Executive Summary

Q1 2023 was a transitional quarter with minimal legacy sales and intensified pre-launch execution for AYRO Vanish; revenue fell to $0.11M while net loss remained roughly consistent with recent quarters as OpEx ramped to support LRIP and manufacturing scale-up .
Management reiterated homologation beginning in May with LRIP by early June (first 50 demo units) and targeted full-scale production at nine vehicles/day (>2,000/year capacity), positioning Q3 2023 for initial sell-through; this operational cadence was maintained vs prior guidance .
Cash and marketable securities were $41.7M with zero debt, which management believes is sufficient to reach breakeven under current forecasts; prudent cost control despite the product ramp was emphasized .
Awards and product feedback were positive (Frost & Sullivan 2023 Innovation Award and Red Dot design award), reinforcing the premium positioning and strengthening the go-to-market narrative with dealers and potential fleet partners .
Wall Street consensus (S&P Global) for Q1 2023 EPS and revenue was unavailable for AYRO; estimate comparison could not be performed due to missing CIQ mapping.*

What Went Well and What Went Wrong

What Went Well

Vanish homologation commenced with internal tests completed; LRIP slated for early June and full production capacity outlined (nine vehicles/day), providing a clear near-term operational roadmap .
Strong external validation: Frost & Sullivan 2023 North American New Product Innovation Award and Red Dot 2023 product design award for the Vanish, underpinning premium differentiation .
Robust dealer and fleet interest: management cited aggregate dealer locations already exceeding those that ever sold the legacy Current, plus promising fleet discussions post-trade show, supporting volume potential and channel diversity .

What Went Wrong

Revenue declined 89% YoY to $0.11M as legacy product sunsets and Vanish pre-launch dominated the quarter; gross loss persisted as COGS on limited run-off and OpEx increased for product completion and ramp .
Adjusted EBITDA loss widened to ~$5.0M vs ~$4.2M in Q1 2022, reflecting commercialization spend ahead of revenue inflection; non-GAAP losses consistent with development stage .
Consensus estimates unavailable from S&P Global prevented formal beat/miss analysis; investors are left to triangulate fundamentals against qualitative milestones rather than numeric targets.*

Financial Results

Metric	Q3 2022	Q4 2022	Q1 2023
Revenue ($USD)	$373,186	Not disclosed in press release	$113,084
Cost of Goods Sold ($USD)	$955,003	Not disclosed in press release	$219,792
Gross Profit (Loss) ($USD)	$(581,817)	Not disclosed in press release	$(106,708)
Total Operating Expenses ($USD)	$5,222,414	Not disclosed in press release	$5,691,399
Net Loss ($USD)	$(5,681,574)	Not disclosed in press release	$(5,475,769)
Net Loss per Share ($)	$(0.15)	Not disclosed in press release	$(0.15)
Cash and Marketable Securities ($USD)	$55.2M	$48.9M	$41.7M
Total Debt ($USD)	$0	$0	$0

Notes: Q4 2022 press release provided annual figures only; quarter-specific line items were not disclosed .

KPIs and segment reporting: AYRO does not provide segment breakdown; KPIs (dealer count, units) were qualitatively discussed without numeric disclosure .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Homologation completion for Vanish	Q2 2023	Expected to exit homologation in June 2023	Homologation phase started in May; ~12 weeks duration (implies completion by late Q2/early Q3)	Maintained (timing consistent)
LRIP start (first 50 units)	Early June 2023	LRIP by end of June	LRIP by early June; first 50 demo units	Slightly accelerated (early June vs end of June)
Full-scale production cadence	Post-LRIP 2023	Not quantified in prior quarter	Target nine vehicles/day, five days/week (>2,000/year capacity)	New quantitative detail
DTC launch (e-commerce and Florida site)	Q3 2023	Multi-channel distribution described (dealer, direct, upfitters, fleet)	DTC capability expected launch in Q3 2023 (Florida)	New timeline clarity
MSRP (Vanish chassis)	2023 launch	~$34,000 anticipated MSRP (Q4 2022)	Not updated in Q1 2023 documents	No update (prior pricing stands)
Cash runway to breakeven	2023-2024	~$49M cash & marketable; >2-year runway at 2022 spend	~$41.7M; sufficient to reach breakeven under current forecast	Reaffirmed sufficiency despite spend ramp

Earnings Call Themes & Trends

Topic	Previous Mentions (Q3 2022, Q4 2022)	Current Period (Q1 2023)	Trend
Supply chain localization	North America/Europe sourcing; elimination of China/Karma reliance	LRIP to validate supply flow; potential second shift and OEM supplier surge capacity	Strengthening execution detail
Homologation timeline	Target late Q1 2023 unveil; Q4 guided homologation exit in June	Homologation commenced; ~12 weeks duration	On plan
Distribution strategy	4-channel approach: dealer, direct, upfitters, fleet; GSA via partners	Dealer sign-ups accelerating; fleet interest strong; DTC launch Q3 2023 (Florida)	Progressing
Awards/brand validation	Frost & Sullivan award noted	Frost & Sullivan (Jan) and Red Dot (Apr) design awards	Positive validation
IP portfolio	Building patents/trademarks; barriers to entry	Continued filings and grants; growing IP moat	Expanding
Financial runway/listing	Strong cash; Nasdaq minimum bid compliance addressed	~$41.7M cash & securities; breakeven runway reiterated	Reaffirmed

Management Commentary

“We will be entering the homologation phase this week… plan to begin LRIP by early June to begin building the first 50 Vanish units… Following LRIP… targeting nine vehicles per day… equates to over 2,000 vehicles per year” .
“Revenue in the first quarter was in line with our qualitative forecast… The Club Car Current is in its sunset phase… Our focus is entirely on the Vanish” .
“We’ve won… Frost & Sullivan… and… Red Dot Award… One would expect these validations… to translate into appreciable unit sales” .
“Our net loss… was roughly the same as it has been over the last year. We believe our cash and equivalents balance of nearly $42 million will be sufficient to reach breakeven” .
“We have signed many more dealers… number of locations… already exceeds 42 [that ever sold the legacy Current]… encouraging discussions with potential fleet dealers” .

Q&A Highlights

Dealer/fleet feedback: Clear premium perception vs commodity golf carts (materials, finish, ergonomics, payload configurability, US sourcing/assembly) driving interest .
Component commonality: Axial flux motor order spans Vanish, Valet, Vapor; identical components across product line designed to simplify spares and service .
Inventory and recognition: Q1 inventory largely Vanish-related; sales recognition dependent on homologation completion and demo shipments to dealers/fleet partners .
Liquidity clarification: Cash vs cash plus marketable securities (~$42M) explained; T-bills included for liquidity and yield .

Estimates Context

S&P Global Wall Street consensus for AYRO Q1 2023 EPS and revenue was unavailable due to missing CIQ mapping, so formal beat/miss analysis could not be performed.*
Given the pre-revenue nature and legacy product sunset, investor models likely need to shift focus toward operational milestones (homologation completion, LRIP throughput, dealer/fleet conversions) rather than near-term quarterly revenue/EPS.*

Key Takeaways for Investors

Near-term catalysts: homologation completion (~12 weeks from May), LRIP execution, and initial dealer/fleet demo placements—watch for conversion to firm orders and timing of revenue recognition starting Q3 2023 .
Capacity and scalability: single-shift capacity (>2,000/year) with optional second shift and OEM surge assembly provides flexibility to meet early demand; monitor supply chain stability through LRIP .
Channel strategy: multi-pronged approach (dealer, fleet, DTC) increases TAM and velocity; DTC launch in Florida targeted for Q3 2023 .
Premium positioning validated by awards and trade-show feedback; pricing was previously guided around ~$34k chassis MSRP—look for updated pricing and margin disclosures post homologation .
Liquidity sufficient to fund commercialization with zero debt; focus on OpEx discipline amid ramp and breakeven trajectory .
Stock narrative pivoting from legacy run-off to execution on Vanish; headlines around homologation, LRIP, dealer/fleet contracts, and early deliveries likely to be primary trading catalysts .
Risk checks: estimate visibility limited; watch Nasdaq listing compliance and timing of order inflows vs production scaling .

Additional prior-quarter references used for trend analysis:

Q4 2022 earnings call and year-end 8-K press release .
Q3 2022 earnings call and 8-K 2.02 press release .

*Estimates unavailable: S&P Global consensus data could not be retrieved for AYRO due to missing CIQ mapping.

AYRO, Inc. (AYRO)·Q1 2023 Earnings Summary