AYRO, Inc.

Good morning, ladies and gentlemen, and thank you for standing by. Welcome to the Arrow Incorporated Year-End 2022 Financial Results and Corporate Update Conference Call. At this time, all participants are in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star and then one on a telephone keypad, To withdraw your questions, you may press star and two. Participants of this call are advised that the audio of this conference call is being broadcast live over the internet and is also being recorded for playback purposes. A webcast replay of the call will be available approximately one hour after the end of the call through June 23, 2023. At this time, I'd like to turn the floor over to Joey Delahousie of CoreIR, the company's investor relations firm. Sir, please go ahead.

Thank you, Jamie. Good morning, and thank you for participating in today's conference call. Joining me from ARO's leadership team are Tom Wittenschlager, Chief Executive Officer, and Dave Hollingsworth, Chief Financial Officer. During this call, management will be making forward-looking statements, including statements that address ARO's expectations for future performance or operational results. Forward-looking statements involve risks and other factors that may cause actual results to differ materially from those statements. For more information about these risks, please refer to the risk factors described in ARO's most recently filed annual report on Form 10-K and subsequent periodic reports filed with the SEC in ARO's press release that accompanies this call, particularly the cautionary statements in it. Today's conference call includes adjusted EBITDA, a non-GAAP financial measure that ARO believes can be useful in evaluating its performance. You should not consider this additional information in isolation or as a substitute for results prepared in accordance with GAAP. For a reconciliation of this non-GAAP financial measure to net loss, its most directly comparable GAAP financial measure, please see the reconciliation table located in ARO's earnings press release, which is available on its website at www.aro.com. under the investor tab. The content of this call contains time-sensitive information that is accurate only as of today, March 23rd, 2023. Except as required by law, payroll disclaims any obligation to publicly update or revise any information to reflect events or circumstances that occur after this call. It is now my pleasure to turn the call over to CEO Tom Wittenschlager.

Hey, thank you, Joey, and good morning. to everyone on the call. The fourth quarter of 2022 capped off a year of what we feel is significant progress at Arrow. We generated sales of our legacy product, the Club Car Current, and made additional progress in the design and sourcing of the Arrow Vanish, along with the build-out and tooling of our manufacturing facility right here in Round Rock, Texas. As I've discussed before, the Vanish is our first low-speed electric vehicle to be designed and developed based on the new Common Core Chassis Strategic Roadmap. The VANISH is a utility LSEV, or low-speed electric vehicle, with a lightweight architecture and adaptable bed configurations to support both light duty and heavy duty applications. It was designed to leave minimal impact on the environment, has zero emissions, making it well-suited for both indoor and outdoor uses, such as in stadiums, arenas, campuses, resorts, and last mile delivery environments, as well as other situations where toxic fumes are a safety concern. It will be street legal and will be governed to a max speed of 25 miles per hour. The vanishing discrete components, and the very large majority of these are being sourced from North America. The MSRP of the Vantage chassis is anticipated to be about $34,000, while we intend to sell its interchangeable payloads for roughly $1,000 to $5,000 each. In terms of our performance through the end of 2022, revenue in the fourth quarter came from continued sales of the legacy Club Car Current units, and we've now sold off nearly all of the inventory of this product. While we anticipate that some sales of the current will trickle into the first and second quarters of 2023, these will likely be minimal. However, we expected and planned for this dip in revenue as we aim to complete the transition from the legacy current to the next generation vanish in the first half of 2023. While revenue may decline these next two quarters until the vanish is in production, we believe our quarterly cash burn will be in the same range as it has been over the last three or four quarters. Our team has done a great job of managing total operating expenses as evidenced by a nearly $11 million decline in total OPEX in 2022 over 2021. Cash and marketable securities at the end of 2022 were approximately $49 million, implying a cash runway that exceeds two years at current spending levels. The reduction in operating expenses and cash burn is not an insignificant feat, mind you, given that this has occurred even as we were running at breakneck speed to design a new platform, design the first vehicle on that platform, and begin the manufacturing build-out of our Round Rock, Texas facility. Another major change going into 2023 is that we no longer rely on Centro or any other suppliers from China to source any vehicle components. We no longer rely on Karma Automotive in California for vehicle assembly, nor on Club Car for exclusive distribution. Instead, we have an entirely new supply chain that largely eliminates shipments from Asia, and we're developing in-house manufacturing capabilities that we believe will allow us to control our own destiny, so as to speak, as well as enjoy higher margins per vehicle at scale. As I've always maintained, the long-term success of Arrow should be based on the success of the entire Common Core chassis family of vehicles, of which the Vantage is expected to be the first of three to be launched. This success will be driven by the hard work, experience, ingenuity, and creativity of our entire team. Customer acceptance and market penetration of our vehicles is paramount, and we believe this will ultimately be reflected on our anticipated future sales and profits, not in how we've performed in the rearview mirror or under a different strategic direction. Crucially, this is why there's considerable optimism and anticipation within our own ranks, despite the tenuous economic backdrop and a stock market malaise. Currently, the Vantage is preparing to enter the homologation phase, which is the certification and approval process that all vehicles must go through that involves crashing, Crushing and rolling a vehicle to ensure it's safe and that it complies with LSEV governed speed requirements Prior to it being allowed into the marketplace Furthermore homologation will also ensure that the vanish meets the California carb requirements for zero emission transportation Homologation is generally a 12-week process and we believe that we will successfully exit homologation sometime in June while homologation is underway we'll be simultaneously focused on efficiently ramping our supply chain, which is a pivotal step in being able to maximize the production and sell-through of the Vantage and placing additional Vantage units with dealers for demo purposes. Following homologation, we expect to enter LRIP, or low-rate initial production, by the end of June. Thus, any initial sales of the Vantage will likely be rather small until the second half of 2023. However, do not take that to mean we haven't yet begun our sales and marketing outreach for the Vantage. On the contrary, we've already announced our first authorized dealer. We're in various stages of negotiation with more than 50 additional dealers in the U.S. and Canada and have what appears to be a substantial expression of interest for the very first units off our assembly line. Thus, we believe our pipeline of potential dealers is strong, as is dealer interest in the Vantage products, which we believe offers numerous design, ergonomic, and technological enhancements, along with the total cost of ownership advantages over the status quo products currently found in the marketplace. Bringing a new vehicle to market takes time, but I firmly believe that the last 15 months of effort by the Euro team was necessary to lay a proper foundation for what we believe will be our sustainable growth phase. The real beauty of our strategic roadmap is that subsequent vehicle launches will use essentially the same critical components as the Vantage, meaning there should be very little design effort and retooling needed for future potential vehicles, which would substantially shorten the time to market for those vehicles that can address a completely different segment of the EV marketplace. Also important in our corporate strategy is the development of a strong IP portfolio. Intellectual property can act as barriers to entry by competitors and contribute greatly to stockholder value. Hopefully you've seen some of our recent press releases highlighting our IP progress. We continue to gain momentum in IP as some patents have already been issued, multiple matters are currently in examination, and we filed certain patent continuations and we'll be filing even more patent and trademark applications in the future to help strengthen our corporate moat. Creating a sustainable solution in the EV space motivates us, and our solutions are neither trivial nor obvious. We believe the world will increasingly trend towards successful sustainability, and having an IP around our assets should only make us a more valuable company. That concludes my opening remarks. Now I'd like to turn the call over to Dave Hollingsworth, who will review our financial results in more detail. Dave?