Exhibit 99.1


AYRO Announces Second Quarter 2022 Financial Results and Provides Corporate Update


ROUND ROCK, TX (August 11, 2022) – AYRO, Inc. (Nasdaq: AYRO) (“AYRO” or the “Company”), 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 the quarter ended June 30, 2022.


Recent Financial and Corporate Highlights:


Revenue of approximately $982,000 (+88% year-over-year)
Net loss of ($6.0) million in 2Q22 vs. net loss of ($7.7) million in 2Q21
Adjusted EBITDA loss of ($4.2) million in 2Q22 vs. an Adjusted EBITDA loss of ($5.9) million in 2Q21
Total cash and marketable securities of $58.9 million and no debt as of June 30, 2022
Development of the model year 2023 AYRO Z light-duty electric utility truck continues on budget


First unveiling of AYRO Z prototype expected by year-end 2022


“In the second quarter of 2022, we continued to make progress on selling our existing inventory of Club Car Current units as well as developing our next-generation AYRO Z platform. We believe there are numerous applications for an electric, low-speed, utility vehicle in both the public and private sector,” commented AYRO CEO Tom Wittenschlaeger. “We also believe we can create a sustainable competitive edge in the Low Speed Electric Vehicle segment with the technological and ergonomic advancements we expect to integrate into the AYRO Z.


“As stated before, we intend to manufacture and assemble the AYRO Z vehicles in our own facility in Round Rock and plan to use components that are sourced largely from North America and Europe instead of from our current supplier in the People’s Republic of China, Cenntro. We plan to unveil the first prototype AYRO Z vehicle before year-end and expect to be listed on the government’s GSA schedule by year-end as well to help facilitate vehicle sales into the federal government channel.


“Revenue in the second quarter of 2022 was approximately $982,000, marking the second highest quarterly revenue in our history. We continue to watch costs closely, though our cost of goods sold in the second quarter was especially higher because of defective components received from Cenntro that rendered the sale of the lithium-battery version of the Club Car Current impossible in the second quarter and perhaps indefinitely. Although we are still addressing this matter with Cenntro, and have asked for a full credit for the defective components that were received, we recognized the full cost of these components in the second quarter as a cost of goods sold expense.


“However, this unexpected event has not impacted our development of the AYRO Z platform — which we believe is the future of AYRO — nor our efforts to maintain a cost-conscious mindset. The supply chain for the AYRO Z is now 92% sourced, with 85% of the components thus far sourced from North America. We believe that having proven and reliable component suppliers from North America will save dramatically on shipping costs per vehicle and will allow us to avoid the long shipping times and mitigate the quality issues that we have experienced with the Club Car Current supply chain.




“With nearly $59 million in cash and marketable securities and no debt at the end of the second quarter of 2022, we believe we are in strong position to execute our business plan and launch the AYRO Z in the coming quarters. Furthermore, with its numerous food box architectures, configuration solutions, and enabling technology features that we intend to offer, such as telematics, logistics support, and route optimization, the advanced AYRO Z electric vehicles are expected to be excellent solutions for food delivery in many urban environments and address general utility needs in campus and arena environments.


“I appreciate the continued support of our shareholders, employees, and partners and look forward to providing additional updates on our progress in the future and keeping investors apprised of our progress,” concluded Mr. Wittenschlaeger.


Second Quarter 2022 Earnings Conference Call


AYRO management will also host a conference call at 8:30 a.m. ET on Thursday, August 11, 2022 to review financial results and provide an update on corporate developments. Following management’s formal remarks, there will be a question-and-answer session.


To listen to the conference call, interested parties within the U.S. should dial 1-833-953-2436 (domestic) or 1-412-317-5765 (international). All callers should dial in approximately 10 minutes prior to the scheduled start time and ask to be joined into the AYRO, Inc. conference call.   The conference call will also be available through a live webcast that can be accessed at: https://event.choruscall.com/mediaframe/webcast.html?webcastid=GE76P7cF or via the Company’s website at https://ir.ayro.com/news-events/ir-calendar.   The webcast replay will be available until November 11, 2022 and can be accessed through the above links. A telephonic replay will be available until August 25, 2022 by calling 1-877-344-7529 (domestic) or 1-412-317-0088 (international) and using access code 1049292.


About AYRO, Inc.


Texas-based AYRO, Inc. designs and produces all-electric, purpose-built vehicles that are powered by technology and usable by anyone. Driven by insight gained from partners, customers, and research, AYRO delivers sustainable e-delivery solutions that empower organizations to enable sustainable fleets that extend both their brand value and exceptional user experience throughout the delivery process. For more information, visit: www.ayro.com.




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,” “intend,” “expect,” “may,” “plan,” “will,” “would” and their opposites and similar expressions are intended to identify forward-looking statements and include the development and launch of the AYRO Z. 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: AYRO’s success depends on its ability to complete the development of and successfully introduce new products; AYRO may experience delays in the development and introduction of new products; the ability of AYRO’s suppliers to deliver parts and assemble vehicles; the ability of the purchaser to terminate or reduce purchase orders; AYRO has a history of losses and has never been profitable, and AYRO expects to incur additional losses in the future and may never be profitable; if AYRO’s Master Procurement Agreement with Club Car is terminated, it may need to identify new strategic channel partners to support the sales of its vehicles; if AYRO loses its exclusive license to manufacture the AYRO 411x model in North America, Cenntro could sell identical or similar products through other companies or directly to AYRO’s customers; AYRO may be unable to replace lost manufacturing capacity on a timely and cost-effective basis, which could adversely impact its operations and ability to meet delivery timelines; the impact of public health epidemics, including the COVID-19 pandemic; 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; AYRO’s limited operating history makes evaluating its business and future prospects difficult and may increase the risk of any investment in its securities; AYRO may experience lower-than-anticipated market acceptance of its vehicles; developments in alternative technologies or improvements in the internal combustion engine may have a materially adverse effect on the demand for AYRO’s electric vehicles; the markets in which AYRO operates are highly competitive, and AYRO may not be successful in competing in these industries; AYRO may become subject to product liability claims, which could harm AYRO’s financial condition and liquidity if AYRO is not able to successfully defend or insure against such claims; increases in costs, disruption of supply or shortage of raw materials, in particular lithium-ion cells, could harm AYRO’s business; AYRO may be required to raise additional capital to fund its operations, and such capital raising may be costly or difficult to obtain and could dilute AYRO stockholders’ ownership interests, and AYRO’s long term capital requirements are subject to numerous risks; AYRO may fail to comply with environmental and safety laws and regulations; and AYRO is subject to governmental export and import controls that could impair AYRO’s ability to compete in international market due to licensing requirements and subject AYRO to liability if AYRO is not in compliance with applicable laws. A discussion of these and other factors with respect to AYRO is set forth in our most recent Annual Report on Form 10-K and subsequent reports on Form 10-Q. Forward-looking statements speak only as of the date they are made and AYRO disclaims any intention or obligation to revise any forward-looking statements, whether as a result of new information, future events or otherwise.


For investor inquiries:








   June 30,   December 31, 
   2022   2021 
Current assets:          
Cash  $40,890,769   $69,160,466 
Accounts receivable, net   1,922,968    969,429 
Marketable securities   17,970,906    - 
Inventory, net   2,053,691    3,744,037 
Prepaid expenses and other current assets   1,682,761    2,276,178 
Total current assets   64,521,095    76,150,110 
Property and equipment, net   1,065,953    835,160 
Intangible assets, net   79,210    88,322 
Operating lease – right-of-use asset   894,792    1,012,884 
Deposits and other assets   41,289    41,288 
Total assets  $66,602,339   $78,127,764 
Current liabilities:          
Accounts payable  $811,860   $647,050 
Accrued expenses   1,064,745    2,990,513 
Current portion lease obligation – operating lease   154,203    206,426 
Total current liabilities   2,030,808    3,843,989 
Lease obligation - operating lease, net of current portion   779,363    859,543 
Total liabilities   2,810,171    4,703,532 
Stockholders’ equity:          
Preferred Stock, (authorized – 20,000,000 shares)   -    - 
Convertible Preferred Stock Series H, ($0.0001 par value; authorized – 8,500 shares; issued and outstanding – 8 shares as of June 30, 2022 and December 31, 2021, respectively)   -    - 
Convertible Preferred Stock Series H-3, ($.0001 par value; authorized – 8,461 shares; issued and outstanding – 1,234 as of June 30, 2022 and December 31, 2021, respectively)   -    - 
Convertible Preferred Stock Series H-6, ($.0001 par value; authorized – 50,000 shares; issued and outstanding – 50 as of June 30, 2022 and December 31, 2021, respectively)   -    - 
Common Stock, ($0.0001 par value; authorized – 100,000,000 shares; issued and outstanding – 37,020,518 and 36,866,975 as of June 30, 2022 and December 31, 2021, respectively)   3,702    3,687 
Additional paid-in capital   132,575,805    131,654,776 
Accumulated deficit   (68,787,339)   (58,234,231)
Total stockholders’ equity   63,792,168    73,424,232 
Total liabilities and stockholders’ equity  $66,602,339   $78,127,764 








   Three Months Ended   Six Months Ended 
   June 30,   June 30, 
   2022   2021   2022   2021 
Revenue  $981,560   $522,067   $2,008,405   $1,310,936 
Cost of goods sold   2,827,512    430,478    4,004,657    1,074,981 
Gross profit (loss)   (1,845,952)   91,589    (1,996,252)   235,955 
Operating expenses:                    
Research and development   1,046,797    3,042,117    1,912,204    4,969,678 
Sales and marketing   337,226    668,838    1,182,042    1,227,242 
General and administrative   2,741,700    4,061,681    5,446,627    7,362,994 
Total operating expenses   4,125,723    7,772,636    8,540,873    13,559,914 
Loss from operations   (5,971,675)   (7,681,047)   (10,537,125)   (13,323,959)
Other income (expense):                    
Other income, net   10,706    18,419    19,597    28,689 
Interest expense   -    (1,121)   -    (2,312)
Unrealized loss on marketable securities   (13,479)   -    (35,580)   - 
Other income (expense), net   (2,773)   17,298    (15,983)   26,377 
Net loss  $(5,974,448)  $(7,663,749)  $(10,553,108)  $(13,297,582)
Net loss per share, basic and diluted  $(0.16)  $(0.22)  $(0.29)  $(0.39)
Basic and diluted weighted average Common Stock outstanding   36,982,436    35,315,044    36,945,240    33,678,834 








   Six Months Ended 
   June 30, 
   2022   2021 
Net loss  $(10,553,108)  $(13,297,582)
Adjustments to reconcile net loss to net cash used in operating activities:          
Depreciation and amortization   257,791    253,675 
Stock-based compensation   591,663    3,337,494 
Amortization of right-of-use asset   118,092    93,891 
Provision for bad debt expense   2,069    63,333 
Unrealized loss on marketable securities   35,580    - 
Impairment of inventory and prepaid inventory   1,938,386    - 
Change in operating assets and liabilities:          
Accounts receivable   (955,609)   (355,016)
Inventory   325,282    (603,336)
Prepaid expenses and other current assets   (785,762)   302,859 
Deposits   -    (18,797)
Accounts payable   164,809    1,640,043 
Accrued expenses   (838,304)   991,334 
Contract liability   -    (24,000)
Lease obligations - operating leases   (132,403)   (67,009)
Net cash used in operating activities   (9,831,514)   (7,683,111)
Purchase of property and equipment   (414,197)   (482,541)
Purchase of marketable securities, net   (18,006,486)   - 
Purchase of intangible assets   (17,500)   (53,512)
Net cash used in investing activities   (18,438,183)   (536,053)
Repayments of debt   -    (21,608)
Proceeds from exercise of warrants, net of fees   -    100,000 
Proceeds from exercise of stock options   -    1,224,918 
Proceeds from issuance of Common Stock, net of fees and expenses   -    58,269,829 
Net cash provided by financing activities   -    59,573,139 
Net change in cash   (28,269,697)   51,353,975 
Cash, beginning of year   69,160,466    36,537,097 
Cash, end of quarter  $40,890,769   $87,891,071 
Supplemental disclosure of cash and non-cash transactions:          
Cash paid for interest  $-   $1,971 
Restricted Stock issued, previously accrued  $329,381   $- 
Supplemental non-cash amounts of lease liabilities arising from obtaining right of use assets  $-   $120,440 




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 the United States, or GAAP. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact our non-cash operating expenses, we believe that providing a non-GAAP financial measure that excludes non-cash and non-recurring expenses allows for meaningful comparisons between our core business operating results and those of other companies, as well as providing us with an important tool for financial and operational decision making and for evaluating our own core business operating results over different periods of time.


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 for the three and six months ended June 30, 2022 and 2021 and the three months ended March 31, 2022:








   Three Months Ended
June 30,
   2022   2021 
Net Loss  $(5,974,448)  $(7,663,748)
Depreciation and Amortization   136,367    129,477 
Stock-based compensation expense   303,553    1,638,071 
Interest expense   -    1,121 
NCM Write-Down (1)   1,317,289    - 
Adjusted EBITDA  $(4,217,240)  $(5,895,079)


   Six Months Ended
June 30,
   2022   2021 
Net Loss  $(10,553,108)  $(13,297,582)
Depreciation and Amortization   257,791    253,675 
Stock-based compensation expense   591,663    3,337,494 
Interest expense   -    2,312 
NCM Write-Down (1)   1,317,289    - 
Adjusted EBITDA  $(8,386,364)  $(9,704,101)


   Quarter Ending 
   March 31, 2022   June 30, 2022 
Net Loss  $(4,578,659)  $(5,974,448)
Depreciation and Amortization   121,425    136,367 
Stock-based compensation expense   288,110    303,553 
Interest expense   -    - 
NCM Write-Down (1)   -    1,317,289 
Adjusted EBITDA  $(4,169,124)  $(4,217,240)


(1) Represents writedown of inventory related to receipt of defective AYRO 411x lithium-ion battery version units.