StableX Technologies, Inc. - Common Stock Q4 FY2022 earnings call

• 2022 was a year of progress with sales from legacy Club Car Current and progress in Vanish design, sourcing, and manufacturing facility build out.
• Vanish is a low-speed electric vehicle with certain features, MSRP of chassis anticipated to be about $34,000, interchangeable payloads roughly $1,000 to $5,000 each.
• Transitioning from legacy Current to Vanish with revenue expected to dip in first half of 2023 but cash runway exceeds two years.
• New supply chain developed, eliminating shipments from Asia, and developing in-house manufacturing capability.
• Vanish preparing for homologation phase, expected to exit in June, then enter low rate initial production by end of June.
• Team reduced total operating expenses by nearly $11 million in 2022.
• Future models include Valet and Vapor, which will undergo homologation process.

In 2022, revenue for the year ended December 31, 2022 was $2,990,497, an increase of 11.4% year-over-year. The sales in the fourth quarter were from the runoff of Club Car Current inventory. Total operating expense for 2022 was approximately $20.2 million compared to $31 million in 2021. Adjusted EBITDA for 2022 was a loss of approximately $18.5 million versus a loss of approximately $25 million in 2021. Net loss in 2022 was approximately $22.9 million, an improvement from $33.1 million in 2021. Cash and marketable securities at December 31, 2022 were approximately $49 million. Total debt was zero at both December 31, 2022 and 2021.

• Vanish is preparing for homologation phase, expected to exit homologation in June, then enter low rate initial production by end of June.
• Anticipate initial sales of Vanish in second half of 2023.
• Future models based on common core chassis platform will undergo similar homologation process, with timeframe remaining relatively constant.

• Stock price below $1 a share near the NASDAQ 180-day extension deadline on April 3, which could pose delisting risk. Need to address through delivery of Vanish sales to reflect in stock price.

Q: Will future models like Valet and Vapor be subject to the same homologation process?

A: Yes, homologation is platform-specific and generally spans 12 weeks, expected to remain constant along all platforms.

Q: Any particular industries or use cases showing initial interest for Vanish?

A: Segments like fleet refresh in resort, golf, marina businesses are showing brisk interest, with economics of refresh cycle changing due to longer product lifetime.

Q: Is positioning on the GSA schedule possible in 2023?

A: Yes, by being an addition to the schedule with select partners that already have GSA presence.

Q: About NASDAQ minimum bid rule extension, have you applied for extension and strategy to cure stock price below $1?

A: In constant contact with NASDAQ, and strategy is to deliver sales of Ayro Vanish to have stock price reflect hard work and marketplace verification.