AYRO(US:AYRO)2022-11-03 17:00Financial Data and Key Metrics Changes - Revenue for Q3 2022 was $373,186, a decrease of 33% year-over-year and a 62% sequential decline from approximately $1 million in the previous two quarters [16] - Adjusted EBITDA for Q3 2022 was a loss of approximately $4.8 million, an improvement from a loss of approximately $8.2 million in Q3 2021 and a loss of approximately $4.2 million in Q2 2022 [18] - Net loss for Q3 2022 was approximately $5.7 million, improved from a net loss of approximately $12 million in Q3 2021 and a net loss of $6 million in Q2 2022 [18] - Cash and marketable securities balance was approximately $55.2 million as of September 30, 2022, down from $57.9 million at June 30, 2022, and $69.2 million at the end of 2021 [19] Business Line Data and Key Metrics Changes - The decline in revenue was attributed to quality control issues, specifically defective battery components from a supplier, leading to a lack of inventory for lithium-ion battery-powered vehicles [13] - The sales recorded in Q3 2022 represented a run-off of existing inventory as the company transitions to the new Ayro Vanish vehicle [16] Market Data and Key Metrics Changes - The Ayro Vanish is designed for various applications, including urban last-mile delivery and indoor environments, with a maximum speed of 25 miles per hour [8] - The vehicle is expected to be assembled in Round Rock, Texas, with components primarily sourced from North America and Europe [9] Company Strategy and Development Direction - The company is focused on the successful rollout of the Ayro Vanish, which is expected to begin shipping to customers in late Q1 2023 [9] - The strategy includes establishing e-commerce channels and distribution partnerships to enhance market penetration [10] - Future vehicle designs may adapt the same components used in the Vanish for other applications, such as personal transport vehicles [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the supply chain and manufacturing build-out for the Vanish, indicating no anticipated showstoppers [30] - The focus remains on moving legacy platforms into the marketplace while preparing for the new product launch [40] - Management refrained from providing specific revenue guidance but emphasized the intent to clear existing inventory [52] Other Important Information - The company is not currently on the GSA schedule but plans to partner with a GSA partner to offer the Vanish to federal agencies once in production [35] - The company aims to meet 85% North American content criteria for the Vanish, exceeding previous expectations [57] Q&A Session Summary Question: How many prototypes are there in existence today? - The company has two fully built mules used for testing propulsion systems and final fitment checks [24] Question: Any comments on initial customer responses? - Initial discussions with potential customers have been positive, with anticipation for the product [26][28] Question: What are the remaining punch list items to get to a production vehicle? - The supply chain is optimistic, but any delay in parts could impact production [30] Question: Could you elaborate on your go-to-market strategy? - The strategy includes four branches: dealer distribution, direct sales, up-fitters, and fleet partners [32][33] Question: What is the anticipated ticket price for your vehicles? - The ticket price for the chassis is set at $24,750, with additional costs for different payloads [47] Question: Will revenues be lower until the Vanish is in production? - The company is focused on moving legacy platforms and does not provide specific revenue guidance at this time [52]