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Jun 30, 2022
AYRO Q2 2022 Earnings Report
AYRO reported second highest quarterly revenue driven by sales of existing inventory and progress on the AYRO Z platform development, but faced challenges with defective components.
Key Takeaways
AYRO reported its second highest quarterly revenue of approximately $982,000. The company is focused on developing the AYRO Z platform and addressing issues with defective components received from Cenntro.
Revenue reached approximately $982,000, marking the second highest quarterly revenue in company history.
Progress continued on selling existing inventory of Club Car Current units and developing the next-generation AYRO Z platform.
Cost of goods sold was higher due to defective components received from Cenntro, impacting sales of the lithium-battery version of the Club Car Current.
The supply chain for the AYRO Z is now 92% sourced, with 85% of the components sourced from North America.
AYRO
AYRO
Forward Guidance
AYRO plans to unveil the first prototype AYRO Z vehicle before year-end and expects to be listed on the government’s GSA schedule by year-end.
Positive Outlook
- AYRO aims to create a sustainable competitive edge in the Low Speed Electric Vehicle segment.
- The company intends to manufacture and assemble the AYRO Z vehicles in its own facility in Round Rock.
- AYRO plans to source components largely from North America and Europe.
- The first prototype AYRO Z vehicle is expected to be unveiled before year-end.
- AYRO expects to be listed on the government’s GSA schedule by year-end.
Challenges Ahead
- Cost of goods sold in the second quarter was especially higher because of defective components received from Cenntro.
- Defective components rendered the sale of the lithium-battery version of the Club Car Current impossible in the second quarter.
- AYRO is still addressing the matter with Cenntro and has asked for a full credit for the defective components.
- AYRO may experience delays in the development and introduction of new products
- 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