StableX Technologies, Inc. - Common Stock Q3 FY2022 earnings call

• The Ayro Vanish, the company's first low-speed electric vehicle based on a new common chassis, was unveiled. It is a utility LSEV suitable for various environments like stadiums, campuses, and last-mile delivery. - Two mules were built for dynamometer testing of the propulsion system and final fitment checks of vehicle parts. - Cash and marketable securities balance remained strong at $55.2 million. - The company is focused on rolling out Vanish production, with expected commencement of shipping to customers in late Q1 2023, and plans to use e-commerce channels and multiple distribution channels including Element, Gallery Carts, and the GSA channel.

In the third quarter of 2022, Ayro's revenue was $373,186, a decrease from the approximately $1 million recognized in prior quarters. This decline was due to quality control issues with battery components from a foreign supplier, which led to no inventory of lithium-ion battery-powered current vehicles to sell, resulting in lower unit volumes. There is no explicit revenue contribution percentage provided for segments as the focus was on the impact of the battery component issue on the existing vehicle line.

• Vanish production transition is expected to commence in late Q1 2023 with shipping to customers then. - Focus on rolling out Vanish production and establishing distribution channels. - No specific revenue guidance, but emphasis on moving legacy platforms to clear space for Vanish production.

• Quality control issues with battery components led to revenue decline in the third quarter. - Dependence on North American and European supply chain, which could have potential delays in part delivery. - Uncertainty around market response to the premium utility Vanish compared to commodity platforms.

Q: How many prototypes are there?

A: Today, there are two mules. They are used for dynamometer testing of the propulsion system, electrical motor, subsystem, and vehicle controller, and for final fitment checks of vehicle parts.

Q: What are expectations for cash burn over the next quarter?

A: Focus is on launching the product line, and other uses of cash are deferred to the Board of Directors. The company is laser-focused on getting the first product built and into the marketplace.

Q: Sourcing for GSA?

A: The company will have 85% North American content and 15% from Northern Europe, and will approach the GSA schedule through a GSA partner already on the schedule.