AYRO(US:AYRO)2024-11-14 21:15Financial Performance - Revenue for the three months ended September 30, 2024, was $0.01 million, a decrease of 94% compared to $0.09 million for the same period in 2023 [122]. - Revenue for the nine months ended September 30, 2024, was $0.06 million, an 81% decrease from $0.34 million in the same period in 2023 [130]. - Cost of goods sold increased by $0.05 million, or 23%, for the three months ended September 30, 2024, primarily due to inventory adjustments and allowances related to the impairment of 411 vehicles [122]. - Cost of goods sold increased by $1.76 million, or 225%, for the nine months ended September 30, 2024, primarily due to inventory adjustments and increased freight charges [131]. - Research and development expense was $0.01 million for the three months ended September 30, 2024, a decrease of 99% from $1.33 million in the same period in 2023 [123]. - Research and development expense was $1.40 million for the nine months ended September 30, 2024, a decrease of 76% from $5.87 million in the same period in 2023 [132]. - General and administrative expenses decreased by $2.96 million, or 68%, to $1.41 million for the three months ended September 30, 2024, compared to $4.37 million in 2023 [125]. - Total operating expenses for the three months ended September 30, 2024, were $1.65 million, a decrease of $4.45 million from $6.10 million in 2023 [121]. - The company recorded a net income of $3.83 million for the nine months ended September 30, 2024, compared to a net loss of $24.07 million in the same period in 2023 [129]. - Cash used in operating activities decreased by $10.97 million to $10.33 million for the nine months ended September 30, 2024, compared to $21.30 million in 2023 [142]. - Cash used in investing activities decreased by $10.89 million to $15.25 million for the nine months ended September 30, 2024, compared to $26.14 million in 2023 [144]. - Cash used in financing activities decreased by $26.73 million to $5.10 million for the nine months ended September 30, 2024, compared to $21.63 million provided in 2023 [145]. Operational Challenges - The company reported a history of losses and anticipates incurring additional losses in the future, with no expectation of profitability [95]. - The company is currently facing supply chain shortages, which may delay the availability of saleable vehicles [146]. - The company relies on a single third-party supplier for certain assembly parts, posing a risk to its operations [96]. - The company is subject to various risks, including potential delisting from Nasdaq and challenges in market acceptance of its electric vehicles [95][96]. Strategic Initiatives - The company is undergoing an internal restructuring to improve efficiency, which includes eliminating a substantial number of positions [109]. - The company is focused on reducing the bill of materials and overall manufacturing expenses for the Vanish model to lower its Manufacturer's Suggested Retail Price [109]. - The company is evaluating its product development strategy, which may lead to significant changes impacting its business [96]. - The company is evaluating options for strategic capital deployment, including potential partnerships and acquisitions in the electric vehicle market [139]. Partnerships and Agreements - The company has entered into multiple supply agreements, including with Sirris Inc. for rear and front shocks, and Athena Manufacturing for customizable metal products [107][108]. - The company has partnered with Linamar Corporation for manufacturing parts, with the agreement set to terminate on July 28, 2025 [105]. Market Compliance - The company received a letter from Nasdaq indicating it did not meet the minimum bid price of $1.00 per share, with a compliance period until January 14, 2025 [101].