StableX Technologies, Inc. - Common Stock Q3 FY2023 earnings call

• Milestones achieved include completing testing and homologation for the AYRO Vanish, entering low-rate initial production (LRIP), recognizing first revenue from the Vanish, receiving design and utility patents, and planning to resume development of the Valet and Vapor in 2024.
• The Vanish is in LRIP with prototype pricing, and transition to full production is expected near the end of 2023 and into Q1 2024. Test drive events in October showed interest from various customers, including large corporations and distributors. The Valet will debut at the PGA show in January 2024, and the Vapor development will resume in 2024.
• Cash burn in Q3 was consistent with prior quarters, and the cash balance of $47.9 million is considered sufficient to reach breakeven in the second half of 2024.

For the third quarter of 2023, revenue was $88,395, a 76% year-over-year decrease. Total operating expenses were approximately $6.2 million, up from $5.8 million in Q3 2022. Adjusted EBITDA loss was approximately $5.2 million in Q3 2023, compared to a $4.8 million loss in Q3 2022. Net loss attributable to common stockholders was approximately $14.2 million. Cash balance at the end of Q3 2023 was $47.9 million. Revenue moving forward will be from the Vanish, its modular payloads, and subsequent vehicle designs based on the new platform as Club Car Current inventory has been depleted.

• Expect to reach breakeven during the second half of 2024.
• Transition from LRIP to full production of the Vanish is expected to occur by the end of 2023.
• Anticipate announcing first orders from large corporate entities within the next four weeks.
• The Valet will debut at the PGA show in January 2024, and development of the Vapor will resume in 2024.

• Potential supply chain disruptions that could impact production ramp.
• Uncertainty in achieving breakeven as planned due to various factors like production ramp challenges.
• Dependence on successful transition from prototype equipment and cost structures to full production equipment and cost structures.

Q: Brian Lantier from Zacks Small-Cap Research asks about test drive events and customer interests.

A: Tom Wittenschlaeger responds that test drive event attendees included distributors, large corporations, and those with general interest. Large corporations were interested in the Vanish's payload handling, performance, and styling.

Q: Brian Lantier asks about sales and marketing plan for 2024.

A: Tom Wittenschlaeger talks about four channels to market: dealers, upfitters, direct-to-consumer, and governmental large fleet usage.

Q: Unidentified Analyst asks about breakeven calculation and demand.

A: Dave Hollingsworth says they're forecasting about four vehicles per day with capacity to produce nine per day when fully staffed. Tom Wittenschlaeger mentions demand is larger than current production but ramping supply chain is key.

Q: Unidentified Analyst asks about homologation for Valet and Vapor.

A: Tom Wittenschlaeger says Valet is a piggyback due to identical parts, and Vapor will be evaluated but expects Valet to be a big piggyback.