AYRO(US:AYRO)2021-03-31 16:45Financial Data and Key Metrics Changes - Revenue for fiscal year 2020 increased by 80% year-over-year to $1.6 million, up from $890,000 in 2019 [6][16] - Gross margin percentage for 2020 was negative 10.4%, down from 22.3% in 2019, primarily due to a one-time sale of inventory and increased costs [16] - Net loss attributable to common stockholders for 2020 was $11.2 million compared to a loss of $8.67 million in 2019 [21] - Adjusted EBITDA for 2020 was negative $7.8 million, worsening from negative $4.4 million in 2019 [22] Business Line Data and Key Metrics Changes - The increase in revenue was mainly driven by sales of vehicles through Club Car and related powered food box sales [16] - Operating expenses rose by 14% to $9.94 million, primarily due to increased research and development spending [18] Market Data and Key Metrics Changes - The company has developed strategic partnerships with Club Car, Gallery Carts, and Element Fleet Management to enhance its market presence [8][9] - The restaurant delivery market is projected to reach $169 billion by 2025, indicating significant growth potential for AYRO's vehicles [9] Company Strategy and Development Direction - AYRO aims to become a leader in purpose-built commercial electric vehicles, focusing on B2B rather than B2C [8] - The company is developing a next-generation three-wheeled vehicle for last-mile delivery, leveraging strategic partnerships to enhance its ecosystem [9][12] - AYRO is also launching an electric vaccination vehicle (EVV) to address healthcare needs, showcasing adaptability to market demands [14] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's growth trajectory, citing five consecutive quarters of revenue growth [6][15] - The company is well-capitalized with approximately $36.5 million in cash and essentially zero debt, allowing for focused strategy execution [7][25] - Management acknowledged the challenges of longer sales cycles when dealing with government contracts but remains optimistic about future agreements [56] Other Important Information - AYRO's cash position significantly improved due to the merger with DropCar and subsequent equity financing, increasing from $642,000 in 2019 to $36.5 million in 2020 [25] - The company has a strong focus on building an ecosystem around its vehicles, addressing customer concerns related to insurance, maintenance, and charging [11][52] Q&A Session Summary Question: What is the current headcount of AYRO employees? - AYRO currently has 26 full-time employees, supplemented by a number of contractors for vehicle development [33][34] Question: What is the expected production of vehicles for March? - The company is unable to provide guidance on March production at this time, with details to be released in the upcoming 10-Q [35] Question: Can you elaborate on the new generation of batteries? - AYRO plans to introduce lithium-ion batteries for its vehicles, increasing range from 50 miles to 90-95 miles and reducing charging time [39] Question: What is the limiting factor for growth? - The company focuses on commercial applications, and while range anxiety is less of a concern, funding and development speed were previously limiting factors [44][49] Question: Are there any proposals for the EVV beyond federal contracts? - The company is in discussions with local, state, and federal entities regarding the EVV, but it is still early in the process [62]