AYRO's Q2 Highlights: 88% Revenue Growth, Supplier Issue, Solid Cash, No Debt & More

AYRO Inc AYRO reported second-quarter FY22 sales growth of 88% year-on-year to $0.98 million, versus $0.52 million last year.
The company attributed the 7-fold increase in the cost of goods sold to defective components received from Cenntro Automotive Group, Ltd.
AYRO said it is still addressing this matter with Cenntro and has asked for full credit for the defective components.
Following Cenntro’s recent termination of the 2017 Manufacturing License Agreement, AYRO has decided to cease production of the AYRO 411x and focus its resources on developing and launching the AYRO Z.
The operating expenses decreased 46.9% to $4.1 million. The company reported a gross loss of $(1.8) million. Operating loss narrowed to $(5.9) million from $(7.7) million last year.
Adjusted EBITDA loss was $(4.2) million versus $(5.9) million last year. EPS loss of $(0.16) narrowed from $(0.22) last year.
The company held $58.9 million in cash and equivalents with no debt as of June 30, 2022.
The company expects the first unveiling of AYRO Z prototype by year-end 2022.
Price Action: AYRO shares are trading higher by 0.92% at $1.10 on the last check Thursday.