Financial Data and Key Metrics Changes - Revenue for Q2 2021 grew 83% to $522,000 from $286,000 in Q2 2020, primarily due to increased sales to Club Car and related powered food box sales [12][13] - Gross margin percentage decreased to 17.5% from 28.1% in Q2 2020, attributed to increased tariffs on raw materials and shipping costs due to the pandemic [13] - Net loss attributable to common stockholders for Q2 2021 was $7.66 million compared to a loss of $1.53 million in Q2 2020, driven by increased operating expenses [16] - Adjusted EBITDA was a negative $5.9 million for Q2 2021 versus negative $683,000 in Q2 2020 [16][17] - Cash at the end of Q2 2021 was $87.9 million, a $51.1 million increase from $36.8 million at the end of 2020, with zero debt [17] Business Line Data and Key Metrics Changes - The launch of the Club Car Current, a next-generation utility truck, marked a significant milestone, although initial shipments led to a sequential revenue decline of approximately $265,000 [6][7] - Purchase orders for the Current in the first two months post-launch totaled $4.9 million, indicating strong demand [7] - The anticipated rollout of the 311X, targeting the last mile and restaurant delivery markets, is expected to begin with a soft launch later in 2021 and production in 2022 [9][10] Market Data and Key Metrics Changes - There is an estimated annual replacement need of over 100,000 trucks and light-duty vehicles on college campuses, with only 10% currently being electric vehicles, presenting a significant opportunity for AYRO [8] - The restaurant delivery market is valued at $45 billion in the U.S., which is larger than the campus market opportunity [9] Company Strategy and Development Direction - AYRO aims to scale rapidly and profitably through partnerships with companies like Karma Automotive and Element Fleet Management [6] - The company is focused on developing innovative purpose-built electric vehicles and expanding its manufacturing and sales capabilities [19] - The EVV (Electric Vaccine Vehicle) is positioned as a resource for community-level vaccinations, reflecting the company's adaptability to market needs [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future revenue growth driven by the Current and the upcoming 311X vehicle [19] - The company is actively addressing supply chain challenges, particularly regarding lithium battery availability, which is critical for meeting demand [29] - Management highlighted a strong cash position that is expected to support operations until cash flow positive status is achieved by Q1 2023 [41] Other Important Information - The company reported a contracted backlog of $1.816 million as of June 30, 2021, expected to be fulfilled in the coming months [17] - The increase in operating expenses was primarily due to R&D and G&A expenses related to the development of new vehicles and public company reporting requirements [14][15] Q&A Session Summary Question: Can you provide more detail on R&D and G&A expenses? - The majority of the R&D increase is tied to the development of the 311X vehicle, accounting for 80% to 90% of the increase [23] - G&A expenses include significant stock-based compensation and costs associated with being a public company [24] Question: What is the revenue visibility for the rest of the year? - The $4.9 million order from Club Car is expected to be fulfilled in Q3, with additional orders anticipated from Element and Gallery [28][29] Question: Where is the development of the 311X vehicle currently? - The expected launch of the 311X is before Thanksgiving 2021, with prototypes available for customer testing in Q1 2022 [39] Question: How does the cash position support future operations? - The current cash balance is expected to sustain operations until the company reaches cash flow positive status by Q1 2023 [41]

Ayro, Inc. (NASDAQ:AYRO) Q1 2021 Earnings Conference Call May 13, 2021 8:30 AM ET Company Participants Scott Gordon - IR, CORE IR Rodney Keller - Chief Executive Officer Curtis Smith - Chief Financial Officer Conference Call Participants Barry Sine - Spartan Capital Securities Operator Ladies and gentlemen, thank you for standing by. Good morning and welcome to the AYRO, Inc. First Quarter 2021 Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen only mode. ...

Merger and Ownership - The merger on May 28, 2020, resulted in former AYRO Operating equity holders owning approximately 79% of the outstanding equity of the Company[139]. Product and Sales - AYRO's primary product sales are to Club Car, a division of Ingersoll Rand, Inc., with a focus on environmentally friendly electric vehicles for light-duty uses[146]. - AYRO's electric vehicles are designed for commercial customers, including universities and last-mile delivery services[145]. - Revenues from Club Car constituted approximately 75% of total revenue for the three months ended March 31, 2021[151]. - Revenue for the three months ended March 31, 2021, was $0.79 million, an increase of 437.3% compared to $0.15 million for the same period in 2020, driven by increased vehicle sales from the MPA with Club Car[177]. Financial Performance - AYRO has a history of losses and has never been profitable, with expectations of incurring additional losses in the future[136]. - Adjusted EBITDA for Q1 2021 was $(3.81) million, compared to $(1.43) million in Q1 2020, reflecting increased operating losses[188]. - Cost of goods sold increased by $0.53 million, or 469.6%, for the three months ended March 31, 2021, corresponding with the increase in vehicle sales[178]. - Gross margin percentage decreased to 18.3% for the three months ended March 31, 2021, down from 22.9% for the same period in 2020, primarily due to increased tariffs and shipping costs[178]. Expenses - Research and development (R&D) expense increased to $1.93 million for Q1 2021, up 1146.01% from $0.15 million in Q1 2020, driven by personnel costs and development of a next-generation vehicle[179]. - Sales and marketing expense rose to $0.56 million in Q1 2021, compared to $0.32 million in Q1 2020, due to expanded staff and marketing initiatives for the new three-wheeled vehicle[181]. - General and administrative expenses increased to $3.30 million in Q1 2021, up from $1.25 million in Q1 2020, primarily due to higher personnel costs and stock-based compensation[182]. Capital and Financing - The company entered into a securities purchase agreement on January 25, 2021, issuing 3,333,334 shares at $6.00 per share for gross proceeds of $20.0 million[158]. - A concurrent private placement sold warrants to purchase an additional 3,333,334 shares at an exercise price of $6.93 per share[158]. - On February 11, 2021, the company issued 4,400,001 shares at $9.50 per share for gross proceeds of $41.8 million[160]. - Cash and working capital as of March 31, 2021, were $91.49 million and $92.96 million, respectively, up from $36.54 million and $38.50 million as of December 31, 2020, due to capital raising activities[189]. - Net cash provided by financing activities was $58.55 million in Q1 2021, significantly higher than $0.50 million in Q1 2020[197]. Operational Risks - The company relies on a single third-party supplier in China for sub-assemblies, which poses risks to its operations[137]. - AYRO's business is subject to risks from general economic conditions, including trade wars and public health epidemics[136]. - The company has faced challenges related to market acceptance of its vehicles and competition from alternative technologies[137]. - The COVID-19 pandemic has adversely impacted the company's ability to procure raw materials and has delayed shipments, affecting sales and demand for products[164]. Agreements and Partnerships - The company has established minimum purchase requirements under its Manufacturing License Agreement with Cenntro, including 300 units by the first anniversary and 1,300 units by the third anniversary of the agreement[148]. - The partnership with Cenntro includes an exclusive license to purchase AYRO 411 Fleet vehicles for sale in North America[147]. - The company has a Master Procurement Agreement with Club Car, which grants Club Car exclusive rights to sell AYRO's four-wheeled vehicle in North America, contingent on ordering at least 500 vehicles per year[151]. - The company is engaged in discussions with Club Car to develop additional products for sale in Europe and Asia, although success is not guaranteed[151].

AYRO, Inc. (NASDAQ:AYRO) Q4 2020 Results Conference Call March 31, 2021 8:30 AM ET Company Participants Scott Gordon - CORE IR Rod Keller - President and CEO Curt Smith - CFO Conference Call Participants Operator Ladies and gentlemen, thank you for standing by. Good morning and welcome to the AYRO, Inc. Fourth Quarter and Year-End 2020 Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen only mode. [Operator Instructions] After today’s presentation, there wi ...

Ayro, Inc. (NASDAQ:AYRO) Q3 2020 Earnings Conference Call November 6, 2020 8:30 AM ET Company Participants Rod Keller - President & CEO Curt Smith - CFO Conference Call Participants Barry Sine - Spartan Capital Securities Operator Good morning, and welcome to the Ayro, Inc. Third Quarter 2020 Financial Results and Corporate Update Conference Call. [Operator Instructions]. I would now like to turn the call over to Joel's Abraham [ph] [indiscernible], the Company's Investor Relations firm. Please go ahead, si ...

Mergers and Agreements - The company completed a merger on May 28, 2020, with AYRO Operating, resulting in former AYRO Operating equity holders owning approximately 79% of the outstanding equity of the company [160]. - The company has a Master Procurement Agreement with Club Car, which grants Club Car exclusive rights to sell the company's four-wheeled vehicle in North America, requiring a minimum order of 500 vehicles per year [167]. - The company entered into a Securities Purchase Agreement on June 17, 2020, issuing 2,200,000 shares at $2.50 per share, raising approximately $5.5 million before fees [168]. - On July 6, 2020, the company issued 3,157,895 shares at $4.75 per share, generating gross proceeds of approximately $15.0 million before fees [169]. - The company entered into a Master Manufacturing Services Agreement with Karma Automotive for 12 months, with compensation of $1,160,800 for manufacturing services [171]. - The company has developed a strategic partnership with Autonomic, a division of Ford, to jointly develop cloud-based vehicle applications [165]. Financial Performance - For the three months ended September 30, 2020, total revenue increased by $123,173, or 46.4%, compared to the same period in 2019, primarily due to increased vehicle sales and specialty product sales [189]. - Cost of goods sold increased by $124,642, or 61.7%, for the three months ended September 30, 2020, corresponding with the increase in revenue [190]. - Gross margin percentage was 15.9% for the three months ended September 30, 2020, down from 23.9% for the same period in 2019, primarily due to initial one-time costs in production runs [191]. - Research and development expense increased by $366,465, or 123.1%, for the three months ended September 30, 2020, driven by increased engineering investment [192]. - Sales and marketing expense decreased by $127,395, or 29.5%, for the three months ended September 30, 2020, primarily due to reduced contracting for professional services [193]. - General and administrative expense increased by $70,642, or 5.0%, for the three months ended September 30, 2020, due to increased professional services and corporate expansion [194]. - Net loss attributable to common stockholders for the three months ended September 30, 2020, was $3,113,453, compared to a net loss of $2,141,840 for the same period in 2019 [188]. - Total revenue for the nine months ended September 30, 2020, increased by $75,868, or 10.2%, compared to the same period in 2019, primarily due to increased vehicle sales and specialty product sales [199]. - Cost of goods sold increased by $67,924 for the nine months ended September 30, 2020, corresponding with the revenue increase [200]. - Gross profit percentage decreased to 21.4% for the nine months ended September 30, 2020, down from 22.5% in the same period in 2019, due to initial one-time costs in production runs [201]. - Net loss for the nine months ended September 30, 2020, was $6,006,735, compared to a net loss of $5,214,578 in the same period in 2019 [212]. - Adjusted EBITDA for the nine months ended September 30, 2020, was $(4,296,033), compared to $(3,232,185) for the same period in 2019 [212]. Cash Flow and Financing - As of September 30, 2020, the company had approximately $27,916,838 in cash and working capital of approximately $29,900,000, a significant increase from the previous year [213]. - The company raised approximately $31,349,638 from financing activities for the nine months ended September 30, 2020, compared to $3,513,062 in the same period in 2019 [222]. - AYRO used $6,542,495 in cash from operating activities for the nine months ended September 30, 2020, an increase of 106.5% compared to $3,168,709 in the same period in 2019 [223]. - AYRO generated $500,000 of debt financing from DropCar investors and $600,000 from a private investor during the nine months ended September 30, 2020, with total cash generated from financing activities amounting to $28,790,995 [226]. - AYRO provided cash of $2,467,873 in investing activities for the nine months ended September 30, 2020, compared to cash used of $322,773 in the same period in 2019, marking an increase of 666.5% [225]. - The company generated $2,983,527 from the exercise of warrants during the nine months ended September 30, 2020, with no warrants exercised in 2019 [226]. - AYRO's ability to generate cash from operations in future periods will depend on profitability, accounts receivable collections, inventory turns, and working capital management [224]. Operational Risks and Challenges - The company relies on a single third-party supplier for sub-assemblies in semi-knocked-down for all vehicles, which poses a risk to operations [158]. - The company has a history of losses and expects to incur additional losses in the future, indicating potential challenges in achieving profitability [157]. - The COVID-19 pandemic has adversely impacted the company's ability to procure raw materials and meet customer demand, which is expected to affect sales in 2020 [179]. Accounting and Financial Reporting - AYRO's revenue recognition follows ASC 606, with product revenue recognized upon the sale of electric vehicles as they are shipped to customers [238]. - The company has made certain indemnities related to transactions, but historically has not been obligated to make any payments for these obligations [228]. - AYRO does not have any off-balance sheet financing arrangements or liabilities, ensuring transparency in its financial statements [229]. - The company recorded stock-based compensation of $908,650 in October 2019 related to the termination of a royalty-based agreement [232]. - As of September 30, 2020, AYRO's inventory consists of purchased chassis, cabs, batteries, and component parts, stated at the lower of cost or net realizable value [253]. - The Company has not identified or recorded any impairment losses on long-lived assets for the three and nine months ended September 30, 2020 and 2019 [255]. - As of September 30, 2020, there were no accruals for uncertain tax positions, indicating a stable tax position [256]. - The Company is currently evaluating the impact of adopting ASU 2020-06 on its financial statements, which addresses complexities in accounting for convertible instruments [257]. - The amendments in ASU 2016-13 regarding expected credit losses will be effective for fiscal years beginning after December 15, 2022, and the Company does not expect a material impact from this guidance [258]. - The Company adopted ASU 2018-13 on January 1, 2020, which did not have a material impact on its condensed consolidated financial statements [259]. - The adoption of ASU 2017-11 on January 1, 2020, also did not materially impact the Company's unaudited condensed consolidated financial statements [260].