AYRO(US:AYRO)2023-11-23 17:39Financial Data and Key Metrics Changes - Revenue for Q3 2023 was $88,395, a decrease of 76% year-over-year, representing initial sales of the completed Vanish units [14] - Total operating expenses for Q3 2023 were approximately $6.2 million, up from approximately $5.8 million in Q3 2022, primarily due to the transition to full-time manufacturing [14] - Adjusted EBITDA for Q3 2023 was a loss of approximately $5.2 million, compared to a loss of approximately $4.8 million in Q3 2022 [15] - Net loss attributable to common stockholders for Q3 2023 was approximately $14.2 million, including about $8.5 million in noncash expenses related to the August private placement, compared to a net loss of approximately $5.7 million in the prior year [15] - Cash balance at the end of Q3 2023 was $47.9 million, considered sufficient to reach breakeven anticipated in the second half of 2024 [13][15] Business Line Data and Key Metrics Changes - The company recognized its first revenue from the AYRO Vanish, with initial sales recorded towards the end of Q3 2023 [10] - The Vanish units produced in the low-rate initial production (LRIP) phase are under prototype pricing, which is expected to change as the company transitions to full production [9][10] Market Data and Key Metrics Changes - The company is targeting various markets, including hospitality, corporate campuses, and last-mile delivery, with expectations of receiving more orders from these sectors [10][11] - Inquiries about lease options for Vanish units are increasing, particularly from corporations interested in fleet usage [11] Company Strategy and Development Direction - The company aims to leverage initial Vanish units with potential customers to secure purchase orders in early 2024 [6] - The product roadmap includes the development of the Valet and Vapor vehicles in 2024, with the Valet expected to debut at the PGA show in January [12][27] - The company is focused on building a strong intellectual property portfolio to create a sustainable competitive advantage in the low-speed electric vehicle (LSEV) space [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in reaching breakeven during the second half of 2024, assuming no major disruptions in the supply chain [9] - The company anticipates a consistent ramp in revenue throughout 2024 as manufacturing capabilities improve [37] Other Important Information - The transition from prototype production to full production is expected to occur by the end of 2023 and into Q1 2024, which should lead to a significant reduction in the cost of goods sold [9] Q&A Session Summary Question: Can you provide more details about the test drive events and customer interest? - Management noted that the test drive events attracted distributors and large corporate customers interested in vehicles for corporate campuses, highlighting the Vanish's performance and payload capabilities [19][20] Question: What is the sales and marketing plan for 2024? - The company has a four-pronged approach to market, including dealer channels, upfitter channels, direct-to-consumer sales, and governmental large fleet usage [22][24] Question: What is the timeline for the Valet and Vapor vehicles? - The Valet will be launched first, with a debut at the PGA show in January 2024, followed by the Vapor later in the year [27] Question: What is the expected capacity utilization for breakeven in 2024? - The company forecasts a production capacity of about four vehicles per day, with a fully staffed line capable of nine vehicles [30] Question: Will the Valet and Vapor require the same homologation process? - The Valet is expected to piggyback on the Vanish's homologation process, while the Vapor's requirements are still to be determined [35]