Arcimoto, Inc.
Q2 2023 Earnings Call Transcript

Published: 24 Aug 2023

[Chris Dawson:]

Hey. Hello, everyone. This is Chris Dawson, CEO of Arcimoto. Welcome to Q2 2023 Report-Out. Here's our forward-looking statements. Naturally, everything short of historical data as presented are forward-looking statements and what we believe to achieve as we accomplish our goals. In Q2, we were able to produce 94 units, at least -- well, for the first half of the year. In 2023, we were able to produce 94 units. Of that, we delivered 65 customer vehicles in the second quarter with an average sales price of $22,700 and delivered 102 year-to-date. In June, we're excited to have produced our 1,000th vehicle. And as of June 30, we had 665 customer FUVs on the road; 39 vehicles allocated for marketing, R&D and internal fleet use; and another 90 vehicles in the Arcimoto rental fleet for revenue generation. Tilting Motor Works completed delivery of 11 TRiOkits to customers with an average sale price of $14,200, that's $14,285. And achieved -- and Arcimoto achieved 954 rides for demo drives and rentals combined during the second quarter. Arcimoto also launched the modular utility vehicle, or MUV, the first on-road modular utility vehicle in the company's lineup of small footprint electric vehicles, dedicated professional and commercial use. I really like to applaud the Arcimoto team. They delivered a solid quarter, sharp execution and improving operational efficiencies, generated $1.7 million, just over $1.7 million in revenue and that's up 17% from 2022. We're continuing to see strength in our industrial and military markets with the MUV and our recent Matbock deal and are confident in the pipeline deals coming to fruition. We also announced today our intention to sell our U.S. manufacturing facility contingent upon lease agreement. This allows us to be very strategic and tactical about the space being used to keep the areas we need and relinquish those that we currently do not. This allows us to free up the capital, so -- that's currently locked up in the factory, so that we can apply that to growing current production to meet the oncoming demand. The capital from the sale, coupled with our recent raise of $6.7 million, $4.3 million of which has already been received and a follow-on $2.4 million in Q4 upon shareholder approval. These funds will be used to extend our runway and allow us to continue working toward our goals. Financial results for Q2. Total revenues for the second quarter of 2023, increase of 17% to $1.76 million as compared to the $1.5 million in the second quarter of 2022. Year-to-date, June 30, 2023, revenue increased by 45% to $3.1 million as compared to $2.1 million in 2022. The company incurred a net loss of approximately $13.2 million or approximately -- or $1.71 per share in the second quarter of 2023, compared with a net loss of $17.4 million or $8.80 per share for the [same year] (ph) period. The company had $53.1 million in total assets, $1.3 million in cash and cash equivalents, and $32.7 million in total liabilities as of June 30, 2023. That's it for the report-out. We did also have some questions submitted, so I'll run through. I think we've got nine of those, and I'll run through those.

[A - Chris Dawson:]

So, having held a seat prior on Arcimoto's Board before becoming CEO has led me to hit the ground running, really understanding a lot of the problems from day one. My immediate focus has been on accelerating strategic partnerships, capital formation, to the scale of continued refinement and growth of our sales efforts. This past quarter, I have helped the team facilitate a $6 million -- $6.7 million, and I'm continuing to lead a strategic restructuring of the company. So, really it's getting production lined up and efficient and getting our cost savings down on the [indiscernible] and now we could scale out with sales, and now you're starting to see that with things such as the Matbock deal. Question two