AYRO Inc (NASDAQ:AYRO), a designer and manufacturer of electric, purpose-built delivery vehicles and solutions for micro distribution, micro mobility, and last-mile delivery, announces financial results for its third quarter ended December 31, 2021.
Recent Financial and Corporate Highlights:
- Record revenue of $813,291 (+4% year-over-year, +45% sequentially)
- 35% sequential reduction in Net Loss from 3Q21 to 4Q21, with expected continued substantial improvements in Net Loss in both 1Q22 and 2Q22
- Adjusted EBITDA loss of ($7.1) million in 4Q21
- Total cash of $69.2 million and no debt as of December 31, 2021
- Appointed Thomas M. Wittenschlaeger as Chief Executive Officer to leverage leadership in $6.3 billion LSEV (Low Speed Electric Vehicle) market
- Commenced development of the model year 2023 AYRO Z light-duty electric utility truck in December 2021 with anticipated launch by year-end 2022
Despite supply chain disruptions and continued impact from the coronavirus epidemic, we enjoyed record revenue in the fourth quarter, driven by record unit deliveries of the Club Car Current LSEV, formerly called the 411x, commented AYRO CEO Tom Wittenschlaeger. We continue to be a leader in the LSEV market, and, as I have mentioned previously, we continue to expect record revenue and unit deliveries again in the first and second quarters of 2022.
Moreover, in December 2021, we began development of the next-generation 411 fleet vehicle model year 2023 refresh, referred to as the ˜AYRO Z, which includes updates on our supply chain and our manufacturing strategy. We are targeting to launch the AYRO Z by year-end 2022 and envision the AYRO Z being ideally suited for light-duty uses, including low-speed logistics, maintenance and cargo services, and personal transport in a quiet and zero-emissions vehicle that should offer a major technology refresh over the 411x/Club Car Current. We believe that our leadership team has the requisite automotive manufacturing and EV experience to launch the AYRO Z with an aggressive design schedule and materially reduced development cost. We are making excellent progress in developing a supply chain for the AYRO Z that is primarily North American-sourced and that should have zero components from China. Again, the costs, delays, and logistics of sourcing our components from China are less than ideal, and we believe that we can and will do better.
In addition to corporate customers looking for an environmentally friendly fleet of light-duty support electric vehicles, the AYRO Z is ideally suited for duties on many government properties, such as military bases, airports, forward-deployed installations, and even large vessels, where non-exhaust emitting, quiet vehicles are highly desirable. We further intend to position the AYRO Z for sale on the General Services Administration (GSA) schedule beginning in the fourth quarter of 2022 so that it may be provided at pre-negotiated prices for end-use by the federal government. This would represent an increase in the total addressable market for AYRO beyond the commercial fleet market being targeted today.
At year-end 2021, our cash balance was $69.2 million. In previous corporate updates, I have mentioned the necessity of evaluating the cost structure of AYRO and possibly making some changes to maximize our cash runway and better align our costs with our objectives. In the fourth quarter, some tangible signs of our operating profile are evident. Make no mistake, we have not stopped innovating at AYRO. Rather, we have simply modified what products and market segments we are emphasizing and have limited spending outside of those focus areas.
The result of the changes implemented in my first six months at AYRO should result in significant cost savings. We would expect our ongoing operating loss to narrow even further in 1Q22 and 2Q22 due to continued improvements in our cost structure that were made in the calendar new year and that did not show up in 4Q21 results, even as we are ramping our development activities for the AYRO Z. Additionally, we had approximately $1.78 million in one-time cost of goods sold (COGS) expenses in 4Q21 related to the shift to our North American-based manufacturing and supply chain strategy that will not recur in future quarters.
In summary, 2022 should be a very busy year for the AYRO team. We look forward to rolling out the AYRO Z by year-end and introducing a next-generation light-duty electric truck that offers numerous cargo and payload hauling options, is extremely ergonomic, and meets the sustainability and ˜green goals that are increasingly common from today's fleet managers.
I look forward to further updating investors in the future and appreciate our employees for their dedication and drive and our shareholders for their continued interest and support, concluded Mr. Wittenschlaeger.