Fabric.AI, Inc. Q1 FY2023 earnings call

• Progressed with the Ayro Vanish, entering homologation phase this week after successful internal tests. Plan to enter low rate initial production (LRIP) by early June to build first 50 units for dealer floors. - Won Frost & Sullivan 2023 North American New Product Innovation Award and Red Dot Award for Vanish design. - Growing IP portfolio. - Managed costs effectively. - DTC channel working to finish ecommerce site and onsite location in Florida, expecting DTC capability to launch in third quarter 2023.

Revenue for the first quarter ended March 31, 2023 was $113,084, a decrease of 89% year-over-year. The sales were from the run-off of Club Car Current inventory. Legacy Club Car Current vehicle revenue was approximately $100,000 in the first quarter, which is minimal. The new Ayro Vanish is the focus for future growth. The revenue contribution of the legacy product is negligible, while the new LSEV products like Vanish are the future revenue drivers.

• Cash and equivalents balance of nearly $42 million sufficient to reach breakeven according to current forecast. - Vanish to enter homologation phase this week, plan LRIP by early June, target nine vehicles per day in full scale production. - DTC capability expected to launch in third quarter 2023.

Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. Refer to risk factors described in Ayro’s most recently filed annual report on Form 10-K and subsequent periodic reports filed with the SEC.

Q: Brian Lantier asked about feedback from potential dealers or fleet managers from trade shows regarding attributes of the Vanish.

A: Thomas Wittenschlaeger said people noticed differences between Vanish built to automotive OE standards vs commodity golf cart standards, commented on quality of materials, roomy interior, enhanced payload capacity, dual display head, reconfigurable cargo subsystem, and that it's US designed, sourced, built, and supported.

Q: Matthew Policek asked about cash balance.

A: David Hollingsworth explained that cash and marketable securities total nearly $41 million, including marketable securities like T-bills that are very liquid