AYRO Reports No Revenue and Net Income of $845,011 Amid Strategic Restructuring

AYRO, Inc. reported significant financial changes in its latest 10-Q filing for the three months ended March 31, 2025. The company recorded no revenue during this period, a stark decline from $58,351 in the same quarter of 2024. This 100% decrease in revenue is attributed to a halt in manufacturing activities as AYRO focuses on re-engineering its flagship vehicle, the Vanish, to enhance its design and manufacturing efficiency. The cost of goods sold also dropped to zero from $1,183,207, resulting in a gross loss of $1,124,856 in the previous year being eliminated.

Operating expenses for AYRO decreased significantly, totaling $1,973,552 compared to $4,091,098 in the prior year, marking a reduction of 52%. This decline was primarily driven by cuts in research and development expenses, which fell to $307,730 from $760,417, and a complete cessation of sales and marketing expenses, which were $268,355 in the previous year. General and administrative expenses also decreased by 46% to $1,665,822, reflecting the company's cost-cutting measures following an internal restructuring that eliminated many positions.

Despite the lack of revenue, AYRO reported a net income of $845,011 for the quarter, a significant turnaround from a net loss of $3,638,752 in the same period last year. This positive result was largely due to non-cash adjustments related to the fair value of warrant and derivative liabilities. The company’s total other income increased to $2,818,563, up from $1,577,202, driven by gains from changes in fair value of financial instruments.

Operationally, AYRO is undergoing a strategic shift, having launched a new robotics division focused on AI-driven manufacturing of electric vehicles. The company is also exploring partnerships to support the scaling of its products. As of March 31, 2025, AYRO had cash and cash equivalents of $12,818,283, down from $16,035,475 at the end of 2024, indicating a need for additional capital to sustain operations. The company has expressed substantial doubt about its ability to continue as a going concern without raising further equity or debt capital.

Looking ahead, AYRO's management is focused on optimizing the Vanish and exploring new market opportunities within the electric vehicle sector. However, the company acknowledges that its future liquidity and operational viability depend heavily on successful product commercialization and the ability to secure additional funding. The ongoing strategic review aims to align operations with market conditions and identify underserved market segments for potential growth.