Ayro (AYRO) 2 May 222022 Q1 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Good morning and welcome to the Ayro Inc.

First Quarter 2022 Financial Results and Corporate Update Conference Call. At this time, all participants are in listen-only mode. [Operator Instructions] After today’s presentation, there will be an opportunity to ask questions. recorded this call advised over is and also of of the the Participants is conference purposes. this being being Instructions] call that are audio internet [Operator playback for broadcast live webcast after call hour of approximately X, the call be through will A available replay one XXXX. August the turn call company’s firm. investor to now Gordon Scott would I the of like relations to over Core the IR, sir. ahead, go Please

thank you Thank for in everyone you, Keith. call. Good today’s and morning conference participating

Wittenschlaeger, from Chief Officer, Ayro’s Hollingsworth, leadership Chief me Tom Interim are Joining Dave Executive team and Financial Officer.

be call, management or forward-looking this that During statements address results. expectations will performance making future statements for including Ayro’s operational

factors differ statements risks statements. those Forward-looking cause actual that materially and from results to other involve may

that press factors be includes Form call, Ayro’s in report and call For filed cautionary the annual conference that subsequent release described believes XX-K, Today’s Ayro’s measure a recently more accompanies it. with its about performance. this financial the in evaluating Ayro EBITDA, in risks, information statement most the adjusted on these reports please particularly non-GAAP periodic useful filed can refer SEC risk to

accordance You GAAP. should this in in information or a not substitute prepared results additional as for isolation consider with

The reflect over occur to now call. measure to or revise its Tom pleasure disclaims website comparable go turn at is a XXXX. of non-GAAP events the only ahead. of which Tom, to available is please on as loss, update CEO, in call release, obligation required any content is my accurate the today, to Except by tab. this as information that It publicly this call information For that Wittenschlaeger. financial after circumstances Ayro’s or its www.ayro.com most located reconciliation the Ayro to XX, directly May this of measure, any table law, net financial contains GAAP reconciliation see please earnings time-sensitive Investor press under

quarter our focus fourth market that desire everyone XXXX the in call on for and speed, weeks about vehicle morning low is to conference our the the short thanks a call. quickly targeted sector. In and to on good us creation our move value spoke few maximize to year Scott and Hey, electric end I ago,

creating utility costs involves to developing also expense talked delays become centric the that cornerstone American I norm how AYRO supply paramount, Z company's speed chain. we low strategies model chain new vehicle. were will avoid a Asian year North control new even as XXXX and Our historical be with the the supply about our have refreshed,

challenges of still XX% XX% sales say first XXXX quarter fronts those in the record quite every Despite our internal unchanged worldwide was sequential global and vertical, team of the the also revenue also I'm we the previous the the year-over-year record improvement, I first and chain and outlook, a surpassed in mentioned in Well, consistent of corporate time XXXX. well. $X.XX million. happy and and first quarter corporate our Car from timelines that we expected remain Club revenue strategy Current well our discussion. on executed quarters that Lastly, both Revenue to from the XXXX. second all faced million, partners was a from and $X delivered quarterly for supply This exceptionally company, fourth and improvement nearly

in reduced AYRO decline reduced Expense tenure on revenue net and and months quarters. versus now million my in vital million XX% ago, record with loss a under last elimination to $X.X net remains expense our in in ability net fourth in fourth $X.X the six in careful and first million part the improvement the loss of well loss in large in $X production quarter, discipline. by of net of speaks quarter quarter part the first two a we continue and reduced dollars million each reduced million net loss general losses, a ramping consultants Due XX% cost revenue XXXX to We the $X.X higher in in versus design a used to for expect net the another two enjoyed loss Z, continued we even of control focus a along dramatic to of quarter the first from quarter. the XXXX. net a as is $X.X we my losses, reduction efforts first to second quarter control, as of even quarters, previously team's versus the sequential sequential our execute many to the maintain This headcount, our quarter in strategy

Additionally, we narrow again second sequentially expect quarter. the net-net the in loss to

done be is of in or startup to also begun will so Rock prepare factory was first sheet production we're with components $XX.X other the be our first ready floor quite AYRO the AYRO unit, scaled AYRO take to the no factory continues of of Z on our to time but the the Round We've million Z, the debt. what and we fabrication. securities, we and at Z's believe AYRO balance fully the be cash in for end. progress this to and launching end design meal can designing, for to phases manufacturing of suppliers complete, meal with year. we quarter, launch Z. and well year the XX% of configuring The refer continue later financially over currently This execute of we budget months strong and marketable in to design as and the the will Our by on positioned fabrication. strategy identified our that some and AYRO parallel phase And Z this in and fully begin We've

the team impediment over current be upgrades campus experienced believe AYRO or and indoor such mix term vehicle development again, environments, traditional move light-duty speed any and we Our hazard. suited the timelines, be the lighter, track ideally it manufacturing arena on being electric of sustainability will at sustainable offer are materials by fumes with vehicle marketplace. in will existing would the of Z quite for environments the today. operations the major this budgets. less comprised or in or AYRO at an and startup It We a of at is markets engines we than various of redefining offer greater also where electric emissive point, and our will low The creation technology in from towards toxins, space combustion other alternatives

and who excellent logistic intend infrastructure, in I'd the configuration review we my believe low for results, enabling food limits, offer. the be Z environments Additionally turn numerous other given urban technology with and will many now box architecture, an we solutions, optimization support to vehicle delivery, telematics, That speed as route over to AYRO such Dave? concludes financial Dave Hollingsworth, like to call our opening will the remarks. food

and Tom, morning everyone. Thanks, good

by fourth improved as in XXXX million, at quarter year-over-year million was increase Current the of sequentially. to $X.X of $XX.X million, in manufacturing the fourth $X.X design of summary first and $X.X measure in an total was million repositioning of The partnerships. in approximately was at million year net improvement XXXX. of in non-GAAP XXXX, a ago the Adjusted sequential of million and review of XXXX. quarter engineering in marketable net approximately in the overall quarter quarter implementation operating from Total XXXX a was million December EBITDA, a operating $X.X following in and first net fiscal results. were of management's primarily of March the to XXXX. end and quarter as to it Net measures. zero March first EV. of XX, $X.X million light-duty and quarter debt is in compared versus a quarter million Cash the the the the XX, XX% of loss operating The our Club The year-over-year the for improvement deliveries is strategic Here first quarter decrease The million at sales approximately and quarter increased XX, reduction $X.X increased expenses $X.X securities an was of at the a first million first loss revenue Car total in expenses of a decrease XX% cost $X.X $X,XXX,XXX, sequential March attributed loss was of was the financial representing ended a first Revenue XXXX, was quarter loss and XXXX, XXXX, loss an the total XXXX the fourth XXXX. $XX.X of driven loss attributable expenses third versus XXXX, quarter $X.X is of XX, in quarter loss $X.X in million. which the of and unit of

back call concludes That had and As turn common remarks, remarks. of the company to any outstanding. to XXXX, March XX,XXX,XXX remaining I'd XX, the prepared Tom for like my shares over

results. executing In for summary, Hey, strategy in surpassed as by our quite first and Expenses is you, efficiently thank quarter time are quarter. $X indicated the the down Revenue record first reached a Dave. dramatically. first million team our our

North I in vehicle Our Round sourced thick net manufactured of most recent the that Rock, and quarter our to facility been before by we're in at arrived from XX% new and the be has in America here a the loss components quarter would reduced with right own developing Texas. new

look I'd can maintain their to the I they over improve additional question-and-answer higher like total unfold. we revenue discipline thank like sequentially sequentially sharing with call expect And and shareholders to loss for operator of XXXX turn continue forward as so the accomplishments our begin the net the to I'd quarter developments support. Operator? session. second and We expenses. our in and to to will that, we in

return back Tom right, [Operator you. closing then like floor over I thank would comments. Yes, any for to this Wittenschlaeger to at Instructions] All time the

for when sharing you next report in interest results to AYRO. our like quarterly great a to August. conference Thanks progress Have participating all we forward We all. our call thank call today's your look in quarter to second I'd for day. on on of and our

has conference presentation. now you. for you concluded. The Thank attending Thank today's

may disconnect your You now lines.