AYRO(US:AYRO)2022-08-11 17:43Financial Data and Key Metrics Changes - Revenue for Q2 2022 was $980,000, an increase of 88% year-over-year, but a decline of 4% sequentially [10][14] - Net loss increased from $4.58 million in Q1 2022 to $5.97 million in Q2 2022, primarily due to a $1.32 million write-off related to defective components [11][15] - Cash and marketable securities at the end of Q2 2022 were $57.9 million, down from $63.5 million at the end of Q1 2022, with no debt [13][16] Business Line Data and Key Metrics Changes - The increase in revenue year-over-year was attributed to higher unit sales and deliveries of the Club Car Current light-duty EV and a higher average selling price [14] - The total operating expenses in Q2 2022 were approximately $4.1 million, down from $7.8 million in Q2 2021 and $4.4 million in Q1 2022, mainly due to reduced R&D expenses [15] Market Data and Key Metrics Changes - The company is focusing on the low-speed electric vehicle market, targeting applications in urban environments and indoor settings [6][12] - The supply chain for the new Ayro Z platform is 92% defined, with 85% of components sourced from North America, which is expected to lead to significant cost savings [8][9] Company Strategy and Development Direction - The company plans to unveil the Ayro Z prototype and open preorders by year-end 2022, with a focus on maximizing shareholder value through the new product cycle [12][17] - The strategy includes shifting from offshoring to onshoring and in-sourcing certain production aspects, which may lead to changes in existing partnerships [24][25] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the Ayro Z platform despite challenges faced in Q2, emphasizing the importance of the new product cycle for shareholder value [12][17] - The company does not anticipate a complete revenue drop as it transitions from the Current vehicle to the new Ayro Z platform [28] Other Important Information - The company has no immediate need to raise capital due to a strong balance sheet [13] - The Ayro Z platform is expected to have positive gross margins from the start, with margins improving as production scales up [31][32] Q&A Session Summary Question: Is there a prototype of the Ayro Z running in the wild? - Currently, there are no production-level Ayro Zs as the supply chain is 92% complete, with plans to build 17 prototypes for testing [19][20] Question: What is the visibility on partnerships and potential renegotiations? - The company is in negotiations regarding various partnerships, with a strategy to shift from offshoring to onshoring, which may lead to changes in relationships [24][25] Question: What does the revenue outlook look like for the rest of the year? - The company expects to generate revenue from existing inventory of the Current vehicle while transitioning to the new Ayro Z platform [28] Question: Is the balance sheet sufficient to support the transition? - Management agrees that the balance sheet is adequate, with expectations of positive gross margins on the Z units [29][31] Question: Will the company benefit from EV incentives in the new bill? - Management is uncertain about the extent of incentives but believes the platform will be competitively priced without relying heavily on them [35][36]