AYRO(US:AYRO)2021-05-13 15:07Financial Data and Key Metrics Changes - The company reported record quarterly revenue of nearly $800,000 for Q1 2021, a 437% increase from $147,000 in Q1 2020 [5][11] - Gross margin percentage decreased to 18.3% in Q1 2021 from 22.9% in Q1 2020, primarily due to increased tariffs and shipping costs [11][12] - Total operating expenses increased by 236% to $5,787,000 in Q1 2021 from $1,723,000 in Q1 2020, driven by higher R&D and G&A expenses [12][14] - Net loss attributable to common stockholders was $5.63 million in Q1 2021 compared to a loss of $1.8 million in Q1 2020 [14] - Adjusted EBITDA was negative $3.81 million in Q1 2021, worsening from negative $1.43 million in Q1 2020 [15] Business Line Data and Key Metrics Changes - A significant portion of increased revenue came from innovative food carts and food truck designs, highlighting the value of strategic partnerships [6] - The company launched the electric vaccination vehicle (EVV), which has received favorable feedback, although the sales cycle is longer than anticipated [7] Market Data and Key Metrics Changes - The company is optimistic about the demand for its 411 light-duty electric truck, especially with Gallery Carts, which allows for various configurations [6] - The commercial EV industry is still in its infancy, but the company believes its strong partnerships will help it scale effectively [9] Company Strategy and Development Direction - The company established a strategic partnership with Element Fleet Management to enhance its market reach and distribution capabilities [5][8] - The 411x light-duty electric truck is set to launch soon, targeting campuses and stadiums, while the 311x three-wheeled vehicle is expected to launch in the first half of 2022 [9][10] - The company aims to leverage its partnerships for manufacturing and distribution rather than building these capabilities in-house [8] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the future, citing the upcoming launches of the 411x and 311x vehicles as key milestones for revenue growth [18] - The company feels well-capitalized with a cash position of $91.5 million and essentially zero debt, allowing it to focus on executing its business plans [9][19] Other Important Information - The company raised $61.8 million in gross proceeds through two equity offerings in early 2021, strengthening its balance sheet [6][16] - The company has a backlog of orders that reflects sales activity during Q1 2021, with expectations to fulfill these orders in Q2 [33] Q&A Session Summary Question: What supports the expectation for rapid revenue growth with the next-gen vehicles? - Management indicated that significant purchase orders have already been received from Club Car for the 411x, which is expected to be announced soon [23] Question: Will Element Fleet Management be selling the vehicles? - Element has signed an agreement with Club Car to be an authorized reseller of the vehicles, while Club Car retains exclusivity [25] Question: Are the vaccine vehicles currently in use? - Management clarified that while federal agencies have evaluated the EVV, they have not yet used it for vaccinations [27] Question: What is the impact of semiconductor shortages on production? - Management stated that semiconductor shortages have not impacted production so far [45]