AYRO, Inc. (Nasdaq: AYRO) (“AYRO” or the “Company”), an engineer
and manufacturer of light-duty, urban, and short-haul electric
vehicles (EVs), today announces financial results for its third
quarter of 2020.
Q3 Financial Highlights:
- Revenues of
$388,654
- Net Loss
Attributable to Common Stockholders of ($3.1) million
- Adjusted EBITDA loss
of ($2.1) million
- Total debt of
$241,399 as of September 30, 2020
- Total Cash of $27.9
million as of September 30, 2020
Operating Highlights:
- Established
strategic manufacturing, engineering, and design partnership with
Karma Automotive’s Innovation and Customization Center (KICC) that
is targeted at having a capacity to deliver 20,000+ light-duty
trucks and electric delivery vehicles over the next three years and
is valued at more than $300 million
- Completed expansion
of Austin manufacturing facility from 10,000 square feet to 24,000
square feet to increase production capacity from 200 electric
vehicles per month to 600 per month
- Announced a total of
$24.25 million in in gross equity capital raised through two
registered direct offerings
- Established an
engineering partnership with Gallery Carts and jointly developed an
all-electric mobile food cart based on the Club Car 411 EV to
provide food and beverages “on-the-go”
- Announced $584k in
orders for its mobile food truck following its partnership
announcement with Gallery Carts
- Received and
deployed an initial order from Club Car for nine Club Car 411 EVs
to serve a military medical campus in the northeast U.S.
- Backlog of $624,069
as of September 30, 2020
“The third quarter positioned us well to execute our strategy of
becoming a dominant manufacturer of purpose-built, low-speed EVs
for the commercial fleet market,” commented AYRO Chief Executive
Officer Rod Keller. “Despite the impact of COVID-19 and the
uncertainties it has created across global economies, we were able
to successfully improve our balance sheet materially through two
equity raises and had nearly $28 million in cash at the end of the
third quarter. We continued to deliver 411 cars to Club Car via our
exclusive relationship with them and even established another
partnership with Gallery Carts that is based on the 411 model and
targeted at point-of-demand hospitality markets. This initiative
permits food, beverage, and even merchandise operators to bring
goods directly to consumers. The COVID-19 pandemic has brought into
focus the need to be able to bring food and beverages to students,
faculty, fans, and/or employees on an as-needed basis to avoid
large gatherings like cafeterias. Together with Gallery Carts, we
have a few different vehicles available in a variety of ready-made
and configurable solutions to address varied customer needs.
Encouragingly, on the heels of establishing the partnership with
Gallery Carts, we received an initial order for such mobile food
trucks valued at nearly $600,000. This is a testament to our team’s
ability to identify new and ancillary markets for our EV
solutions.”
“Turning to manufacturing, we are especially excited about the
initiatives we achieved in the third quarter. In early July, we
announced that we tripled the production capacity of our Austin
facility from 200 cars per month to 600 cars per month. Austin is
certainly becoming a hotbed of EV manufacturing, and we are happy
to have the increased flexibility to satisfy future demand locally.
At the end of September, we announced a significant strategic
manufacturing, engineering, and design partnership with Karma
Automotive’s Innovation and Customization Center. Under the
partnership, Karma will provide its expert contract manufacturing
services for the next-generation of AYRO light-duty vehicles as
well as engineering and development services for new EV solutions
in the delivery and microdistribution markets. Together, we aim to
deliver over 20,000 light-duty trucks and electric delivery
vehicles over the next three years. We estimate this production
goal to have a value in excess of $300 million,” continued Mr.
Keller.
“Given our strategic partnerships with industry leaders like
Club Car, Gallery Carts, and now Karma Automotive, our strong
balance sheet, and our internal team who will continue to innovate
and help bring next-generation purpose-built EVs to the market, the
outlook remains quite bright for us, and we are truly excited about
AYRO’s future. Furthermore, while COVID-19 may have led to some
disruptions in customer orders and the near-term pace of EV
adoption, the transition to EVs is a trend that will continue for
both consumers and businesses alike. AYRO is committed
to be the leader in purpose-built EVs,” concluded Mr. Keller.
Results presented herein are preliminary. The Company's final
results will be filed subsequently on Form 10-Q with the Securities
and Exchange Commission.
Conference Call Today:Rod Keller, CEO and Curt
Smith, CFO will be conducting a conference call this morning at
8:30 a.m. ET in which they will lead a discussion of third quarter
financial results with a Q&A session to follow. To listen to
the conference call, interested parties within the U.S. should dial
1-877-270-2148 (domestic) or 1-412-902-6510 (international). All
callers should dial in approximately 10 minutes prior to the
scheduled start time and ask to be joined into the AYRO, Inc.
conference call.
The conference call will also be available through a live
webcast that can be accessed at
https://services.choruscall.com/links/ayro201106.html or via the
Company’s website at
https://ir.ayro.com/news-events/ir-calendar.
The webcast replay will be available until February 6, 2021 and
can be accessed through the above links or by calling
1-877-344-7529 (domestic) or 1-412-317-0088 (international) and
using access code 10149581.
About AYRO,
Inc.
Texas-based AYRO, Inc., engineers purpose-built electric
vehicles to enable sustainable fleets. With rapid, customizable
deployments that meet specific buyer needs, AYRO’s agile EVs are an
eco-friendly microdistribution alternative to gasoline vehicles.
The AYRO 411 Club Car is the only zero-emission, light duty EV
known to AYRO that can be optimized for the needs of any
sustainable fleet, while the AYRO 311 EV can be configured for a
variety of urban last-mile transportation needs. AYRO innovates
with speed, discipline, and agility and was founded in 2017 by
entrepreneurs, investors, and executives with a passion for
creating sustainable urban electric vehicle solutions for
micromobility. For more information, visit: www.ayro.com
Forward-Looking StatementsThis 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," "project,"
"will," "would" and their opposites and similar expressions are
intended to identify forward-looking statements. 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: we have a history of losses
and has never been profitable, and we expect to incur additional
losses in the future and may never be profitable; the market for
our products is developing and may not develop as expected; our
business, results of operations and financial condition may be
adversely impacted by public health epidemics, including the recent
COVID-19 outbreak; our limited operating history makes evaluating
its business and future prospects difficult and may increase the
risk of any investment in its securities; we 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 our electric vehicles; the markets in which we
operate are highly competitive, and we may not be successful in
competing in these industries; we rely on and intends to continue
to rely on a single third-party supplier for the sub-assemblies in
semi-knocked-down for all of its vehicles; we may become subject to
product liability claims, which could harm our financial condition
and liquidity if we are 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 our business; we will be required to raise additional capital
to fund its operations, and such capital raising may be costly or
difficult to obtain and could dilute our stockholders' ownership
interests, and our long-term capital requirements are subject to
numerous risks; we may fail to comply with environmental and safety
laws and regulations; and we are subject to governmental export and
import controls that could impair our ability to compete in
international market due to licensing requirements and subject us
to liability if we are not in compliance with applicable laws. A
discussion of these and other factors is set forth in our
registration statement on Form S-4 filed on February 14, 2020, as
amended. Forward-looking statements speak only as of the date they
are made and we disclaim any intention or obligation to revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
For media
inquiries: |
For investor inquiries: |
Liz Crumpacker |
Joseph Delahoussaye III |
for AYRO, Inc. |
for AYRO Inc. |
ayro@antennagroup.com |
investors@ayro.com |
|
|
AYRO, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
Nine Months Ended |
September 30, |
September 30, |
|
2020 |
|
|
2019 |
|
|
2020 |
|
|
2019 |
|
Revenue |
$ |
388,654 |
|
|
$ |
265,481 |
|
|
$ |
821,398 |
|
|
$ |
745,530 |
|
Cost of goods sold |
|
326,671 |
|
|
|
202,029 |
|
|
|
645,463 |
|
|
|
577,539 |
|
Gross profit |
|
61,983 |
|
|
|
63,452 |
|
|
|
175,935 |
|
|
|
167,991 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
664,145 |
|
|
|
297,680 |
|
|
|
999,449 |
|
|
|
780,605 |
|
Sales and marketing |
|
304,880 |
|
|
|
432,275 |
|
|
|
863,400 |
|
|
|
932,902 |
|
General and administrative |
|
1,482,018 |
|
|
|
1,411,376 |
|
|
|
3,445,749 |
|
|
|
3,437,176 |
|
Total operating expenses |
|
2,451,043 |
|
|
|
2,141,331 |
|
|
|
5,308,598 |
|
|
|
5,150,683 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
(2,389,060 |
) |
|
|
(2,077,879 |
) |
|
|
(5,132,663 |
) |
|
|
(4,982,692 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
|
|
|
|
Other income |
|
17,503 |
|
|
|
1,142 |
|
|
|
17,523 |
|
|
|
1,198 |
|
Interest expense |
|
(95,469 |
) |
|
|
(65,103 |
) |
|
|
(324,670 |
) |
|
|
(233,084 |
) |
Loss on extinguishment of debt |
|
(213,700 |
) |
|
|
- |
|
|
|
(566,925 |
) |
|
|
- |
|
Other (expense) income, net |
|
(291,666 |
) |
|
|
(63,961 |
) |
|
|
(874,072 |
) |
|
|
(231,886 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss |
$ |
(2,680,726 |
) |
|
$ |
(2,141,840 |
) |
|
$ |
(6,006,735 |
) |
|
$ |
(5,214,578 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Deemed dividend on Series H-5 warrants and preferred stock
modification |
|
(432,727 |
) |
|
|
- |
|
|
|
(432,727 |
) |
|
|
- |
|
Net loss Attributable to Common Stockholders |
$ |
(3,113,453 |
) |
|
$ |
(2,141,840 |
) |
|
$ |
(6,439,462 |
) |
|
$ |
(5,214,578 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per share, basic and diluted |
$ |
(0.13 |
) |
|
$ |
(0.77 |
) |
|
$ |
(0.54 |
) |
|
$ |
(1.80 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
Basic and diluted weighted average Common Stock outstanding |
|
23,599,967 |
|
|
|
2,793,592 |
|
|
|
11,896,906 |
|
|
|
2,894,374 |
|
AYRO, INC. AND SUBSIDIARIES |
CONDENSED CONSOLIDATED BALANCE SHEETS |
(UNAUDITED) |
|
|
|
|
|
|
|
|
|
September 30, |
|
December 31, |
2020 |
2019 |
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash |
|
$ |
27,916,838 |
|
|
$ |
641,822 |
|
Accounts receivable, net |
|
|
414,030 |
|
|
|
71,146 |
|
Inventory |
|
|
1,524,755 |
|
|
|
1,118,516 |
|
Prepaid expenses and other current assets |
|
|
1,861,873 |
|
|
|
164,399 |
|
Total current assets |
|
|
31,717,496 |
|
|
|
1,995,883 |
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
812,227 |
|
|
|
489,366 |
|
Intangible assets, net |
|
|
170,199 |
|
|
|
244,125 |
|
Operating lease – right-of-use asset |
|
|
1,130,233 |
|
|
|
- |
|
Deposits and other assets |
|
|
22,491 |
|
|
|
48,756 |
|
Total assets |
|
$ |
33,852,646 |
|
|
$ |
2,778,130 |
|
|
|
|
|
|
|
|
LIABILITIES AND STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
1,131,461 |
|
|
$ |
772,077 |
|
Accrued expenses |
|
|
443,296 |
|
|
|
612,136 |
|
Contract liability |
|
|
122,514 |
|
|
|
- |
|
Current portion long-term debt, net |
|
|
7,393 |
|
|
|
1,006,947 |
|
Lease obligation – operating lease |
|
|
118,466 |
|
|
|
- |
|
Total current liabilities |
|
|
1,823,130 |
|
|
|
2,391,160 |
|
|
|
|
|
|
|
|
Long-term debt, net |
|
|
234,006 |
|
|
|
318,027 |
|
Lease obligation - operating lease, net of current portion |
|
|
1,035,051 |
|
|
|
- |
|
Total liabilities |
|
|
3,092,187 |
|
|
|
2,709,187 |
|
|
|
|
|
|
|
|
Commitments and contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Preferred Stock, (authorized – 20,000,000 shares) |
|
|
- |
|
|
|
- |
|
Convertible Preferred Stock Series H, ($0.0001 par value;
authorized – 8,500 shares; issued and outstanding – 8 and
zero shares, respectively) |
|
|
- |
|
|
|
- |
|
Convertible Preferred Stock Series H-3, ($.0001 par value;
authorized – 8,461 shares; issued and outstanding – 2,189
and zero shares, respectively) |
|
|
- |
|
|
|
- |
|
Convertible Preferred Stock Series H-6, ($.0001 par value;
authorized – 50,000 shares; issued and outstanding – 50
and zero shares, respectively) |
|
|
- |
|
|
|
- |
|
Convertible Seed Preferred Stock, ($1.00 par value;
authorized – zero shares; issued and outstanding – 0 and
7,360,985 shares, respectively) |
|
|
- |
|
|
|
9,025,245 |
|
Common Stock, ($0.0001 par value; authorized – 100,000,000
shares; issued and outstanding – 24,298,333 and 3,948,078
shares, respectively) |
|
|
2,430 |
|
|
|
395 |
|
Additional paid-in capital |
|
|
51,156,135 |
|
|
|
5,001,947 |
|
Accumulated deficit |
|
|
(20,398,106 |
) |
|
|
(13,958,644 |
) |
Total stockholders' equity |
|
|
30,760,459 |
|
|
|
68,943 |
|
Total liabilities and stockholders' equity |
|
$ |
33,852,646 |
|
|
$ |
2,778,130 |
|
Below is a reconciliation of Adjusted EBITDA to net loss for the
three months ended September 30, 2020 and 2019:
|
For the three months ended |
|
September 30, |
|
2020 |
|
2019 |
Net Loss |
$ |
(2,680,726 |
) |
|
$ |
(2,141,840 |
) |
Depreciation and Amortization |
|
115,468 |
|
|
|
129,407 |
|
Stock-based compensation expense |
|
167,769 |
|
|
|
752,965 |
|
Amortization of Discount on Debt |
|
66,659 |
|
|
|
32,767 |
|
Interest expense |
|
28,809 |
|
|
|
32,336 |
|
Loss on extinguishment of debt |
|
213,700 |
|
|
|
- |
|
Adjusted EBITDA |
$ |
(2,088,321 |
) |
|
$ |
(1,194,365 |
) |
Below is a reconciliation of Adjusted EBITDA to net loss for the
nine months ended September 30, 2020 and 2019:
|
For the nine months ended |
|
September 30, |
|
2020 |
|
2019 |
Net Loss |
$ |
(6,006,735 |
) |
|
$ |
(5,214,578 |
) |
Depreciation and Amortization |
|
343,932 |
|
|
|
388,686 |
|
Stock-based compensation expense |
|
475,175 |
|
|
|
1,360,623 |
|
Amortization of Discount on Debt |
|
236,398 |
|
|
|
60,650 |
|
Interest expense |
|
88,272 |
|
|
|
172,434 |
|
Loss on extinguishment of debt |
|
566,925 |
|
|
|
- |
|
Adjusted EBITDA |
$ |
(4,296,033 |
) |
|
$ |
(3,232,185 |
) |
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