Phoenix Motor restates Q1 and Q2 2024 financials due to warrant accounting errors

PHOENIX MOTOR INC.

Audit committee concluded Q1 and Q2 2024 financials should no longer be relied upon due to misstatements.
Warrants issued in Q1 2024 should have been accounted as liabilities, not equity.
Q1 2024: understatement of loss on warrants of $7.4M; warrant liability understated by $7.1M.
Q2 2024: understatement of gain on change in fair value of $5.2M (Q2) and $14.6M (six months); APIC overstated by $9.1M.
Company to amend Q1 and Q2 10-Qs; previously disclosed material weaknesses in internal controls contributed.

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