AYRO, Inc. (Nasdaq: AYRO) (“AYRO” or the “Company”), a designer and
manufacturer of light-duty, short-haul, and last-mile delivery
electric vehicles (EVs), today announced financial results for its
fiscal year ended 12/31/20.
Fiscal Year 2020 Financial Highlights:
|
● |
Revenue of $1.6 million (+80% YOY) in FY2020 vs. $0.9 million for
FY2019 |
|
● |
Net Loss Attributable to Common Stockholders of ($11.2) million in
FY2020 vs. ($8.6) million in FY2019 |
|
● |
Adjusted EBITDA loss of ($7.8) million for FY 2020 vs. ($4.4)
million for FY2019 |
|
● |
Total Cash of $36.5 million as of December 31, 2020 vs. $0.6
million as of December 31, 2019 |
|
● |
Total debt of $0.02 million as of December 31, 2020 vs. $1.3
million as of December 31, 2019 |
Recent Corporate Highlights:
|
● |
Completed a reverse merger with DropCar, Inc. in May 2020 |
|
● |
Established strategic manufacturing, engineering, and design
partnership with Karma Automotive’s Innovation and Customization
Center (KICC) with a targeted production capacity of 20,000
light-duty trucks and electric delivery vehicles over the next
three years |
|
● |
Completed expansion of Austin manufacturing facility from 10,000
square feet to 24,000 square feet to increase production capacity
from 200 EVs per month to 600 per month |
|
● |
Announced an agreement with Element Fleet Management (“Element”),
the world’s largest pure-play automotive fleet manager, to support
the deployment of large fleets of AYRO electric delivery vehicles
over the next four years |
|
● |
Announced an industry-first electric vaccine vehicle (EVV) with
partners Element, Club Car, and Gallery Carts to expand access to
COVID-19 vaccination and testing |
|
● |
Raised a total of $39.75 million in in gross proceeds from the sale
of common stock through four registered direct offerings during
2019 |
“As pleased as I am that revenue in fiscal 2020
showed an increase of 80% over fiscal 2019 and that the fourth
quarter of 2020 marked the fifth consecutive quarter of
year-over-year revenue increase, I know that we are still in the
very early stages of the EV cycle,” commented AYRO Chief Executive
Officer Rod Keller.
“Much of our corporate activities in 2020 and
thus far in 2021 are necessary developmental steps in establishing
the foundation for AYRO to be successful in the quarters and years
ahead in our effort to sell fleets of vehicles at a time to
commercial fleet customers, which is far different than selling one
vehicle at a time to a typical consumer. We are a B2B company, not
B2C. Expanding our manufacturing capacity in Austin, establishing
the strategic partnership with Karma Automotive for future mass
production capacity, nurturing our strategic relationships with
Club Car and Gallery Carts and, as recently announced, now with
Element Fleet Management, the world’s largest pure-play fleet
manager, and fortifying our balance sheet are all designed to
position us for future growth.
“Our ‘ecosystem’ strategy bears repeating, as it
makes us unique in the EV industry. No other EV manufacturer
appears to be building the necessary infrastructure around their EV
offerings the way AYRO is. Commercial customers looking to buy 10,
20, or even 50 or more vehicles at a time need financing solutions
to acquire a fleet of EVs. They then need a way to insure these
cars, which is not as easy a process for EVs as it is for
traditional gasoline-powered vehicles. Other concerns like storing
the EVs, repairs and servicing, and re-selling on the back end of a
lease are real-world issues that commercial customers want and need
answers to given the novelty of managing an EV fleet. In Element,
we have a partner that has one million vehicles under management
and over 5,500 clients, so they have the answers and solutions that
potential commercial customers need. We could not be happier to be
partnering with Element, and we expect them to be a significant
part of our ecosystem.
“Moreover, the announcement of the electric
vaccine vehicle, or EVV, is a great demonstration of the value of
our ecosystem, as it also brings us together with our partners
Element, Club Car, and Gallery Carts to offer the industry’s first
EV focused on helping to deliver COVID-19 vaccines to the public.
This is a new venture for us all, but we are collectively thrilled
at the possibility of offering critical healthcare assistance to
hospitals and to local, state, and federal governments. There are
numerous benefits the EVV can offer the healthcare community in
accelerating the COVID-19 vaccine rollout, and we are quite
enthusiastic at its potential.
“Finally, in addition to the launch of the
industry-first EVV in the near-term, we also expect to launch our
411x light-duty EV truck in 2021 and unveil our 311x later this
year, too, with scaled production for the 311x expected to begin in
the first half of 2022. The 311x is our next-generation vehicle
targeted at the restaurant delivery market.
We are thankful for our shareholder support and
look forward to sharing additional progress and corporate
milestones with investors. Our goal remains to be the leader in
purpose-built EVs,” concluded Mr. Keller.
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 year-end financial results with a
Q&A session to follow. To listen to the conference call,
interested parties 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/ayro210331.html or via the
Company’s website at
https://ir.ayro.com/news-events/ir-calendar.
The webcast replay will be available until June
30, 2021 and can be accessed through the above links. A telephonic
replay will be available until April 14, 2021 by calling
1-877-344-7529 (domestic) or 1-412-317-0088 (international) and
using access code 10153583.
About AYRO, Inc.
Texas-based AYRO, Inc. engineers and
manufactures 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. 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 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,” “project,” “target,” “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 is subject to general economic and market conditions,
including trade wars and tariffs; 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 our business and
future prospects difficult and may increase the risk of any
investment in our securities; we may experience
lower-than-anticipated market acceptance of our 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; a significant portion of our
revenues are derived from a single customer; we rely on and intend
to continue to rely on a single third-party supplier located in
China for the sub-assemblies in semi-knocked-down state for all of
our current 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; the range of our electric vehicles on a single charge
declines over time, which may negatively influence potential
customers’ decisions whether to purchase our vehicles; increases in
costs, disruption of supply or shortage of raw materials, in
particular lithium-ion cells, could harm our business; we may be
required to raise additional capital to fund our 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 most recently quarterly report on Form
10-Q and subsequent reports on Form 10-K and Form 10-Q.
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
SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE
SHEETS
|
|
December 31, |
|
|
|
2020 |
|
|
2019 |
|
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
|
Cash |
|
$ |
36,537,097 |
|
|
$ |
641,822 |
|
Accounts receivable, net |
|
|
765,850 |
|
|
|
71,146 |
|
Inventory, net |
|
|
1,173,254 |
|
|
|
1,118,516 |
|
Prepaid expenses and other current assets |
|
|
1,608,762 |
|
|
|
164,399 |
|
Total current assets |
|
|
40,084,963 |
|
|
|
1,995,883 |
|
|
|
|
|
|
|
|
|
|
Property and equipment, net |
|
|
611,312 |
|
|
|
489,366 |
|
Intangible assets, net |
|
|
143,845 |
|
|
|
244,125 |
|
Operating lease – right-of-use asset |
|
|
1,098,819 |
|
|
|
- |
|
Deposits and other assets |
|
|
22,491 |
|
|
|
48,756 |
|
Total assets |
|
$ |
41,961,430 |
|
|
$ |
2,778,130 |
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS’ EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
|
Accounts payable |
|
$ |
767,205 |
|
|
$ |
772,077 |
|
Accrued expenses |
|
|
665,068 |
|
|
|
612,136 |
|
Contract liability |
|
|
24,000 |
|
|
|
- |
|
Current portion long-term debt, net |
|
|
7,548 |
|
|
|
1,006,947 |
|
Current portion lease obligation – operating lease |
|
|
123,139 |
|
|
|
- |
|
Total current liabilities |
|
|
1,586,960 |
|
|
|
2,391,160 |
|
|
|
|
|
|
|
|
|
|
Long-term debt, net |
|
|
14,060 |
|
|
|
318,027 |
|
Lease obligation - operating lease, net of current portion |
|
|
1,002,794 |
|
|
|
- |
|
Total liabilities |
|
|
2,603,814 |
|
|
|
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 – 1,234 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 – zero and 7,360,985 shares,
respectively) |
|
|
- |
|
|
|
9,025,245 |
|
Common Stock, ($0.0001 par value; authorized – 100,000,000 shares;
issued and outstanding – 27,088,584 and 3,948,078 shares,
respectively) |
|
|
2,709 |
|
|
|
395 |
|
Additional paid-in capital |
|
|
64,509,724 |
|
|
|
5,001,947 |
|
Accumulated deficit |
|
|
(25,154,817 |
) |
|
|
(13,958,644 |
) |
Total stockholders’ equity |
|
|
39,357,616 |
|
|
|
68,943 |
|
Total liabilities and stockholders’ equity |
|
$ |
41,961,430 |
|
|
$ |
2,778,130 |
|
AYRO, INC. AND
SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS
|
|
Years Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
Revenue |
|
$ |
1,604,069 |
|
|
$ |
890,152 |
|
Cost of goods sold |
|
|
1,770,552 |
|
|
|
691,843 |
|
Gross (loss)/profit |
|
|
(166,483 |
) |
|
|
198,309 |
|
|
|
|
|
|
|
|
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
Research and development |
|
|
1,920,548 |
|
|
|
714,281 |
|
Sales and marketing |
|
|
1,415,282 |
|
|
|
1,300,120 |
|
General and administrative |
|
|
6,603,935 |
|
|
|
6,678,310 |
|
Total operating expenses |
|
|
9,939,765 |
|
|
|
8,692,711 |
|
|
|
|
|
|
|
|
|
|
Loss from operations |
|
|
(10,106,248 |
) |
|
|
(8,494,402 |
) |
|
|
|
|
|
|
|
|
|
Other (expense) income: |
|
|
|
|
|
|
|
|
Other income |
|
|
236,923 |
|
|
|
2,188 |
|
Interest expense |
|
|
(327,196 |
) |
|
|
(172,479 |
) |
Loss on extinguishment of debt |
|
|
(566,925 |
) |
|
|
- |
|
Other (expense) income, net |
|
|
(657,198 |
) |
|
|
(170,291 |
) |
|
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(10,763,446 |
) |
|
$ |
(8,664,693 |
) |
|
|
|
|
|
|
|
|
|
Deemed dividend on modification of Series H-5 warrants |
|
|
(432,727 |
) |
|
|
- |
|
Net loss Attributable to
Common Stockholders |
|
$ |
(11,196,173 |
) |
|
$ |
(8,664,693 |
) |
|
|
|
|
|
|
|
|
|
Net loss per share, basic and
diluted |
|
$ |
(0.73 |
) |
|
$ |
(2.95 |
) |
|
|
|
|
|
|
|
|
|
Basic and diluted weighted
average Common Stock outstanding |
|
|
15,336,617 |
|
|
|
2,940,975 |
|
AYRO, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS
|
|
Years Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
CASH FLOWS FROM
OPERATING ACTIVITIES: |
|
|
|
|
|
|
|
|
Net loss |
|
$ |
(10,763,446 |
) |
|
$ |
(8,664,693 |
) |
Adjustments to reconcile net loss to net cash used in operating
activities: |
|
|
|
|
|
|
|
|
Depreciation and amortization |
|
|
447,283 |
|
|
|
722,566 |
|
Stock-based compensation |
|
|
1,827,008 |
|
|
|
3,372,726 |
|
Amortization of debt discount |
|
|
236,398 |
|
|
|
152,243 |
|
Loss on extinguishment of debt |
|
|
566,925 |
|
|
|
- |
|
Amortization of right-of-use asset |
|
|
111,861 |
|
|
|
- |
|
Provision for bad debt expense |
|
|
37,745 |
|
|
|
29,099 |
|
Debt Forgiveness (PPP loan) |
|
|
(218,000 |
) |
|
|
- |
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Accounts receivable |
|
|
(732,449 |
) |
|
|
159,986 |
|
Inventories |
|
|
(4,967 |
) |
|
|
532,089 |
|
Prepaid expenses and other current assets |
|
|
(1,444,363 |
) |
|
|
4,656 |
|
Deposits |
|
|
26,265 |
|
|
|
(6,917 |
) |
Accounts payable |
|
|
(59,489 |
) |
|
|
(715,267 |
) |
Accrued expenses |
|
|
10,631 |
|
|
|
319,225 |
|
Contract liability |
|
|
24,000 |
|
|
|
(9,999 |
) |
Lease obligations - operating leases |
|
|
(84,747 |
) |
|
|
- |
|
Net cash used in operating activities |
|
|
(10,019,344 |
) |
|
|
(4,104,286 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES: |
|
|
|
|
|
|
|
|
Purchase of property and equipment |
|
|
(504,332 |
) |
|
|
(469,834 |
) |
Disposal of property and equipment |
|
|
- |
|
|
|
90,747 |
|
Purchase of intangible assets |
|
|
(14,388 |
) |
|
|
(35,559 |
) |
Disposal of intangible assets |
|
|
- |
|
|
|
40,294 |
|
Proceeds from merger with ABC Merger Sub, Inc. |
|
|
3,060,740 |
|
|
|
- |
|
Net cash provided by (used in) investing activities |
|
|
2,542,020 |
|
|
|
(374,352 |
) |
|
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES: |
|
|
|
|
|
|
|
|
Proceeds from issuance debt |
|
|
1,318,000 |
|
|
|
2,675,000 |
|
Repayments of debt |
|
|
(1,744,676 |
) |
|
|
(116,392 |
) |
Proceeds from exercise of warrants |
|
|
3,926,818 |
|
|
|
- |
|
Proceeds from exercise of stock options |
|
|
16,669 |
|
|
|
- |
|
Proceeds from issuance of Common Stock, net of fees and
expenses |
|
|
39,855,788 |
|
|
|
4,234 |
|
Proceeds from issuance of Preferred Stock |
|
|
- |
|
|
|
2,518,375 |
|
Net cash provided by financing activities |
|
|
43,372,599 |
|
|
|
5,081,217 |
|
|
|
|
|
|
|
|
|
|
Net change in cash |
|
|
35,895,275 |
|
|
|
602,579 |
|
|
|
|
|
|
|
|
|
|
Cash, beginning of period |
|
|
641,822 |
|
|
|
39,243 |
|
|
|
|
|
|
|
|
|
|
Cash, end of period |
|
$ |
36,537,097 |
|
|
$ |
641,822 |
|
|
|
|
|
|
|
|
|
|
Supplemental disclosure of
cash and non-cash transactions: |
|
|
|
|
|
|
|
|
Cash paid for interest |
|
$ |
102,911 |
|
|
$ |
32,786 |
|
Conversion of Notes Payable to Preferred Stock |
|
$ |
- |
|
|
$ |
1,136,363 |
|
Conversion of Accounts Payable to Preferred Stock |
|
$ |
- |
|
|
$ |
1,100,000 |
|
Conversion of Accounts Payable to Notes Payable |
|
|
|
|
|
|
137,729 |
|
Discount on Debt from issuance of Common Stock |
|
$ |
- |
|
|
$ |
493,553 |
|
Interest forgiven on PPP loan |
|
$ |
1,363 |
|
|
$ |
- |
|
Supplemental non-cash amounts of lease liabilities arising from
obtaining right of use assets |
|
$ |
1,210,680 |
|
|
$ |
- |
|
Conversion of debt to Common Stock |
|
$ |
1,000,000 |
|
|
$ |
- |
|
Conversion of Preferred Stock to Common Stock |
|
$ |
9,025,245 |
|
|
$ |
- |
|
Cashless exercise of 77,000 H-5 Warrants |
|
$ |
192,500 |
|
|
$ |
- |
|
Discount on debt with related party |
|
$ |
462,013 |
|
|
$ |
- |
|
Deemed divided on modification of Series H-5 warrants |
|
$ |
432,727 |
|
|
$ |
- |
|
Restricted Stock for service, vested not issued |
|
$ |
42,300 |
|
|
$ |
- |
|
Offering cost included in accounts payable, not paid |
|
$ |
54,617 |
|
|
$ |
- |
|
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 to
common stockholders for the 12 months ended December 31, 2020 and
2019:
|
|
Years Ended December 31, |
|
|
|
2020 |
|
|
2019 |
|
Net loss to common
stockholders |
|
$ |
(10,763,446 |
) |
|
$ |
(8,664,693 |
) |
Depreciation and
amortization |
|
|
447,283 |
|
|
|
722,566 |
|
Stock-based compensation
expense |
|
|
1,827,008 |
|
|
|
3,372,726 |
|
Amortization of discount on
debt |
|
|
236,398 |
|
|
|
152,243 |
|
Interest expense |
|
|
90,798 |
|
|
|
(16,096 |
) |
Loss on extinguishment of
debt |
|
|
566,925 |
|
|
|
— |
|
Gain on debt forgiveness (PPP
loan) |
|
|
(219,363 |
) |
|
|
— |
|
Adjusted EBITDA |
|
$ |
(7,814,397 |
) |
|
$ |
(4,433,254 |
) |
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