Earnings conference call to be held
Fiscal Year 2020 Financial Highlights:
● | Revenue of | |
● | Net Loss Attributable to Common Stockholders of | |
● | Adjusted EBITDA loss of | |
● | Total Cash of | |
● | Total debt of |
Recent Corporate Highlights:
● | Completed a reverse merger with | |
● | 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 | |
● | 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 | |
● | 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 |
“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
“Much of our corporate activities in 2020 and thus far in 2021 are necessary developmental steps in establishing the foundation for
“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
“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
Conference Call Today:
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
About
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
For media inquiries: | For investor inquiries: |
Joseph Delahoussaye III | |
for | for |
ayro@antennagroup.com | investors@ayro.com |
CONDENSED CONSOLIDATED BALANCE SHEETS
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, ( | - | - | ||||||
Convertible Preferred Stock Series H-3, ( | - | - | ||||||
Convertible Preferred Stock Series H-6, ( | - | - | ||||||
Convertible Seed Preferred Stock, ( | - | 9,025,245 | ||||||
Common Stock, ( | 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 |
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
Years Ended | ||||||||
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 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years Ended | ||||||||
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 | 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
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
Years Ended | ||||||||
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 | ) |
Source:
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