Arcimoto, Inc.

I'm going to start. We're going to do. We're still working on the optimum format for the next evolution of the quarterly conference call. We are going to this time. I'm going to run through a presentation on the company starting out with the really the big picture vision. a little bit of detail on the quarter, and then a look at our goals ahead, introduce the new executives who've joined us in quarter one, and then open it up to questions from the Say platform. So again, if you have not had a chance to check out Say, Say allows you to vote your shares for questions. And so we look at that. We think of this call really as an opportunity for our stakeholders to get deeper insight into the company. If you've got questions, that's a great place to start. And then as time permits, we will use the Q&A function in the Zoom interface to answer questions. If you are one of our analysts, make sure that you get your questions in there. And Off we go. So the big picture vision for Arcimoto to me can be summarized in the simple phrase, parking lots to parks. We pave over. approximately half of our urban landscape in order to move and park cars. And that leads to urban environments that are unpleasant, noisy, polluted, crowded by big vehicles that provide real safety obstacles to pedestrians and alternative transportation users. And ultimately are making the put us in danger of a planet that is unlivable for humans, because of runaway climate change. So, Archimedes mission is at its core of our vision of the future is a city that doesn't suck anymore. And that has been the Archimedes vision, ever since our inception. I first really sort of laid out the big picture of this back in 2012 when I had the opportunity to give a TEDx talk. And this was my graphical design chops circa 2012. I think this image has really captivated a number of folks who have looked at, it's this, the real aha comes from noticing the giant disconnect between cars and how we actually use cars. And so Arcimoto is really all about mining that gap between the bicycle and the car in order to produce radically more efficient vehicle platforms for solving the same trips that we use cars for today. The 2021 version of this, and this is still in process, but just to give you an idea of what we see when we see the city of the future, It's a much more pleasant place to live and is really the purpose of the Arcimoto Ventures, to right-size the footprint of mobility. We start with what we call platform one, which is the product of eight generations of iteration over the early years of the venture. And what we landed on on try number eight was an incredibly flexible platform for daily mobility. And we're applying this platform to bespoke products for specific platform verticals, starting with our A flagship product, the Fun Utility Vehicle, FUV, which is also our stock ticker. The Deliverator, which is for last mile delivery of food and goods. The Rapid Responder, which is designed for emergency services to be able to get to the sites of incidents more quickly. what we introduced a vehicle we called the Cameo last summer. We use this for videography for ourselves, and this also provides the foundation for our flatbed utility vehicle. And then finally, we've introduced the Roadster, which is our pure on-road fun machine that we are planning to deliver the very first one of by the end of this quarter. So the end game for you can kind of think of platform one is really being the products that we've outlined so far as being our our Shots at very, there's multiple shots on goal for the overall market. But where we see this going, and this has been true since Arcimoto's inception, is what we call personal mass transit, which is where you combine an incredibly efficient right size footprint vehicle with emergent autonomous vehicle technology in order to provide the mass transit system of the future. And the sort of the big aha for Arcimoto is that one is that the rideshare market has the potential to increase exponentially as the cost per mile for the consumer goes down. And the biggest cost per mile is actually the person driving you across town in an Uber, a Lyft or a taxi. So what we see is the opportunity to leverage existing autonomous technologies, existing remote control technologies, in order to bring vehicles to you that you then drive. Because one of the really fun things about the Arcimoto is actually driving it yourself. And so the goal with... Platform number one in the end game is to get to a shared vehicle system. And if you think about those images of parking lots to parks, It is the vehicle platform size that lets us erase road lane miles and narrower lanes and bring more of our roads into more productive use. And it's ultimately the shared vehicle architecture where we are sharing a fleet of very efficient vehicles that allows us to get rid of the vast majority of our parking space. for more productive uses. And we think that with the combination of the mass production, Arcimoto, with available technologies that we can achieve, we're aiming for a target of a dollar per mile at scale. I want to take just a second to compare Arcimoto because we're now in a moment where there are lots of different ventures going after the EV space and want to make sure that we frame ourselves in that emergent market. And to say a couple of things. One is that efficiency is incredibly important to us. Capital efficiency is incredibly important to us. Arcimoto is an actual production venture at this point. We went public in 2017 to build out our factory and we are now producing at low volume as we look to much higher scale. Efficiency of operation is also incredibly important to us. So as we look down the road, we want to have the very most efficient vehicles for personal mobility in the market in the world. We had in quarter one was by far Arcimoto's best quarter in its 13 plus year history. We have ended Q1 in the strongest position of our balance sheet. We had the highest number of deliveries, even given the fact that we are still amidst a global pandemic with all of its associated challenges in supply chain, in production shutdowns and all the rest. And we had certainly our strongest revenue quarter as we look forward. At the reporting of the 10K about six weeks ago, I laid out our goals for 2021. So I'm just going to, every quarter, put up a scorecard just to keep folks in tune with where we are according to our own goals. laid out the goals of articulating our full Platform One family. We're almost there. We plan to introduce our first Platform Two product, and I'm going to talk a little bit more about Platform Two right after we introduce our chief tilting officer, Bob Mile. We plan to pilot shared usage models of the Arcimoto platform, and all of those will feed into our longer term goals of the true sort of grail personalized mass transit that we aim for over the next several years. We plan to open additional sales and service areas. We're presently selling vehicles to customers only in four states, and we plan to open more service areas before the end of this year. have articulated a goal of teaming with the US Department of Energy and their advanced technology vehicle manufacturing loan program. We have now submitted that application. And the ATVM application moves through a series of gates. The first gate, obviously, is getting it to them. The second is the Department of Energy's determination that it is substantially complete. Robert B. At day should should should they decide to commit funding, there would be a conditional commitment and then at the end would be the actual disbursements of funds so. Robert B. This first submission actually represents years of dialogue with the Department of Energy and a lot of back and forth over the course of the last six months in order to tune our initial submission now we expect that that. Robert B. That that will. that our plan that we've articulated there will continue to evolve as we solidify all of our plans for scale production. And I'll talk about that in a little bit of detail in a minute. We plan to expand our campus and we have actually closed on the purchase of a new production facility, but there's a lot of work that remains in order to get that facility up and running as a mass production facility. And then we have articulated a goal of delivering 500 customer vehicles this year. We delivered 60, so a good step on the way there, but we're going to need to step up our pace as we get towards the end of the year. And then probably the most important thing as we look to scale from a market development standpoint, we believe is getting people in the Arcimoto vehicles. It is an experience that sells itself. And so now that we are, we essentially put our, we did a massive pivot in terms of our go-to-market approach When the pandemic came upon us a year and change ago, we pushed our whole notion of a rental model into the future. We stopped doing marketing tours. And now that it's looking like we are coming out of the pandemic, we are going full tilt back in the direction of what we see as really the optimal way of driving demand creation for the Arcimoto vehicle platforms. So scale production update, new facility purchased, application to the ATVM submitted, awaiting a substantially complete designation. We will be doing, we're planning for a small amount of production work happening out of this facility in 2021, primarily the turning up our automated vacuum form plastics, but the bulk of what will come out of this facility will not appear until late 2022 is our target for SOP. That is an aggressive target. We believe we can do it. The Monroe team that we're working with believes we can do it, but it is still certainly an aggressive target. And we have been... want to be very clear about that with folks, particularly as we outlined it as a very aggressive target when we first stated it. And then again, this is what we see as our prototype for scale replication for global expansion. So both the product family that we're building and as well as the way in which we're building it, those are what we're aiming to replicate in in the coming years as we go to higher scale on a global level. And with that, that's a great segue to introduce Dilip Sundaram, who is our new Chief International Business Officer. Dilip, if you wouldn't mind turning your camera on, let's stop this share for a second and just let you introduce yourself to folks and maybe a bit about why you why you came on board Arcimoto.

Sure. Thank you, Mark. I hope everyone can hear me. Good evening to everyone. I'm really thrilled to be here. So as Mark introduced me, I'm Dilip Sundaram. I joined the company just a few weeks ago, as a matter of fact. And I came here from a company called Mahindra, which is an Indian company. conglomerate, an Indian $20 billion conglomerate, who are leaders in farm tractors and automotive and IT services. And so I am excited to be here. I'll be honest with you. I think when I think of the many reasons I came here, I think Arcimoto is on the cusp of redefining commuting. So if you kind of go back to history, the 50s really belonged to the sports and the muscle cars. The 60s was all about pony cars that were started by the Mustang. The 70s was all about The fuel efficient, the smaller vehicles that was introduced by the Japanese. The 80s was the minivans and the 90s and even the early 2000s was the period for where America and pretty much the whole world was in love with SUVs. The last decade, we were introduced to electric cars. So what is this decade going to bring us? I believe that it is going to be personal mobility, micro mobility, first and last mile delivery. And there is no other company, in my belief, there is no other company that is better positioned to take advantage of that than Arcimoto. And that is what has brought me here, and I'm truly excited to be here. Thank you, Mark. Thank you, Dilip.

Let's go back here. And then the other person I want to introduce before we go into the finishing the presentation and the panel discussion is Bob Mile. And Bob is the founder of Tilting Motorworks and now our chief tilting officer. And we've got a little video clip to explain a little bit about Bob.