Market Overview

Arcimoto Reports Second Quarter 2018 Financial Results and Provides Corporate Update

Share:

Company Completes Signature Series and Begins Beta Production,
Significantly Reducing Vehicle Build Time and Improving Overall Quality.

Arcimoto, Inc.® (NASDAQ:FUV) — makers of the Fun Utility Vehicle®
(FUV®) — an affordable, practical, and thrilling pure electric vehicle
for everyday commuters and fleets, today announced financial
results for the second quarter ended June 30, 2018.

Arcimoto has released a second quarter 2018 corporate update video,
which can be viewed on the Arcimoto YouTube channel at https://www.youtube.com/arcimoto

Recent Company Highlights:

  • Completed production of ten Signature Series FUVs and began a 15-unit
    Beta Series production run, reducing build time while improving
    vehicle mechanics and overall quality.
  • Improved manufacturing capability, demonstrating the ability to
    produce a finished vehicle from raw materials entirely in-house.
  • Introduced the first Arcimoto rental location, to open in Eugene,
    Oregon in the coming months, which will combine rental operations with
    a customer experience center, with plans for a second location in
    Encinitas, California.
  • Pre-orders for the FUV increased to 2,800 units as of June 30, 2018,
    as compared to 2,461 units as of March 31, 2018, and 1,523 units as of
    June 30, 2017.
  • Demonstrated the FUV at several notable industry and investor events
    across the country, including the New York Auto Show and several
    MicroCap investor conferences.
  • Rang the Closing Bell at NASDAQ in April, 2018.

Management Commentary

"The second quarter was highlighted by our continued operational
execution, anchored by the completion of ten Signature Series FUVs,"
said Mark Frohnmayer, Founder and President of Arcimoto. "With the
lessons learned from the Signature Series, we began a 15-unit Beta
Series production run, with the first two units already on the road.

"As of June 30, 2018, FUV pre-orders stood at 2,800 vehicles,
representing approximately $42 million in anticipated revenue. We expect
the pace of new pre-orders to potentially accelerate as we open our
planned rental locations – first in Eugene, Oregon, followed by a second
location in Encinitas, California.

"This newly developed experience model entails opening rental locations
in key destination markets. We believe this approach will allow Arcimoto
to generate revenue from individual rentals while raising brand
awareness in high-traffic destination cities. Further, we anticipate
that the rental model will be franchiseable, allowing us to expand our
global footprint with limited capital expenditure.

"From the very first Signature Series FUV to our current run of Beta
units, one thing has consistently excited me through it all: the pure
joy of a prospective customer driving an FUV for the first time. That
experience, perhaps more than anything, is what I believe will most help
us in our goal to catalyze the shift to sustainable transportation
worldwide," concluded Frohnmayer.

Second Quarter 2018 Financial Results

Total revenues in the second quarter of 2018 were $85,332 as compared to
no revenue in the second quarter of 2017. Sources of revenue in the
second quarter of 2018 were $84,000 from the sale of vehicles, $1,332
from merchandise and metal fabrication revenue.

The Company incurred an operating loss of $2.2 million in the second
quarter of 2018, compared to an operating loss of $0.6 million in the
second quarter of 2017.

Net loss for the second quarter of 2018 was $2.2 million, or ($0.14) per
share, as compared to a net loss of $0.59 million, or ($0.05) per share
in the second quarter of 2017.

The Company had $2.14 million in cash and cash equivalents and $5.2
million in short-term investments as of June 30, 2018, compared to $1.4
million cash and cash equivalents and $9.7 million in short-term
investments as of March 31st, 2018.

Earnings Webcast Details

Management will host an investor webcast at 1:30 p.m. PDT (4:30 p.m.
EDT) on August 14, 2018, to discuss Arcimoto's second quarter 2018
financial results, provide a corporate update, and conclude with a Q&A
from participants. To participate, please use the following information:

Q2 2018 Investor Webcast
Date: Tuesday, August 14, 2018
Time:
1:30 p.m. Pacific time (4:30 p.m. Eastern time)
Webcast: https://zoom.us/webinar/register/WN_XrSgVigvRM2HudZyK_9W1A

Please login to the webcast 10 minutes before the start of the webcast
to ensure timely participation.

A playback of the webcast will be available for replay for 60 days on
the IR section of the Arcimoto website at https://www.arcimoto.com/investor/.

The Company will be broadcasting an earnings update video as part of the
webcast. The video can be viewed at the Arcimoto YouTube channel at https://www.youtube.com/arcimoto

About Arcimoto, Inc.

Headquartered and manufactured in Eugene, Oregon, Arcimoto, Inc.
(NASDAQ:FUV) is devising new technologies and patterns of mobility that
together raise the bar for environmental efficiency, footprint and
affordability. Available for pre-order today with a target base model
purchase price of approximately $11,900, Arcimoto's Fun Utility Vehicle
is one of the lightest, most affordable, and most appropriate electric
vehicles suitable for the daily driver. For more information please
visit www.arcimoto.com.

Safe Harbor / Forward-Looking Statements

Except for historical information, all of the statements, expectations,
and assumptions contained in this press release are forward-looking
statements. Forward-looking statements include, but are not limited to,
statements that express our intentions, beliefs, expectations,
strategies, predictions or any other statements relating to our future
activities or other future events or conditions. These statements are
based on current expectations, estimates and projections about our
business based, in part, on assumptions made by management. These
statements are not guarantees of future performance and involve risks,
uncertainties and assumptions that are difficult to predict. Therefore,
actual outcomes and results may, and are likely to, differ materially
from what is expressed or forecasted in the forward-looking statements
due to numerous factors discussed from time to time in documents which
we file with the SEC. In addition, such statements could be affected by
risks and uncertainties related to, among other things: fluctuations in
our financial results; our ability to effectively execute on our
developing growth strategy; our ability to design, manufacture and
market vehicle models within projected timeframes; the number of
reservations and cancellations for our vehicles and the ability to
deliver on those reservations; our reliance on key personnel; our
ability to manage the distribution channels for our products, including
our ability to successfully implement our direct to consumer
distribution strategy and any additional distribution strategies we may
deem appropriate; changes in consumer demand for, and acceptance of, our
products; changes in the competitive environment, including adoption of
technologies and products that compete with our products; the overall
strength and stability of general economic conditions and of the
automotive industry more specifically; and changes in laws or
regulations governing our business and operations. Any forward-looking
statements speak only as of the date on which they are made, and except
as may be required under applicable securities laws, we do not undertake
any obligation to update any forward-looking statements.

View Comments and Join the Discussion!