AYRO, Inc. Reports No Revenue and Significant Net Loss in Latest Financial Filing

AYRO, Inc. reported significant financial challenges in its latest 10-Q filing for the quarter ending June 30, 2025. The company recorded no revenue for the three and six months ended June 30, 2025, compared to $58,351 in revenue for the same period in 2024. The cost of goods sold was $239,040 for the first half of 2025, leading to a gross loss of $239,040, a notable improvement from a gross loss of $2,199,752 in the prior year. However, total operating expenses decreased to $3,522,826 from $6,976,058 year-over-year, primarily due to reduced research and development costs and lower general and administrative expenses.

The company’s net loss for the six months ended June 30, 2025, was $13,298,007, a significant decline from a net income of $3,275,868 in the same period of 2024. This resulted in a net loss attributable to common stockholders of $18,251,102, compared to a loss of $2,817,475 in the previous year. The basic and diluted net loss per share for the first half of 2025 was $(33.52), compared to $(8.55) in 2024. The company’s accumulated deficit increased to $(130,383,525) as of June 30, 2025, from $(117,085,518) at the end of 2024.

In terms of strategic developments, AYRO executed a 1-for-16 reverse stock split on June 25, 2025, aimed at increasing the per-share price of its common stock. The company also amended its certificate of incorporation to increase the number of authorized shares of common stock from 200 million to 1.2 billion. Additionally, AYRO has begun a digital asset-based treasury strategy, investing in crypto tokens to capitalize on the growth of the stablecoin industry. The company’s employee headcount remains stable, with no significant changes reported.

Operationally, AYRO's cash and cash equivalents decreased to $5,132,867 as of June 30, 2025, down from $16,035,475 at the end of 2024. The company’s total liabilities surged to $22,299,894, primarily due to an increase in accrued preferred stock redemption payable and warrant liabilities. The company reported a substantial increase in its warrant liability, which rose to $14,537,000 from $2,362,900 at the end of 2024. AYRO's management has expressed concerns regarding its liquidity, indicating that existing cash may not be sufficient to fund operations for the next twelve months without raising additional capital.

Looking ahead, AYRO's management acknowledges substantial doubt about the company's ability to continue as a going concern. The company plans to seek additional equity or debt financing to support its operations. The recent issuance of Series I Convertible Preferred Stock, which raised $7 million, may provide some relief, but the company remains cautious about its financial outlook amid ongoing operational challenges and market conditions.