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Mar 31, 2023
AYRO Q1 2023 Earnings Report
Announced first quarter 2023 financial results and provided a corporate update.
Key Takeaways
AYRO reported its Q1 2023 earnings, highlighting progress in the development of the AYRO Vanish and maintaining a cash balance of nearly $42 million, which they believe is sufficient to reach profitability based on current forecasts. The company is focusing on bringing the Vanish to market and plans to introduce the Valet and Vapor products by year-end.
Completed internal tests on the Vanish and entering the homologation phase.
Planning to begin Low Rate Initial Production (LRIP) of the Vanish by early June, targeting 50 units for demo models.
Aiming for full-scale production of nine Vanish units per day under a single-shift scenario, equating to over 2,000 vehicles per year.
Cash balance at the end of the first quarter was nearly $42 million, believed to be sufficient to reach profitability.
AYRO
AYRO
Forward Guidance
AYRO is focused on the Vanish and bringing it to market, maximizing demand for it, and then working feverishly to meet that demand. They still plan to introduce our next products, the people mover called the Valet and the next-generation golf cart called the Vapor, by year-end.
Positive Outlook
- Completing internal tests on the Vanish and entering the homologation phase this week to obtain the necessary certifications.
- Planning to begin Low Rate Initial Production, or LRIP, by early June to begin building the first 50 Vanish units.
- Targeting building nine Vanish units per day under a single-shift scenario, which equates to over 2,000 vehicles per year.
- In discussions with dealers who in the aggregate operate more locations than the number of Club Car dealerships that ever sold even a single unit of the Club Car Current.
- Planning to introduce the Valet and the Vapor by year-end.
Challenges Ahead
- The Club Car Current is in its sunset phase, and we have just a handful of those finished units in inventory.
- AYRO may experience delays in the development and introduction of new products.
- 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 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 may experience lower-than-anticipated market acceptance of its vehicles.