Ayro (AYRO) 23 Mar 232022 Q4 Earnings call transcript

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Ayro, Inc. Year-End 2022 Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions]. playback are being the Internet broadcast also recorded call conference of and this being is call live for of advised audio that this is Participants purposes. over the call A webcast after end the of be XXXX. approximately through XX, one the June will call replay hour available the of

ahead. turn time, the firm. relations company's to over Joey the go this At like Delahoussaye to investor Sir, floor I'd of IR, please CORE

you, Good call. in and today's you thank participating Jamie. for Thank morning conference

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

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

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

Risk on in annual this cautionary the that For it. recently filed call, XX-K most Form SEC Factors release the described reports more these and to information about filed report Ayro's accompanies particularly subsequent risks, and periodic please press with in Ayro's the statements refer

includes Today's financial evaluating adjusted be measure its performance. conference in can believes EBITDA, useful call Ayro that non-GAAP a

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

For a net GAAP its reconciliation at website to Investor metric, financial reconciliation the non-GAAP tab. comparable release, the Ayro's directly table available of please see in earnings on its measure financial located most press loss, is this which www.ayro.com under

this time-sensitive contains update as that only information accurate publicly call. after is this reflect any as March that obligation of law, by or required Except to information Ayro XX, revise circumstances today, content XXXX. call disclaims occur The or events to of any

ahead. Wittenschlaeger. the pleasure Tom, call It please over to to my CEO, turn is Tom go now

manufacturing quarter Ayro. call. facility additional capped and morning on generated legacy the along right Vanish of a at sales of progress our and feel is our And to the Hey, Rock, Round build tooling with of out year We the product, thank The in and Car design Joey. we in good what Texas. Current, XXXX from the you, of significant Club off progress made sourcing everyone Ayro here fourth

impact As well developed is first mile lightweight on fumes new a low-speed based arenas, applications. our XX as suited designed is the configurations uses and will governed utility I've as environment, indoor street as strategic miles safety legal such for speed Vanish with electric to duty max stadiums, The LSEV has electric both bed and light concern. will delivery be designed the situations well in environments, and be other vehicle duty where common it or architecture be last and was discussed per before, vehicle core hour. roadmap. to the a to leave to and heavy chassis Vanish It and on It resorts, emissions, minimal outdoor zero low-speed a toxic adaptable support making both of campuses, are a

interchangeable Difficulty] [Technical be America. we its payloads is of $X,XXX Vanish each. very for discrete being MSRP components chassis The large about The of Vanish anticipated and intend to from $X,XXX North these majority to while to the sourced $XX,XXX, roughly are sell the

through nearly Car Club sold In revenue Current now quarter inventory XXXX, product. units. sales we've the terms of performance came of of from our the end off continued legacy in this of the And fourth of all

and first minimal. the likely these of sales some that anticipate Current second will trickle XXXX, quarters we be of will While into the

Vanish the for next and legacy revenue generation Current aim this planned in from to we half as complete However, expected of XXXX. we first the transition the in to the dip

believe same While four three will the quarterly it our in be quarters. last revenue the may or is these the burn decline in over has next quarters Vanish until as we range two been cash production,

nearly a of managing job evidenced XXXX by has in OpEx over great XXXX. total team done decline Our operating as $XX a million total in expenses,

of that running two burn current and Cash at were has Rock, this cash securities were $XX million, the an facility. and breakneck platform, a platform, occurred insignificant in our on begin implying of manufacturing first that runway operating design is approximately even at as not vehicle mind a speed expenses the given end out the spending you, years build cash that we new to XXXX Texas levels. design Round feat, and at exceeds marketable The reduction

nor on Another assembly, major for no we shipments allow destiny, from us at have California as as own will distribution. change that eliminates We we're to we vehicle in XXXX Car to China an Club capability exclusive source Karma vehicle believe higher suppliers Instead, Cenntro and Asia, or into other in-house rely that no so Automotive for entirely new any margins largely components. longer going our is on speak, longer from well to vehicle we as scale. supply any developing control enjoy on chain per manufacturing rely that

should be This success based entire family of the by hard driven our three of vehicles, the ingenuity be Ayro always success first I've Vanish long-term will the be the creativity chassis expected be team. of the the is on to core to maintained, which As entire work, success of common experience, and of of launched.

believe there's how strategic of not tenuous despite mirror backdrop be or economic why rearview performed penetration sales and future within in is ultimately is vehicles market a on our Crucially, Customer we considerable acceptance direction. ranks paramount, malaise. anticipated the optimism own will in reflected stock the we anticipation this and this and market our under profits, and our and different

the with go homologation that being rolling a Currently, crushing phase, and to crashing, LSEV and that process is it the involves through and it's vehicle marketplace. all allowed safe, to ensure that certification complies requirements the approval speed must vehicles Vanish prior to is into preparing the governed enter it which

homologation will zero in also Furthermore, Homologation transportation. that that exit sometime is for will the a and requirements successfully California the meets process, CARB believe homologation XX-week ensure we generally June. Vanish emission we

with chain, pivotal step simultaneously Vanish homologation efficiently our underway, dealers will in and While demo purposes. supply units is to Vanish a able being for of sell-through and be the we production is placing ramping maximize which focused on additional the

we expect homologation, the of until of of rate initial the June. half will or sales rather LRIP, low the Thus, production, second end likely Following small XXXX. enter Vanish any be by initial to

do not we to mean that However, take outreach our haven't begun marketing Vanish. yet the for and sales

Canada, the XX of We're more contrary, what a units US On dealer. line. our announced have interest in to negotiation very be of and the we've additional substantial first off first authorized assembly various with already our expression in and the than appears for stages dealers

status as interest numerous dealer cost which technological product, believe we that with products marketplace. found in advantages Thus, total over is the the we offers strong, potential believe our pipeline Vanish ownership in ergonomic currently dealers and design, as along quo the of of enhancements,

necessary Bringing the a of was vehicle use market the Ayro of as would a months The is design very team address vehicle can our essentially little XX same proper what effort be growth to roadmap lay our new be substantially marketplace. foundation future takes the retooling that strategic its of sustainable time. Vanish, for vehicles, market there by for will beauty we different for and real last a completely I But firmly to phase. believe meaning believe time subsequent shorten should which the will launches to effort the segment critical vehicles EV potential needed those components that the

highlighting strategy Intellectual our releases seen development to our as and a press in property to of recent greatly is progress. act the important entry you've stockholder corporate competitors can strong value. Also some our barriers of IP by portfolio. contribute Hopefully, IP

Multiple We the trademark are as matters strengthen future and continue to momentum in issued. patent corporate we currently filing continuations some and patent more IP help been and even our examination, in to gain have already filed will certain applications moat. be in patents

solution We increasingly are trivial EV and in having space more motivates sustainable toward trend a only valuable assets and us sustainability, our will us, an should believe IP Creating successful our obvious. the a company. the nor around neither make solutions world

opening my concludes remarks. That

financial to review to in Now over more the who detail. Dave call I'd will Hollingsworth, turn like Dave? our results

Thanks, morning, Tom. good And everyone.

The fiscal our our ended Revenue financial transition of we sales Current Vanish. to quarter as the Car XXXX the Ayro products. sales of the an outgoing XXXX in year year Ayro of fourth XXXX year-over-year. results. XX, Club the recorded the was Annual summary a XX.X% for growth inventory sales represent Here's $X,XXX,XXX, increase runoff of increased of to December in due

to strategic discontinuation from expenses due to Total reduced in year research of reduced $XX corporate product year-over-year operating primarily general resulting the the development during management to the as team. expenses XXXx XXXX expense for were review $XX.X expense compared implemented development general approximately by the and The million XXXX. due was operating total and reduced million administrative spending and and in decrease previous

in was a XXXX for of million measure, XXXX. loss approximately $XX non-GAAP approximately loss a EBITDA, $XX.X Adjusted million a versus of

net failure loss approximately of $XX.X in adjustments, cost result a XXXX in was $X.XX million, certain the loss $XX.X by approximately a the a was which implemented million and the decrease million cutting in management of XXXX. was Net was measures but team, impacted The by improvement an from write-offs. namely NCM

end at marketable December $XX at and of Cash million XXXX securities XXXX. XX, was $XX.X million versus the approximately

XXXX zero was as December December XX, debt XX, it at Total was XXXX.

company December XX,XXX,XXX common had of the shares XX, As XXXX, outstanding.

I'd prepared for call comments. That Tom turn concludes remarks. any remaining my over to to the like

few of grew many progress XX% We Dave. vehicle, In on a have you, very of Club Thank year-over-year. Revenue sale. remaining units Current, for left was year Car now summary, legacy our the XXXX at fronts. Ayro

a importantly, sustainable were expenses down building versus provide XXXX, believe even is feel million would team's prudently in that will and testament a which to platform operating manage total more contend ability we to our However, we XXXX expenses $XX I growth. nearly while

our importantly, and vehicle, chassis most sales of We generation duty first very we're utility developed of vehicles. the Ayro Vanish. in achieving significant of and platform this close and design production to the entering vehicle, new common we Lastly, the core believe light internally progress the made

people corporate design call two much and a vehicles, that phase belief efforts barometer Ayro anything personal have our better trajectory else Ayro which a we of our Vanish the once the a to our next has functionality be finishing Furthermore, successfully similar a should Vapor. vehicle, of launched, than golf our that is corporate the the future transport next Valet, cart intend of POSITIVE, It called we traditional in mover or to our my this turn history. to will

unlike time. the to will on more golf those Vapor initiatives today. the at cart a be believe say we market much about any We'll However, have other later

and I'd I'd stockholders support, for sharing over to of over updates the thank that, time. operator, the to can our their like to call with like question-and-answer always, As turn the continued we begin I look to And forward so Operator? all corporate session. additional

Instructions]. [Operator

Lantier comes Zacks. Brian from Our today from first question

One question really the you're guess is initial I for the think of they to Will subject Vanish Valet I that and QX. have it's I models. meet future Vapor? encouraging be process on pace in the deliveries homologation the about to same still

question a The answer is your is activity. platform-specific Homologation to yes.

spans very expect few XX a constant platforms. we homologation process Obviously, to We we common weeks architecture, core expect remain which along proceed platform the all generally through on homologation as surprises. relatively

remains timeframe flying the a literally So many But issues we without through homologation basis. the on same. go-forward anticipate

I the to guess, talking Vanish? you're cases or initial industries any where shown use are is you when that are the there or for particular surprising maybe being some are that initial even line of expectations? customers potential with secondly, Or your dealers interest in coming up

very we expected brisk showing And that segments that's Brian. good today, interest. question, are the Well,

that would I just So, I them, if categorize start we segment would refresh. with call to a fleet had

or of refresh refresh those lifetime. business, and really the there, businesses, business, commodity are in they of such the And refreshed commodity in their can into the anticipated than refresh the years. the cycles because We're because our fleets, which that. resort double of you're seeing the four So business, golf generally any three is those lot necessary whether be marina that's every are especially of more to lifetime products product effective is a their quality that interest of

refresh the dramatically. cycle of change So, the economics

expected places from from those substantial the segments. from seeing from We're golf, fairly resorts, interest

a always But there that's and So of initial interest new any There's are. launching bigger just where picture, the distribution expressions product. of startling from a part in a surprise brand aren't surprises. the

schedule. GSA in saw XX-K that on you a is in possibility I that attempting think the the you're to position XXXX? Do

offering is. that our existing have that it Well, beginning presence through would position. GSA certainly partners add is GSA way we're the already that their schedule positioning to And

try the going ourselves Brian, not we're it's partners going on to schedule, but case, So select on the and the that to we're to schedule an have being presence. with focus already addition rather that get to

Cenntro the for is inventory is, question it XX-K, quick the I one guess in Dave about says XXX,XXX.

So the Vanish-related inventory? inventory, if new number principally that I the back from is of out the bulk inventory

correct. It is That's

we're like product legacy the the this have, Tom to of product this vast our have year. the LRIP build for rolling is next holdovers few inventory majority for of up We first Vanish. no, that of into a half said, But, we our complete the

question [ph]. from And comes Quinlan from Mike our next Instructions]. [Operator CNC [ph]

stuff. positive Real

one real minimum is question. April the Just the coming we're bid noticed the rule. I in on for X, believe which NASDAQ quick I XX-K, XXX-day extension up

of or have So guess shares I an outstanding getting you would be from realistic. that there less kind of being $X X, away terms what that granted? the your extension? any question to my strategy being days strategy Is not than is there? that applied extension April is, all And Is for in cure XX trading we're to obviously

And constant that Mike. $X first NASDAQ of their fulfilling be to going a the are I'll the as share. and below with us we still questions there, been There's contact take one. rules to applied in remain We all two

are with forward they rules the per date So, their to year. into know us. continue to that that move will up we And

how to stock reflect the And those to dealers, of that, delivery verified by that want for Ayro Vanish. combat We delivering the hard we will units price second us marketplace. months. believe the and work the question, more sales the want those last product that the that finding Now over be investors XX this to see see by of of

beyond other that, is guess, Xrd You don't ultimate you extension I XXX the or anticipate day the delisting my question. are granted on

Yeah, exactly. Speakers]. [Multiple

of the ladies that, to end gentlemen, question-and-answer turn we session. to today's I'd with over And reached the management for have back like closing and floor remarks. any

quarter quarterly all to for for Have look report thank likely in today's next our of when we call to XXXX. our conference on in day. forward on a the progress sharing call results, and Thanks great you XXXX interest first Ayro. like participating I'd all. May your to We

conference and you Ladies thank gentlemen, conclude for We that today's and presentation. joining. call will

You lines. may disconnect now your