AYRO, Inc. (Nasdaq: AYRO) (“AYRO” or the “Company”), a designer and
manufacturer of electric, purpose-built delivery vehicles and
solutions for micro distribution, micro mobility, and last-mile
delivery, announces financial results for its third quarter ended
December 31, 2021.
Recent Financial
and Corporate
Highlights:
-
Record revenue of $813,291 (+4% year-over-year, +45%
sequentially)
-
35% sequential reduction in Net Loss from 3Q21 to 4Q21, with
expected continued substantial improvements in Net Loss in both
1Q22 and 2Q22
-
Adjusted EBITDA loss of ($7.1) million in 4Q21
-
Total cash of $69.2 million and no debt as of December 31,
2021
-
Appointed Thomas M. Wittenschlaeger as Chief Executive Officer to
leverage leadership in $6.3 billion LSEV (Low Speed Electric
Vehicle) market
- Commenced
development of the model year 2023 AYRO Z light-duty electric
utility truck in December 2021 with anticipated launch by year-end
2022
“Despite supply chain disruptions and continued
impact from the coronavirus epidemic, we enjoyed record revenue in
the fourth quarter, driven by record unit deliveries of the Club
Car Current LSEV, formerly called the 411x,” commented AYRO CEO Tom
Wittenschlaeger. “We continue to be a leader in the LSEV market,
and, as I have mentioned previously, we continue to expect record
revenue and unit deliveries again in the first and second quarters
of 2022.
“Moreover, in December 2021, we began
development of the next-generation 411 fleet vehicle model year
2023 refresh, referred to as the ‘AYRO Z’, which includes updates
on our supply chain and our manufacturing strategy. We are
targeting to launch the AYRO Z by year-end 2022 and envision the
AYRO Z being ideally suited for light-duty uses, including
low-speed logistics, maintenance and cargo services, and personal
transport in a quiet and zero-emissions vehicle that should offer a
major technology refresh over the 411x/Club Car Current. We believe
that our leadership team has the requisite automotive manufacturing
and EV experience to launch the AYRO Z with an aggressive design
schedule and materially reduced development cost. We are making
excellent progress in developing a supply chain for the AYRO Z that
is primarily North American-sourced and that should have zero
components from China. Again, the costs, delays, and logistics of
sourcing our components from China are less than ideal, and we
believe that we can and will do better.
“In addition to corporate customers looking for
an environmentally friendly fleet of light-duty support electric
vehicles, the AYRO Z is ideally suited for duties on many
government properties, such as military bases, airports,
forward-deployed installations, and even large vessels, where
non-exhaust emitting, quiet vehicles are highly desirable. We
further intend to position the AYRO Z for sale on the General
Services Administration (GSA) schedule beginning in the fourth
quarter of 2022 so that it may be provided at pre-negotiated prices
for end-use by the federal government. This would represent an
increase in the total addressable market for AYRO beyond the
commercial fleet market being targeted today.
“At year-end 2021, our cash balance was $69.2
million. In previous corporate updates, I have mentioned the
necessity of evaluating the cost structure of AYRO and possibly
making some changes to maximize our cash runway and better align
our costs with our objectives. In the fourth quarter, some tangible
signs of our operating profile are evident. Make no mistake, we
have not stopped innovating at AYRO. Rather, we have simply
modified what products and market segments we are emphasizing and
have limited spending outside of those focus areas.
“The result of the changes implemented in my
first six months at AYRO should result in significant cost savings.
We would expect our ongoing operating loss to narrow even further
in 1Q22 and 2Q22 due to continued improvements in our cost
structure that were made in the calendar new year and that did not
show up in 4Q21 results, even as we are ramping our development
activities for the AYRO Z. Additionally, we had approximately $1.78
million in one-time cost of goods sold (COGS) expenses in 4Q21
related to the shift to our North American-based manufacturing and
supply chain strategy that will not recur in future quarters.
“In summary, 2022 should be a very busy year for
the AYRO team. We look forward to rolling out the AYRO Z by
year-end and introducing a next-generation light-duty electric
truck that offers numerous cargo and payload hauling options, is
extremely ergonomic, and meets the sustainability and ‘green’ goals
that are increasingly common from today’s fleet managers.
I look forward to further updating investors in
the future and appreciate our employees for their dedication and
drive and our shareholders for their continued interest and
support,” concluded Mr. Wittenschlaeger.
About AYRO,
Inc.
Texas-based AYRO, Inc. designs and produces
all-electric, purpose-built vehicles that are powered by technology
and usable by anyone. Driven by insight gained from partners,
customers, and research, AYRO delivers profitable and sustainable
e-delivery solutions that empower organizations to enable
sustainable fleets that extend both their brand value and
exceptional user experience throughout the delivery process. For
more information, visit: www.ayro.com.
Forward-Looking Statements
This press release may contain forward-looking
statements. These forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause
actual results, performance or achievements to be materially
different from any expected future results, performance, or
achievements. Words such as “anticipate,” “believe,” “could,”
“estimate,” “expect,” “may,” “plan,” “will,” “would” and their
opposites and similar expressions are intended to identify
forward-looking statements and include the expected value of the
purchase order and the assembly, customization and offering of
vehicles by AYRO’s strategic partners. Such forward-looking
statements are based on the beliefs of management as well as
assumptions made by and information currently available to
management. Important factors that could cause actual results to
differ materially from those indicated by such forward-looking
statements include, without limitation: the ability of AYRO’s
suppliers to deliver parts and assemble vehicles; the ability of
the purchaser to terminate or reduce purchase orders; AYRO has a
history of losses and has never been profitable, and AYRO expects
to incur additional losses in the future and may never be
profitable; the impact of public health epidemics, including the
COVID-19 pandemic; the market for AYRO’s products is developing and
may not develop as expected and AYRO, accordingly, may never meet
its targeted production and sales goals; AYRO’s limited operating
history makes evaluating its business and future prospects
difficult and may increase the risk of any investment in its
securities; AYRO may experience lower-than-anticipated market
acceptance of its vehicles; developments in alternative
technologies or improvements in the internal combustion engine may
have a materially adverse effect on the demand for AYRO’s electric
vehicles; the markets in which AYRO operates are highly
competitive, and AYRO may not be successful in competing in these
industries; AYRO relies on and intends to continue to rely on a
single third-party supplier in China for the sub-assemblies in
semi-knocked-down state for all of its vehicles; AYRO may become
subject to product liability claims, which could harm AYRO’s
financial condition and liquidity if AYRO is not able to
successfully defend or insure against such claims; increases in
costs, disruption of supply or shortage of raw materials, in
particular lithium-ion cells, could harm AYRO’s business; AYRO may
be required to raise additional capital to fund its operations, and
such capital raising may be costly or difficult to obtain and could
dilute AYRO stockholders’ ownership interests, and AYRO’s long term
capital requirements are subject to numerous risks; AYRO may fail
to comply with environmental and safety laws and regulations; and
AYRO is subject to governmental export and import controls that
could impair AYRO’s ability to compete in international market due
to licensing requirements and subject AYRO to liability if AYRO is
not in compliance with applicable laws. A discussion of these and
other factors with respect to AYRO is set forth in our most recent
Annual Report on Form 10-K and subsequent reports on Form 10-Q.
Forward-looking statements speak only as of the date they are made
and AYRO disclaims any intention or obligation to revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
For investor
inquiries: |
Joseph Delahoussaye - CORE
IR |
for AYRO Inc. |
investors@ayro.com |
AYRO, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS
|
|
As of December 31, |
|
|
|
2021 |
|
|
2020 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
69,160,466 |
|
|
$ |
36,537,097 |
|
Accounts receivable, net |
|
|
969,429 |
|
|
|
765,850 |
|
Inventory, net |
|
|
3,744,037 |
|
|
|
1,173,254 |
|
Prepaid expenses and other current assets |
|
|
2,276,178 |
|
|
|
1,608,762 |
|
Total current assets |
|
|
76,150,110 |
|
|
|
40,084,963 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
835,160 |
|
|
|
611,312 |
|
Intangible assets, net |
|
|
88,322 |
|
|
|
143,845 |
|
Operating lease – right-of-use asset |
|
|
1,012,884 |
|
|
|
1,098,819 |
|
Deposits and other assets |
|
|
41,288 |
|
|
|
22,491 |
|
Total assets |
|
$ |
78,127,764 |
|
|
$ |
41,961,430 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
647,050 |
|
|
$ |
767,205 |
|
Accrued expenses |
|
|
2,990,513 |
|
|
|
665,068 |
|
Contract liability |
|
|
- |
|
|
|
24,000 |
|
Current portion long-term debt, net |
|
|
- |
|
|
|
7,548 |
|
Current portion lease obligation – operating lease |
|
|
206,426 |
|
|
|
123,139 |
|
Total current liabilities |
|
|
3,843,989 |
|
|
|
1,586,960 |
|
|
|
|
|
|
|
|
|
|
Long-term debt, net |
|
|
- |
|
|
|
14,060 |
|
Lease obligation - operating lease, net of current portion |
|
|
859,543 |
|
|
|
1,002,794 |
|
Total liabilities |
|
|
4,703,532 |
|
|
|
2,603,814 |
|
|
|
|
|
|
|
|
|
|
Commitments and
contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
|
|
Preferred Stock, (authorized – 20,000,000 shares) |
|
|
- |
|
|
|
- |
|
Convertible Preferred Stock Series H, ($0.0001 par value;
authorized – 8,500 shares; issued and outstanding – 8 shares as of
December 31, 2021 and 2020, respectively) |
|
|
- |
|
|
|
- |
|
Convertible Preferred Stock Series H-3, ($.0001 par value;
authorized – 8,461 shares; issued and outstanding – 1,234 as of
December 31, 2021 and 2020, respectively) |
|
|
- |
|
|
|
- |
|
Convertible Preferred Stock Series H-6, ($.0001 par value;
authorized – 50,000 shares; issued and outstanding – 50 as of
December 31, 2021 and 2020, respectively) |
|
|
- |
|
|
|
- |
|
Common Stock, ($0.0001 par value; authorized – 100,000,000 shares;
issued and outstanding – 36,866,956 and 27,088,584 as of December
31, 2021 and 2020, respectively) |
|
|
3,687 |
|
|
|
2,709 |
|
Additional paid-in capital |
|
|
131,654,776 |
|
|
|
64,509,724 |
|
Accumulated deficit |
|
|
(58,234,231 |
) |
|
|
(25,154,817 |
) |
Total stockholders’ equity |
|
|
73,424,232 |
|
|
|
39,357,616 |
|
Total liabilities and stockholders’ equity |
|
$ |
78,127,764 |
|
|
$ |
41,961,430 |
|
AYRO, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
For the years ended December 31, |
|
|
|
2021 |
|
|
2020 |
|
Revenue |
|
$ |
2,683,597 |
|
|
$ |
1,604,069 |
|
Cost of goods sold |
|
|
4,774,784 |
|
|
|
1,770,552 |
|
Gross loss |
|
|
(2,091,187 |
) |
|
|
(166,483 |
) |
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
11,449,617 |
|
|
|
1,920,548 |
|
Sales and marketing |
|
|
2,419,168 |
|
|
|
1,415,282 |
|
General and administrative |
|
|
17,168,898 |
|
|
|
6,603,935 |
|
Total operating expenses |
|
|
31,037,683 |
|
|
|
9,939,765 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(33,128,870 |
) |
|
|
(10,106,248 |
) |
|
|
|
|
|
|
|
|
|
Other income (expense): |
|
|
|
|
|
|
|
|
Other income, net |
|
|
51,768 |
|
|
|
236,923 |
|
Interest expense |
|
|
(2,312 |
) |
|
|
(327,196 |
) |
Loss on extinguishment of debt |
|
|
- |
|
|
|
(566,925 |
) |
Total other income (expense), net |
|
|
49,456 |
|
|
|
(657,198 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(33,079,414 |
) |
|
$ |
(10,763,446 |
) |
|
|
|
|
|
|
|
|
|
Provision for income
taxes |
|
|
- |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
Deemed dividend on
modification of Series H-5 warrants |
|
|
- |
|
|
|
(432,727 |
) |
|
|
|
|
|
|
|
|
|
Net loss Attributable to
Common Stockholders |
|
$ |
(33,079,414 |
) |
|
$ |
(11,196,173 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
|
$ |
(0.94 |
) |
|
$ |
(0.73 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted weighted
average Common Stock outstanding |
|
|
35,171,935 |
|
|
|
15,336,617 |
|
AYRO, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
For the years ended |
|
|
|
December 31, |
|
|
|
2021 |
|
|
2020 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(33,079,414 |
) |
|
$ |
(10,763,446 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
527,584 |
|
|
|
447,283 |
|
Stock-based compensation |
|
|
7,556,282 |
|
|
|
1,827,008 |
|
Amortization of debt discount |
|
|
- |
|
|
|
236,398 |
|
Loss on extinguishment of debt |
|
|
- |
|
|
|
566,925 |
|
Amortization of right-of-use asset |
|
|
206,375 |
|
|
|
111,861 |
|
Provision for bad debt expense |
|
|
99,309 |
|
|
|
37,745 |
|
Debt Forgiveness (PPP loan) |
|
|
- |
|
|
|
(218,000 |
) |
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(302,887 |
) |
|
|
(732,449 |
) |
Inventory |
|
|
(2,666,327 |
) |
|
|
(4,967 |
) |
Prepaid expenses and other current assets |
|
|
(667,416 |
) |
|
|
(1,444,363 |
) |
Deposits |
|
|
(18,797 |
) |
|
|
26,265 |
|
Accounts payable |
|
|
(120,155 |
) |
|
|
(59,489 |
) |
Accrued expenses |
|
|
2,038,365 |
|
|
|
10,632 |
|
Contract liability |
|
|
(24,000 |
) |
|
|
24,000 |
|
Lease obligations - operating leases |
|
|
(180,404 |
) |
|
|
(84,747 |
) |
Net cash used in operating activities |
|
|
(26,631,485 |
) |
|
|
(10,019,344 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(538,012 |
) |
|
|
(504,332 |
) |
Purchase of intangible assets |
|
|
(62,351 |
) |
|
|
(14,388 |
) |
Proceeds from merger with ABC Merger Sub, Inc. |
|
|
- |
|
|
|
3,060,740 |
|
Net cash (used in) provided by investing activities |
|
|
(600,363 |
) |
|
|
2,542,020 |
|
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from issuance debt |
|
|
- |
|
|
|
1,318,000 |
|
Repayments of debt |
|
|
(21,611 |
) |
|
|
(1,744,676 |
) |
Proceeds from exercise of warrants, net of fees |
|
|
100,000 |
|
|
|
3,926,818 |
|
Proceeds from exercise of stock options |
|
|
1,506,999 |
|
|
|
16,669 |
|
Proceeds from issuance of Common Stock, net of fees and
expenses |
|
|
58,269,829 |
|
|
|
39,855,788 |
|
Net cash provided by financing activities |
|
|
59,855,217 |
|
|
|
43,372,599 |
|
|
|
|
|
|
|
|
|
|
Net change in cash |
|
|
32,623,369 |
|
|
|
35,895,275 |
|
|
|
|
|
|
|
|
|
|
Cash, beginning of year |
|
|
36,537,097 |
|
|
|
641,822 |
|
|
|
|
|
|
|
|
|
|
Cash, end of year |
|
$ |
69,160,466 |
|
|
$ |
36,537,097 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of
cash and non-cash transactions: |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
1,971 |
|
|
$ |
102,911 |
|
Interest forgiven on PPP loan |
|
|
- |
|
|
|
1,363 |
|
Conversion of debt to Common Stock |
|
|
- |
|
|
|
1,000,000 |
|
Conversion of Preferred Stock to Common Stock |
|
|
- |
|
|
|
9,025,245 |
|
Cashless exercise of 76,999 H-5 warrants |
|
|
- |
|
|
|
192,500 |
|
Discount on debt with related party |
|
|
- |
|
|
|
462,013 |
|
Deemed dividend on modification of Series H-5 warrants |
|
|
- |
|
|
|
432,727 |
|
Restricted Stock for service, vested not issued |
|
|
329,380 |
|
|
|
42,300 |
|
Offering costs included in accounts payable, not paid |
|
|
- |
|
|
|
54,617 |
|
Supplemental non-cash amounts of lease liabilities arising from
obtaining right of use assets |
|
$ |
120,440 |
|
|
$ |
1,210,680 |
|
Non-GAAP Financial Measures
We present Adjusted EBITDA because we consider
it to be an important supplemental measure of our operating
performance, and we believe it may be used by certain investors as
a measure of our operating performance. Adjusted EBITDA is defined
as income (loss) from operations before interest income and
expense, income taxes, depreciation, amortization of intangible
assets, amortization of discount on debt, impairment of long-lived
assets, stock-based compensation expense and certain non-recurring
expenses.
Adjusted EBITDA is not a measurement of
financial performance under generally accepted accounting
principles in the United States, or GAAP. Because of varying
available valuation methodologies, subjective assumptions and the
variety of equity instruments that can impact our non-cash
operating expenses, we believe that providing a non-GAAP financial
measure that excludes non-cash and non-recurring expenses allows
for meaningful comparisons between our core business operating
results and those of other companies, as well as providing us with
an important tool for financial and operational decision making and
for evaluating our own core business operating results over
different periods of time.
Adjusted EBITDA may not provide information that
is directly comparable to that provided by other companies in our
industry, as other companies in our industry may calculate non-GAAP
financial results differently, particularly related to
non-recurring, unusual items. Adjusted EBITDA is not a measurement
of financial performance under GAAP and should not be considered as
an alternative to operating income or as an indication of operating
performance or any other measure of performance derived in
accordance with GAAP. We do not consider Adjusted EBITDA to be a
substitute for, or superior to, the information provided by GAAP
financial results.
Below is a reconciliation of Adjusted EBITDA to
net loss for the three months ended December 31, 2021 and 2020,
respectively, and the twelve months ended December 31, 2021 and
2020, respectively:
|
Three Months Ended |
|
December 31, |
|
2021 |
|
|
2020 |
|
Net Loss |
$ |
(7,779,756 |
) |
|
$ |
(4,756,711 |
) |
Depreciation and
Amortization |
|
143,427 |
|
|
|
103,351 |
|
Stock-based compensation
expense |
|
558,296 |
|
|
|
1,351,830 |
|
Amortization of Discount on
Debt |
|
- |
|
|
|
0 |
|
Interest expense |
|
0 |
|
|
|
2,526 |
|
Loss on extinguishment of
debt |
|
- |
|
|
|
213,700 |
|
Adjusted EBITDA |
$ |
(7,078,033 |
) |
|
$ |
(3,085,304 |
) |
|
Twelve Months Ended |
|
December 31, |
|
2021 |
|
|
2020 |
|
Net Loss |
$ |
(33,079,414 |
) |
|
$ |
(10,763,446 |
) |
Depreciation and
Amortization |
|
527,584 |
|
|
|
447,283 |
|
Stock-based compensation
expense |
|
7,556,282 |
|
|
|
1,827,008 |
|
Amortization of Discount on
Debt |
|
- |
|
|
|
236,398 |
|
Interest expense |
|
2,312 |
|
|
|
90,798 |
|
Loss on extinguishment of
debt |
|
- |
|
|
|
566,925 |
|
Gain on debt forgiveness (PPP
loan) |
|
- |
|
|
|
(219,363 |
) |
Adjusted EBITDA |
$ |
(24,993,236 |
) |
|
$ |
(7,814,397 |
) |
AYRO (NASDAQ:AYRO)
Gráfica de Acción Histórica
De May 2024 a Jun 2024
AYRO (NASDAQ:AYRO)
Gráfica de Acción Histórica
De Jun 2023 a Jun 2024