AYRO(US:AYRO)2021-08-11 16:31Financial 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]