AYRO, Inc. Reports 87.2% Revenue Decline and Strategic Restructuring for Fiscal Year 2024

AYRO, Inc. reported a significant decline in financial performance for the fiscal year ending December 31, 2024, with revenues dropping to $63,777 from $498,917 in the previous year, marking an 87.2% decrease. The company attributed this decline primarily to the termination of its master procurement agreement with Club Car, which resulted in a substantial reduction in vehicle sales. The cost of goods sold increased by 29.5% to $6.65 million, largely due to a $4.91 million impairment of inventory related to the reengineering of its new vehicle model, the AYRO Vanish. The net loss for the year was approximately $1.76 million, a notable improvement from a net loss of $34.16 million in 2023.

In terms of operational changes, AYRO has undergone a strategic restructuring aimed at enhancing efficiency. This included the elimination of a significant number of positions and a reevaluation of its sales, marketing, and manufacturing functions. The company has also initiated low-rate initial production of the Vanish, which began in the second quarter of 2023, with initial sales and deliveries commencing in the third quarter of 2023. Additionally, AYRO entered into a partnership with GLV Ventures for the engineering and manufacturing of the Vanish, which is expected to be produced in the United States.

The company has faced challenges in maintaining compliance with Nasdaq listing requirements, receiving a notification in July 2024 regarding its failure to meet the minimum bid price of $1.00 per share. AYRO was granted a compliance period until January 2025 to rectify this issue, and subsequently received an extension until July 2025. The company’s stock performance and compliance with Nasdaq standards are critical for its ability to raise capital and maintain investor confidence.

As of December 31, 2024, AYRO had approximately $16 million in cash and cash equivalents, a decrease from $33.4 million in the previous year, primarily due to operating losses and capital expenditures. The company has indicated that it will need to raise additional capital to fund its operations and continue as a going concern. AYRO's future growth is contingent upon the successful commercialization of the Vanish and the ability to attract customers in a competitive electric vehicle market, which is characterized by rapid technological advancements and evolving consumer preferences.