Bemis Juliet Tabanus governments and in total.
Speaker Change: Total two most upper level they've been good to be business.
Unknown Executive: We are no consumer products at the moment. Thank you very much.
Speaker Change: We have no consumer.
Speaker Change: <unk> products are at the moment.
Speaker Change: Thank you very much you mentioned the backlog.
Unknown Attendee: You mentioned the backlog. What is the number? What is the current number when it comes to the backlog?
Speaker Change: What is the number one what is the current number it when it comes to the backlog.
Unknown Executive: As of right now, our current backlog is north of 100 plus million.
Speaker Change: As of right now I'll come backlog is north of 100 plus million.
Speaker Change: Okay.
Unknown Attendee: The net income in 2024 was positive, this person writes, because of a one-time $50 million purchase gain from the Proterra acquisition.
Speaker Change: The net income in 2024 was positive this person rights because of a one time 50 million dollar purchase gain from the pro Terra acquisition.
Unknown Executive: Your actual operations posted a loss of more than $30 million. Can you explain how this acquisition positions Phoenix for profitability and how investors should view this accounting gain in relation to your core business fundamentals?
Speaker Change: Your actual operations posted a loss of more than $30 million can you explain how this acquisition positions Phoenix for profitability and how investors should view this accounting gain in relation to your core business fundamentals.
Unknown Executive: Go ahead. As you can read, our operating loss, we do have an operating loss, but we have a net gain due to one-time inventory purchase. That's where the net gain comes from.
Speaker Change: Sure.
Speaker Change: As you can read our operating loss, we do have an operating loss, but we have a net gain due to one time inventory purchase deaths with a net gains come from a net loss of lot of them had to do with after the acquisition of pro Terra January of 'twenty 'twenty four there were a lot of write down that allow us to write things off.
Unknown Executive: Net loss, a lot of them had to do with after the acquisition from Terra, January of 2024, there were a lot of write-downs that allow us to write things off. So that's why there's a lot of write-down from the inventory, impairment charges, or depreciation, to all the legal expenses, to diligent expenses. So those were accumulated. A lot of those are one-time charges. So going forward, we do not expect to see most of that.
Speaker Change: So that's why there's a lot of AR write down from the inventory.
Speaker Change: Impairment charges of depreciation to all the legal expenses due diligent expenses. So those will accumulate a lot of those are one time charges. So going forward. We do it we do not expect to see most of that and then as we continue to execute on our strategy, we expect and hoping to have a pilot of casual and.
Unknown Executive: And then as we continue to execute on our strategy, we expect and hoping to have a positive cash flow in the near future.
Speaker Change: The near future.
Unknown Executive: Yeah, we also want to highlight, you know, last year, our gross margin expanded to 23.6%. So with our gross margin growing, and we have more shipment, and also a lot of expenses we will try to reduce this year. So our operation expenses will be reduced, and then also the management doing the, from the supply chain, all this, all this effort will be definitely improving our probabilities. And also, this will make us company into more and more and more on the probability.
Speaker Change: We also want to highlight the low last year, our gross margin responding to 23, 6%.
Speaker Change: So well with our gross margin growing on there we have more shipment in arrear. So a lot of expenses. So weird J Magee reduced this year. So our operation expenses will be reduced and then also the management to doing their lab for on the supply chain artist Otis effort Yoyo Beale decorative improving our broker pearl abilities and they also.
Speaker Change: As regards the company into a more and more the more an appropriate last year. We had one time game is true but it also we have also one time expenses.
Unknown Executive: Last year, we had a one-time gain, it's true, but it also, we have also one-time expenses.
Speaker Change: Okay.
Operator: Thank you very much, gentlemen.
Speaker Change: Thank you very much gentlemen.
Unknown Executive: How much does the bus weigh? I can take that. The CS5 bus is rated for 42,000 pounds GVWR and our medium duty vehicles are rated for 14,500 GVWR.
Speaker Change: How much does the bus way.
Speaker Change: I could take that the the theater five bus insulated for 42000 pounds. The VW are and our medium duty vehicles are rated for 14500 GW era.
Unknown Executive: How do you reconcile your ambitious plans with your limited cash runway and recurring operating losses?
Speaker Change: How do you reconcile your ambitious plans with your limited cash runway and recurring operating losses.
Unknown Executive: I'll take that one. The FTA had made a change in what they saw called progress payment. So what a progress payment is, every contract that we do, majority of our contracts, as soon as we bring the bus online, we get paid 25%. So we are doing everything we can to utilize the cash that we could receive once we bring the bus online. And at the same time, selling parts that we currently have in At the end, the biggest thing is we also have a lot of buses sitting in our lot that we want to try to sell.
Speaker Change: I'll take that one.
Speaker Change: The FTAA had a made a changing in what they saw progress payment. So I want a progress payment is every contract that we done we do.
Speaker Change: Majority of our contracts Sonus will bring the bus online we get paid 25%. So we are that we are doing everything we can utilize the cash that we could receive points would bring a buy sell online and at the same time selling parts that we currently have in inventory at the end. The biggest thing is we also have a lot of buses sitting online ads.
Speaker Change: Sitting in in a lot and we won China's cell. So what all of that stuff, yes, there's as a small company ongoing concerns always the air Bud light.
Unknown Executive: So with all of that stuff, yes, as a small company, ongoing concern is always there.
Unknown Executive: But like we said earlier, 2024 was a transitional year for us, and 2025 is the execution year. So we are focusing on executing. But then to mention earlier, we have lots of parts that will help us reduce the cost. But I think our gross margin for 2025 will even improve because we're already focusing on reduced cost. Because when we acquired Proterra, we learned a lot of things. They overpaid for a lot of things, and then a lot of things just didn't make any sense. So we are focusing on the cost reduction and then raising capital and get whatever product we have already sold as quickly as possible and continue to move this company forward.
Speaker Change: Like like we said earlier 2024 was a transitional year for us in 2025 years of execution year. So we are focusing on executing our Denton mentioned earlier, we have lots of parts that will help us dramatically reduce our costs, but I think our gross margin for 2025 or even improve.
Speaker Change: Because we already are focusing on reduce cost because when we acquired per Tara we learn a lot of things. They overpaid for a lot of thing and then they are.
Speaker Change: There are a lot of things that didn't make any sense. So we are focusing on cost reduction and then raising capital and get whatever of a product. We have already built so as quickly as possible and continuing to move this company forward.
Operator: Again, to reach the Phoenix team, you can use the raise hand button, you can then speak to the team. You may also type in any questions you may have using the Q&A button there at the bottom of your Zoom window. A text box will appear and you can type in your question.
Speaker Change: Again to reach the Phoenix team you can use the raise hand button you can then speak to the team May also type in any questions. You may have using the Q&A button there at the bottom of vision and window.
Speaker Change: A text box will appear in you can type in your question will give everyone. A few moments to consider any more questions. They may have for the Phoenix motor team.
Operator: We'll give everyone a few moments to consider any more questions they may have for the Phoenix Motor team.
Unknown Executive: Has there been any interest by any institutions, gentlemen? The writer did not elaborate on what an institution would be, but you can guess. Like everything else, we are doing webinar. We're talking to everybody. We're talking to individual investor, institutional investor. We are always talking to some investors.
Speaker Change: Has there been any interest by any institutions gentlemen.
Speaker Change: The writer did not elaborate on what an institution would be but you can guess.
Speaker Change: Like everything else, we are doing webinar, we're talking to everybody with housing vein division, where say institutional investor we are always talking to some investors Hello.
Unknown Executive: So as of today, we don't have any major at least not in my knowledge that we don't have any major institutional position. This person added in taking an equity position, he added that detail, that was what he was interested in, an equity position. The institutional does not tell us that they add position unless it's over five percent, so we will not be able to answer those questions if any institutional added position is now.
Speaker Change: As of today, we don't have any major.
Speaker Change: At least not in my knowledge that we don't have any major institution positioned.
Speaker Change: This person added in taking an equity position he added.
Speaker Change: That detail that was what he was interested in an equity position to institutional does that tell us that the acquisition adolescence over 5%. So we would not be able to answer those questions. If any institution are at a position now company.
Michael Young: Thank you, Michael.
Michael Young: Thank you Michael.
Unknown Executive: What gives Phoenix a shot at surviving against competitors such as Ford, BYD, etc., which have, of course, stronger balance sheets, larger dealer networks, etc.? Well, we are not for, we're not BYD, we don't compete on consumer market, we compete strictly on the commercial side of the business. As of today, we are one of the three vendors that's approved by Federal Transit Authority to build Made in America transit bus for the transit agencies, for the airport, for the university. So our competition are limited to two other ones, there may be other coming in, but as of today, we only have two other ones and the demand for the EV buses are so great and there's not enough.
Speaker Change: What gives Phoenix a shot at surviving against competitors, such as Ford BYD et cetera, which have of course stronger balance sheets larger dealer networks et cetera.
Speaker Change: Well, we are not for we're not BYD, we don't compete on consumer market would compete strictly on the on the commercial side of the business as of today. We are one of the three vendor disapproved by photo transit authority to Bill.
Speaker Change: Made in America Potenza buys for the transit agencies for the airport for the University. So all competition are limited to two other one there may be other coming in as of today, we only have two other ones and the demand for the EV buses has so gray and there's not enough.
Unknown Executive: There isn't enough OEM out there today just to meet the three OEM today does not meet the demand for the EV buses, even if I add another three more in there, we still probably not going to be able to meet the EV buses, the commercial vehicle bus segment. So for us, it's not about competing. It's not, it's not about competition for us.
Speaker Change: There isn't enough OEM out there today just to meet the three OEM today does not meet the demand for the EV buses you've ever add another three more in there we still.
Speaker Change: We're not going to be able to meet the EV buses the commercial vehicle by segments. So for ice is not a bile a competing is that it is not about competition for us is all about executing our strategy and deliver the bice as quickly this weekend.
Unknown Executive: It's all about executing our strategy and deliver the bus as quickly.
Unknown Executive: How is Phoenix addressing the ongoing support for legacy products? Many customers are complaining about a lack of parts and support. I'll take that one.
Speaker Change: How is Phoenix addressing the ongoing support for legacy products. Many customers are complaining about a lack of parts and support.
Speaker Change: Okay.
Speaker Change: I'll take that one.
Unknown Executive: When we acquired Proterra, we learned a lot of things after we acquired Proterra. The legacy buses that was owned by Proterra had a lot of issues. We have a lot of customers that want us to fix their buses and get things repaired. And at the very beginning, we did try to do that. Then we realized that we put new parts into some of those buses and keep breaking down. So right now, what we are doing is, in order for us to fix all those legacy buses, it does not make sense just to put a new part in there and wait for it to break down.
Speaker Change: When we acquired Patera, we learn a lot of thing after we acquire a client portera.
Speaker Change: Our legacy prices is owned by protest had a lot of issues. We have a lot of customer one is to fix the buses and give things repaired and at the very beginning we did try to do that and we realize that we put new parts into some of those buses and keep breaking now so right now what we are doing is in order for us to fix all those legacy buses.
Speaker Change: It does not make sense just to put a new parts and they'll wait for it to breakdown. So we are working with our engineering teams are working with our vendors to China.
Unknown Executive: So we're working, our engineering teams are working with our vendors to try to dive deep down into what is the root causes of some of these gearboxes or some of these things that break down. So that once we figured out what the issue is, we could engineer the correct product and send it back out to the customer, and we won't have this issue anymore. So there is a lot of legacy issues out there that from the old company that we are trying to fix. And a lot of this fix is not overnight. It takes weeks and months for the engineering team to be coordinating with our vendors and trying to figure out what the problem is, because you do have to remember something.
Speaker Change: Dive deep down into what is the root causes are awesome, others gearboxes, while some of this thing that breaks down so that once we figured out what the issue is we could engineer to correct a product from.
Speaker Change: And the back out to the customer and we won't have this issue anymore. So there is a lot of legacy issues out there that from the old company that we are trying to fix and some and a lot of these fixes not overnight it takes weeks or months for the engineering team to be coordinating with our vendors and trying to figure out what the problem is because you do.
Speaker Change: You have to remember something our product I saw around the country. We have buses so in Chicago, where winter times. They go down to minus 20 degrees and we have buses all we felt the California. That's 100 degree with dry heat and with our buses that we sell to Florida that has 100 degrees high humidity. So all of those issue there has to be defined before you just keep putting part.
Unknown Executive: Our product got sold around the country. We have buses sold in Chicago where wintertime, they go down to minus 20 degrees. And we have buses that we sell to California that's 100 degrees with dry heat. And we have buses that we sell to Florida that is 100 degrees high humidity. So all those issues that have to be defined before you just keep putting parts in there and keep replacing them, because the objective is not keep putting new parts in there, watch it break down and keep replacing it. So we are working closely to get all those legacy issues fixed.
Speaker Change: It's India and keep replacing them because the objective is back he replaced putting Newpage, India watch a breakdown and keep replacing it. So we are working closely to get all those legacy issue fixed and engineering takes time. This is electric vehicle into is not an overnight thing. So that's why right now we are working.
Unknown Executive: And engineering takes time. This is an electric vehicle. It's not an overnight thing. So that's why right now we're working closely with some of our customers and letting them understand that we need to find the root cause and fix it, and we have figured out some of the root cause, and we're trying to engineer the correct way to replace them.
Speaker Change: Closely with them, while customer and letting them understand that we need to find the root cause and fix it and we are figuring out some of the root cause and we're trying to engineer the correct way to replace them on this call.
Unknown Executive: What is the standard powertrain and battery warranty for the California market? Yeah, I can take that. I mean, again, depends on the product for the ZX5 product, the standard powertrain warranty is two years and the battery warranty is six.
Speaker Change: What is the standard powertrain and battery warranty for the California market.
Speaker Change: Yeah, I can take that I mean again depends on the product for the Z adds by product the.
Speaker Change: The standard powertrain warranty is two years and the battery warranty effects on the of the on the shuttle buses and medium duty vehicles on the V 400, we have a five year warranty on.
Unknown Executive: On the shuttle buses and the medium duty vehicles on the Z400, we have a five-year warranty on the batteries and a three-year warranty on the power. Thank you very much.
Speaker Change: The batteries and a two year warranty on the powertrain.
Speaker Change: Thank you very much.
Unknown Executive: Phoenix team, I know you did mention regaining your NASDAQ listing, however, we keep getting questions about it. Perhaps these people joined late. Could you give as full an update as possible on getting back on the NASDAQ and off the OTC market as these many questioners have asked?
Speaker Change: Our Phoenix team I know you did mention regaining your NASDAQ listing however, we keep getting questions about it perhaps these people joined late June.
Speaker Change: Could you give us full and update as possible on getting back on the NASDAQ and off the OTC market as these many questioners are asked.
Unknown Executive: Okay, I'll repeat myself. The MAS Act requires us to do three things, file out of do a reverse split to gain $1 compliance to fire out K and do our annual general meeting. All three has been done today. The reason we have not been reversed back to NASDAQ is because For us to be able to reverse, we have to submit all the paperwork to FINRA. FINRA is another agency of NASDAQ, and you normally speaking take them 10 days. It has been more than 15 days, and we're still waiting for them to fix. to review it and approve it and allow us to reverse and move back on to the NASDAQ.
Speaker Change: Okay, and I'll repeat myself.
Speaker Change: The NASDAQ require us to do three things file at all.
Speaker Change: Of up to a reverse split to gain one dollar compliance to file our K and do our annual General meeting all three has been done today. The reason we have not been reverse back to NASDAQ is because.
Speaker Change: For us to be able to reverse we have to submit all the paperwork to FINMA Greenbrier is a another agency of NASDAQ and you'd normally speaking take them 10 days. It has been more than 15 days and we still waiting for them to fix.
Speaker Change: To review it and approve it and allow ice can regress a move back onto the NASDAQ and we already had a meeting a discussion with the NASDAQ a consultant.
Unknown Executive: And we already had a meeting discussion with the NASDAQ consultant about this stuff. And all so everything is in their hand. We're just waiting for FINRA to approve it. So we could hopefully we can move everything back up to the net regularly.
Speaker Change: Consulting about this stuff and all so everything's has in their hand, we just waiting for FINRA FINRA to approve it or we could hopefully we can move everything back up to the Nat regular Nasdaq.
Operator: Thank you very much, gentlemen.
Speaker Change: Thank you very much gentlemen.
Operator: We'll give everyone just a moment or two for any final questions for the Phoenix team.
Speaker Change: We'll give everyone just a moment or two.
Speaker Change: For any final questions for the Phoenix team.
Speaker Change: Okay.
Operator: And we'll just take this final question here, gentlemen.
Speaker Change: And we'll just take this final question here gentlemen.
Unknown Executive: Do you have a five-year business plan that is shareable? As of today, we have a strategic business model for the management to focus on what we need to do for the next one, three, and five years.
Speaker Change: Do you have a five year business plan that is shareable.
Speaker Change: As of today would do that we have a strategic business model for the for the management to focus on what we need to do for the next one three and five years, but we do not have any public information on our Mexico. The one three and five year by yours have to remember we are this is.
Unknown Executive: But we do not have any public information on our next one, three, and five years. But you also have to remember, this business that we're in, the commercial EV business, is a fast-changing business. Today, our customers are focused on autonomous driving. A year ago, nobody was focusing on autonomous driving. So we have to start reinvesting ourselves, reinvest ourselves. So things change. So we have to learn to adapt. And we know that the autonomous driving, autonomous mobility is coming. So the management is learning what the market needs and focusing on what the market wants, and at the same time, continue to build a bus that satisfies our customers.
Speaker Change: This business, though we in the commercial EV business is a fast changing business today, our customers are focused only on autonomous driving a year ago, nobody was focusing on Tom's driving so we have to start reimburse us how reinvent ourselves so things change. So we have to Atlanta that and we know that the.
Speaker Change: Autonomy driving.
Speaker Change: Tableau is mobility is coming is coming so the management is learning what the walk in knee and focusing on the market one cents and at the same time continued tube to build or buy.
Speaker Change: <unk> via customers need.
Michael Young: Thank you very much Michael.
Operator: If anyone else from the Phoenix team has any final words. Please speak now. Otherwise, I'll go into the outro. All right.
Speaker Change: If anyone else from the Phoenix team has any final words.
Speaker Change: Please speak now otherwise I'll go into the Altra.
Speaker Change: Alright, Thank you very much Phoenix team and thank you very much to our many participants as the team was saying in the next few weeks there is going to be an open day in Greenville for more information.
Operator: Thank you very much, Phoenix team. And thank you very much to our many participants. As the team was saying, in the next few weeks, there is going to be an open day in Greenville. For more information, please write us at pevm at redchip.com, pevm at redchip.com, or call us at 1-800-RED-CHIP and ask about Phoenix Motor. We'll get you the information as soon as we have it. Please visit Redshift's investor information page for Phoenix Motor, it's phoenixmotorinfo.com. There you can view and download the investor presentation and fact sheet and sign up for news alerts on Phoenix.
Speaker Change: Information please write us at P. E V M at redshift Dotcom P E B M at Richard Dot Com or call us at one 800 bread chip and ask about Phoenix Motor will get you the information as soon as we have it.
Michael Young: Please visit redshift Investor information page for Phoenix Motor, It's Phoenix Motor Info Dot Com. There you can view and download the investor presentation, and fact sheet and sign up for news alerts on Phoenix.
Operator: And Phoenix Motors next webinar could be in the next few weeks. Please continue to watch RedShip.com forward slash events for information on future webinars, not just for Phoenix, of course, but also for all RedShip clients. That's RedShip.com slash events.
Michael Young: And Phoenix Motors are next webinar could be in the next few weeks. Please continue to watch redshift dot com forward slash events for information on future Webinars not just for Phoenix of course, but also for all redshift.
Speaker Change: Clients, that's redshift dot com slash events.
Operator: Thank you to all of our many participants today, and thank you very much, Phoenix team. Goodbye.
Speaker Change: Thank you to all of our many participants today and thank you very much Phoenix team.
Gil: Thank you Gil.
Speaker Change: Goodbye.