Q2 2023 Arcimoto Inc Earnings Call

<unk> sale, coupled with our recent range of $6 seven and 4.3 of which has already been received and a follow on to four 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 a $1 $76 million as compared to the one five 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 one point or $1 71 per share in the second quarter of 2023, compared with a net loss of $17 four or $8 80 per share for the same year period.

The company had $53 $1 million in total assets $1 $3 million in cash.

And cash equivalents.

And $32 7 million and total liabilities as of June 32023.

That's it for the report out we did also have some questions submitted so I'll run through I think was that nine of those and I'll run through those.

Question. One was you just joined our kimono CEO in April how has the process been so far and what have been your key focuses.

So haven't held the seat.

Having held the seat prior on Arqiva those board before becoming CEO has led me to hit the ground running really understanding a lot of the problems from from day one.

My immediate focus has been on accelerating strategic partnerships capital formation to the scale and continued refinement.

And growth of our sales efforts.

Past quarter I've helped the team facilitated 6 million $6 7 million and continuing to lead a strategic restructuring of the company. So really is getting production lined up and efficient and getting our cost savings down a bomb and now we can scale out with sales and now you're starting to see that with things such as the <unk> deal.

Question two can.

Can you tell me about the recent production and manufacturing activities.

So currently as we just kind of reported out there from other teams delivered a pretty solid quarter.

Like I said, one $706 million in revenue, which puts us up 17%.

We're considering to see that strength, especially with the <unk> and the military applications. So we really see that pipeline filling up here in the near future.

In May we unveiled the <unk>. So that's a new category for us and really offering a true piece of capital equipment that is the right tool for the right job, it's never really existed previously.

So as far as activities those will be the.

The really biggest hits.

Next question I saw that your manufacturing facilities up for sale why is that I touched on that a little bit in the.

And the brief but predominantly that factory is currently not being utilized.

By Arca modal I'd say, even more if we look at it just from a under roof perspective already nearly 250000 square feet of that were usually maybe 10%, 15% really using.

And then it's a 10 acre facility and if you really look at that or a 10 acre.

<unk>, if you look at that whole 10 acre footprint.

There may be using 5% of that so there's a huge opportunity for someone who wants to develop that land as well as increased over a $1 by square per square foot by conducting more contract manufacturing work, which we've been leveraging over the last few quarters.

And that is continuing to grow in.

Provide another revenue opportunity for us and then the sale leaseback will allow us to access those funds that are really this is hung up in the.

And the equity of that plant and allow us to really leverage those into the production, which is where we're built.

To generate.

<unk> Alright, Dan vehicle manufacturing company, we should be allocating our capital into that and we're not at a stage, where we should be investing in real estate.

Yes.

A question for Arthur Motor secured six seven in funding. This week, how do you plan to use these funds.

This strategic move and it propelling our promoters mission of revolutionizing transportation.

The funds raised from the sale.

Well will play a pivotal role in scaling our production investing in our kimono own dealerships and advancing our cost out efforts, which with some of the data that I. Just briefed you can see that we're clearly on the right path and that is indeed working.

Okay.

Question five you recently announced a partnership with Matt Brock. This is military efforts can you tell me more about that and how the partnership came.

Came to be.

This partnership brings together <unk> expertise electrical infrastructure systems architecture, and energy storage with Matt box overall leadership and design in the in the military space about many many products to market and recently rolled out.

Tactical vehicle prototyping arm.

And so when the opportunity presented itself.

To provide them with some electrical architecture, BMS and other electrical type components for current projects as well as future projects, we naturally jumped at the chance to do that and the team has been working incredibly well together.

<unk> so it's been an incredible relationship from the onset.

And we're really looking forward to what's going to come from that partnership.

Our next question.

<unk> had a net loss of $13 two.

How do you plan to balance costs of production and vehicles in order to achieve profitability.

There is a drastic improvement from previous year at $17 four.

Confirming that our efforts to working on this that we're on the right path. It's moving in the appropriate direction that is a really big swing to see year over year. So the cost reduction on the bond and the manufacturing process, which we believe will tip into building material profitability come the fall, which is exactly what we promised at the NASDAQ <unk>.

Briefing in May So we are on track and we're doing exactly what we said we're going to do.

Next question <unk> total revenues this quarter increased by 17%.

Compared to the same period in 2022, what factors contributed to this growth.

It's it's sharp execution on improving operational efficiencies.

As well as leveraging underutilized manufacturing equipment.

We've got quite a bit of unencumbered manufacturing equipment, that's not being utilized as it could have been so one of the big things that we did since I came on was starting to roll that up ramping those production efforts as it's a shorter term revenue opportunity that allows us to really put our foot.

In the <unk> space and generate revenue, while we continue to scale up the rest of the factory.

I mean in that so with one continuing to scale production and leveraging that equipment is really what helped us generate that 176 in revenue that's got us up 17% from 2022.

Our next question how.

How do you feel about reaching this significant milestone of producing our 1000th vehicle for your vehicle.

I'm very proud of this naturally.

It's a big milestone I think the last data that I looked at we community driven $1 2 million miles. So this is a product thats out there solving really probably real problems for real customers.

It's road tested.

It's got a bright future with that many vehicles operating on the road today.

And then last questions, how do you envision the path financial stability and long term success in the EV market.

I wanted some girl has to offer.

The market one of the most cost effective most efficient last mile human and goods.

Mobility platform for the future road with what we really see the future being.

We intend that our platform will provide a ready foundation for driverless technology development.

And our demonstrated that capability today.

I mean, we here at <unk>, we understand that where we're ahead of the curve and we think that this is what the future of mobility will look like.

And we're seeing that more so internationally, we know that here state side that will eventually come around.

To intersect that and we'll be we'll be there and ready to catch it with technology is already developed and ready to go.

So we're really excited about what the future holds.

For our <unk>.

I'm really proud of the team for pushing so very hard.

To keep us on the path on the track.

Yeah.

Allowing us to continue to deliver on what we said we're going to deliver on.

So of that.

I'd like to conclude the earnings call. Thank you for everyone who.

Submitted questions.

And I look forward to talking to you guys in the last three months.

Thank you everyone.

Okay.

Okay.

Okay.

Yes.

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