AYRO Inc. appoints new independent accounting firm

AYRO, Inc. (NASDAQ:AYRO), a company specializing in communication services with a market capitalization of $3.89 million, has announced a change in its independent accounting firm. The micro-cap company, currently trading at $0.46 per share after declining over 65% in the past year, reported in a recent filing with the U.S. Securities and Exchange Commission (SEC) that effective April 10, 2025, Marcum LLP, its previous accounting firm, has been replaced by CBIZ (NYSE:CBZ) CPAs P.C. for the fiscal year ending December 31, 2025.

This transition follows the acquisition of Marcum's attest business by CBIZ CPAs on November 1, 2024. The company's Audit Committee approved the engagement of CBIZ CPAs after Marcum's service concluded. Prior to the engagement, AYRO did not consult CBIZ CPAs on any accounting principles or potential audit opinions.

Marcum's reports on AYRO's financial statements for 2023 and 2024 did not contain any adverse opinion, but the 2024 report included a paragraph expressing substantial doubt about the company's ability to continue as a going concern. This concern appears warranted, as InvestingPro data shows the company's EBITDA at -$16.32 million, with revenue declining by 87% year-over-year. Additionally, the filing disclosed material weaknesses in AYRO's internal control over financial reporting, particularly in documenting and implementing controls and policies, insufficient segregation of duties, and lack of compensating controls due to limited personnel and resources.

AYRO has provided Marcum with a copy of the SEC filing and requested a letter from the firm stating whether it agrees with the statements made in the report. The letter from Marcum, dated April 10, 2025, is included in the SEC filing as Exhibit 16.1.

Furthermore, AYRO has announced that its 2025 Annual Meeting of Stockholders will be held virtually on May 19, 2025. According to InvestingPro, which offers 14+ additional investment insights about AYRO, the company maintains a strong current ratio of 5.11, indicating sufficient liquid assets to meet short-term obligations despite operational challenges. Due to the change in meeting date, stockholder proposals must be received by April 18, 2025, to be considered for inclusion in the company’s proxy materials. Proposals must also comply with SEC rules and the company's Amended and Restated Bylaws.

This information is based on AYRO's recent SEC filing, reflecting the company's commitment to transparency and adherence to regulatory requirements.

In other recent news, AYRO, Inc. announced a substantial 74% reduction in operating expenses, dropping from $6.1 million in the third quarter of 2023 to $1.6 million in the same period of 2024. This move is part of the company's strategy to enhance profitability and streamline its operations. AYRO also achieved a significant milestone by becoming a Tier One Supplier for General Motors (NYSE:GM), which they anticipate will lead to additional design and manufacturing projects. The company secured its first purchase order through a partnership with GLV Ventures, marking a step forward in its business expansion efforts.

AYRO's collaboration with GLV Ventures includes revamping its Low-Speed Electrical Vehicle, the Vanish, to lower manufacturing costs and increase unit profitability. The management team has been bolstered with the appointments of Gilbert Villarreal as President of the operating subsidiary and Joseph Ramelli as the new Chief Financial Officer, both focusing on profitability and partnerships. The company's commitment to leveraging low-cost manufacturing capabilities in Texas and GLV supports a Made in America guarantee. AYRO plans to continue developing and marketing the Vanish vehicle while exploring opportunities beyond its relationship with General Motors.

Executive Chairman Josh Silverman expressed confidence in the company's improved business outlook, emphasizing a strong cash position that supports its current plans. These developments highlight AYRO's strategic moves to strengthen its market position and adapt to the evolving electric vehicle market.

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