Arcimoto Reports Second Quarter 2020 Financial Results and Provides Corporate Update - Seite 2

We have resumed production at low volume, and plan to resume deliveries this quarter. We rolled out more Deliverator pilot vehicles: two to HyreCar in Los Angeles to validate the product’s utility for gig delivery driving, and one to the newest Wahlburgers in Key West, to validate the platform for restaurant meal delivery.

We remain fully committed to our customers on the road. Our newly expanded support department can now rapidly respond to early outstanding service items typical of new vehicles. We’ve also expanded the Arcimoto R&D facility, and we now have the capacity to create the full range of future Arcimoto platform products, options, and accessories.

Throughout the quarter, we remained laser-focused on scaling to mass production. To that end, we began a collaboration with Munro and Associates in June to refine our plan for the growth of Arcimoto’s production capability to 50,000 units per year within 24 months. In the 10 weeks we have been working with Munro, the combined team has brainstormed 397 potential avenues for near term cost reduction and 213 potential avenues for long term cost reduction.

We are mapping out the road ahead in detailed steps as we identify needed tooling, new materials and methods, and space and employment needs. Achieving mass production is the next step to truly deliver on our mission of changing transportation to a sustainable model around the world.

Second Quarter of 2020 Financial Results

Total revenue in the second quarter of 2020 was $268,538 as compared to revenue of $8,514 for the same period in 2019. The increased revenue in the current year period was due to continued sale of FUV and Deliverator products to customers that began in late 2019 following the start of commercial production. However, revenue in the second quarter of 2020 was negatively impacted by the suspension of all vehicle production operations in response to the COVID-19 pandemic. Prior to the suspension, the Company had increased production capacity to two vehicles a day, up from the one per day initial production rate. To date, the Company has built more than 100 production vehicles, up from the 57 produced at December 31, 2019.