Phoenix Motor Inc. (NASDAQ:PEV) shares are trading higher premarket on Friday after the company reported a substantial increase in the first-quarter results.

Net revenues rose to $9.4 million from $1.8 million in the prior year quarter. Gross profit was $2.5 million vs. $0.2 million in the prior year quarter. EPS increased to $0.44 from a loss of $0.13 in the prior year period.

Denton Peng, CEO of Phoenix Motor, said, "Our substantial net income improvement was driven by a significant bargain purchase gain from our recent acquisition of Proterra's Transit business, which was acquired for considerably below its fair market value."

Total assets increased to $78.7 million from $11.6 million at December 31, 2023.

In April, Phoenix Motor disclosed its plans to create an Artificial Intelligence (AI) development center in Silicon Valley, California.

Earlier this year, the company inked an Integration Agreement with InductEV to develop software, hardware, and, cooling and electrical systems integration of InductEV's wireless charging pads with its zero-emission drive systems.

"Combined with strategic initiatives, including new product launches and key partnerships, we expect to drive accelerating momentum across all of our business segments, positioning us well for long-term growth in the rapidly evolving electric vehicle sector," Peng added.

Price Action: PEV shares are up 128.3% at $0.7933 premarket at the last check on Friday.

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