Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 12, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-34643 | |
Entity Registrant Name | AYRO, INC. | |
Entity Central Index Key | 0001086745 | |
Entity Tax Identification Number | 98-0204758 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 900 E. Old Settlers Boulevard | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Round Rock | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78664 | |
City Area Code | (512) | |
Local Phone Number | 994-4917 | |
Title of 12(b) Security | Common Stock, par value $0.0001 per share | |
Trading Symbol | AYRO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 36,388,765 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash | $ 87,891,072 | $ 36,537,097 |
Accounts receivable, net | 1,057,534 | 765,850 |
Inventory, net | 1,728,817 | 1,173,254 |
Prepaid expenses and other current assets | 1,305,899 | 1,608,762 |
Total current assets | 91,983,322 | 40,084,963 |
Property and equipment, net | 947,974 | 611,312 |
Intangible assets, net | 137,334 | 143,845 |
Operating lease – right-of-use asset | 1,125,368 | 1,098,819 |
Deposits and other assets | 41,289 | 22,491 |
Total assets | 94,235,287 | 41,961,430 |
Current liabilities: | ||
Accounts payable | 2,407,248 | 767,205 |
Accrued expenses | 1,614,102 | 665,068 |
Contract liability | 24,000 | |
Current portion long-term debt, net | 7,548 | |
Current portion lease obligation – operating lease | 245,801 | 123,139 |
Total current liabilities | 4,267,151 | 1,586,960 |
Long-term debt, net | 14,060 | |
Lease obligation - operating lease, net of current portion | 933,563 | 1,002,794 |
Total liabilities | 5,200,714 | 2,603,814 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred Stock Value | ||
Common Stock, ($0.0001 par value; authorized – 100,000,000 shares; issued and outstanding – 36,304,362 and 27,088,584 shares, as of June 30, 2021 and December 31, 2020) | 3,630 | 2,709 |
Additional paid-in capital | 127,483,342 | 64,509,724 |
Accumulated deficit | (38,452,399) | (25,154,817) |
Total stockholders’ equity | 89,034,573 | 39,357,616 |
Total liabilities and stockholders’ equity | 94,235,287 | 41,961,430 |
Convertible Preferred Stock Series H [Member] | ||
Stockholders’ equity: | ||
Preferred Stock Value | ||
Convertible Preferred Stock Series H-3 [Member] | ||
Stockholders’ equity: | ||
Preferred Stock Value | ||
Convertible Preferred Stock Series H-6 [Member] | ||
Stockholders’ equity: | ||
Preferred Stock Value |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, par value | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares outstanding | 36,304,362 | 27,088,584 |
Common stock, shares issued | 36,304,362 | 27,088,584 |
Convertible Preferred Stock Series H [Member] | ||
Preferred stock, shares authorized | 8,500 | 8,500 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 8 | 8 |
Preferred stock, shares outstanding | 8 | 8 |
Convertible Preferred Stock Series H-3 [Member] | ||
Preferred stock, shares authorized | 8,461 | 8,461 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 1,234 | 1,234 |
Preferred stock, shares outstanding | 1,234 | 1,234 |
Convertible Preferred Stock Series H-6 [Member] | ||
Preferred stock, shares authorized | 50,000 | 50,000 |
Preferred stock, par value | $ 0.0001 | $ 0.0001 |
Preferred stock, shares issued | 50 | 50 |
Preferred stock, shares outstanding | 50 | 50 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 522,067 | $ 285,927 | $ 1,310,936 | $ 432,743 |
Cost of goods sold | 430,478 | 205,637 | 1,074,981 | 318,792 |
Gross profit | 91,589 | 80,290 | 235,955 | 113,951 |
Operating expenses: | ||||
Research and development | 3,042,117 | 180,605 | 4,969,678 | 335,304 |
Sales and marketing | 668,838 | 239,065 | 1,227,242 | 558,519 |
General and administrative | 4,061,681 | 714,679 | 7,362,994 | 1,963,730 |
Total operating expenses | 7,772,636 | 1,134,349 | 13,559,914 | 2,857,553 |
Loss from operations | (7,681,047) | (1,054,059) | (13,323,959) | (2,743,602) |
Other income (expense): | ||||
Other income, net | 18,419 | 3 | 28,689 | 20 |
Interest expense | (1,121) | (123,576) | (2,312) | (229,202) |
Loss on extinguishment of debt | (353,225) | (353,225) | ||
Other income (expense), net | 17,298 | (476,798) | 26,377 | (582,407) |
Net loss | $ (7,663,749) | $ (1,530,857) | $ (13,297,582) | $ (3,326,009) |
Net loss per share, basic and diluted | $ (0.22) | $ (0.18) | $ (0.39) | $ (0.54) |
Basic and diluted weighted average Common Stock outstanding | 35,315,044 | 8,291,351 | 33,678,834 | 6,131,712 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes In Stockholders' Equity (Unaudited) - USD ($) | Series H Preferred Stock [Member] | Preferred Stock Series H Three [Member] | Preferred Stock Series H Six [Member] | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2019 | $ 9,025,245 | $ 395 | $ 5,001,947 | $ (13,958,644) | $ 68,943 | |||
Balance, shares at Dec. 31, 2019 | 7,360,985 | 3,948,078 | ||||||
Stock Based Compensation | 156,459 | 156,459 | ||||||
Net Loss | (1,795,153) | (1,795,153) | ||||||
Ending balance, value at Mar. 31, 2020 | $ 9,025,245 | $ 395 | 5,158,406 | (15,753,797) | (1,569,751) | |||
Balance, shares at Mar. 31, 2020 | 7,360,985 | 3,948,078 | ||||||
Beginning balance, value at Dec. 31, 2019 | $ 9,025,245 | $ 395 | 5,001,947 | (13,958,644) | 68,943 | |||
Balance, shares at Dec. 31, 2019 | 7,360,985 | 3,948,078 | ||||||
Ending balance, value at Dec. 31, 2020 | $ 2,709 | 64,509,724 | (25,154,817) | 39,357,616 | ||||
Balance, shares at Dec. 31, 2020 | 8 | 1,234 | 50 | 27,088,584 | ||||
Beginning balance, value at Mar. 31, 2020 | $ 9,025,245 | $ 395 | 5,158,406 | (15,753,797) | (1,569,751) | |||
Balance, shares at Mar. 31, 2020 | 7,360,985 | 3,948,078 | ||||||
Conversion of AYRO Preferred Stock to common stock | $ (9,025,245) | $ 201 | 9,025,044 | |||||
Conversion of AYRO Preferred Stock to common stock, shares | (7,360,985) | 2,007,193 | ||||||
Issuance of Series H Preferred Stock in connection with the 2020 Merger | ||||||||
Issuance of Series H Preferred Stock in connection with the 2020 Merger, shares | 8 | |||||||
Issuance of Series H-3 Preferred Stock in connection with the 2020 Merger | ||||||||
ssuance of Series H-3 Preferred Stock in connection with the 2020 Merger, shares | 2,189 | |||||||
Issuance of Series H-6 Preferred Stock in connection with the 2020 Merger | ||||||||
Issuance of Series H-6 Preferred Stock in connection with the 2020 Merger, shares | 7,883 | |||||||
Issuance of Common Stock in connection with the 2020 Merger, net of fees | $ 493 | 4,451,237 | 4,451,730 | |||||
Issuance of Common Stock in connection with the 2020 Merger, net of fees, shares | 4,939,045 | |||||||
Exchange of debt for common stock in connection with the 2020 Merger | $ 103 | 999,897 | 1,000,000 | |||||
Exchange of debt for common stock in connection with the 2020 Merger, shares | 1,030,585 | |||||||
Issuance of common stock in connection with debt offering | $ 56 | 461,957 | 462,013 | |||||
Issuance of common stock in connection with debt offering, shares | 553,330 | |||||||
Exercise of warrants, net of fees | $ 183 | 515,155 | 515,338 | |||||
Exercise of warrants, net of fees, shares | 1,831,733 | |||||||
Stock Based Compensation | 150,949 | 150,949 | ||||||
Sale of common stock, net of fees | $ 220 | 5,064,780 | 5,065,000 | |||||
Sale of common stock, net of fees, shares | 2,200,000 | |||||||
Net Loss | (1,530,856) | (1,530,856) | ||||||
Ending balance, value at Jun. 30, 2020 | $ 1,651 | 25,827,425 | (17,284,653) | 8,544,423 | ||||
Balance, shares at Jun. 30, 2020 | 8 | 2,189 | 7,883 | 16,509,964 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 2,709 | 64,509,724 | (25,154,817) | 39,357,616 | ||||
Balance, shares at Dec. 31, 2020 | 8 | 1,234 | 50 | 27,088,584 | ||||
Issuance of common stock for services | ||||||||
Issuance of common stock for services, shares | ||||||||
Stock Based Compensation | 1,699,423 | 1,699,423 | ||||||
Sale of common stock, net of fees | $ 804 | 58,269,025 | 58,269,829 | |||||
Sale of common stock, net of fees, shares | 8,035,835 | |||||||
Exercise Warrants | $ 1 | 99,999 | 100,000 | |||||
Exercise Warrants, shares | 13,642 | |||||||
Exercise Options | $ 7 | 183,418 | 183,425 | |||||
Exercise Options, shares | 74,987 | |||||||
Net Loss | (5,633,833) | (5,633,833) | ||||||
Ending balance, value at Mar. 31, 2021 | $ 3,521 | 124,761,589 | (30,788,650) | 93,976,460 | ||||
Balance, shares at Mar. 31, 2021 | 8 | 1,234 | 50 | 35,213,048 | ||||
Beginning balance, value at Dec. 31, 2020 | $ 2,709 | 64,509,724 | (25,154,817) | $ 39,357,616 | ||||
Balance, shares at Dec. 31, 2020 | 8 | 1,234 | 50 | 27,088,584 | ||||
Exercise Options, shares | 469,576 | |||||||
Ending balance, value at Jun. 30, 2021 | $ 3,630 | 127,483,342 | (38,452,399) | $ 89,034,573 | ||||
Balance, shares at Jun. 30, 2021 | 8 | 1,234 | 50 | 36,304,362 | ||||
Beginning balance, value at Mar. 31, 2021 | $ 3,521 | 124,761,589 | (30,788,650) | 93,976,460 | ||||
Balance, shares at Mar. 31, 2021 | 8 | 1,234 | 50 | 35,213,048 | ||||
Issuance of common stock for services | $ 2 | 42,298 | 42,300 | |||||
Issuance of common stock for services, shares | 15,000 | |||||||
Restricted stock vesting | $ 68 | (68) | 0 | |||||
Restricted stock vesting, shares | 681,725 | |||||||
Stock Based Compensation | 1,638,071 | 1,638,071 | ||||||
Exercise Options | $ 39 | 1,041,452 | 1,041,491 | |||||
Exercise Options, shares | 394,589 | |||||||
Net Loss | (7,663,749) | (7,663,749) | ||||||
Ending balance, value at Jun. 30, 2021 | $ 3,630 | $ 127,483,342 | $ (38,452,399) | $ 89,034,573 | ||||
Balance, shares at Jun. 30, 2021 | 8 | 1,234 | 50 | 36,304,362 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||
Net loss | $ (7,663,749) | $ (1,530,857) | $ (13,297,582) | $ (3,326,009) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||
Depreciation and amortization | 253,675 | 228,464 | |||
Stock-based compensation | 3,337,494 | 307,408 | |||
Amortization of debt discount | 169,739 | ||||
Loss on extinguishment of debt | 353,225 | 353,225 | |||
Amortization of right-of-use asset | 93,891 | 49,738 | |||
Provision for bad debt expense | 63,333 | 5,794 | |||
Change in operating assets and liabilities: | |||||
Accounts receivable | (355,016) | (247,708) | |||
Inventory | (603,336) | 59,889 | |||
Prepaid expenses and other current assets | 302,859 | (110,848) | |||
Deposits | (18,797) | 26,265 | |||
Accounts payable | 1,640,043 | 58,468 | |||
Accrued expenses | 991,334 | (325,966) | |||
Contract liability | (24,000) | 63,904 | |||
Lease obligations - operating leases | (67,009) | (30,286) | |||
Net cash used in operating activities | (7,683,111) | (2,717,923) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||
Purchase of property and equipment | (482,541) | (243,928) | |||
Purchase of intangible assets | (53,512) | (8,520) | |||
Proceeds from merger with ABC Merger Sub, Inc. | 3,060,740 | ||||
Net cash provided by (used in) investing activities | (536,053) | 2,808,292 | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||
Proceeds from issuance debt | 1,318,000 | ||||
Repayments of debt | (21,608) | (1,103,401) | |||
Proceeds from exercise of warrants | 100,000 | 515,338 | |||
Proceeds from exercise of stock options | 1,224,918 | ||||
Proceeds from issuance of common stock, net of fees and expenses | 58,269,829 | 6,455,992 | |||
Net cash provided by financing activities | 59,573,139 | 7,185,929 | |||
Net change in cash | 51,353,975 | 7,276,298 | |||
Cash, beginning of period | 36,537,097 | 641,822 | $ 641,822 | ||
Cash, end of period | $ 87,891,072 | $ 7,918,120 | 87,891,072 | 7,918,120 | $ 36,537,097 |
Supplemental disclosure of cash and non-cash transactions: | |||||
Cash paid for interest | 1,971 | 58,366 | |||
Cash paid for taxes | |||||
Supplemental non-cash amounts of lease liabilities arising from obtaining right of use assets | 120,440 | 1,210,680 | |||
Conversion of debt to Common Stock | 1,000,000 | ||||
Conversion of Preferred Stock to Common Stock | 9,025,245 | ||||
Discount on debt from issuance of Common Stock and warrants | $ 462,013 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 6 Months Ended |
Jun. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND NATURE OF OPERATIONS | NOTE 1. ORGANIZATION AND NATURE OF OPERATIONS AYRO, Inc. (“AYRO” or the “Company”), a Delaware corporation formerly known as DropCar, Inc. (“DropCar”), a corporation headquartered outside Austin, Texas, is the merger successor discussed below of AYRO Operating Company, Inc., which was formed under the laws of the State of Texas on May 17, 2016 as Austin PRT Vehicle, Inc. and subsequently changed its name to Austin EV, Inc. under an Amended and Restated Articles of Formation filed with the State of Texas on March 9, 2017. On July 24, 2019, the Company changed its name to AYRO, Inc. and converted its corporate domicile to Delaware. The Company was founded on the basis of promoting resource sustainability. The Company, and its wholly-owned subsidiaries, are principally engaged in manufacturing and sales of environmentally-conscious, minimal-footprint electric vehicles. The all-electric vehicles are typically sold both directly and to dealers in the United States. Merger On May 28, 2020, pursuant to the previously announced Agreement and Plan of Merger, dated December 19, 2019 (the “Merger Agreement”), by and among AYRO, Inc., a Delaware corporation previously known as DropCar, Inc., ABC Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of the Company (“Merger Sub”), and AYRO Operating Company (“AYRO Operating”), a Delaware corporation previously known as AYRO, Inc., Merger Sub was merged with and into AYRO Operating, with AYRO Operating continuing after the merger as the surviving entity and a wholly owned subsidiary of the Company (the “Merger”). At the effective time of the Merger, without any action on the part of any stockholder, each issued and outstanding share of AYRO Operating’s common stock, par value $ 0.001 1.3634 1-for-10 reverse stock split 1-for-5 reverse stock split 3.06 2,337,663 79 18 3 The Merger was treated as a reverse recapitalization effected by a share exchange for financial accounting and reporting purposes because substantially all of DropCar, Inc.’s operations were disposed of as part of the consummation of the Merger and therefore no goodwill or other intangible assets were recorded by the Company as a result of the Merger. AYRO Operating was treated as the accounting acquirer as its stockholders controlled the Company after the Merger, even though DropCar, Inc. was the legal acquirer. As a result, the assets and liabilities and the historical operations that are reflected in our consolidated financial statements are those of AYRO Operating as if AYRO Operating had always been the reporting company. On December 19, 2019, DropCar entered into an asset purchase agreement (the “Asset Purchase Agreement”) with DC Partners Acquisition, LLC (“DC Partners”), Spencer Richardson and David Newman, pursuant to which DropCar agreed to sell substantially all of the assets associated with its business of providing vehicle support, fleet logistics and concierge services for both consumers and the automotive industry to an entity controlled by Messrs. Richardson and Newman, the Company’s Chief Executive Officer and Chief Business Development Officer at the time, respectively. The aggregate purchase price for the purchased assets consisted of the cancellation of certain liabilities pursuant to those certain employment agreements by and between DropCar and each of Messrs. Richardson and Newman, plus the assumption of certain liabilities relating to, or arising out of, workers’ compensation claims that occurred prior to the closing date of the Asset Purchase Agreement. On May 28, 2020, the parties to the Asset Purchase Agreement entered into Amendment No. 1 to the Asset Purchase Agreement (the “Asset Purchase Agreement Amendment”), which Asset Purchase Agreement Amendment (i) provides for the inclusion of up to $30,000 in refunds associated with certain insurance premiums as assets being purchased by DC Partners, (ii) amends the covenant associated with the funding of the DropCar business, such that DropCar provided the DropCar business with additional funding of $175,000 at the closing of the transactions contemplated by the Asset Purchase Agreement and (iii) provides for a current employee of the Company being transferred to DC Partners to provide transition services to the Company for a period of three months after the closing of the transactions contemplated by the Asset Purchase Agreement. |
LIQUIDITY AND OTHER UNCERTAINTI
LIQUIDITY AND OTHER UNCERTAINTIES | 6 Months Ended |
Jun. 30, 2021 | |
Liquidity And Other Uncertainties | |
LIQUIDITY AND OTHER UNCERTAINTIES | NOTE 2. LIQUIDITY AND OTHER UNCERTAINTIES Liquidity and Other Uncertainties The unaudited condensed consolidated financial statements have been prepared in conformity with generally accepted accounting principles in the United States (“GAAP”), which contemplates continuation of the Company as a going concern. The Company is subject to a number of risks similar to those of earlier stage commercial companies, including dependence on key individuals and products, the difficulties inherent in the development of a commercial market, the potential need to obtain additional capital, competition from larger companies, other technology companies and other technologies. The Company has a limited operating history and the sales and income potential of its business and market are unproven. The Company incurred net losses of $ 7,663,749 13,297,582 7,683,111 87,891,072 49,218,168 Since early 2020, when the World Health Organization declared the spread of the transmissible and pathogenic coronavirus a global pandemic, there have been business slowdowns and decreased demand for AYRO products. The outbreak of such a communicable disease has resulted in a widespread health crisis which has adversely affected general commercial activity and the economies and financial markets of many countries, including the United States. As the outbreak of the disease has continued through 2020 and into 2021, the measures taken by the governments of countries affected has adversely affected the Company’s business, financial condition, and results of operations. The pandemic had an adverse impact on AYRO’s sales and the demand for AYRO products in 2020 and in the first and second quarters of 2021, resulting in sales that were less than expected in the first half of 2021. AYRO expects the pandemic to continue to have an adverse impact on sales and demand for products throughout the remainder of 2021. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and in conformity with the instructions on Form 10-Q and Rule 8-03 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, AYRO Operating and DropCar Operating Company, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation of such statements. The results of operations for the three and six months ended June 30, 2021, are not necessarily indicative of the results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes for the fiscal year ended December 31, 2020, which are included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 31, 2021, as amended on April 30, 2021. Use of Estimates The preparation of the accompanying unaudited condensed consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the accompanying unaudited condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company’s most significant estimates include allowance for doubtful accounts, valuation of inventory reserve, valuation of deferred tax asset allowance, and the measurement of stock-based compensation expenses. Actual results could differ from these estimates. Reclassification Certain reclassifications have been made to the prior period financial statements to conform to the current period financial statement presentation. These reclassifications had no effect on net earnings or cash flows as previously reported. Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers To achieve this core principle, five basic criteria must be met before revenue can be recognized: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as the Company satisfies a performance obligation. Nature of goods and services The following is a description of the Company’s products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each: Product revenue Product revenue from customer contracts is recognized on the sale of each electric vehicle as vehicles are shipped to customers. The majority of the Company’s vehicle sales orders generally have only one performance obligation: sale and delivery of complete vehicles. Ownership and risk of loss transfers to the customer based on FOB shipping point and freight charges are the responsibility of the customer. Revenue is typically recognized at the point control transfers or in accordance with payment terms customary to the business. The Company provides product warranties to assure that the product assembly complies with agreed upon specifications. The Company’s product warranty is identical to the product warranties provided by the Company’s suppliers, therefore minimizing the warranty liability to the standard labor rates associated with the defective part replacement. Customers do not have the option to purchase a warranty separately; as such, warranty is not accounted for as a separate performance obligation. The Company’s policy is to exclude taxes collected from a customer from the transaction price of automotive contracts. Shipping revenue Amounts billed to customers related to shipping and handling are classified as shipping revenue. The Company has elected to recognize the cost for freight and shipping when control over vehicles has transferred to the customer as an operating expense. The Company has reported shipping expenses of $ 59,229 16,640 109,855 30,790 Subscription revenue Subscription revenue from revenue sharing with Destination Fleet Operators (“DFO”) and other vehicle rental agreements is recorded in the month the vehicles in the Company’s fleet is rented. The Company established its rental fleet in late March 2019 which is recorded in the property and equipment section of the accompanying unaudited condensed consolidated balance sheets. For the rental fleet, the Company retains title and ownership to the vehicles and places them in DFO’s in resort communities that typically rent golf cars for use in those communities. In August 2020, the Company phased-out the production of its 311 line which were the vehicles used in the rental offering as it is working to develop a new line of vehicles. The change in production did not represent a strategic shift that will have a major effect on the Company’s operations or financial results. Services and other revenue Services and other revenue consist of non-warranty after-sales vehicle services. Revenue is typically recognized at a point in time when services and replacement parts are provided. Warrants and Preferred Shares The accounting treatment of warrants and preferred share series issued is determined pursuant to the guidance provided by ASC 470, Debt Distinguishing Liabilities from Equity Derivatives and Hedging Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation (“ASC 718”). The Company recognizes all employee share-based compensation as an expense in the financial statements on a straight-line basis over the requisite service period, based on the terms of the awards. Equity-classified awards principally related to stock options, restricted stock awards (“RSAs”) and equity-based compensation, are measured at the grant date fair value of the award. The Company determines grant date fair value of stock option awards using the Black-Scholes option-pricing model. The fair value of RSAs is determined using the closing price of the Company’s common stock on the grant date. For service based vesting grants, expense is recognized ratably over the requisite service period based on the number of options or shares. Stock-based compensation is reversed for forfeitures in the period of forfeiture. In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Unit (“ASU”) 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 expands the guidance in ASC 718 to include share-based payments for goods and services to non-employees and generally aligns it with the guidance for share-based payments to employees. In accordance with ASU 2018-07, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the underlying equity instrument. The attribution of the fair value of the equity instrument is charged directly to compensation expense over the period during which services are rendered. Basic and Diluted Loss Per Share Basic and diluted net loss per share is determined by dividing net loss by the weighted average ordinary shares outstanding during the period. For all periods presented with a net loss, the shares underlying the ordinary share options and warrants have been excluded from the calculation because their effect would be anti-dilutive. Therefore, the weighted-average shares outstanding used to calculate both basic and diluted loss per share are the same for periods with a net loss. “Penny warrants” were included in the calculation of outstanding shares for purposes of basic earnings per share. On May 28, 2020, pursuant to the previously announced Merger Agreement, dated December 19, 2019, the Company issued prefunded common stock warrants to purchase 1,193,391 The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Options to purchase common stock 1,448,193 1,060,254 1,448,193 1,060,254 Restricted Stock Unvested 520,167 - 520,167 - Series H-1, H-3, H-4, H-5, I, J, pre-merger AYRO Merger common stock purchase warrants and post-merger AYRO warrants issued 7,346,447 4,006,205 7,346,447 4,006,205 Series H, H-3, H-6, and pre-merger AYRO Seed Preferred Stock 2,475 278,862 2,475 278,862 Totals 9,317,282 5,345,321 9,317,282 5,345,321 |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | NOTE 4. REVENUES Disaggregation of Revenue Revenue by type was as follows: SCHEDULE OF DISAGGREGATION OF REVENUE Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenue type Product revenue $ 506,369 $ 263,465 $ 1,216,568 $ 393,091 Shipping revenue 15,698 22,462 57,681 37,867 Subscription revenue - - - 1,785 Service income - - 36,687 - $ 522,067 $ 285,927 $ 1,310,936 $ 432,743 Contract Liabilities The Company recognizes a contract liability when a consideration is received, or if the Company has the unconditional right to receive consideration, in advance of satisfying the performance obligation. A contract liability is the Company’s obligation to transfer goods or services to a customer for which the Company has received consideration, or an amount of consideration is due from the customer. The table below details the activity in the Company’s contract liabilities as of June 30, 2021 and December 31, 2020. The balance at the end of each period is reported as contract liability in the Company’s unaudited condensed consolidated balance sheet. SCHEDULE OF CONTRACT LIABILITIES Six Months Ended June 30, Year Ended December 31, 2021 2020 Balance, beginning of period $ 24,000 $ - Additions - 183,319 Transfer to revenue (24,000 ) (159,319 ) Balance, end of period $ - $ 24,000 Warranty Reserve The Company records a reserve for warranty repairs upon the initial delivery of vehicles to its dealer network. The Company provides a product warranty on each vehicle including powertrain, battery pack and electronics package. Such warranty matches the product warranty provided by its supply chain for warranty parts for all unaltered vehicles and is not considered a separate performance obligation. The supply chain warranty does not cover warranty-based labor needed to replace a part under warranty. Warranty reserves include management’s best estimate of the projected cost of labor to repair/replace all items under warranty. The Company reserves a percentage of all dealer-based sales to cover an industry-standard warranty fund to support dealer labor warranty repairs. Such percentage is recorded as a component of cost of revenues in the statement of operations. As of June 30, 2021 and December 31, 2020, warranty reserves were recorded within accrued expenses of $ 61,592 43,278 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET | NOTE 5. ACCOUNTS RECEIVABLE, NET Accounts receivable, net, consists of amounts due from invoiced customers and product deliveries and were as follows: SCHEDULE OF ACCOUNTS RECEIVABLE 2021 2020 June 30, December 31, 2021 2020 Trade receivables $ 1,194,696 $ 839,679 Less: Allowance for doubtful accounts (137,162 ) (73,829 ) Accounts receivable, net $ 1,057,534 $ 765,850 |
INVENTORY, NET
INVENTORY, NET | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORY, NET | NOTE 6. INVENTORY, NET Inventory consisted of the following: SCHEDULE OF INVENTORY 2021 2020 June 30, December 31, 2021 2020 Raw materials $ 1,177,314 $ 634,085 Work-in-progress - - Finished goods 551,503 539,169 Inventory $ 1,728,817 $ 1,173,254 Depreciation expense for fleet inventory for the three months ended June 30, 2021 and 2020 was $ 23,886 0 47,772 0 no |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 7. PREPAID EXPENSES AND OTHER CURRENT ASSETS SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS 2021 2020 June 30, December 31, 2021 2020 Prepaid final assembly services $ 409,740 $ 520,000 Prepayments for inventory 766,429 976,512 Prepaid other 129,730 112,250 Prepaid Expenses And Other Current Assets $ 1,305,899 $ 1,608,762 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 8. PROPERTY AND EQUIPMENT, NET Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT 2021 2020 June 30, December 31, 2021 2020 Computer and equipment $ 841,270 $ 815,704 Furniture and fixtures 170,357 127,401 Lease improvements 242,024 221,802 Prototypes 300,376 300,376 Computer software 455,875 62,077 Property and equipment 2,009,902 1,527,360 Less: Accumulated depreciation (1,061,928 ) (916,048 ) Property and equipment, net $ 947,974 $ 611,312 Depreciation expense for the three months ended June 30, 2021 and 2020 was $ 74,752 85,554 145,880 171,612 |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 9. INTANGIBLE ASSETS, NET Intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS June 30, 2021 Weighted- Net Average Gross Accumulated Carrying Amortization Amount Amortization Amount Period Supply chain development $ 404,622 $ (341,548 ) $ 63,074 0.62 Patents and trademarks 114,573 (40,313 ) 74,260 2.59 $ 519,195 $ (381,861 ) $ 137,334 December 31, 2020 Weighted- Net Average Gross Accumulated Carrying Amortization Amount Amortization Amount Period Supply chain development $ 395,248 $ (291,937 ) $ 103,311 1.05 Patents 70,435 (29,901 ) 40,534 2.45 $ 465,683 $ (321,838 ) $ 143,845 Amortization expense for the three months ended June 30, 2021 and 2020, was $ 30,839 28,635 60,023 56,852 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 10. STOCKHOLDERS’ EQUITY Common Stock In April 2020, the Company issued 553,330 600,000 On June 17, 2020, the Company entered into a Securities Purchase Agreement with certain existing investors, pursuant to which the Company sold, in a registered public offering by the Company directly to the investors an aggregate of 2,200,000 0.0001 2.50 5,500,000 435,000 On July 6, 2020, the Company entered into a Securities Purchase Agreement with certain existing investors, pursuant to which the Company sold, in a registered public offering by the Company directly to the investors an aggregate of 3,157,895 0.0001 4.75 15,000,000 1,249,200 On July 21, 2020, the Company entered into a Securities Purchase Agreement with certain existing investors, pursuant to which the Company sold, in a registered public offering by the Company directly to the investors an aggregate of 1,850,000 0.0001 5.00 9,250,000 740,000 Each purchaser also had the right to purchase, on or before October 19, 2020, additional shares of common stock (the “Additional Shares”) equal to the full amount of 75% of the common stock it purchased at the initial closing, or an aggregate of 1,387,500 shares, at an offering price of $5.00 per share. 420,000 0.0001 5.00 2,100,000 168,000 During July 2020, the Company issued 225,590 7,833 On November 22, 2020, the Company entered into a Securities Purchase Agreement with certain institutional and accredited investors, pursuant to which such stockholders agreed to purchase an aggregate of 1,650,164 0.0001 6.06 10,000,000 847,619 During the year ended December 31, 2020, the Company issued 5,074,645 5,092,806 3,926,818 During the year ended December 31, 2020, the Company issued 1,030,585 1,000,000 During the year ended December 31, 2020, the Company issued 2,337,663 3,060,740 During the year ended December 31, 2020, the Company issued 1,573,218 0.0001 2,000,000 609,010 During the year ended December 31, 2020, the Company issued 1,037,496 In December 2020, based on its contract, the Company agreed to issue 15,000 42,300 During the year ended December 31, 2020, the Company issued 2,007,193 7,360,985 During the year ended December 31, 2020, the Company issued 6,817 16,669 During the year ended December 31, 2020, the Company issued 795 955 On January 25, 2021, AYRO entered into a Securities Purchase Agreement with certain institutional and accredited investors, pursuant to which AYRO agreed to issue and sell in a registered direct offering (the “January 2021 Offering”) an aggregate of 3,333,334 0.0001 6.00 20,000,004 1,648,608 On February 11, 2021, AYRO entered into a Securities Purchase Agreement with certain institutional and accredited investors, pursuant to which AYRO agreed to issue and sell in a registered direct offering (the “February 2021 Offering”) an aggregate of 4,400,001 0.0001 9.50 41,800,008 3,394,054 Each purchaser was also granted an option to purchase, on or before February 16, 2022, additional shares of common stock equal to the full amount of 75% of the common stock it purchased at the initial closing, or an aggregate of 3,300,001 11.50 On March 17, 2021, in connection with that certain Agreement and Plan of Merger dated December 19, 2019, whereby certain former stockholders of AYRO Operating entered into lock-up agreements (collectively, the “May Lock-Up Agreements”) pursuant to which they agreed to certain restrictions on the transfer or sale of shares of the Company’s common stock for the one-year period following the Merger, AYRO modified the May Lock-Up Agreements to allow each stockholder party to a May Lock-Up Agreement to (i) sell up to 5% of such stockholder’s holdings in the Company’s common stock on any trading day (with such 5% limitation to be measured as of the date of each sale) and (ii) allow for unlimited sales of the Company’s common stock for any sales made at $10.00 per share or greater. Pursuant to the Securities Purchase Agreement dated July 21, 2020, during the six months ended June 30, 2021 investors purchased 302,500 of the Additional Shares of common stock of AYRO, par value $ 0.0001 5.00 1,512,500 During February 2021, the Company issued 13,642 100,000 During the six months ended June 30, 2021, the Company issued 469,576 1,224,917 During the six months ended June 30, 2021, the Company issued 681,725 Restricted Stock During the year ended December 31, 2020, the Company issued 1,087,618 5.27 15,115 172,000 7.66 1,407,012 2,836,541 Preferred Stock Upon closing of the Merger, the Company assumed the Series H, H-3 and H-6 preferred stock of DropCar, Inc., which respective conversion prices have been adjusted to reflect the May 2020 one-for-five reverse split. Series H Convertible Preferred Stock Under the terms of the Series H Certificate of Designation, each share of the Company’s Series H Convertible Preferred Stock (the “Series H Preferred Stock”) has a stated value of $ 154 184.80 9.99 As of June 30, 2021, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H Preferred Stock outstanding as of June 30, 2021 8 Multiplied by the stated value $ 154.00 Equals the gross stated value $ 1,232 Divided by the conversion price $ 184.80 Equals the convertible shares of Company Common Stock 7 Multiplied by the fair market value of Company Common Stock as of June 30, 2021 $ 4.88 Equals the payment $ 34 Series H-3 Convertible Preferred Stock Pursuant to the Series H-3 Certificate of Designation (as defined below), the holders of the Company’s Series H-3 Convertible Preferred Stock (the “Series H-3 Preferred Stock”) are entitled to elect up to two members of a seven-member Board, subject to certain step downs; pursuant to the Series H-3 securities purchase agreement, the Company agreed to effectuate the appointment of the designees specified by the Series H-3 investors as directors of the Company. Under the terms of the Series H-3 Certificate of Designation, each share of the Series H-3 Preferred Stock has a stated value of $ 138 165.60 9.99 In the event of liquidation, the holders of the Series H-3 Preferred Stock are entitled, pari passu with the holders of common stock, to receive a payment in the amount the holder would receive if such holder converted the Series H-3 Preferred Stock into common stock immediately prior to the date of such payment. As of June 30, 2021, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H-3 Preferred Stock outstanding as of June 30, 2021 1,234 Multiplied by the stated value $ 138 Equals the gross stated value $ 170,292 Divided by the conversion price $ 165.60 Equals the convertible shares of Company Common Stock 1,028 Multiplied by the fair market value of Company Common Stock as of June 30, 2021 $ 4.88 Equals the payment $ 5,017 Series H-6 Convertible Preferred Stock On February 5, 2020, the Company filed the Certificate of Designations, Preferences and Rights of the Series H-6 Preferred Stock (the “Series H-6 Certificate of Designation”) with the Secretary of State of the State of Delaware, establishing and designating the rights, powers and preferences of the Series H-6 Preferred Stock. The Company designated up to 50,000 72.00 Each share of Series H-6 Preferred Stock is convertible at any time at the option of the holder thereof, into a number of shares of common stock of the Company determined by dividing the H-6 Stated Value by the initial conversion price of $ 3.60 9.99 The Series H-6 Preferred Stock also has the same voting rights as the common stock, except that in no event shall a holder of Series H-6 Preferred Stock be permitted to exercise a greater number of votes than such holder would have been entitled to cast if the Series H-6 Preferred Stock had immediately been converted into shares of common stock at a conversion price equal to $ 3.60 The holders of Series H-6 Preferred Stock are entitled to certain anti-dilution adjustments if the Company issues shares of its common stock at a lower price per share than the applicable conversion price of the Series H-6 Preferred Stock. If any such dilutive issuance occurs prior to the conversion of the Series H-6 Preferred Stock, the conversion price will be adjusted downward to a price that cannot be less than 20% of the exercise price of $3.60. In the event of liquidation, the holders of the Series H-6 Preferred Stock are entitled, pari passu with the holders of common stock, to receive a payment in the amount the holder would receive if such holder converted the Series H-6 Preferred Stock into common stock immediately prior to the date of such payment. As of June 30, 2021, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H-6 Preferred Stock outstanding as of June 30, 2021 50 Multiplied by the stated value $ 72.00 Equals the gross stated value $ 3,600 Divided by the conversion price $ 2.50 Equals the convertible shares of Company Common Stock 1,440 Multiplied by the fair market value of Company Common Stock as of June 30, 2021 $ 4.88 Equals the payment $ 7,027 Warrants AYRO Seed Warrants Prior to the Merger, the Company issued 461,647 7.33 five years 100,000 13,642 As of June 30, 2021, there were 448,005 0 36,760 Series I, J, H, H-1, H-3, H-4 and H-5 warrants transferred to AYRO common stock pursuant to the Merger. Series I Warrants As a result of the Merger, 14,636 69.00 If at any time (i) the volume weighted average price (“VWAP”) of the Common Stock exceeds $ 138.00 14,636 Series H-3 Warrants As a result of the Merger, 2,800 165.60 5 2,800 Exercise of Series H-4 Warrants and Issuance of Series J Warrants Series H-4 Warrants As a result of the Merger, 37,453 15.60 15.60 37,453 As a result of the Merger, 52,023 30.00 45.00 If at any time (i) the VWAP of the Common Stock exceeds $9.00 for not less than the mandatory exercise measuring period; (ii) the daily average number of shares of Common Stock traded during the mandatory exercise measuring period equals or exceeds 25,000; and (iii) no equity conditions failure has occurred as of such date, then the Company shall have the right to require the holder to exercise all or any portion of the Series J Warrants still unexercised for a cash exercise. 52,023 Series H-5 Warrants As a result of the Merger, 296,389 2.50 five years The H-5 Warrants are entitled to certain anti-dilution adjustments if the Company issues shares of its common stock at a lower price per share than the applicable exercise price (subject to a floor of $0.792 per share). An anti-dilution adjustment was triggered resulting in an adjusted exercise price per share from $3.96 to $2.50, resulting in an issuance of an additional 173,091 348,476 The Company considers the change in exercise price due to the anti-dilution trigger related to the Series H-5 Warrants to be of an equity nature, as the issuance allowed the warrant holders to exercise warrants in exchange for common stock, which represents an equity for equity exchange. Therefore, the change in the fair value before and after the effect of the anti-dilution triggering event and the fair value of the Series H-5 warrants will be treated as a deemed dividend in the amount of $ 432,727 967,143 534,416 The warrants were valued using the Black-Scholes option pricing model on the date of the modification and issuance using the following assumptions: (a) fair value of common stock of $2.77 per share, (b) expected volatility of 89.96 0 0.24 The Series H-1, H-3, H-4, J and H-5 Warrants expire through the years 2022-2024 Other AYRO Warrants On June 19, 2020, the Company agreed to issue finder warrants (the “June Finder Warrants”) to purchase 27,273 2.75 126,000 2.875 5 On July 8, 2020, the Company agreed to issue finder warrants (the “July 8 Finder Warrants”) to purchase 71,770 5.225 5.4625 The July 8 Finder Warrants and July 8 Placement Agent Warrants terminate after a period of 5 71,770 147,368 On July 22, 2020, the Company agreed to issue warrants to Palladium (the “July 22 Placement Agent Warrants”) to purchase 129,500 5.750 5 30, 2021, there were 129,500 On September 25, 2020, the Company issued a warrant (the “September Warrant”) to purchase 31,348 3.19 The September Warrant is immediately exercisable and expires on September 25, 2025. 2.13 66,845 30, 2021 31,348 The following assumptions were used to determine the fair value of the September Warrants: SCHEDULE OF FAIR VALUE ASSUMPTIONS OF WARRANTS As of Dividend - % Risk Free Rate 0.30 % Exercise Price $ 2.90 Strike Price $ 3.19 Term 5 Volatility 102 % On November 22, 2020, the Company entered into a Securities Purchase Agreement with new and current stockholders of the Company, pursuant to which such stockholders agreed to purchase shares of AYRO’s Common Stock, Series A Warrants and Series B Warrants to purchase AYRO’s Common Stock for an aggregate purchase price of $ 9,999,997 1,237,624 825,084 8.09 8.90 30, 2021 . On November 22, 2020, the Company agreed to issue finder warrants (the “November Finder Warrants”) to purchase 56,256 6.6660 57,756 6.9690 The November Finder Warrants and November Placement Agent Warrants terminate after a period of 5 years on November 22, 2025. 30, 2021, there were 56,256 57,756 On January 25, 2021, AYRO entered into a Securities Purchase Agreement with certain institutional and accredited investors, pursuant to which AYRO agreed to issue and sell in a registered direct offering (the “January 2021 Offering”) an aggregate of 3,333,334 0.0001 6.00 20.0 Each purchaser was also granted a warrant to purchase, between July 26, 2021 and July 26, 2023, additional shares of common stock equal to the full amount of the common stock it purchased at the initial closing, or an aggregate of 3,333,334 6.93 On January 25, 2021, the Company agreed to issue warrants to Palladium, the placement agent for the January 2021 offering to purchase 233,334 6.93 On February 11, 2021, the Company agreed to issue warrants to Spartan Capital Securities, LLC and its affiliates (the “February Finder Warrants”) to purchase 15,574 35,885 10.45 255,584 10.925 5 51,459 255,584 A summary of the Company’s warrants to purchase common stock activity is as follows: SCHEDULE OF WARRANT ACTIVITY Shares Underlying Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at December 31, 2020 3,501,014 $ 8.03 2.87 Granted 3,873,711 $ 7.24 Exercised (13,642 ) $ 7.33 Expired (1,252,260 ) $ 8.80 Outstanding at June 30, 2021 6,108,823 $ 7.37 2.82 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 11. STOCK-BASED COMPENSATION AYRO 2020 Long Term Incentive Plan On May 28, 2020, the Company’s shareholders approved the AYRO, Inc. 2020 Long Term Incentive Plan for future grants of incentive stock options, nonqualified stock, stock appreciation rights, restricted stock, restricted stock units, performance and other awards. The Company has reserved a total of 4,089,650 1,874,037 AYRO 2017 Long Term Incentive Plan Prior to the Merger, the Company granted stock options and warrants pursuant to the 2017 Long Term Incentive Plan effective January 1, 2017. As of June 30, 2021, the 2017 Long Term Incentive Plan remains active, but no additional awards may be granted. DropCar Amended and Restated 2014 Equity Incentive Plan The DropCar Amended and Restated 2014 Equity Incentive Plan was amended in 2018 to increase the number of shares of Company common stock available for issuance. Pursuant to the 2014 Equity Incentive Plan (the “2014 Plan”), 141,326 61,440 zero Stock-based compensation, including restricted stock awards, stock options and warrants is included in the unaudited condensed consolidated statement of operations as follows: SCHEDULE OF STOCK-BASED COMPENSATION Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 20,708 $ 15,873 $ 44,194 $ 31,745 Sales and marketing 60,633 38,120 124,082 72,705 General and administrative 1,556,730 96,956 3,169,218 202,958 Total $ 1,638,071 $ 150,949 $ 3,337,494 $ 307,408 Options The following table reflects the stock option activity: SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY Number of Shares Weighted Average Exercise Price Contractual Life (Years) Outstanding at December 31, 2020 1,920,269 $ 4.40 8.66 Exercised (469,576 ) (2.25 ) Forfeitures (2,500 ) (2.52 ) Outstanding at June 30, 2021 1,448,193 $ 4.98 8.46 Of the outstanding options, 575,600 1,534,567 The Company recognized $ 231,059 136,244 500,953 270,647 1,472,752 a Determining the appropriate fair value of the stock-based awards requires the input of subjective assumptions, including the fair value of the Company’s common stock, and for stock options, the expected life of the option, and the expected stock price volatility. The Company uses the Black-Scholes option pricing model to value its stock option awards. The assumptions used in calculating the fair value of stock-based awards represent management’s best estimates and involve inherent uncertainties and the application of management’s judgment. As a result, if factors change and management uses different assumptions, stock-based compensation expense could be materially different for future awards. The Company uses the following inputs when valuing stock-based awards. SCHEDULE OF STOCK-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS Six Months Ended June 30, 2021 2020 Expected life (years) N/A 5.0 Risk-free interest rate N/A 0.70 % Expected volatility N/A 4.40 % Total grant date fair value $ N/A $ 3.84 The expected life of the employee stock options was estimated using the “simplified method,” as the Company has no historical information to develop reasonable expectations about future exercise patterns and employment duration for its stock option grants. No employee stock options were awarded in the six months ended June 30, 2021. The simplified method is based on the average of the vesting tranches and the contractual life of each grant. The expected life of awards that vest immediately use the contractual maturity since they are vested when issued. For stock price volatility, the Company uses public company compatibles and historical private placement data as a basis for its expected volatility to calculate the fair value of option grants. The risk-free interest rate is based on U.S. Treasury notes with a term approximating the expected life of the option at the grant-date. Restricted Stock The following table reflects the restricted stock activity: SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY Number of Shares Weighted Average Grant Price Outstanding at December 31, 2020 1,072,503 $ 5.30 Granted 172,000 7.66 Vested (681,724 ) 4.85 Forfeitures (42,612 ) 3.17 Outstanding at June 30, 2021 520,167 $ 6.84 In September 2020, the Company issued 436,368 15,115 vest in December 2020, which was subsequently modified to vest in full in May 2021. 378,641 42,612 198,763 699,528 In December 2020, based on objectives achieved, the Company issued 651,250 the following vesting schedule: one-third will vest on May 28, 2021, one-third will vest on December 4, 2021 and one-third will vest on December 4, 2022. 732,472 1,478,247 2,648,371 On February 24, 2021, pursuant to the AYRO, Inc. 2020 Long-Term Incentive Plan, the Company issued 172,000 7.66 The shares vest 50% at June 30, 2021, 25% at September 30, 2021 and 25% at December 31, 2021. 475,771 658,760 658,760 Other Share-Based Payments The Company granted stock warrants pursuant to the 2017 Long Term Incentive Plan (“LTIP”) effective January 1, 2017. The Company measured consultant stock-based awards at grant-date fair value and recognizes contractor consulting expense for contractor warrants on a straight-line method basis over the vesting period of the award. Grants to consultants are expensed at the earlier of (i) the date at which a commitment for performance by the service provider to earn the equity instrument is reached and (ii) the date at which the service provider’s performance is complete. The Company recognized $ 0 14,704 0 36,760 |
CONCENTRATIONS AND CREDIT RISK
CONCENTRATIONS AND CREDIT RISK | 6 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
CONCENTRATIONS AND CREDIT RISK | NOTE 12. CONCENTRATIONS AND CREDIT RISK Revenues In March 2019, the Company entered into a five-year Master Procurement Agreement, or the MPA, with Club Car for the sale of AYRO’s four-wheeled vehicle. The MPA grants Club Car the exclusive right to sell AYRO’s four-wheeled vehicle in North America, provided that Club Car orders at least 500 vehicles per year. Although Club Car did not meet the volume threshold for 2020, we currently do not intend to sell our four-wheeled vehicles other than exclusively through Club Car. The MPA has an initial term of five (5) years commencing January 1, 2019 and may be renewed by Club Car for successive one-year periods upon 60 days’ prior written notice. For the six months ended June 30, 2021 and 2020, two customers accounted for the Company’s revenues, one for 59 81 40 17 39 76 65 25 Accounts Receivable As of June 30, 2021 and December 31, 2020, two customers accounted for more than 10% of the Company’s accounts receivable. One customer accounted for approximately 45 74 44 11 Purchasing The Company places orders with various suppliers. During the six months ended June 30, 2021 and 2020, two suppliers provided more than 10% of the Company’s raw materials purchases. During the six months ended June 30, 2021, one supplier, Cenntro, accounted for approximately 45 12 57 25 63 8 28 12 Manufacturing Cenntro Automotive Group (“Cenntro”), a related party in 2020, owns the design of the AYRO 411 model and has granted the Company an exclusive license to manufacture the AYRO 411 model for sale in North America. The Company’s business is dependent on such license, and if it fails to comply with its obligations to maintain that license, the Company’s business will be substantially harmed. Under the Manufacturing License Agreement, dated April 27, 2017, between Cenntro and the Company, the Company is granted an exclusive license to manufacture and sell AYRO 411 in the United States, and the Company is required to purchase the minimum volume of product units from Cenntro, among other obligations. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 6 Months Ended |
Jun. 30, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 13. RELATED PARTY TRANSACTIONS Supply Chain Agreements In 2017, the Company executed a supply chain contract with Cenntro, the Company’s primary supplier, a manufacturer located in the People’s Republic of China. Prior to the Merger, Cenntro was a significant shareholder in AYRO Operating. Through the partnership, Cenntro acquired 19 100 16,635 44,594 Under a memo of understanding signed between the Company and Cenntro on March 22, 2020, the Company agreed to purchase 300 units within the following twelve months of signing the memo of understanding, and 500 and 800 in each of the following respective twelve-month periods. 1.2 100,000 711,634 976,512 Other The Company had received short-term expense advances from its founders. As of June 30, 2021 and December 31, 2020, the amounts outstanding were $ 15,000 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 14. COMMITMENTS AND CONTINGENCIES Lease Agreements In 2019 the Company entered into a new lease agreement for office and manufacturing space. The lease commencement date was January 16, 2020. Prior to the commencement date of the new lease agreement, the Company leased other office and manufacturing space on a short-term basis. The Company determined if an arrangement is a lease at inception of the contract and whether a contract is or contains a lease by determining whether it conveys the right to control the use of identified asset for a period of time. The contact provides the right to substantially all the economic benefits from the use of the identified asset and the right to direct use of the identified asset, as such, the contract is, or contains, a lease. In connection with the adoption of ASC 842, Leases During March 2021, the Company subleased additional office space to support the Company’s expansion plan. The term is for 16 months with a total lease obligation of $ 131,408 Leases Leases were classified as an operating lease at inception. An operating lease results in the recognition of a Right-of-Use (“ROU”) assets and lease liability on the balance sheet. ROU assets and operating lease liabilities are recognized based on the present value of lease payments over the lease term as of the commencement date. Because the lease does not provide an explicit or implicit rate of return, the Company determines incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments on an individual lease basis. The incremental borrowing rate for a lease is the rate of interest the Company would have to pay on a collateralized basis to borrow an amount equal to the lease payments for the asset under similar term, which is 10.41 The Company’s leases do not contain any residual value guarantees or material restrictive covenants. Leases with a lease term of 12 months or less are not recorded on the balance sheet and lease expense is recognized on a straight-line basis over the lease term. The remaining terms for the Company’s leases as of June 30, 2021 are 5.75 1.00 During the six months ended June 30, 2021 and 2020, cash paid for amounts included in the measurement of lease liabilities- operating cash flows from operating lease was $ 67,009 30,286 The components of lease expense consist of the following: SCHEDULE OF COMPONENTS OF LEASE EXPENSE 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Operating lease expense $ 127,463 $ 61,196 $ 196,258 $ 107,064 Short-term lease expense 1,956 8,026 5,489 54,854 Total lease cost $ 129,419 $ 69,222 $ 201,747 $ 161,918 Balance sheet information related to leases consists of the following: SCHEDULE OF OPERATING LEASES RIGHT OF USE ASSETS AND LIABILITIES June 30, 2021 December 31, 2020 Assets Operating lease – right-of-use asset, net $ 1,125,368 $ 1,098,819 Total lease assets $ 1,125,368 $ 1,098,819 Liabilities Current liabilities: Lease obligation – operating lease $ 245,801 $ 123,139 Noncurrent liabilities: Lease obligation - operating lease, net of current portion 933,563 1,002,794 Total lease liability $ 1,179,364 $ 1,125,933 The weighted-average remaining lease term and discount rate is as follows: SCHEDULE OF WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE Date Weighted average remaining lease term (in years) – operating lease 5.75 Weighted average discount rate – operating lease 10.41 % Cash flow information related to leases consists of the following: SCHEDULE OF CASH FLOW INFORMATION June 30, 2021 June 30, 2020 For the six months ended June 30, 2021 June 30, 2020 Operating cash flows for operating leases $ 67,009 $ 30,286 Supplemental non-cash amounts of lease liabilities arising from obtaining right of use assets $ 120,440 $ 1,210,680 Future minimum lease payment under non-cancellable lease as of June 30, 2021 are as follows: SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES 1 As of June 30, 2021 Operating Leases 2021, remaining $ 183,537 2022 306,691 2023 247,533 2024 254,277 2025 261,223 2026 and thereafter 313,307 Total minimum lease payments 1,566,568 Less effects of discounting (387,204 ) Present value of future minimum lease payments $ 1,179,364 Manufacturing Agreements On September 25, 2020, AYRO entered into a Master Manufacturing Services Agreement with Karma Automotive, LLC (the “Karma Agreement”). The term of the contract is for 12 1,160,800 The Company paid Karma an amount of $ 440,000 80,000 66,845 23,140 30,260 73,333 Litigation The Company is subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business, that it believes are incidental to the operation of its business. While the outcome of these claims cannot be predicted with certainty, management does not believe that the outcome of any of these legal matters will have a material adverse effect on its results of operations, financial positions or cash flows. Other On February 12, 2021, the Company entered into an agreement with Arcimoto, Inc. to settle certain patent infringement claims (the “Arcimoto Settlement”) for a de minimis amount, pursuant to which the Company agreed to cease the production, importation and sale of the AYRO 311, among other things. Accordingly, the Company would not be contractually permitted to resume production of the AYRO 311. The Company is continuing the development of an all-new, three-wheeled electric vehicle, which the Company has intended to replace AYRO 311 as its three-wheeled electric vehicle product offering. As of January 1, 2019, DropCar Operating, Inc. (“DropCar”) had accrued approximately $ 232,000 5,603 On March 23, 2018, DropCar was made aware of an audit being conducted by the New York State Department of Labor (“DOL”) regarding a claim filed by an employee. The DOL is investigating whether DropCar properly paid overtime for which DropCar has raised several defenses. In addition, the DOL is conducting its audit to determine whether the Company owes spread of hours pay (an hour’s pay for each day an employee worked or was scheduled for a period over ten hours in a day). If the DOL determines that monies are owed, the DOL will seek a backpay order, which management believes will not, either individually or in the aggregate, have a material adverse effect on the Company’s business, consolidated financial position, results of operations or cash flows. Management believes the case has no merit. DropCar was a defendant in a class action lawsuit which resulted in a judgement entered into whereby the Company is required to pay legal fees in the amount of $ 45,000 45,000 186,000 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with GAAP and in conformity with the instructions on Form 10-Q and Rule 8-03 of Regulation S-X and the related rules and regulations of the Securities and Exchange Commission (“SEC”). The unaudited condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, AYRO Operating and DropCar Operating Company, Inc. All significant intercompany accounts and transactions have been eliminated in consolidation. The unaudited condensed consolidated financial statements reflect all adjustments, consisting of normal recurring accruals, which are, in the opinion of management, necessary for a fair presentation of such statements. The results of operations for the three and six months ended June 30, 2021, are not necessarily indicative of the results that may be expected for the entire year. These unaudited condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the accompanying notes for the fiscal year ended December 31, 2020, which are included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 31, 2021, as amended on April 30, 2021. |
Use of Estimates | Use of Estimates The preparation of the accompanying unaudited condensed consolidated financial statements, in conformity with GAAP, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the accompanying unaudited condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. The Company’s most significant estimates include allowance for doubtful accounts, valuation of inventory reserve, valuation of deferred tax asset allowance, and the measurement of stock-based compensation expenses. Actual results could differ from these estimates. |
Reclassification | Reclassification Certain reclassifications have been made to the prior period financial statements to conform to the current period financial statement presentation. These reclassifications had no effect on net earnings or cash flows as previously reported. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASC 606, Revenue from Contracts with Customers To achieve this core principle, five basic criteria must be met before revenue can be recognized: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to performance obligations in the contract; and (5) recognize revenue when or as the Company satisfies a performance obligation. Nature of goods and services The following is a description of the Company’s products and services from which the Company generates revenue, as well as the nature, timing of satisfaction of performance obligations, and significant payment terms for each: Product revenue Product revenue from customer contracts is recognized on the sale of each electric vehicle as vehicles are shipped to customers. The majority of the Company’s vehicle sales orders generally have only one performance obligation: sale and delivery of complete vehicles. Ownership and risk of loss transfers to the customer based on FOB shipping point and freight charges are the responsibility of the customer. Revenue is typically recognized at the point control transfers or in accordance with payment terms customary to the business. The Company provides product warranties to assure that the product assembly complies with agreed upon specifications. The Company’s product warranty is identical to the product warranties provided by the Company’s suppliers, therefore minimizing the warranty liability to the standard labor rates associated with the defective part replacement. Customers do not have the option to purchase a warranty separately; as such, warranty is not accounted for as a separate performance obligation. The Company’s policy is to exclude taxes collected from a customer from the transaction price of automotive contracts. Shipping revenue Amounts billed to customers related to shipping and handling are classified as shipping revenue. The Company has elected to recognize the cost for freight and shipping when control over vehicles has transferred to the customer as an operating expense. The Company has reported shipping expenses of $ 59,229 16,640 109,855 30,790 Subscription revenue Subscription revenue from revenue sharing with Destination Fleet Operators (“DFO”) and other vehicle rental agreements is recorded in the month the vehicles in the Company’s fleet is rented. The Company established its rental fleet in late March 2019 which is recorded in the property and equipment section of the accompanying unaudited condensed consolidated balance sheets. For the rental fleet, the Company retains title and ownership to the vehicles and places them in DFO’s in resort communities that typically rent golf cars for use in those communities. In August 2020, the Company phased-out the production of its 311 line which were the vehicles used in the rental offering as it is working to develop a new line of vehicles. The change in production did not represent a strategic shift that will have a major effect on the Company’s operations or financial results. Services and other revenue Services and other revenue consist of non-warranty after-sales vehicle services. Revenue is typically recognized at a point in time when services and replacement parts are provided. |
Warrants and Preferred Shares | Warrants and Preferred Shares The accounting treatment of warrants and preferred share series issued is determined pursuant to the guidance provided by ASC 470, Debt Distinguishing Liabilities from Equity Derivatives and Hedging |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation in accordance with ASC 718, Compensation-Stock Compensation (“ASC 718”). The Company recognizes all employee share-based compensation as an expense in the financial statements on a straight-line basis over the requisite service period, based on the terms of the awards. Equity-classified awards principally related to stock options, restricted stock awards (“RSAs”) and equity-based compensation, are measured at the grant date fair value of the award. The Company determines grant date fair value of stock option awards using the Black-Scholes option-pricing model. The fair value of RSAs is determined using the closing price of the Company’s common stock on the grant date. For service based vesting grants, expense is recognized ratably over the requisite service period based on the number of options or shares. Stock-based compensation is reversed for forfeitures in the period of forfeiture. In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Unit (“ASU”) 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting (“ASU 2018-07”). ASU 2018-07 expands the guidance in ASC 718 to include share-based payments for goods and services to non-employees and generally aligns it with the guidance for share-based payments to employees. In accordance with ASU 2018-07, these stock options and warrants issued as compensation for services provided to the Company are accounted for based upon the fair value of the underlying equity instrument. The attribution of the fair value of the equity instrument is charged directly to compensation expense over the period during which services are rendered. |
Basic and Diluted Loss Per Share | Basic and Diluted Loss Per Share Basic and diluted net loss per share is determined by dividing net loss by the weighted average ordinary shares outstanding during the period. For all periods presented with a net loss, the shares underlying the ordinary share options and warrants have been excluded from the calculation because their effect would be anti-dilutive. Therefore, the weighted-average shares outstanding used to calculate both basic and diluted loss per share are the same for periods with a net loss. “Penny warrants” were included in the calculation of outstanding shares for purposes of basic earnings per share. On May 28, 2020, pursuant to the previously announced Merger Agreement, dated December 19, 2019, the Company issued prefunded common stock warrants to purchase 1,193,391 The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Options to purchase common stock 1,448,193 1,060,254 1,448,193 1,060,254 Restricted Stock Unvested 520,167 - 520,167 - Series H-1, H-3, H-4, H-5, I, J, pre-merger AYRO Merger common stock purchase warrants and post-merger AYRO warrants issued 7,346,447 4,006,205 7,346,447 4,006,205 Series H, H-3, H-6, and pre-merger AYRO Seed Preferred Stock 2,475 278,862 2,475 278,862 Totals 9,317,282 5,345,321 9,317,282 5,345,321 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE | The following potentially dilutive securities have been excluded from the computation of diluted weighted average shares outstanding as they would be anti-dilutive: SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Options to purchase common stock 1,448,193 1,060,254 1,448,193 1,060,254 Restricted Stock Unvested 520,167 - 520,167 - Series H-1, H-3, H-4, H-5, I, J, pre-merger AYRO Merger common stock purchase warrants and post-merger AYRO warrants issued 7,346,447 4,006,205 7,346,447 4,006,205 Series H, H-3, H-6, and pre-merger AYRO Seed Preferred Stock 2,475 278,862 2,475 278,862 Totals 9,317,282 5,345,321 9,317,282 5,345,321 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATION OF REVENUE | Revenue by type was as follows: SCHEDULE OF DISAGGREGATION OF REVENUE Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Revenue type Product revenue $ 506,369 $ 263,465 $ 1,216,568 $ 393,091 Shipping revenue 15,698 22,462 57,681 37,867 Subscription revenue - - - 1,785 Service income - - 36,687 - $ 522,067 $ 285,927 $ 1,310,936 $ 432,743 |
SCHEDULE OF CONTRACT LIABILITIES | SCHEDULE OF CONTRACT LIABILITIES Six Months Ended June 30, Year Ended December 31, 2021 2020 Balance, beginning of period $ 24,000 $ - Additions - 183,319 Transfer to revenue (24,000 ) (159,319 ) Balance, end of period $ - $ 24,000 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
SCHEDULE OF ACCOUNTS RECEIVABLE | Accounts receivable, net, consists of amounts due from invoiced customers and product deliveries and were as follows: SCHEDULE OF ACCOUNTS RECEIVABLE 2021 2020 June 30, December 31, 2021 2020 Trade receivables $ 1,194,696 $ 839,679 Less: Allowance for doubtful accounts (137,162 ) (73,829 ) Accounts receivable, net $ 1,057,534 $ 765,850 |
INVENTORY, NET (Tables)
INVENTORY, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | Inventory consisted of the following: SCHEDULE OF INVENTORY 2021 2020 June 30, December 31, 2021 2020 Raw materials $ 1,177,314 $ 634,085 Work-in-progress - - Finished goods 551,503 539,169 Inventory $ 1,728,817 $ 1,173,254 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS | SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS 2021 2020 June 30, December 31, 2021 2020 Prepaid final assembly services $ 409,740 $ 520,000 Prepayments for inventory 766,429 976,512 Prepaid other 129,730 112,250 Prepaid Expenses And Other Current Assets $ 1,305,899 $ 1,608,762 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT | Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT 2021 2020 June 30, December 31, 2021 2020 Computer and equipment $ 841,270 $ 815,704 Furniture and fixtures 170,357 127,401 Lease improvements 242,024 221,802 Prototypes 300,376 300,376 Computer software 455,875 62,077 Property and equipment 2,009,902 1,527,360 Less: Accumulated depreciation (1,061,928 ) (916,048 ) Property and equipment, net $ 947,974 $ 611,312 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
SCHEDULE OF INTANGIBLE ASSETS | Intangible assets consisted of the following: SCHEDULE OF INTANGIBLE ASSETS June 30, 2021 Weighted- Net Average Gross Accumulated Carrying Amortization Amount Amortization Amount Period Supply chain development $ 404,622 $ (341,548 ) $ 63,074 0.62 Patents and trademarks 114,573 (40,313 ) 74,260 2.59 $ 519,195 $ (381,861 ) $ 137,334 December 31, 2020 Weighted- Net Average Gross Accumulated Carrying Amortization Amount Amortization Amount Period Supply chain development $ 395,248 $ (291,937 ) $ 103,311 1.05 Patents 70,435 (29,901 ) 40,534 2.45 $ 465,683 $ (321,838 ) $ 143,845 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Class of Stock [Line Items] | |
SCHEDULE OF FAIR VALUE ASSUMPTIONS OF WARRANTS | The following assumptions were used to determine the fair value of the September Warrants: SCHEDULE OF FAIR VALUE ASSUMPTIONS OF WARRANTS As of Dividend - % Risk Free Rate 0.30 % Exercise Price $ 2.90 Strike Price $ 3.19 Term 5 Volatility 102 % |
SCHEDULE OF WARRANT ACTIVITY | A summary of the Company’s warrants to purchase common stock activity is as follows: SCHEDULE OF WARRANT ACTIVITY Shares Underlying Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at December 31, 2020 3,501,014 $ 8.03 2.87 Granted 3,873,711 $ 7.24 Exercised (13,642 ) $ 7.33 Expired (1,252,260 ) $ 8.80 Outstanding at June 30, 2021 6,108,823 $ 7.37 2.82 |
Convertible Preferred Stock Series H [Member] | |
Class of Stock [Line Items] | |
SCHEDULE OF PAYMENT OF PREFERRED STOCK | As of June 30, 2021, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H Preferred Stock outstanding as of June 30, 2021 8 Multiplied by the stated value $ 154.00 Equals the gross stated value $ 1,232 Divided by the conversion price $ 184.80 Equals the convertible shares of Company Common Stock 7 Multiplied by the fair market value of Company Common Stock as of June 30, 2021 $ 4.88 Equals the payment $ 34 |
Convertible Preferred Stock Series H-3 [Member] | |
Class of Stock [Line Items] | |
SCHEDULE OF PAYMENT OF PREFERRED STOCK | As of June 30, 2021, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H-3 Preferred Stock outstanding as of June 30, 2021 1,234 Multiplied by the stated value $ 138 Equals the gross stated value $ 170,292 Divided by the conversion price $ 165.60 Equals the convertible shares of Company Common Stock 1,028 Multiplied by the fair market value of Company Common Stock as of June 30, 2021 $ 4.88 Equals the payment $ 5,017 |
Convertible Preferred Stock Series H-6 [Member] | |
Class of Stock [Line Items] | |
SCHEDULE OF PAYMENT OF PREFERRED STOCK | As of June 30, 2021, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H-6 Preferred Stock outstanding as of June 30, 2021 50 Multiplied by the stated value $ 72.00 Equals the gross stated value $ 3,600 Divided by the conversion price $ 2.50 Equals the convertible shares of Company Common Stock 1,440 Multiplied by the fair market value of Company Common Stock as of June 30, 2021 $ 4.88 Equals the payment $ 7,027 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SCHEDULE OF STOCK-BASED COMPENSATION | Stock-based compensation, including restricted stock awards, stock options and warrants is included in the unaudited condensed consolidated statement of operations as follows: SCHEDULE OF STOCK-BASED COMPENSATION Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Research and development $ 20,708 $ 15,873 $ 44,194 $ 31,745 Sales and marketing 60,633 38,120 124,082 72,705 General and administrative 1,556,730 96,956 3,169,218 202,958 Total $ 1,638,071 $ 150,949 $ 3,337,494 $ 307,408 |
SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY | The following table reflects the stock option activity: SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY Number of Shares Weighted Average Exercise Price Contractual Life (Years) Outstanding at December 31, 2020 1,920,269 $ 4.40 8.66 Exercised (469,576 ) (2.25 ) Forfeitures (2,500 ) (2.52 ) Outstanding at June 30, 2021 1,448,193 $ 4.98 8.46 |
SCHEDULE OF STOCK-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS | The Company uses the following inputs when valuing stock-based awards. SCHEDULE OF STOCK-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS Six Months Ended June 30, 2021 2020 Expected life (years) N/A 5.0 Risk-free interest rate N/A 0.70 % Expected volatility N/A 4.40 % Total grant date fair value $ N/A $ 3.84 |
Restricted Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY | The following table reflects the restricted stock activity: SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY Number of Shares Weighted Average Grant Price Outstanding at December 31, 2020 1,072,503 $ 5.30 Granted 172,000 7.66 Vested (681,724 ) 4.85 Forfeitures (42,612 ) 3.17 Outstanding at June 30, 2021 520,167 $ 6.84 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
SCHEDULE OF COMPONENTS OF LEASE EXPENSE | The components of lease expense consist of the following: SCHEDULE OF COMPONENTS OF LEASE EXPENSE 2021 2020 2021 2020 Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 Operating lease expense $ 127,463 $ 61,196 $ 196,258 $ 107,064 Short-term lease expense 1,956 8,026 5,489 54,854 Total lease cost $ 129,419 $ 69,222 $ 201,747 $ 161,918 |
SCHEDULE OF OPERATING LEASES RIGHT OF USE ASSETS AND LIABILITIES | Balance sheet information related to leases consists of the following: SCHEDULE OF OPERATING LEASES RIGHT OF USE ASSETS AND LIABILITIES June 30, 2021 December 31, 2020 Assets Operating lease – right-of-use asset, net $ 1,125,368 $ 1,098,819 Total lease assets $ 1,125,368 $ 1,098,819 Liabilities Current liabilities: Lease obligation – operating lease $ 245,801 $ 123,139 Noncurrent liabilities: Lease obligation - operating lease, net of current portion 933,563 1,002,794 Total lease liability $ 1,179,364 $ 1,125,933 |
SCHEDULE OF WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE | The weighted-average remaining lease term and discount rate is as follows: SCHEDULE OF WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE Date Weighted average remaining lease term (in years) – operating lease 5.75 Weighted average discount rate – operating lease 10.41 % |
SCHEDULE OF CASH FLOW INFORMATION | Cash flow information related to leases consists of the following: SCHEDULE OF CASH FLOW INFORMATION June 30, 2021 June 30, 2020 For the six months ended June 30, 2021 June 30, 2020 Operating cash flows for operating leases $ 67,009 $ 30,286 Supplemental non-cash amounts of lease liabilities arising from obtaining right of use assets $ 120,440 $ 1,210,680 |
SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES | Future minimum lease payment under non-cancellable lease as of June 30, 2021 are as follows: SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES 1 As of June 30, 2021 Operating Leases 2021, remaining $ 183,537 2022 306,691 2023 247,533 2024 254,277 2025 261,223 2026 and thereafter 313,307 Total minimum lease payments 1,566,568 Less effects of discounting (387,204 ) Present value of future minimum lease payments $ 1,179,364 |
ORGANIZATION AND NATURE OF OP_2
ORGANIZATION AND NATURE OF OPERATIONS (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | May 28, 2020 | Jun. 30, 2021 | Dec. 31, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Common stock, par value | $ 0.0001 | $ 0.0001 | |
Stockholders reverse stock split | 1-for-5 reverse stock split | ||
Merger Agreement [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Business acquisition, number of shares | 2,337,663 | ||
Merger Agreement [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Common stock, par value | $ 0.001 | ||
Conversion price per share | $ 1.3634 | ||
Stockholders reverse stock split | 1-for-10 reverse stock split | ||
Cash received from merger | $ 3,060 | ||
Merger Agreement [Member] | Financial Advisor [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Ownership percentage | 3.00% | ||
Merger Agreement [Member] | DropCar, Inc. [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Ownership percentage | 18.00% | ||
Merger Agreement [Member] | Bridge Financing And Private Placement [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Ownership percentage | 79.00% | ||
Asset Purchase Agreement [Member] | |||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||
Asset purchase description | On May 28, 2020, the parties to the Asset Purchase Agreement entered into Amendment No. 1 to the Asset Purchase Agreement (the “Asset Purchase Agreement Amendment”), which Asset Purchase Agreement Amendment (i) provides for the inclusion of up to $30,000 in refunds associated with certain insurance premiums as assets being purchased by DC Partners, (ii) amends the covenant associated with the funding of the DropCar business, such that DropCar provided the DropCar business with additional funding of $175,000 at the closing of the transactions contemplated by the Asset Purchase Agreement and (iii) provides for a current employee of the Company being transferred to DC Partners to provide transition services to the Company for a period of three months after the closing of the transactions contemplated by the Asset Purchase Agreement. |
LIQUIDITY AND OTHER UNCERTAIN_2
LIQUIDITY AND OTHER UNCERTAINTIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Liquidity And Other Uncertainties | |||||
Net loss | $ 7,663,749 | $ 1,530,857 | $ 13,297,582 | $ 3,326,009 | |
Net cash used in operating activities | 7,683,111 | $ 2,717,923 | |||
Cash balances | (87,891,072) | (87,891,072) | $ (36,537,097) | ||
Working capital | $ (49,218,168) | $ (49,218,168) |
SCHEDULE OF ANTIDILUTIVE SECURI
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Totals | 9,317,282 | 5,345,321 | 9,317,282 | 5,345,321 |
Options to Purchase Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Totals | 1,448,193 | 1,060,254 | 1,448,193 | 1,060,254 |
Restricted Stock Unvested [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Totals | 520,167 | 520,167 | ||
Series H-1, H-3, H-4, H-5, I, J, pre-merger AYRO Merger Common Stock Purchase Warrants and Post-merger AYRO Warrants Issued [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Totals | 7,346,447 | 4,006,205 | 7,346,447 | 4,006,205 |
Series H, H-3, H-6, and Pre-merger AYRO Seed Preferred Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Totals | 2,475 | 278,862 | 2,475 | 278,862 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 19, 2019 | |
Class of Warrant or Right [Line Items] | |||||
Shipping expenses | $ 59,229 | $ 16,640 | $ 109,855 | $ 30,790 | |
Penny warrants [Member] | Merger Agreement [Member] | |||||
Class of Warrant or Right [Line Items] | |||||
Warrants purchase | 1,193,391 |
SCHEDULE OF DISAGGREGATION OF R
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 522,067 | $ 285,927 | $ 1,310,936 | $ 432,743 |
Product [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 506,369 | 263,465 | 1,216,568 | 393,091 |
Shipping Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 15,698 | 22,462 | 57,681 | 37,867 |
Subscription Revenue [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1,785 | |||
Service Income [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 36,687 |
SCHEDULE OF CONTRACT LIABILITIE
SCHEDULE OF CONTRACT LIABILITIES (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Balance, beginning of year | $ 24,000 | |
Additions | 183,319 | |
Transfer to revenue | (24,000) | (159,319) |
Balance, end of period | $ 24,000 |
REVENUES (Details Narrative)
REVENUES (Details Narrative) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Warranty reserves | $ 61,592 | $ 43,278 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Trade receivables | $ 1,194,696 | $ 839,679 |
Less: Allowance for doubtful accounts | (137,162) | (73,829) |
Accounts receivable, net | $ 1,057,534 | $ 765,850 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,177,314 | $ 634,085 |
Work-in-progress | ||
Finished goods | 551,503 | 539,169 |
Inventory | $ 1,728,817 | $ 1,173,254 |
INVENTORY, NET (Details Narrati
INVENTORY, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Inventory [Line Items] | |||||
Depreciation expenses | $ 74,752 | $ 85,554 | $ 145,880 | $ 171,612 | |
Reserve for inventory obsolescence | 0 | 0 | $ 0 | ||
Feet Inventory [Member] | |||||
Inventory [Line Items] | |||||
Depreciation expenses | $ 23,886 | $ 0 | $ 47,772 | $ 0 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid final assembly services | $ 409,740 | $ 520,000 |
Prepayments for inventory | 766,429 | 976,512 |
Prepaid other | 129,730 | 112,250 |
Prepaid Expenses And Other Current Assets | $ 1,305,899 | $ 1,608,762 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 2,009,902 | $ 1,527,360 |
Less: Accumulated depreciation | (1,061,928) | (916,048) |
Property and equipment, net | 947,974 | 611,312 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 841,270 | 815,704 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 170,357 | 127,401 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 242,024 | 221,802 |
Prototypes [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 300,376 | 300,376 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 455,875 | $ 62,077 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||||
Depreciation expense | $ 74,752 | $ 85,554 | $ 145,880 | $ 171,612 |
SCHEDULE OF INTANGIBLE ASSETS (
SCHEDULE OF INTANGIBLE ASSETS (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Amount | $ 519,195 | $ 465,683 |
Accumulated Amortization | (381,861) | (321,838) |
Net Carrying Amount | 137,334 | 143,845 |
Supply Chain Development [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Amount | 404,622 | 395,248 |
Accumulated Amortization | (341,548) | (291,937) |
Net Carrying Amount | $ 63,074 | $ 103,311 |
Weighted- Average Amortization Period | 7 months 13 days | 1 year 18 days |
Patents and Trademarks [Member] | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Gross Amount | $ 114,573 | $ 70,435 |
Accumulated Amortization | (40,313) | (29,901) |
Net Carrying Amount | $ 74,260 | $ 40,534 |
Weighted- Average Amortization Period | 2 years 7 months 2 days | 2 years 5 months 12 days |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 30,839 | $ 28,635 | $ 60,023 | $ 56,852 |
SCHEDULE OF PAYMENT OF PREFERRE
SCHEDULE OF PAYMENT OF PREFERRED STOCK (Details) | Jun. 30, 2021USD ($)$ / sharesshares |
Convertible Preferred Stock Series H [Member] | |
Class of Stock [Line Items] | |
Preferred stock outstanding | shares | 8 |
Multiplied by the stated value | $ 154 |
Equals the gross stated value | $ | $ 1,232 |
Divided by the conversion price | $ 184.80 |
Equals the convertible shares of common stock | shares | 7 |
Multiplied by the fair market value of common stock | $ 4.88 |
Payment | $ | $ 34 |
Convertible Preferred Stock Series H-3 [Member] | |
Class of Stock [Line Items] | |
Preferred stock outstanding | shares | 1,234 |
Multiplied by the stated value | $ 138 |
Equals the gross stated value | $ | $ 170,292 |
Divided by the conversion price | $ 165.60 |
Equals the convertible shares of common stock | shares | 1,028 |
Multiplied by the fair market value of common stock | $ 4.88 |
Payment | $ | $ 5,017 |
Convertible Preferred Stock Series H-6 [Member] | |
Class of Stock [Line Items] | |
Preferred stock outstanding | shares | 50 |
Multiplied by the stated value | $ 72 |
Equals the gross stated value | $ | $ 3,600 |
Divided by the conversion price | $ 2.50 |
Equals the convertible shares of common stock | shares | 1,440 |
Multiplied by the fair market value of common stock | $ 4.88 |
Payment | $ | $ 7,027 |
SCHEDULE OF FAIR VALUE ASSUMPTI
SCHEDULE OF FAIR VALUE ASSUMPTIONS OF WARRANTS (Details) - September Warrants [Member] | Jun. 30, 2021 |
Measurement Input, Expected Dividend Rate [Member] | |
Class of Warrant or Right [Line Items] | |
Fair value assumptions | |
Measurement Input, Risk Free Interest Rate [Member] | |
Class of Warrant or Right [Line Items] | |
Fair value assumptions | 0.0030 |
Measurement Input, Share Price [Member] | |
Class of Warrant or Right [Line Items] | |
Fair value assumptions | 0.0290 |
Measurement Input, Offered Price [Member] | |
Class of Warrant or Right [Line Items] | |
Fair value assumptions | 0.0319 |
Measurement Input, Expected Term [Member] | |
Class of Warrant or Right [Line Items] | |
Fair value assumptions, term | 5 years |
Measurement Input, Price Volatility [Member] | |
Class of Warrant or Right [Line Items] | |
Fair value assumptions | 1.02 |
SCHEDULE OF WARRANT ACTIVITY (D
SCHEDULE OF WARRANT ACTIVITY (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Equity [Abstract] | ||
Shares Underlying Warrants Outstanding, Ending | 6,108,823 | 3,501,014 |
Weighted Average Exercise Price Outstanding, Ending | $ 7.37 | $ 8.03 |
Weighted Average Remaining Contractual Life, Beginning | 2 years 10 months 13 days | |
Shares Underlying Warrants Granted | 3,873,711 | |
Weighted Average Exercise Price Granted | $ 7.24 | |
Shares Underlying Warrants Exercised | (13,642) | |
Weighted Average Exercise Price Exercised | $ 7.33 | |
Shares Underlying Warrants Expired | (1,252,260) | |
Weighted Average Exercise Price Expired | $ 8.80 | |
Weighted Average Remaining Contractual Life, Ending | 2 years 9 months 25 days |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - USD ($) | Mar. 17, 2021 | Feb. 28, 2021 | Feb. 24, 2021 | Feb. 11, 2021 | Jan. 25, 2021 | Nov. 22, 2020 | Sep. 25, 2020 | Jul. 21, 2020 | Jul. 06, 2020 | Feb. 05, 2020 | Dec. 31, 2020 | Jul. 31, 2020 | Apr. 30, 2020 | Jun. 17, 2020 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Jul. 22, 2020 | Jul. 17, 2020 | Jul. 08, 2020 | Jun. 19, 2020 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||
Cash proceeds | $ 58,269,829 | $ 6,455,992 | |||||||||||||||||||||||
Shares issued during conversion | |||||||||||||||||||||||||
Shares issued for exercised stock options, shares | $ 1,041,491 | $ 183,425 | |||||||||||||||||||||||
Shares issued for exercised stock options | 469,576 | ||||||||||||||||||||||||
Share based compensation | $ 3,337,494 | $ 307,408 | |||||||||||||||||||||||
Preferred stock, designated | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | ||||||||||||||||||||
Warrant exercise price | $ 8.03 | $ 7.37 | $ 8.03 | $ 7.37 | $ 8.03 | ||||||||||||||||||||
Exercise of warrants | $ 515,338 | ||||||||||||||||||||||||
Warrant outstanding | 3,501,014 | 6,108,823 | 3,501,014 | 6,108,823 | 3,501,014 | ||||||||||||||||||||
Expected volatility | 4.40% | ||||||||||||||||||||||||
Risk-free interest rate | 0.70% | ||||||||||||||||||||||||
Advisors [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 1,037,496 | ||||||||||||||||||||||||
Merger Sub [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 2,337,663 | ||||||||||||||||||||||||
Value of common stock issued | $ 3,060,740 | ||||||||||||||||||||||||
Restricted Stock [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Value of common stock issued | $ 681,725 | ||||||||||||||||||||||||
Restricted Stock [Member] | Long-Term Incentive Plan [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 1,087,618 | ||||||||||||||||||||||||
Weighted average price restricted stock | $ 5.27 | $ 5.27 | $ 5.27 | ||||||||||||||||||||||
Number of shares vested | 15,115 | ||||||||||||||||||||||||
Share based compensation | $ 1,407,012 | 2,836,541 | |||||||||||||||||||||||
Restricted Stock [Member] | Core IR [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 15,000 | ||||||||||||||||||||||||
Restricted Stock [Member] | Core IR [Member] | General and Administrative Expense [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Offering expenses | $ 42,300 | ||||||||||||||||||||||||
Restricted Stock [Member] | Director [Member] | 2020 Long-Term Incentive Plan [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of restricted stock units | 172,000 | ||||||||||||||||||||||||
Offering price | $ 7.66 | ||||||||||||||||||||||||
AYRO Seed Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Offering expenses | $ 0 | $ 36,760 | |||||||||||||||||||||||
Warrants to purchase common stock | 461,647 | 461,647 | |||||||||||||||||||||||
Warrant exercise price | $ 7.33 | $ 7.33 | |||||||||||||||||||||||
Warrants term | 5 years | 5 years | |||||||||||||||||||||||
Exercise of warrants | $ 100,000 | ||||||||||||||||||||||||
Exercise of warrants, Shares | 13,642 | ||||||||||||||||||||||||
AYRO Seed Warrant [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 448,005 | 448,005 | |||||||||||||||||||||||
Series I Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 14,636 | 14,636 | |||||||||||||||||||||||
Warrant exercise price | $ 69 | $ 69 | |||||||||||||||||||||||
Warrants description | If at any time (i) the volume weighted average price (“VWAP”) of the Common Stock exceeds $138.00 for not less than the mandatory exercise measuring period; (ii) the daily average number of shares of Common Stock traded during the mandatory exercise measuring period equals or exceeds 25,000; and (iii) no equity conditions failure has occurred as of such date, then the Company shall have the right to require the holder to exercise all or any portion of the Series I Warrants. | ||||||||||||||||||||||||
Warrant weighted average exercise price | $ 138 | $ 138 | |||||||||||||||||||||||
Warrant outstanding | 14,636 | 14,636 | |||||||||||||||||||||||
Series H-3 Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 2,800 | 2,800 | |||||||||||||||||||||||
Warrant exercise price | $ 165.60 | $ 165.60 | |||||||||||||||||||||||
Warrants term | 5 years | 5 years | |||||||||||||||||||||||
Warrant outstanding | 2,800 | 2,800 | |||||||||||||||||||||||
Series H-4 Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 37,453 | 37,453 | |||||||||||||||||||||||
Warrant exercise price | $ 15.60 | $ 15.60 | |||||||||||||||||||||||
Warrant outstanding | 37,453 | 37,453 | |||||||||||||||||||||||
Anti-dilution price protection price per share | $ 15.60 | $ 15.60 | |||||||||||||||||||||||
Series J Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 52,023 | 52,023 | |||||||||||||||||||||||
Warrant exercise price | $ 30 | $ 30 | |||||||||||||||||||||||
Warrants description | If at any time (i) the VWAP of the Common Stock exceeds $9.00 for not less than the mandatory exercise measuring period; (ii) the daily average number of shares of Common Stock traded during the mandatory exercise measuring period equals or exceeds 25,000; and (iii) no equity conditions failure has occurred as of such date, then the Company shall have the right to require the holder to exercise all or any portion of the Series J Warrants still unexercised for a cash exercise. | ||||||||||||||||||||||||
Warrant weighted average exercise price | $ 45 | $ 45 | |||||||||||||||||||||||
Warrant outstanding | 52,023 | 52,023 | |||||||||||||||||||||||
Series H-5 Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 296,389 | 296,389 | |||||||||||||||||||||||
Warrant exercise price | $ 2.50 | $ 2.50 | |||||||||||||||||||||||
Warrants term | 5 years | 5 years | |||||||||||||||||||||||
Exercise of warrants, Shares | 173,091 | ||||||||||||||||||||||||
Warrants description | The H-5 Warrants are entitled to certain anti-dilution adjustments if the Company issues shares of its common stock at a lower price per share than the applicable exercise price (subject to a floor of $0.792 per share). An anti-dilution adjustment was triggered resulting in an adjusted exercise price per share from $3.96 to $2.50, resulting in an issuance of an additional 173,091 warrants that are exercisable at $2.50 per share. | ||||||||||||||||||||||||
Warrant outstanding | 348,476 | 348,476 | |||||||||||||||||||||||
Deemed dividend | $ 432,727 | ||||||||||||||||||||||||
Fair value of warrants | 967,143 | ||||||||||||||||||||||||
Fair value of modification of orinigal award | $ 534,416 | ||||||||||||||||||||||||
Expected volatility | 89.96% | ||||||||||||||||||||||||
Dividend yield | 0.00% | ||||||||||||||||||||||||
Risk-free interest rate | 0.24% | ||||||||||||||||||||||||
Series I, H-1, H-3, H-4, J and H-5 [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrant expiration description | Warrants expire through the years 2022-2024 | ||||||||||||||||||||||||
June Finder Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 27,273 | ||||||||||||||||||||||||
Warrant exercise price | $ 2.75 | ||||||||||||||||||||||||
Warrants term | 5 years | ||||||||||||||||||||||||
June Placement Agent Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 126,000 | ||||||||||||||||||||||||
Warrant exercise price | $ 2.875 | ||||||||||||||||||||||||
July 8 Finder Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 71,770 | 71,770 | 71,770 | ||||||||||||||||||||||
Warrant exercise price | $ 5.225 | ||||||||||||||||||||||||
July 8 Placement Agent Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 147,368 | ||||||||||||||||||||||||
Warrant exercise price | $ 5.4625 | ||||||||||||||||||||||||
Warrants term | 5 years | ||||||||||||||||||||||||
July 22 Placement Agent Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 129,500 | 129,500 | 129,500 | ||||||||||||||||||||||
Warrant exercise price | $ 5.750 | ||||||||||||||||||||||||
Warrants term | 5 years | ||||||||||||||||||||||||
September Warrant [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 31,348 | ||||||||||||||||||||||||
Share based compensation | $ 66,845 | ||||||||||||||||||||||||
Warrant exercise price | $ 3.19 | ||||||||||||||||||||||||
Warrant outstanding | 31,348 | ||||||||||||||||||||||||
Warrant expiration description | The September Warrant is immediately exercisable and expires on September 25, 2025. | ||||||||||||||||||||||||
Decrease in exercise price | $ 2.13 | ||||||||||||||||||||||||
November Finder Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 56,256 | ||||||||||||||||||||||||
Warrant exercise price | $ 6.6660 | ||||||||||||||||||||||||
Warrant outstanding | 56,256 | 56,256 | |||||||||||||||||||||||
November Placement Agent Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 57,756 | 57,756 | 57,756 | ||||||||||||||||||||||
Warrant exercise price | $ 6.9690 | ||||||||||||||||||||||||
Warrants description | The November Finder Warrants and November Placement Agent Warrants terminate after a period of 5 years on November 22, 2025. | ||||||||||||||||||||||||
February Finder Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 15,574 | 51,459 | 51,459 | ||||||||||||||||||||||
Warrant exercise price | $ 10.925 | ||||||||||||||||||||||||
February Placement Agent Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 255,584 | 255,584 | 255,584 | ||||||||||||||||||||||
Warrants term | 5 years | ||||||||||||||||||||||||
Series H-6 Preferred Stock [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 225,590 | ||||||||||||||||||||||||
Shares issued during conversion, shares | 7,833 | ||||||||||||||||||||||||
Series H-3 Preferred Stock [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Preferred stock stated value | $ 138 | $ 138 | |||||||||||||||||||||||
Aggregate issued and outstanding shares percentage | 9.99% | 9.99% | |||||||||||||||||||||||
Series H Preferred Stock [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Preferred stock stated value | $ 154 | $ 154 | |||||||||||||||||||||||
Preferred stock, conversion price | $ 184.80 | ||||||||||||||||||||||||
Aggregate issued and outstanding shares percentage | 9.99% | 9.99% | |||||||||||||||||||||||
Series H-6 Convertible Preferred Stock [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Preferred stock stated value | $ 72 | ||||||||||||||||||||||||
Preferred stock, conversion price | $ 3.60 | $ 3.60 | |||||||||||||||||||||||
Aggregate issued and outstanding shares percentage | 9.99% | ||||||||||||||||||||||||
Preferred stock, designated | 50,000 | ||||||||||||||||||||||||
Preferred stock, conversion price description | Each share of Series H-6 Preferred Stock is convertible at any time at the option of the holder thereof, into a number of shares of common stock of the Company determined by dividing the H-6 Stated Value by the initial conversion price of $3.60 per share, which was then further reduced to $2.50 under the anti-dilution adjustment provision, subject to a 9.99% blocker provision. | ||||||||||||||||||||||||
Common Stock [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 5,074,645 | ||||||||||||||||||||||||
Shares issued during conversion, shares | 2,007,193 | ||||||||||||||||||||||||
Warrants to purchase common stock | 5,092,806 | 5,092,806 | 5,092,806 | ||||||||||||||||||||||
Cash proceeds | $ 3,926,818 | ||||||||||||||||||||||||
Shares issued during conversion | $ 201 | ||||||||||||||||||||||||
Shares issued for exercised stock options, shares | $ 39 | $ 7 | |||||||||||||||||||||||
Shares issued for exercised stock options | 394,589 | 74,987 | |||||||||||||||||||||||
Exercise of warrants | $ 183 | ||||||||||||||||||||||||
Exercise of warrants, Shares | 1,831,733 | ||||||||||||||||||||||||
Common Stock [Member] | February Finder Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 35,885 | ||||||||||||||||||||||||
Warrant exercise price | $ 10.45 | ||||||||||||||||||||||||
Common Stock [Member] | Series H-3 Preferred Stock [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 795 | ||||||||||||||||||||||||
Shares issued during conversion, shares | 955 | ||||||||||||||||||||||||
Preferred stock, conversion price | $ 165.60 | ||||||||||||||||||||||||
AYRO Seed Preferred Stock [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 2,007,193 | ||||||||||||||||||||||||
Shares issued during conversion, shares | 7,360,985 | ||||||||||||||||||||||||
Securities Purchase Agreement [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 4,400,001 | 3,333,334 | 1,650,164 | ||||||||||||||||||||||
Common stock, par value | $ 0.0001 | ||||||||||||||||||||||||
Proceeds from sale of common stock | $ 41,800,008 | $ 20,000,004 | $ 10,000,000 | $ 1,512,500 | |||||||||||||||||||||
Offering expenses | $ 3,394,054 | $ 1,648,608 | 847,619 | ||||||||||||||||||||||
Shares issued for exercised stock options, shares | $ 13,642 | $ 469,576 | |||||||||||||||||||||||
Shares issued for exercised stock options | 100,000 | 1,224,917 | |||||||||||||||||||||||
Offering price | $ 6 | ||||||||||||||||||||||||
Warrant exercise price | $ 6.93 | ||||||||||||||||||||||||
Warrant purchase price | $ 233,334 | ||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Series A Warrants and Series B [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Value of common stock issued | $ 9,999,997 | ||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Series A Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 1,237,624 | ||||||||||||||||||||||||
Warrant exercise price | $ 8.09 | ||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Series B Warrants [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Warrants to purchase common stock | 825,084 | ||||||||||||||||||||||||
Warrant exercise price | $ 8.90 | ||||||||||||||||||||||||
Securities Purchase Agreement [Member] | January 2021 Offering [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 3,333,334 | ||||||||||||||||||||||||
Warrant exercise price | $ 6.93 | ||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Additional Shares [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 420,000 | ||||||||||||||||||||||||
Common stock, par value | $ 0.0001 | 0.0001 | 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||||||
Offering price | $ 9.50 | $ 6 | $ 6.06 | $ 5 | 5 | 5 | $ 5 | ||||||||||||||||||
Proceeds from sale of common stock | $ 2,100,000 | ||||||||||||||||||||||||
Offering expenses | 168,000 | ||||||||||||||||||||||||
Purchase of additional shares description | (i) sell up to 5% of such stockholder’s holdings in the Company’s common stock on any trading day (with such 5% limitation to be measured as of the date of each sale) and (ii) allow for unlimited sales of the Company’s common stock for any sales made at $10.00 per share or greater. | Each purchaser was also granted an option to purchase, on or before February 16, 2022, additional shares of common stock equal to the full amount of 75% of the common stock it purchased at the initial closing, or an aggregate of 3,300,001 shares, at an exercise price of $11.50 per share. | Each purchaser also had the right to purchase, on or before October 19, 2020, additional shares of common stock (the “Additional Shares”) equal to the full amount of 75% of the common stock it purchased at the initial closing, or an aggregate of 1,387,500 shares, at an offering price of $5.00 per share. | ||||||||||||||||||||||
Shares issued for exercised stock options, shares | $ 6,817 | ||||||||||||||||||||||||
Shares issued for exercised stock options | 16,669 | ||||||||||||||||||||||||
Securities Purchase Agreement [Member] | Investor [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 3,300,001 | ||||||||||||||||||||||||
Number of stock sold | 1,850,000 | 3,157,895 | 2,200,000 | ||||||||||||||||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||
Offering price | $ 5 | $ 4.75 | $ 2.50 | ||||||||||||||||||||||
Proceeds from sale of common stock | $ 9,250,000 | $ 15,000,000 | $ 5,500,000 | ||||||||||||||||||||||
Offering expenses | $ 740,000 | $ 1,249,200 | $ 435,000 | ||||||||||||||||||||||
Securities Purchase Agreement [Member] | Investor [Member] | Additional Shares [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Offering price | $ 11.50 | ||||||||||||||||||||||||
Stock Purchase Agreements [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 1,573,218 | ||||||||||||||||||||||||
Common stock, par value | $ 0.0001 | $ 0.0001 | $ 0.0001 | ||||||||||||||||||||||
Offering expenses | $ 609,010 | ||||||||||||||||||||||||
Cash proceeds | $ 2,000,000 | ||||||||||||||||||||||||
Bridge Notes [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Number of shares issued | 553,330 | ||||||||||||||||||||||||
Value of common stock issued | $ 600,000 | ||||||||||||||||||||||||
Convertible Bridge Notes [Member] | |||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||||||||||||||||||||||
Shares issued during conversion, shares | 1,030,585 | ||||||||||||||||||||||||
Shares issued during conversion | $ 1,000,000 |
SCHEDULE OF STOCK-BASED COMPENS
SCHEDULE OF STOCK-BASED COMPENSATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share based compensation | $ 1,638,071 | $ 150,949 | $ 3,337,494 | $ 307,408 |
Research and Development [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share based compensation | 20,708 | 15,873 | 44,194 | 31,745 |
Sales and Marketing [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share based compensation | 60,633 | 38,120 | 124,082 | 72,705 |
General and Administrative [Member] | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share based compensation | $ 1,556,730 | $ 96,956 | $ 3,169,218 | $ 202,958 |
SCHEDULE OF STOCK-BASED COMPE_2
SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY (Details) - $ / shares | 1 Months Ended | 6 Months Ended | 12 Months Ended |
May 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Stock options outstanding, beginning | 1,920,269 | ||
Weighted average exercise price outstanding, ending | $ 4.98 | $ 4.40 | |
Weighted average remaining contractual life, beginning | 8 years 7 months 28 days | ||
Number of Stock options Excercised | (469,576) | ||
Weighted average exercise price excercised | $ (2.25) | ||
Number of Stock options forfeitures | (2,500) | ||
Weighted average exercise price forfeitures | $ (2.52) | ||
Number of Stock options outstanding, ending | 1,448,193 | 1,920,269 | |
Weighted average remaining contractual life, ending | 8 years 5 months 15 days | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of shares, Outstanding Beginning | 1,072,503 | ||
Weighted Average Grant Price, Outstanding Beginning | $ 5.30 | ||
Number of shares, Granted | 172,000 | ||
Weighted Average Grant Price, Granted | $ 7.66 | ||
Number of shares, Vested | (378,641) | (681,724) | |
Weighted Average Grant Price, Vested | $ 4.85 | ||
Number of shares, Forfeited | (42,612) | (42,612) | |
Weighted Average Grant Price, Forfeited | $ 3.17 | ||
Number of shares, Outstanding Ending | 520,167 | 1,072,503 | |
Weighted Average Grant Price, Outstanding Ending | $ 6.84 | $ 5.30 |
SCHEDULE OF STOCK-BASED PAYMENT
SCHEDULE OF STOCK-BASED PAYMENT AWARD, STOCK OPTIONS, VALUATION ASSUMPTIONS (Details) | 6 Months Ended |
Jun. 30, 2020$ / shares | |
Share-based Payment Arrangement [Abstract] | |
Expected life (years) | 5 years |
Risk-free interest | 0.70% |
Expected volatility | 4.40% |
Total grant date fair value | $ 3.84 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | Feb. 24, 2021 | May 31, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation | $ 1,638,071 | $ 150,949 | $ 3,337,494 | $ 307,408 | |||
Share-based Payment Arrangement, Option [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of stock options vested | 575,600 | ||||||
Aggregate intrinsic value of stock options vested and exercisable | 1,534,567 | $ 1,534,567 | |||||
Share-based Compensation | 231,059 | 136,244 | 500,953 | 270,647 | |||
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount | 1,472,752 | $ 1,472,752 | |||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of stock options available for grants | 172,000 | ||||||
Number of shares, Vested | 378,641 | 681,724 | |||||
Number of shares, Forfeited | 42,612 | 42,612 | |||||
Share-based Payment Arrangement [Member] | Consulting Services [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Warrant expenses | 0 | $ 14,704 | $ 0 | $ 36,760 | |||
Directors [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of stock options vested | 15,115 | ||||||
Share-based Compensation | 198,763 | 699,528 | |||||
Number of restricted stock units | 436,368 | ||||||
Restricted stock vesting description | vest in December 2020, which was subsequently modified to vest in full in May 2021. | ||||||
Keller Award [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation | 732,472 | 1,478,247 | |||||
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount | $ 2,648,371 | $ 2,648,371 | |||||
Number of restricted stock units | 651,250 | ||||||
Restricted stock vesting description | the following vesting schedule: one-third will vest on May 28, 2021, one-third will vest on December 4, 2021 and one-third will vest on December 4, 2022. | ||||||
2020 Long Term Incentive Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of stock options available for grants | 1,874,037 | ||||||
2020 Long Term Incentive Plan [Member] | Directors [Member] | DropCar, Inc. [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares reserved | 4,089,650 | 4,089,650 | |||||
2014 Equity Incentive Plan [Member] | DropCar, Inc. [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares reserved | 141,326 | 141,326 | |||||
Number of stock options available for grants | 61,440 | ||||||
Number of stock options available for grants | 0 | ||||||
2020 Long-Term Incentive Plan [Member] | Directors [Member] | Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based Compensation | $ 475,771 | $ 658,760 | |||||
Share-based payment arrangement, nonvested award, option, cost not yet recognized, amount | $ 658,760 | $ 658,760 | |||||
Number of restricted stock units | 172,000 | ||||||
Restricted stock vesting description | The shares vest 50% at June 30, 2021, 25% at September 30, 2021 and 25% at December 31, 2021. | ||||||
Share price | $ 7.66 |
CONCENTRATIONS AND CREDIT RISK
CONCENTRATIONS AND CREDIT RISK (Details Narrative) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Sales Revenue [Member] | One Customer [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 39.00% | 76.00% | 59.00% | 81.00% | |
Sales Revenue [Member] | Two Customer [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 65.00% | 25.00% | 40.00% | 17.00% | |
Accounts Receivable [Member] | One Customer [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 45.00% | 74.00% | |||
Accounts Receivable [Member] | Two Customer [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 44.00% | ||||
Accounts Receivable [Member] | Three Customer [Member] | Customer Concentration Risk [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 11.00% | ||||
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | One Supplier [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 63.00% | 28.00% | 45.00% | 57.00% | |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Two Supplier [Member] | |||||
Concentration Risk [Line Items] | |||||
Concentration risk percentage | 8.00% | 12.00% | 12.00% | 25.00% |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($) | Jul. 09, 2020 | Dec. 31, 2017 | Jun. 30, 2021 | Dec. 31, 2020 |
Entity Listings [Line Items] | ||||
Accounts payable | $ 15,000 | $ 15,000 | ||
Additional deposit | 100,000 | |||
Prepayment deposit | 711,634 | 976,512 | ||
Cenntro Automotive Group [Member] | ||||
Entity Listings [Line Items] | ||||
Accounts payable | $ 16,635 | $ 44,594 | ||
Cenntro Automotive Group [Member] | Supply Chain Agreements [Member] | ||||
Entity Listings [Line Items] | ||||
Payments to acquire property and equipment percentage | 100.00% | |||
Original term of contract description | Under a memo of understanding signed between the Company and Cenntro on March 22, 2020, the Company agreed to purchase 300 units within the following twelve months of signing the memo of understanding, and 500 and 800 in each of the following respective twelve-month periods. | |||
Prepayment for inventory | $ 1,200,000 | |||
Cenntro Automotive Group [Member] | Common Stock [Member] | ||||
Entity Listings [Line Items] | ||||
Equity method investment, ownership percentage | 19.00% |
SCHEDULE OF COMPONENTS OF LEASE
SCHEDULE OF COMPONENTS OF LEASE EXPENSE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating lease expense | $ 127,463 | $ 61,196 | $ 196,258 | $ 107,064 |
Short-term lease expense | 1,956 | 8,026 | 5,489 | 54,854 |
Total lease cost | $ 129,419 | $ 69,222 | $ 201,747 | $ 161,918 |
SCHEDULE OF OPERATING LEASES RI
SCHEDULE OF OPERATING LEASES RIGHT OF USE ASSETS AND LIABILITIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating lease – right-of-use asset, net | $ 1,125,368 | $ 1,098,819 |
Total lease assets | 1,125,368 | 1,098,819 |
Lease obligation – operating lease | 245,801 | 123,139 |
Lease obligation - operating lease, net of current portion | 933,563 | 1,002,794 |
Total lease liability | $ 1,179,364 | $ 1,125,933 |
SCHEDULE OF WEIGHTED-AVERAGE RE
SCHEDULE OF WEIGHTED-AVERAGE REMAINING LEASE TERM AND DISCOUNT RATE (Details) | Jun. 30, 2021 |
Commitments and Contingencies Disclosure [Abstract] | |
Weighted average remaining lease term (in years) – operating lease | 5 years 9 months |
Weighted average discount rate – operating lease | 10.41% |
SCHEDULE OF CASH FLOW INFORMATI
SCHEDULE OF CASH FLOW INFORMATION (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Operating cash flows for operating leases | $ 67,009 | $ 30,286 |
Supplemental non-cash amounts of lease liabilities arising from obtaining right of use assets | $ 120,440 | $ 1,210,680 |
SCHEDULE OF FUTURE MINIMUM RENT
SCHEDULE OF FUTURE MINIMUM RENTAL PAYMENTS FOR OPERATING LEASES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
2021, remaining | $ 183,537 | |
2022 | 306,691 | |
2023 | 247,533 | |
2024 | 254,277 | |
2025 | 261,223 | |
2026 and thereafter | 313,307 | |
Total minimum lease payments | 1,566,568 | |
Less effects of discounting | (387,204) | |
Present value of future minimum lease payments | $ 1,179,364 | $ 1,125,933 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Sep. 25, 2020 | Jan. 02, 2019 | Jan. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | Mar. 31, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Lease remaining term | 5 years 9 months | 5 years 9 months | ||||||
Lease liabilities | $ 1,179,364 | $ 1,179,364 | $ 1,125,933 | |||||
Stock-based compensation | 3,337,494 | $ 307,408 | ||||||
Karma Automotive, LLC [Member] | First Production Level Builds [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Settlement of multiple employment disputes | 23,140 | 30,260 | ||||||
Amortization of setup costs | 73,333 | |||||||
DropCar Operating, Inc [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Settlement of multiple employment disputes | $ 232,000 | |||||||
Accounts payable and accrued expenses | 5,603 | 5,603 | ||||||
Legal fees | 45,000 | |||||||
Plaintiff's counsel balance | 45,000 | $ 45,000 | ||||||
Prefunded liabilities | $ 186,000 | $ 186,000 | ||||||
New Lease Agreement [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Lease obligations | $ 131,408 | |||||||
Incremental borrowing rate for the lease | 10.41% | |||||||
Lease remaining term | 5 years 9 months | 5 years 9 months | 1 year | |||||
Lease liabilities | $ 67,009 | $ 67,009 | $ 30,286 | |||||
Master Manufacturing Services Agreement [Member] | Karma Automotive, LLC [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Contract term | 12 months | |||||||
Stock-based compensation | $ 1,160,800 | |||||||
Master Manufacturing Services Agreement [Member] | Karma Automotive, LLC [Member] | Advisor [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Payment of amount | 66,845 | |||||||
Master Manufacturing Services Agreement [Member] | Karma Automotive, LLC [Member] | First Production Level Builds [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Payment of amount | 440,000 | |||||||
Master Manufacturing Services Agreement [Member] | Karma Automotive, LLC [Member] | Setup Costs [Member] | ||||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||||||
Payment of amount | $ 80,000 |