AYRO Inc.

AYRO Inc. (NASDAQ: AYRO) specializes in creating and providing small, eco-friendly electric fleet solutions tailored for urban and short-distance transportation needs. These vehicles are versatile and can meet various commercial and consumer demands while offering safe, cost-effective, efficient, and environmentally friendly transportation solutions.

Recent Financial and Business Updates:

• Second Quarter Income Statement Review:
  • Reported a net loss of USD 6.0 million, which was identical to the net loss in the same period the previous year.
  • Reported an adjusted EBITDA of negative USD 5.5 million for the June 2023 quarter.
  • Revenue for the quarter stood at USD 139,544.
  • Reported a gross loss of USD 192,483.
  • Net loss per share, both diluted and basic was USD 0.16.
• Balance Sheet Review:
  • Total assets were USD 43.49 million as of June 30, 2023.
  • Total liabilities amounted to USD 2.405 million as of June 30, 2023.
  • Total stockholders’ equity was USD 43.49 million as of June 30, 2023.
  • As of June 30, 2023, the company holds around USD 52.0 million in cash, which includes funds from a USD 22 million financing deal that was completed in early August 2023.
• Patent Update:
  • The company announced that it received the U.S. Patent No. 11752882 by the U.S. Patent and Trademark Office for innovations related to reducing and eliminating the environmental impact of vehicles.
  • The patent focuses on managing the environmental effects of an electric vehicle by regulating its acceleration.
  • The patent, titled "Systems and Methods for Controlling Vehicle Acceleration to Regulate Environmental Impact," outlines a vehicle designed to adapt its impact on the environment it operates within.
• Reverse Stock Split Update:
  • The company implemented a reverse stock split on September 15, 2023, where every 8 pre-split shares will be consolidated into 1 post-split share.
  • AYRO's common stock will remain listed on the Nasdaq Capital Market with the symbol AYRO, and trading on a split-adjusted basis will commence when the market opens on Monday, September 18, 2023.
  • Post the reverse stock split, each block of eight shares of AYRO's existing common stock will be automatically transformed into a single common stock share, with no alteration to the par value per share.
  • Shareholders who hold their shares through a brokerage account will see an automatic adjustment that reflects the 1-for-8 reverse stock split.
  • The company has regained compliance with NASDAQ Listing requirements after the reverse stock split too effect.

Technical Observation (on the daily chart)

The Relative Strength Index (RSI) over a 14-day period stands at 31.64, heading toward the oversold zone. At the same time, the stock’s volume traded is 8.111K as on October 12, 2023. Additionally, the stock's current positioning is below both the 21-day Simple Moving Average (SMA) and the 50-day SMA, which may serve as dynamic short-term resistance levels. 

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a “WATCH” rating is recommended for AYRO Inc. (NASDAQ: AYRO) at its closing price of USD 2.16 as on October 12, 2023.

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing. 

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

How to Read the Charts?

The yellow colour line reflects the 21-period simple moving average (SMA) while the blue line indicates the 50- period simple moving average (SMA). SMA helps to identify existing price trends. If the prices are trading above the 21-period and 50-period moving average, then it shows prices are currently trading in a bullish trend.

The orange colour line in the chart’s lower segment reflects the Relative Strength Index (14-Period) which indicates price momentum and signals momentum in trend. A reading of 70 or above suggests overbought status while a reading of 30 or below suggests an oversold status.

The red and green colour bars in the chart’s lower segment show the volume of the stock. The volume is the number of shares that changed hands during a given day. Stocks with high volumes are more liquid than stocks with lesser volume as liquidity in stocks helps with easier and faster execution of the order.

The Orange colour lines are the trend lines drawn by connecting two or more price points and used for trend identification purposes. The trend line also acts as a line of support and resistance.

Technical Indicators Defined: -

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices. 

The reference date for all price data, currency, technical indicators, support, and resistance levels is October 12, 2023. The reference data in this report has been partly sourced from REFINITIV. 

Abbreviations

CMP: Current Market Price

SMA: Simple Moving Average

RSI: Relative Strength Index

USD: United States dollar

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