AYRO, Inc. reported significant financial changes in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a drastic decline in revenue, with total revenue for the three months amounting to $5,426, a sharp decrease from $88,395 in the same period of 2023. For the nine months ended September 30, 2024, revenue was $63,777, down from $341,023 in the prior year. This decline is attributed to the cessation of production of the AYRO 411x model by its primary supplier, Cenntro Automotive Group, Ltd., in September 2022, and the slow ramp-up of sales for its new model, The Vanish.

Despite the revenue drop, AYRO reported a net income of $550,557 for the three months ended September 30, 2024, compared to a net loss of $(12,589,572) in the same quarter of 2023. For the nine-month period, the company achieved a net income of $3,826,425, a significant turnaround from a net loss of $(24,068,576) in the previous year. This improvement was largely due to non-cash changes in warrant and derivative liabilities.

Operating expenses also decreased, totaling $1,645,407 for the three months ended September 30, 2024, down from $6,096,535 in 2023. For the nine months, operating expenses were $8,621,465, compared to $17,861,925 in the prior year. The loss from operations narrowed to $(1,926,009) for the three months and $(11,101,819) for the nine months, reflecting a more efficient cost structure.

As of September 30, 2024, AYRO's cash and cash equivalents stood at $2,729,904, a significant decline from $33,440,867 at the end of 2023. Total current assets decreased to $33,377,483 from $48,979,631, while total assets fell to $35,925,552 from $52,863,778. Total liabilities decreased to $13,982,144 from $27,532,112, and total stockholders’ equity was reported at $11,458,286, down from $14,137,727.

The company has undergone internal restructuring since January 31, 2024, which included workforce reductions and a reevaluation of its sales, marketing, and manufacturing functions. Additionally, Gilbert Villarreal was appointed as President of Ayro Operating Company, Inc. on August 21, 2024. AYRO also received a compliance notice from Nasdaq regarding non-compliance with minimum bid price requirements, with a compliance period extending until January 14, 2025.

Overall, AYRO's financial performance reflects a challenging environment, with strategic adjustments aimed at stabilizing operations and improving profitability amidst declining revenues.