Our next presenter this morning is Tom Wittenschlaeger with AYRO, Inc. Hey, guys. Good morning. We're gonna take a little journey into the world of electric vehicles, and I promise you it's gonna be cool and fun 'cause electric vehicles generally aren't cool and fun, but this is gonna be cool and fun. Thanks for coming. I'll point out the customary forward-looking statements. Look, our company is in the low-speed electric vehicle space. Generally, the reason people adopt a low-speed electric vehicle fleet is for economic leverage. You know, it's cost savings. They also adopt it for sustainability reasons. Of course, sustainability means a lot of things to a lot of people, so we're gonna define it a little bit later. I won't spend too much time on it right now. Fundamentally, what we've done is we've built vehicles that are really designed to traverse environments without disturbing them. It's like the Heisenberg uncertainty principle in reverse, for those of you that study physics. The company was founded in 2017. We're in Round Rock, Texas. That's just north of Austin. As I mentioned, we design and manufacture low-speed electric vehicle. We design them and manufacture 'em and support 'em and source 'em all in the United States. We're kinda proud of that. They're purpose-built. They're highly customizable. They're perfectly suited for all kinds of environments, like indoor environments where exhaust is problematic, last mile extension, stadiums, marinas, all the places where last mile extension makes a bunch of sense. What we are building is a family of vehicles that are all built around common components. The idea... Yeah, I've been building products for 40 years. The idea is once you tool something one time, tooling's expensive. Really good components and good tooling is not just expensive but takes a lot of time. Once you've got that, it just makes sense to use it in as many ways as you can, and that's where you get tremendous economic leverage. That's exactly what we're doing. Our vehicles are web connected, which means they can be operated collaboratively rather than individually. The impact of that on total cost of ownership and on efficiency is amazing. Right now, we have 37 million shares outstanding, a market cap at $21 million with $48 million in cash. Clearly the new math has made itself felt. Let me say it again, $48 million in cash and $21 million market cap. No debt. Our current cash runway is two years, and we're introducing product in the next three months. Okay. September 2021, we put a new management team in place, and I brought in a group of guys that are absolutely extraordinary. They're people who are now in the low-speed electric vehicle space, but they come from other very, very high-end transport spaces. I'll show you who those folks are in a second. Our management team has over 200 years of experience. We're releasing our first product, that's the one on top, that's our utility vehicle, in the next three months. Our demand from early adopters has been staggering. The reason the demand has been staggering is if you think about all the vehicles in this space, they're kinda converted golf carts. They're really. They're a whole bunch of stuff. They're low quality, they're ugly as sin, and they break generally in three years, which means you have to replace them every three years. We had this idea, what if you build something that's built to automotive OE standards? What happens if you give it looks that can kill? What happens if you give it a lifetime of 10 years? What would that do to the total cost of ownership model? Well, I think it's gonna do a lot. I think we're about to upset an oligopoly. While launching our new platforms, by the way, we've reduced our costs. While we were developing this thing, we reduced our cost and our run rate by $10 million a year while doing a development. People tell me that's not possible, and I love when people say that. We have a great IP portfolio. I've got two patents, already granted, 14 pending. In the patent portfolio, it's great to be in your 60s because what happens is the USPTO has a special provision for accelerated consideration. If you're 65 or over, you get in a different line, you get in the express line, which means you can knock down patents like bowling pins if you actually know how to write 'em. We won two prestigious awards, both the Red Dot and the Frost & Sullivan Award. I'm really proud of both of them because it's validation that independent people that haven't been paid think what we're doing is disruptive. Very, very experienced management team, people from ZF, TRW, an Annapolis grad, a West Point grad. Terry Nielsen, my VP of manufacturing, was building tools 45 years ago. He doesn't just know how to run a factory, he knows how to build the tools that go into the factory. Target market is interesting. It's expected to grow from $10 billion-$15 billion by 2028 at a compound annual growth rate of, call it in the mid 7% range. Commercial vehicles are expected to dominate that LSEV market, and of course, that's why we're launching a commercial utility vehicle. Things like emission standards are driving adoption. Look, here's kind of the fact of things. There are places where electric vehicles make a ton of sense. That's in last mile. Last mile city, last mile extension make a ton of sense. In the long-haul stuff, we can have a spirited debate on whether or not they make sense. In the short haul, it's a no-brainer. It's a complete no-brainer. Of course, there are other factors boosting demand for LSVs, including, you know, an aging population, campuses, fleets, mobility solutions, all the things where people want to use a smaller vehicle that costs less, is whisper quiet, and is light enough to go almost anywhere without tearing things up. Of course, we see applications in last-mile cargo, micro-mobility, that whole space. Here's kinda where our vehicle sits. It sits above the converted golf cart space, but below the full-size electric truck space. That gap is kind of interesting because in the full-size truck space, those are incredible vehicles, but they cost a king's ransom. The golf carts are such low quality. I mean, literally, I wouldn't even park one in my driveway if you gave it to me. We're right in between there. We have done some very pivotal changes. We are aggressively building an American-designed, American-built product line. We're manufacturing it in Round Rock, Texas. All of our vehicles are designed to automotive OE standards. I've cut the head off of the Transpacific supply chain. You know, I'm always wondering what's so sustainable. People go, "Well, electric vehicles are sustainable." Really? What's sustainable about schlepping stuff 9,000 mi across the Pacific? Obviously, it's a different definition of sustainable. I know what it takes 'cause I spent my whole time in the Pacific Fleet when I was in the Navy. We have minimized the Transpacific supply chain. Of course, we have altered our relationship with Club Car so that we're going direct to dealers rather than going through a corporate intermediary. That saves us 30 points of pass-through. That really feels like our money, right? Of course, we're demonstrating what ESG actually means. In terms of the ESG stuff, obviously, we're doing sustainable sourcing. Our supply chain isn't Transpacific. Our supply chain goes from Ontario, Canada to Detroit, Michigan, to Elkhart, Indiana, to Austin, Texas. That's a one-day route for an 18-wheeler, which is different from an 80-day trek for a supply ship and a truck and a train. Obviously, I talked about sourcing. In terms of usage, what we've done is made every vehicle multi-use, so that rather than buying a fleet of 300 vehicles, you can buy 100 with three different payload types. You reduce fleet sizes dramatically, reduce your total cost of ownership while you're improving your quality, your fleet quality. Finally, on impact minimization, we've gone to fly-by-wire, brake-by-wire, steer-by-wire. We're not going to build an autonomous vehicle. I mean, I come from that space, and the issue is that autonomy is extremely complex, it's extremely expensive, and it has a very, very high cost of entry. We're autonomous-ready. Because we're steer-by-wire, fly-by-wire, and brake-by-wire, anybody can drop any autonomous module into our VCU, that's vehicle control unit, and implement autonomy. I'd rather build the platform and let other peoples take the ultra-high risk stuff than us taking the ultra-high risk stuff. This is our product line, the Vanish, the Valet, and the Vapor. Utility, people mover, golf car. Again, you know, we're very, very focused on having platforms that were unusually, unexpectedly premium. If you go to a resort and you're dropping $1,000 a night to stay at that resort, you know, part of the resort brand, obviously, is gonna be the way you get around the resort, the way you get around the golf courses on those resorts. We're very focused on a high-quality, super stylized platform family, all from common components. Because they're from common components, it means they're competitive in price, but they're not competitive in performance or in styling. I talked about the fact we have scalable telemetrics in the vehicle. You say, "Tom, why do you want scalable telemetrics? Why do you care that the vehicles are connected?" Well, let me answer that. The reason is, you know, my regular home's in Sarasota, Florida. The thing about that part of the country, other than its most beautiful beaches in the world, is the fact that every afternoon around 4:00 P.M., a violent and frightening thunderstorm will come through. It happens almost every day. Whether you're a boater and you're out on the water or you're a golfer and you're out on the golf course, you know it's coming. I'm not talking like a little bit of lightning. I'm talking about lightning that will really get your attention. With scalable telemetrics, we can literally send alerts to the vehicle when weather's coming in. We can tell people, "Hey, weather's 5 mi away. It's 2 mi away. At 1 mi, get off the course. Put your clubs down." Well, never mind. I won't make a joke about putting your club up in the storm. Fundamentally, when you consider the impact of being able to do that, think about what it means for your insurability. Think about what it means for your liability overhang. Think about what it means to be able to get people off the grass and onto the golf course before the rain arrives, so that you don't have a massive course maintenance expense. These are all, you know, these are all kind of really important things if you actually run a place like that. We're the only vehicle in the world that can do it. Our utility vehicles come with a variety of payloads. This is just kinda what they look like, 'cause all of us like to look at pictures. Being able to buy one vehicle and four payloads means you can spend about 40% less on fleet deployment and get a fleet that is substantially better in quality. Our production facility is now stood up. It's in Round Rock, Texas. We're shipping our first product Q2, 2023. The two additional products you saw, which are the people mover and the golf car, will ship before Christmas time. We're pursuing over 1,800 channels to market. Those include dealers, distributors, direct fleets, upfitters, and material handling folks. We're establishing beachheads in all of our relevant market areas. Look, what are we trying to do? It's really simple. What we're trying to do is challenge an oligopoly. If you're today in the golf business, you have the following choices: Club Car, E-Z-GO, Cushman, Yamaha. Those are kinda your choices. The question is, are any of those vehicles that you would consider high quality? Are any of those vehicles you would consider of sufficient style that you would wanna tie your brand to them? I'll let you answer that. If I were answering, I'd say, "Hell, no." They're unbelievably commoditized. The question at hand is: Is there a place in this market segment for a high-quality, high-style vehicle? If you believe the answer is yes, then we're kind of a cool play. If you believe the answer is no, I should go back to Sarasota, get on my boat, and stop building vehicles. I think there's a place in this segment for premium platforms. There are none. We're gonna find out here in about a couple of months. On the achievement side, hey, we won two awards that are really kinda cool. One's a Frost & Sullivan award on new product innovation. The reason Frost & Sullivan is exciting to me is 'cause they're independent. You can't pay them to do anything. They're totally independent. I bought my first Frost & Sullivan report in 1984. They've been around a long time. When they give you an award, it's real, you know. The one I'm really proud of is Red Dot. Red Dot, it's a German award. Red Dot is in Essen, Germany. They're kind of the award of pinnacle design in the world. Getting a Red Dot award is like getting a Michelin star if you run a restaurant. Guess what? We got one in year one. Now, most people say that's not possible. There are people who go through their whole career and never get a Red Dot. We got ours. By the way, the guys who get Red Dot awards are people you might have heard of, like Dyson, Maserati, Bose, people like that, and also us. Last thing on IP. I mentioned we have four design patents, 12 utility patents, pending, of which two have already been granted. Our trademarks are all submitted. We're building a war chest of IP to match the war chest of platforms that we're building, and that work is going quite nicely. Can I answer any questions for anybody? Yes, sir. Please. Have an independent of that IP. The question is: Do we have an independent validation of the IP and what it's worth? The answer is no, because we're writing it and getting it granted right now. The real purpose of our IP is to put up a, kind of a fence on underlying technologies, a fence on integration, and a fence on styling. Pending, right. We have two granted already, a design patent granted and a utility patent granted. I've got another 12 pending right now, and I'm writing four more as we speak. For the record, I mean, patents is something I've been doing for a lot of years. I have 47 patents myself, so it's not something that's unfamiliar to us, if you know what I mean. Any other question? Yes, sir. Percent. The Club Car? Great question. I'll give you a really good idea. How about if I give you precise numbers? Would that be cool? Oh, really? Well, if you go buy a Club Car Carryall Urban today, which I did, and I got the members, family, special price, Tom, just for you price, $38,000, okay? We're selling this for $35,000. I hope that's sufficiently approximate. Hang on. Yes, sir. Yes. Mm-hmm. Yep. The answer to your question is the telematics and the reporting system and the geofencing, it's on the vehicle. Now, the method by which monetization occurs is a whole another question, okay? I'm building vehicles. I'm building the best vehicles in the world. There will be a tremendous monetization opportunity. My preference would be to have someone else do it rather than us, 'cause I wanna stick to my knitting. I wanna build vehicles and let somebody else do... The data you refer, spot on. Yeah, it's on the vehicle, it's recorded, and it's monetizable. I'm sure that'll be a nice discussion with someone else. Yes, sir. I'm coming back. Yeah. I'm trying to reconcile it too. Let me tell you what was reported in our last filing. Luckily, our auditors are in the room. I know that what I say has to be correct or I'll get smacked down in like 12 seconds. What our reported Q will tell you is that we're burning at right about $4.5 million per quarter net. We're sitting on $48 million in cash. Our first product launches in the next three months. When it launches on a per vehicle basis, let me tell you the norms in the industry for this as you come down the supply chain. Generally, on the vehicle itself, you'll have margins in the high 20s, and on the payloads, you'll have margins in the 50s. That's generally what one sees. You can run the ma- Yeah, I didn't study new math. I did old school stuff. In fact, when I went to college, you couldn't use a calculator. You had to use a slide rule. Those numbers, I don't know what to tell you. Yes, sir. Here's the deal. I'm an electrical and nuclear engineer, so I'm not a fiction writer. I don't know about how you convert into carbon credits. There are a lot of people that do that, and what we would do is we would partner with them that someone actually writes and is found to be acceptable. That is way outside my wheelhouse. It is... It will have a very important aspect. We'll probably be the only... Well, not probably. We are, I believe, the only vehicle that both meets Buy American standards and ESC standards legitimately. Yes, sir. Yes. I mean, we showed it in Baltimore at the National Fleet Manager Show two weeks ago. It was... Call me crazy, it was a real vehicle. Yes, sir. Supply chain questions are always interesting. They're interesting because when you're in the vehicle business, to make this thing takes 800 discrete assemblies. 800 pieces comprise a full vehicle. Eighty-five percent of our supply chain is in North America, which makes it a lot easier because it's available via truck rather than by, via ship and/or train and/or other and/or airplane, which is a really bad idea. When you talk about supply chain, right now, there are these quirky perturbations that make forecasting it very, very tenuous. Do we have everything we need to build our vehicles at the moment? The answer is yes. What's going on in the world? Well, let's see. There's a shortage of stainless steel in Italy. In Italy is where our steering wheels come from. You know, holy crap. Well, why didn't you anticipate a stainless-steel shortage in Italy? Yeah, right. The other phenomenology in the EV space is that the battery world in North America is overstressed, but the battery world elsewhere in the world is understressed. You have these supply chain ups and downs that are just part of the normal course of business. I don't know what to say 'cause out of 800 pieces, you know, you simply expect... You expect to hit some turbulence. It always happens. The hardest thing always is two things: harnesses and glass. Those are the knuckle busters every single time. We think we have them under control. Yes, sir. You know what? Right now, I can't talk about the order book for the simple reason that technically, until you have your state manufacturer's license issued, you're not permitted to do so. We can build in our Round Rock factory nine per day, single shift. You can extrapolate that. Of course, we have partners that we would turn full build over to, like Linamar. Linamar is our manufacturing partner in Canada. They do $6.7 billion a year in parts with GM, Ford, and Chrysler. They're a very incredible partner. Guys, thank you very much.