Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2022 | |
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 $0.0001 per share | |
Trading Symbol | AYRO | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 36,909,956 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 43,494,716 | $ 69,160,466 |
Accounts receivable, net | 1,203,820 | 969,429 |
Marketable securities | 19,977,899 | |
Inventory, net | 3,857,403 | 3,744,037 |
Prepaid expenses and other current assets | 2,589,170 | 2,276,178 |
Total current assets | 71,123,008 | 76,150,110 |
Property and equipment, net | 864,306 | 835,160 |
Intangible assets, net | 82,281 | 88,322 |
Operating lease – right-of-use asset | 954,233 | 1,012,884 |
Deposits and other assets | 41,289 | 41,288 |
Total assets | 73,065,117 | 78,127,764 |
Current liabilities: | ||
Accounts payable | 616,151 | 647,050 |
Accrued expenses | 1,985,049 | 2,990,513 |
Current portion lease obligation – operating lease | 180,333 | 206,426 |
Total current liabilities | 2,781,533 | 3,843,989 |
Lease obligation - operating lease, net of current portion | 820,521 | 859,543 |
Total liabilities | 3,602,054 | 4,703,532 |
Stockholders’ equity: | ||
Convertible Preferred Stock Series H-6, ($.0001 par value; authorized – 50,000 shares; issued and outstanding – 50 as of March 31, 2022 and December 31, 2021, respectively) | ||
Common Stock, ($0.0001 par value; authorized – 100,000,000 shares; issued and outstanding – 36,909,956 and 36,866,956 as of March 31, 2022 and December 31, 2021, respectively) | 3,691 | 3,687 |
Additional paid-in capital | 132,272,263 | 131,654,776 |
Accumulated deficit | (62,812,891) | (58,234,231) |
Total stockholders’ equity | 69,463,063 | 73,424,232 |
Total liabilities and stockholders’ equity | 73,065,117 | 78,127,764 |
Convertible Preferred Stock Series H [Member] | ||
Stockholders’ equity: | ||
Convertible Preferred Stock Series H-6, ($.0001 par value; authorized – 50,000 shares; issued and outstanding – 50 as of March 31, 2022 and December 31, 2021, respectively) | ||
Convertible Preferred Stock Series H-3 [Member] | ||
Stockholders’ equity: | ||
Convertible Preferred Stock Series H-6, ($.0001 par value; authorized – 50,000 shares; issued and outstanding – 50 as of March 31, 2022 and December 31, 2021, respectively) | ||
Convertible Preferred Stock Series H-6 [Member] | ||
Stockholders’ equity: | ||
Convertible Preferred Stock Series H-6, ($.0001 par value; authorized – 50,000 shares; issued and outstanding – 50 as of March 31, 2022 and December 31, 2021, respectively) |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2022 | Dec. 31, 2021 |
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 issued | 36,909,956 | 36,866,956 |
Common stock, shares outstanding | 36,909,956 | 36,866,956 |
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 | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue | $ 1,026,846 | $ 788,869 |
Cost of goods sold | 1,177,145 | 644,503 |
Gross profit (loss) | (150,299) | 144,366 |
Operating expenses: | ||
Research and development | 872,631 | 1,927,561 |
Sales and marketing | 844,816 | 558,404 |
General and administrative | 2,697,704 | 3,301,309 |
Total operating expenses | 4,415,151 | 5,787,274 |
Loss from operations | (4,565,450) | (5,642,908) |
Other income (expense): | ||
Other income, net | 8,891 | 9,926 |
Unrealized loss on marketable securities | (22,101) | |
Interest expense | (851) | |
Other income (expense), net | (13,210) | 9,075 |
Net loss | $ (4,578,660) | $ (5,633,833) |
Net loss per share, basic and diluted | $ (0.12) | $ (0.18) |
Basic and diluted weighted average Common Stock outstanding | 36,907,155 | 32,007,002 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Changes In Stockholders' Equity (Unaudited) - USD ($) | Series H Preferred Stock [Member]Preferred Stock [Member] | Series H-3 Preferred Stock [Member]Preferred Stock [Member] | Series H-6 Preferred Stock [Member]Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Balance 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 | |||
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 of warrants, shares | 13,642 | ||||||
Exercise Options | $ 7 | 183,418 | 183,425 | ||||
Exercise Options, shares | 74,987 | ||||||
Net Loss | (5,633,833) | (5,633,833) | |||||
Balance 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 | |||
Balance at Dec. 31, 2021 | $ 3,687 | 131,654,776 | (58,234,231) | 73,424,232 | |||
Balance, shares at Dec. 31, 2021 | 8 | 1,234 | 50 | 36,866,956 | |||
Stock Based Compensation | 288,110 | 288,110 | |||||
Vesting of Restricted Stock | $ 4 | 329,377 | $ 329,381 | ||||
Vested Restricted Stock, shares | 43,000 | ||||||
Exercise Options, shares | |||||||
Net Loss | (4,578,660) | $ (4,578,660) | |||||
Balance at Mar. 31, 2022 | $ 3,691 | $ 132,272,263 | $ (62,812,891) | $ 69,463,063 | |||
Balance, shares at Mar. 31, 2022 | 8 | 1,234 | 50 | 36,909,956 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (4,578,660) | $ (5,633,833) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 121,425 | 124,198 |
Stock-based compensation | 288,110 | 1,699,423 |
Amortization of right-of-use asset | 58,651 | 39,234 |
Provision for bad debt expense | 11,657 | 29,032 |
Unrealized loss on marketable securities | 22,101 | |
Change in operating assets and liabilities: | ||
Accounts receivable | (246,050) | (316,870) |
Inventory | (137,258) | 313,046 |
Prepaid expenses and other current assets | (312,992) | (179,843) |
Deposits | (18,798) | |
Accounts payable | (30,899) | 174,392 |
Accrued expenses | (676,083) | 383,225 |
Contract liability | (24,000) | |
Lease obligations - operating leases | (65,115) | (39,273) |
Net cash used in operating activities | (5,545,113) | (3,450,067) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property and equipment | (113,637) | (131,111) |
Purchase of marketable securities | (20,000,000) | |
Purchase of intangible assets | (7,000) | (16,183) |
Net cash used in investing activities | (20,120,637) | (147,294) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayments of debt | (1,829) | |
Proceeds from exercise of warrants, net of fees | 100,000 | |
Proceeds from exercise of stock options | 183,425 | |
Proceeds from issuance of Common Stock, net of fees and expenses | 58,269,829 | |
Net cash provided by financing activities | 58,551,425 | |
Net change in cash | (25,665,750) | 54,954,064 |
Cash, beginning of year | 69,160,466 | 36,537,097 |
Cash, end of quarter | 43,494,716 | 91,491,161 |
Supplemental disclosure of cash and non-cash transactions: | ||
Cash paid for interest | 851 | |
Restricted Stock issued, previously accrued | 329,381 | |
Supplemental non-cash amounts of lease liabilities arising from obtaining right of use assets | $ 120,440 |
ORGANIZATION AND NATURE OF OPER
ORGANIZATION AND NATURE OF OPERATIONS | 3 Months Ended |
Mar. 31, 2022 | |
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 of AYRO Operating Company, Inc. (“AYRO Operating”), 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 Certificate 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. Strategic Review Following the hiring of the Company’s new Chief Executive Officer in the third quarter of 2021, the Company initiated a strategic review of their product development strategy, as they focus on creating value within the electric vehicle, last-mile delivery, and smart payload and enabling infrastructure markets. While the Company completes their strategic review, they have paused all material research and development activity and expenditures associated with their planned next-generation three-wheeled high speed vehicle. In December of 2021 the Company began research and development on the new 411 fleet vehicle model refresh, the AYRO Z, including updates on their supply chain evolution, offshoring/onshoring mix, manufacturing strategy, and annual model year refresh program. |
LIQUIDITY AND OTHER UNCERTAINTI
LIQUIDITY AND OTHER UNCERTAINTIES | 3 Months Ended |
Mar. 31, 2022 | |
Liquidity And Other Uncertainties | |
LIQUIDITY AND OTHER UNCERTAINTIES | NOTE 2. LIQUIDITY AND OTHER UNCERTAINTIES Liquidity and Other Uncertainties The 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 $ 4,578,660 5,545,113 43,494,716 19,977,899 3,946,646 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, 2021 and into 2022, the measures taken by the governments of countries affected has adversely affected the Company’s business, financial condition, and results of operations. The Company relies on foreign suppliers, including Cenntro Automotive Group (“Cenntro”), its largest supplier, for a number of raw materials, instruments and technologies that the Company purchases. The Company’s success is dependent on the ability to import or transport such products from Cenntro and other overseas vendors in a timely and cost-effective manner. The Company relies heavily on third parties, including ocean carriers and truckers, in that process. The global shipping industry is experiencing ocean shipping disruptions, trucking shortages, increased ocean shipping rates and increased trucking and fuel costs, and the Company cannot predict when these disruptions will end. There is currently a shortage of shipping capacity from China and other parts of Asia, and as a result, receipt of imported products may be disrupted or delayed. The shipping industry is also experiencing issues with port congestion and pandemic-related port closures and ship diversions. Labor disputes among freight carriers and at ports of entry are common, and the Company expects labor unrest and its effects on shipping products to be a challenge for it. A port worker strike, work slow-down or other transportation disruption in the port of Long Beach, California could significantly disrupt the Company’s business. The Company is currently experiencing such disruption at the port due to multiple factors brought about by the COVID-19 pandemic, such as supply and demand imbalance, a shortage of warehouse workers, truck drivers, transport equipment (tractors and trailers) and other causes, which have resulted in heightened congestion, bottlenecks and gridlock, leading to abnormally high transportation delays. This has materially and adversely affected the Company’s business and could continue to materially and adversely affect our business and financial results. If significant disruptions along these lines continue, this could lead to further significant disruptions in the Company’s business, delays in shipments, and revenue and profitability shortfalls, which could adversely affect the business, prospects, financial condition and operating results. The global shipping industry is also experiencing unprecedented increases in shipping rates from the trans-Pacific ocean carriers due to various factors, including limited availability of shipping capacity. For example, the cost of shipping products by ocean freight has recently increased to at least three times historical levels and will have a corresponding impact on profitability. The Company may find it necessary to rely on an increasingly expensive spot market and other alternative sources to make up any shortfall in shipping needs. Additionally, if increases in fuel prices occur, transportation costs would likely further increase. Similarly, supply chain disruptions such as those described in the preceding paragraphs may lead to an increase in transportation costs. Such cost increases have adversely affected the Company’s business and could have additional adverse effects on the business, prospects, financial condition and operating results. The Company may experience increases in the cost or a sustained interruption in the supply or shortage of raw materials, including lithium-ion battery cells, semiconductors, and integrated circuits. Any such increase or supply interruption could materially negatively impact the business, prospects, financial condition and operating results. Currently, the Company is experiencing supply chain shortages, including with respect to lithium-ion battery cells, integrated circuits, vehicle control chips, and displays. Certain production-ready components may be delayed in shipment to company facilities which has and may continue to cause delays in validation and testing for these components, which would in turn create a delay in the availability of saleable vehicles. The Company uses various raw materials, including aluminum, steel, carbon fiber, non-ferrous metals (such as copper), and cobalt. The prices for these raw materials fluctuate depending on market conditions, and global demand and could adversely affect business and operating results. For instance, the Company is exposed to multiple risks relating to price fluctuations for lithium-ion cells. These risks include: ● the inability or unwillingness of current battery manufacturers to build or operate battery cell manufacturing plants to supply the numbers of lithium-ion cells required to support the growth of the electric vehicle industry as demand for such cells increases; ● disruption in the supply of cells due to quality issues or recalls by the battery cell manufacturers; and ● an increase in the cost of raw materials, such as cobalt, used in lithium-ion cells. Any disruption in the supply of lithium-ion battery cells, semiconductors, or integrated circuits could temporarily disrupt production of the Company’s vehicles until a different supplier is fully qualified. Moreover, battery cell manufacturers may refuse to supply electric vehicle manufacturers if they determine that the vehicles are not sufficiently safe. Furthermore, fluctuations or shortages in petroleum and other economic conditions may cause the Company to experience significant increases in freight charges and raw material costs. Substantial increases in the prices for our raw materials would increase operating costs and could reduce our margins if the increased costs cannot be recouped through increased electric vehicle prices. There can be no assurance that the Company will be able to recoup increasing costs of raw materials by increasing vehicle prices. We have made certain indemnities, under which we may be required to make payments to an indemnified party, in relation to certain transactions. We indemnify our directors and officers to the maximum extent permitted under the laws of the State of Delaware. In connection with our facility leases, we have indemnified our lessors for certain claims arising from the use of the facilities. The duration of the indemnities vary and, in many cases, are indefinite. These indemnities do not provide for any limitation of the maximum potential future payments we could be obligated to make. Historically, we have not been obligated to make any payments for these obligations and no liabilities have been recorded for these indemnities. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Principles of Consolidation The consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with GAAP. All intercompany accounts and transactions have been eliminated in 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. 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 months ended March 31, 2022, 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, 2021, which are included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 23, 2022, as amended on May 2, 2022. Use of Estimates The preparation of the 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 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, valuation of long lived assets, sales warranties, and the measurement of stock-based compensation expenses. Actual results could differ from these estimates. Marketable Securities Marketable securities includes the investment in fixed income bonds and U.S. Treasury securities that are considered to be highly liquid and easily tradeable. The marketable securities are considered trading securities and are measured at fair value and are accounted for in accordance with ASC 320. The marketable securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within the Company’s fair value hierarchy. 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 similar in all material respects 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 $ 110,549 50,626 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 and non-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. For value-based vesting grants, expense is recognized via straight line expense over the expected period per grant as determined by outside valuation experts. Stock-based compensation is reversed for forfeitures in the period of forfeiture. We estimate the fair value of stock-based and cash unit awards containing a market condition using a Monte Carlo simulation model. Key inputs and assumptions used in the Monte Carlo simulation model include the stock price of the award on the grant date, the expected term, the risk-free interest rate over the expected term, the expected annual dividend yield and the expected stock price volatility. The expected volatility is based on a combination of the historical and implied volatility of the Company’s publicly traded, near-the-money stock options, and the valuation period is based on the vesting period of the awards. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant and, since the Company does not currently pay or plan to pay a dividend on its common stock, the expected dividend yield was zero. In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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. 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 March 31, 2022 2021 Options to purchase common stock 1,107,773 1,845,282 Restricted stock unvested 892,248 1,244,503 Warrants outstanding 6,106,023 7,361,083 Preferred stock outstanding 2,475 2,475 Totals 8,108,519 10,453,343 |
REVENUES
REVENUES | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | NOTE 4. REVENUES Disaggregation of Revenue Revenue by type was as follows: SCHEDULE OF DISAGGREGATION OF REVENUE 2022 2021 Three Months Ended March 31, 2022 2021 Revenue type Product revenue $ 919,343 $ 710,199 Shipping revenue 107,503 41,983 Service income - 36,687 Revenue $ 1,026,846 $ 788,869 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 March 31, 2022 and December 31, 2021, warranty reserves were recorded within accrued expenses of $ 330,180 240,517 |
ACCOUNTS RECEIVABLE, NET
ACCOUNTS RECEIVABLE, NET | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, December 31, 2022 2021 Trade receivables $ 1,388,615 $ 1,142,567 Less: Allowance for doubtful accounts (184,795 ) (173,138 ) Accounts receivable, net $ 1,203,820 $ 969,429 |
INVENTORY, NET
INVENTORY, NET | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORY, NET | NOTE 6. INVENTORY, NET Inventory consisted of the following: SCHEDULE OF INVENTORY March 31, December 31, 2022 2021 Raw materials $ 3,585,607 $ 3,481,614 Work-in-progress 91,969 51,441 Finished goods 179,827 210,982 Total $ 3,857,403 $ 3,744,037 For the three months ended March 31, 2022 and 2021, depreciation recorded for fleet inventory was $ 23,892 23,886 388,735 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, December 31, 2022 2021 Prepaid final assembly services $ 350,660 $ 439,660 Prepayments for inventory 1,764,198 1,622,617 Prepaid other 474,312 213,901 Total $ 2,589,170 $ 2,276,178 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 3 Months Ended |
Mar. 31, 2022 | |
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, NET March 31, December 31, 2022 2021 Computer and equipment $ 913,882 $ 853,695 Furniture and fixtures 204,756 173,155 Lease improvements 304,121 282,271 Prototypes 300,376 300,376 Computer software 455,875 455,875 Property and Equipment gross 2,179,010 2,065,372 Less: Accumulated depreciation (1,314,704 ) (1,230,212 ) Property and Equipment net $ 864,306 $ 835,160 Depreciation expense for the three months ended March 31, 2022 and 2021 was $ 84,492 71,128 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 3 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
MARKETABLE SECURITIES | NOTE 9. MARKETABLE SECURITIES Marketable securities consisted of the following: SCHEDULE OF MARKETABLE SECURITIES Cost Basis Gross Unrealized Losses Total Bonds $ 12,178,027 $ (22,101 ) $ 12,155,926 US treasury securities 7,821,973 - 7,821,973 $ 20,000,000 $ (22,101 ) $ 19,977,899 |
STOCKHOLDERS_ EQUITY
STOCKHOLDERS’ EQUITY | 3 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS’ EQUITY | NOTE 10. STOCKHOLDERS’ EQUITY Restricted Stock On February 24, 2021, pursuant to the AYRO, Inc. 2020 Long-Term Incentive Plan, the Company issued 172,000 shares of restricted stock to non-executive directors at a value of $ 7.66 per share. 43,000 shares of common stock remained unissued as of December 31, 2021; these shares were issued during the three months ended March 31, 2022. Series H Convertible Preferred Stock As of March 31, 2022, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H Preferred Stock outstanding as of March 31, 2022 8 Multiplied by the stated value $ 154 Equals the gross stated value $ 1,232 Divided by the conversion price $ 184.8 Equals the convertible shares of Company Common Stock 7 Multiplied by the fair market value of Company Common Stock as of March 31, 2022 $ 1.28 Equals the payment $ 9 Series H-3 Convertible Preferred Stock As of March 31, 2022, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H-3 Preferred Stock outstanding as of March 31, 2022 1,234 Multiplied by the stated value $ 138.00 Equals the gross stated value $ 170,292 Divided by the conversion price $ 165.6 Equals the convertible shares of Company Common Stock 1,028 Multiplied by the fair market value of Company Common Stock as of March 31, 2022 $ 1.28 Equals the payment $ 1,316 Series H-6 Convertible Preferred Stock As of March 31, 2022, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H-6 Preferred Stock outstanding as of March 31, 2022 50 Multiplied by the stated value $ 72.00 Equals the gross stated value $ 3,600 Divided by the conversion price $ 2.5 Equals the convertible shares of Company Common Stock 1,440 Multiplied by the fair market value of Company Common Stock as of March 31, 2022 $ 1.28 Equals the payment $ 1,843 SCHEDULE OF WARRANT ACTIVITY Shares Underlying Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at December 31, 2021 6,108,823 $ 7.37 2.56 Granted - - Exercised - - Expired (2,800 ) 165.60 Outstanding at March 31, 2022 6,108,823 $ 7.30 2.07 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | NOTE 11. STOCK-BASED COMPENSATION AYRO 2020 Long Term Incentive Plan The Company has reserved a total of 4,089,650 1,255,590 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 2022 2021 Three Months Ended March 31, 2022 2021 Research and development $ 16,704 $ 23,486 Sales and marketing 12,945 63,449 General and administrative 258,461 1,612,488 Total $ 288,110 $ 1,699,423 Options The following table reflects the stock option activity: SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY Number of Shares Weighted Contractual Life (Years) Outstanding at December 31, 2021 1,338,675 $ 5.14 8.26 Exercised - Forfeitures (230,903 ) 3.19 Outstanding at March 31, 2022 1,107,773 $ 5.59 7.88 Of the outstanding options, 1,068,318 0 The Company recognized $ 32,376 and $ 269,895 of stock option expense for the three months ended March 31, 2022 and 2021, respectively. Total compensation cost related to non-vested stock option awards not yet recognized as of March 31, 2022 was $ 58,199 a nd will be recognized on a straight-line basis through the end of the vesting periods through December 2023. The amount of future stock option compensation expense could be affected by any future option grants or by any forfeitures. Restricted SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY Number of Shares Weighted Average Grant Price Outstanding at December 31, 2021 450,000 $ 2.48 Granted 442,248 Vested - Forfeitures - Outstanding at March 31, 2022 892,248 $ 1.89 On February 1, 2022, pursuant to the AYRO, INC. 2020 Long-Term Incentive Plan, the Company issued 442,248 shares of restricted stock to non-executive directors at a value of $ 1.29 per share. The Company recognized compensation expense related to all restricted stock issued during the three months ended March 31, 2022 and 2021 of $ 255,734 and $ 1,429,528 , respectively. Total compensation cost related to non-vested restricted stock not yet recognized as of March 31, 2022 was $ 1,250,305 . |
CONCENTRATIONS AND CREDIT RISK
CONCENTRATIONS AND CREDIT RISK | 3 Months Ended |
Mar. 31, 2022 | |
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, LLC (“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. 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. Two customers accounted for approximately 99 1 72 24 Accounts Receivable As of March 31, 2022 one customer accounted for approximately 99 % of the Company’s gross accounts receivable. As of December 31, 2021 two customers accounted for more than 10% of the Company’s gross accounts receivable. One customer accounted for approximately 87 % of the Company’s gross accounts receivable and a second customer accounted for approximately 10 % of the Company’s gross accounts receivable. Purchasing The Company places orders with various suppliers. During the three months ended March 31, 2022 and 2021, multiple suppliers provided more than 10% of the Company’s raw materials purchases. During the three months ended March 31, 2022, one supplier accounted for approximately 65 15 30 22 16 Manufacturing Cenntro owns the design of the AYRO 411x model and has granted the Company an exclusive license to manufacture AYRO 411x 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 the AYRO 411x in the United States, and the Company is required to purchase the minimum volume of product units from Cenntro, among other obligations. In April 2022, the Company received a letter from Cenntro claiming that it had not met the minimum purchase requirements under the MLA and that Cenntro would therefore be terminating its exclusive license. Although AYRO’s purchases were below the numerical minimums set forth in the MLA, the Company believes it should retain its exclusive license, as the failure to meet such minimums was not due to the Company’s failure to perform under the MLA. The Company is in discussions with Cenntro concerning the continued applicability of its exclusive license. If AYRO loses this license, Cenntro could sell identical or similar products through other companies or directly to the Company’s customers, which could have a material adverse effect on its results of operations and financial condition. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 13. COMMITMENTS AND CONTINGENCIES Manufacturing Agreements On September 25, 2020, AYRO entered into a Master Manufacturing Services Agreement (the “Karma Agreement”) with Karma Automotive, LLC (“Karma”). The term of the contract is for 12 1,160,800 The Company paid Karma an amount of $ 440,000 80,000 66,845 641,140 468,480 73,333 350,660 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. 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. Cenntro owns the design of the AYRO 411 Fleet vehicles and has granted the Company an exclusive license to purchase the AYRO 411 Fleet vehicles for sale in North America. Currently, the Company purchases 100% of its vehicle chassis, cabs and wheels through this supply chain relationship with Cenntro. The Company must sell a minimum number of units in order to maintain its exclusive supply chain contract upon availability of the 411x. See Note 12 for concentration amounts. 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; however, these minimums were waived by Cenntro in 2021. As of March 31, 2022 and December 31, 2021, the total prepaid expenses were $ 1,483,546 1,469,743 780,340 867,727 Other As of January 1, 2019, DropCar had accrued approximately $ 232,000 $ 3,500 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). 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 DropCar was audited by the New York State Department of Taxation and Finance (“DOTF”) for its sales tax paid over the period of 2017 – 2020. The DOTF believes DropCar owes additional sales tax plus interest. Management is investigating the details this audit. As of March 31, 2022 and December 31, 2021, the Company has an accrued balance of $ 476,280 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Principles of Consolidation | Basis of Presentation and Principles of Consolidation The consolidated financial statements represent the consolidation of the accounts of the Company and its subsidiaries in conformity with GAAP. All intercompany accounts and transactions have been eliminated in 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. 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 months ended March 31, 2022, 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, 2021, which are included in the Company’s Annual Report on Form 10-K, filed with the SEC on March 23, 2022, as amended on May 2, 2022. |
Use of Estimates | Use of Estimates The preparation of the 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 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, valuation of long lived assets, sales warranties, and the measurement of stock-based compensation expenses. Actual results could differ from these estimates. |
Marketable Securities | Marketable Securities Marketable securities includes the investment in fixed income bonds and U.S. Treasury securities that are considered to be highly liquid and easily tradeable. The marketable securities are considered trading securities and are measured at fair value and are accounted for in accordance with ASC 320. The marketable securities are valued using inputs observable in active markets for identical securities and are therefore classified as Level 1 within the Company’s fair value hierarchy. |
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 similar in all material respects 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 $ 110,549 50,626 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 and non-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. For value-based vesting grants, expense is recognized via straight line expense over the expected period per grant as determined by outside valuation experts. Stock-based compensation is reversed for forfeitures in the period of forfeiture. We estimate the fair value of stock-based and cash unit awards containing a market condition using a Monte Carlo simulation model. Key inputs and assumptions used in the Monte Carlo simulation model include the stock price of the award on the grant date, the expected term, the risk-free interest rate over the expected term, the expected annual dividend yield and the expected stock price volatility. The expected volatility is based on a combination of the historical and implied volatility of the Company’s publicly traded, near-the-money stock options, and the valuation period is based on the vesting period of the awards. The risk-free interest rate is derived from the U.S. Treasury yield curve in effect at the time of grant and, since the Company does not currently pay or plan to pay a dividend on its common stock, the expected dividend yield was zero. In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“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. 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 March 31, 2022 2021 Options to purchase common stock 1,107,773 1,845,282 Restricted stock unvested 892,248 1,244,503 Warrants outstanding 6,106,023 7,361,083 Preferred stock outstanding 2,475 2,475 Totals 8,108,519 10,453,343 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 2021 Options to purchase common stock 1,107,773 1,845,282 Restricted stock unvested 892,248 1,244,503 Warrants outstanding 6,106,023 7,361,083 Preferred stock outstanding 2,475 2,475 Totals 8,108,519 10,453,343 |
REVENUES (Tables)
REVENUES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
SCHEDULE OF DISAGGREGATION OF REVENUE | Revenue by type was as follows: SCHEDULE OF DISAGGREGATION OF REVENUE 2022 2021 Three Months Ended March 31, 2022 2021 Revenue type Product revenue $ 919,343 $ 710,199 Shipping revenue 107,503 41,983 Service income - 36,687 Revenue $ 1,026,846 $ 788,869 |
ACCOUNTS RECEIVABLE, NET (Table
ACCOUNTS RECEIVABLE, NET (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, December 31, 2022 2021 Trade receivables $ 1,388,615 $ 1,142,567 Less: Allowance for doubtful accounts (184,795 ) (173,138 ) Accounts receivable, net $ 1,203,820 $ 969,429 |
INVENTORY, NET (Tables)
INVENTORY, NET (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
SCHEDULE OF INVENTORY | Inventory consisted of the following: SCHEDULE OF INVENTORY March 31, December 31, 2022 2021 Raw materials $ 3,585,607 $ 3,481,614 Work-in-progress 91,969 51,441 Finished goods 179,827 210,982 Total $ 3,857,403 $ 3,744,037 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 March 31, December 31, 2022 2021 Prepaid final assembly services $ 350,660 $ 439,660 Prepayments for inventory 1,764,198 1,622,617 Prepaid other 474,312 213,901 Total $ 2,589,170 $ 2,276,178 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
SCHEDULE OF PROPERTY AND EQUIPMENT, NET | Property and equipment consisted of the following: SCHEDULE OF PROPERTY AND EQUIPMENT, NET March 31, December 31, 2022 2021 Computer and equipment $ 913,882 $ 853,695 Furniture and fixtures 204,756 173,155 Lease improvements 304,121 282,271 Prototypes 300,376 300,376 Computer software 455,875 455,875 Property and Equipment gross 2,179,010 2,065,372 Less: Accumulated depreciation (1,314,704 ) (1,230,212 ) Property and Equipment net $ 864,306 $ 835,160 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
SCHEDULE OF MARKETABLE SECURITIES | Marketable securities consisted of the following: SCHEDULE OF MARKETABLE SECURITIES Cost Basis Gross Unrealized Losses Total Bonds $ 12,178,027 $ (22,101 ) $ 12,155,926 US treasury securities 7,821,973 - 7,821,973 $ 20,000,000 $ (22,101 ) $ 19,977,899 |
STOCKHOLDERS_ EQUITY (Tables)
STOCKHOLDERS’ EQUITY (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Class of Stock [Line Items] | |
SCHEDULE OF WARRANT ACTIVITY | SCHEDULE OF WARRANT ACTIVITY Shares Underlying Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Outstanding at December 31, 2021 6,108,823 $ 7.37 2.56 Granted - - Exercised - - Expired (2,800 ) 165.60 Outstanding at March 31, 2022 6,108,823 $ 7.30 2.07 |
Convertible Preferred Stock Series H [Member] | |
Class of Stock [Line Items] | |
SCHEDULE OF PAYMENT OF PREFERRED STOCK | As of March 31, 2022, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H Preferred Stock outstanding as of March 31, 2022 8 Multiplied by the stated value $ 154 Equals the gross stated value $ 1,232 Divided by the conversion price $ 184.8 Equals the convertible shares of Company Common Stock 7 Multiplied by the fair market value of Company Common Stock as of March 31, 2022 $ 1.28 Equals the payment $ 9 |
Convertible Preferred Stock Series H-3 [Member] | |
Class of Stock [Line Items] | |
SCHEDULE OF PAYMENT OF PREFERRED STOCK | As of March 31, 2022, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H-3 Preferred Stock outstanding as of March 31, 2022 1,234 Multiplied by the stated value $ 138.00 Equals the gross stated value $ 170,292 Divided by the conversion price $ 165.6 Equals the convertible shares of Company Common Stock 1,028 Multiplied by the fair market value of Company Common Stock as of March 31, 2022 $ 1.28 Equals the payment $ 1,316 |
Convertible Preferred Stock Series H-6 [Member] | |
Class of Stock [Line Items] | |
SCHEDULE OF PAYMENT OF PREFERRED STOCK | As of March 31, 2022, such payment would be calculated as follows: SCHEDULE OF PAYMENT OF PREFERRED STOCK Number of Series H-6 Preferred Stock outstanding as of March 31, 2022 50 Multiplied by the stated value $ 72.00 Equals the gross stated value $ 3,600 Divided by the conversion price $ 2.5 Equals the convertible shares of Company Common Stock 1,440 Multiplied by the fair market value of Company Common Stock as of March 31, 2022 $ 1.28 Equals the payment $ 1,843 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
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 2022 2021 Three Months Ended March 31, 2022 2021 Research and development $ 16,704 $ 23,486 Sales and marketing 12,945 63,449 General and administrative 258,461 1,612,488 Total $ 288,110 $ 1,699,423 |
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 Contractual Life (Years) Outstanding at December 31, 2021 1,338,675 $ 5.14 8.26 Exercised - Forfeitures (230,903 ) 3.19 Outstanding at March 31, 2022 1,107,773 $ 5.59 7.88 |
Restricted Stock [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY | SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY Number of Shares Weighted Average Grant Price Outstanding at December 31, 2021 450,000 $ 2.48 Granted 442,248 Vested - Forfeitures - Outstanding at March 31, 2022 892,248 $ 1.89 |
LIQUIDITY AND OTHER UNCERTAIN_2
LIQUIDITY AND OTHER UNCERTAINTIES (Details Narrative) - USD ($) | 3 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Liquidity And Other Uncertainties | |||
Net loss | $ 4,578,660 | $ 5,633,833 | |
Net cash provided by used in operating activities | 5,545,113 | $ 3,450,067 | |
Cash | 43,494,716 | $ 69,160,466 | |
Marketable securities | 19,977,899 | ||
Working capital | $ 3,946,646 |
SCHEDULE OF ANTIDILUTIVE SECURI
SCHEDULE OF ANTIDILUTIVE SECURITIES EXCLUDED FROM COMPUTATION OF EARNINGS PER SHARE (Details) - shares | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Totals | 8,108,519 | 10,453,343 |
Options to Purchase Common Stock [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Totals | 1,107,773 | 1,845,282 |
Restricted Stock Unvested [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Totals | 892,248 | 1,244,503 |
Warrants Outstanding [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Totals | 6,106,023 | 7,361,083 |
Preferred Stock Outstanding [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Totals | 2,475 | 2,475 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Accounting Policies [Abstract] | ||
Shipping expenses | $ 110,549 | $ 50,626 |
SCHEDULE OF DISAGGREGATION OF R
SCHEDULE OF DISAGGREGATION OF REVENUE (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,026,846 | $ 788,869 |
Product [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 919,343 | 710,199 |
Shipping Revenue [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 107,503 | 41,983 |
Service Income [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 36,687 |
REVENUES (Details Narrative)
REVENUES (Details Narrative) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Revenue from Contract with Customer [Abstract] | ||
Warranty reserves | $ 330,180 | $ 240,517 |
SCHEDULE OF ACCOUNTS RECEIVABLE
SCHEDULE OF ACCOUNTS RECEIVABLE (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Trade receivables | $ 1,388,615 | $ 1,142,567 |
Less: Allowance for doubtful accounts | (184,795) | (173,138) |
Accounts receivable, net | $ 1,203,820 | $ 969,429 |
SCHEDULE OF INVENTORY (Details)
SCHEDULE OF INVENTORY (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,585,607 | $ 3,481,614 |
Work-in-progress | 91,969 | 51,441 |
Finished goods | 179,827 | 210,982 |
Total | $ 3,857,403 | $ 3,744,037 |
INVENTORY, NET (Details Narrati
INVENTORY, NET (Details Narrative) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Inventory [Line Items] | |||
Depreciation expenses | $ 84,492 | $ 71,128 | |
Inventory write down | $ 388,735 | ||
Fleet Inventory [Member] | |||
Inventory [Line Items] | |||
Depreciation expenses | $ 23,892 | $ 23,886 |
SCHEDULE OF PREPAID EXPENSES AN
SCHEDULE OF PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid final assembly services | $ 350,660 | $ 439,660 |
Prepayments for inventory | 1,764,198 | 1,622,617 |
Prepaid other | 474,312 | 213,901 |
Total | $ 2,589,170 | $ 2,276,178 |
SCHEDULE OF PROPERTY AND EQUIPM
SCHEDULE OF PROPERTY AND EQUIPMENT, NET (Details) - USD ($) | Mar. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and Equipment gross | $ 2,179,010 | $ 2,065,372 |
Less: Accumulated depreciation | (1,314,704) | (1,230,212) |
Property and Equipment net | 864,306 | 835,160 |
Computer and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment gross | 913,882 | 853,695 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment gross | 204,756 | 173,155 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment gross | 304,121 | 282,271 |
Prototypes [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment gross | 300,376 | 300,376 |
Computer Software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and Equipment gross | $ 455,875 | $ 455,875 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details Narrative) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 84,492 | $ 71,128 |
SCHEDULE OF MARKETABLE SECURITI
SCHEDULE OF MARKETABLE SECURITIES (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Net Investment Income [Line Items] | ||
Cost Basis | $ 20,000,000 | |
Gross Unrealized Losses | (22,101) | |
Fair Value | 19,977,899 | |
Bonds [Member] | ||
Net Investment Income [Line Items] | ||
Cost Basis | 12,178,027 | |
Gross Unrealized Losses | (22,101) | |
Fair Value | 12,155,926 | |
US Treasury Securities [Member] | ||
Net Investment Income [Line Items] | ||
Cost Basis | 7,821,973 | |
Gross Unrealized Losses | ||
Fair Value | $ 7,821,973 |
SCHEDULE OF PAYMENT OF PREFERRE
SCHEDULE OF PAYMENT OF PREFERRED STOCK (Details) | Mar. 31, 2022USD ($)$ / sharesshares |
Convertible Preferred Stock Series H [Member] | |
Class of Stock [Line Items] | |
Number of Series H-6 Preferred Stock outstanding as of March 31, 2022 | shares | 8 |
Multiplied by the stated value | $ 154 |
Equals the gross stated value | $ | $ 1,232 |
Divided by the conversion price | $ 184.8 |
Equals the convertible shares of Company Common Stock | shares | 7 |
Multiplied by the fair market value of Company Common Stock as of March 31, 2022 | $ 1.28 |
Equals the payment | $ | $ 9 |
Convertible Preferred Stock Series H-3 [Member] | |
Class of Stock [Line Items] | |
Number of Series H-6 Preferred Stock outstanding as of March 31, 2022 | shares | 1,234 |
Multiplied by the stated value | $ 138 |
Equals the gross stated value | $ | $ 170,292 |
Divided by the conversion price | $ 165.6 |
Equals the convertible shares of Company Common Stock | shares | 1,028 |
Multiplied by the fair market value of Company Common Stock as of March 31, 2022 | $ 1.28 |
Equals the payment | $ | $ 1,316 |
Convertible Preferred Stock Series H-6 [Member] | |
Class of Stock [Line Items] | |
Number of Series H-6 Preferred Stock outstanding as of March 31, 2022 | shares | 50 |
Multiplied by the stated value | $ 72 |
Equals the gross stated value | $ | $ 3,600 |
Divided by the conversion price | $ 2.5 |
Equals the convertible shares of Company Common Stock | shares | 1,440 |
Multiplied by the fair market value of Company Common Stock as of March 31, 2022 | $ 1.28 |
Equals the payment | $ | $ 1,843 |
SCHEDULE OF WARRANT ACTIVITY (D
SCHEDULE OF WARRANT ACTIVITY (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Equity [Abstract] | |
Shares Underlying Warrants Outstanding, Beginning | shares | 6,108,823 |
Weighted Average Exercise Price Outstanding, Beginning | $ / shares | $ 7.37 |
Weighted Average Remaining Contractual Life, Beginning | 2 years 6 months 21 days |
Shares Underlying Warrants Granted | shares | |
Weighted Average Exercise Price Granted | $ / shares | |
Shares Underlying Warrants Exercised | shares | |
Weighted Average Exercise Price Exercised | $ / shares | |
Shares Underlying Warrants Expired | shares | (2,800) |
Weighted Average Exercise Price Expired | $ / shares | $ 165.60 |
Shares Underlying Warrants Outstanding, Ending | shares | 6,108,823 |
Weighted Average Exercise Price Outstanding, Ending | $ / shares | $ 7.30 |
Weighted Average Remaining Contractual Life, Ending | 2 years 25 days |
STOCKHOLDERS_ EQUITY (Details N
STOCKHOLDERS’ EQUITY (Details Narrative) - $ / shares | Feb. 01, 2022 | Feb. 24, 2021 | Mar. 31, 2022 | Dec. 31, 2021 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common Stock, Shares, Issued | 36,909,956 | 36,866,956 | ||
Restricted Stock [Member] | Common Stock [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Common Stock, Shares, Issued | 43,000 | |||
Director [Member] | Restricted Stock [Member] | 2020 Long-Term Incentive Plan [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 442,248 | 172,000 | ||
Shares Issued, Price Per Share | $ 1.29 | $ 7.66 |
SCHEDULE OF STOCK-BASED COMPENS
SCHEDULE OF STOCK-BASED COMPENSATION (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | $ 288,110 | $ 1,699,423 |
Research and Development [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | 16,704 | 23,486 |
Sales and Marketing [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | 12,945 | 63,449 |
General and Administrative [Member] | ||
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||
Total | $ 258,461 | $ 1,612,488 |
SCHEDULE OF STOCK-BASED COMPE_2
SCHEDULE OF STOCK-BASED COMPENSATION, STOCK OPTIONS, ACTIVITY (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of Stock options outstanding, Beginning | 1,338,675 |
Weighted average exercise price outstanding, Beginning | $ / shares | $ 5.14 |
Weighted average remaining contractual life, beginning | 8 years 3 months 3 days |
Number of Stock options Excercised | |
Number of Stock options forfeitures | (230,903) |
Weighted average exercise price forfeitures | $ / shares | $ 3.19 |
Number of Stock options outstanding, Ending | 1,107,773 |
Weighted average exercise price outstanding, Ending | $ / shares | $ 5.59 |
Weighted average remaining contractual life, ending | 7 years 10 months 17 days |
Restricted Stock Units (RSUs) [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Number of shares, Outstanding Beginning | 450,000 |
Weighted Average Grant Price, Outstanding Beginning | $ / shares | $ 2.48 |
Number of shares, Granted | 442,248 |
Number of shares, Vested | |
Number of shares, Forfeited | |
Number of shares, Outstanding Ending | 892,248 |
Weighted Average Grant Price, Outstanding Ending | $ / shares | $ 1.89 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details Narrative) - USD ($) | Feb. 01, 2022 | Feb. 24, 2021 | Mar. 31, 2022 | Mar. 31, 2021 |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-Based Payment Arrangement, Expense | $ 288,110 | $ 1,699,423 | ||
Share-Based Payment Arrangement, Option [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of stock options vested | 1,068,318 | |||
Aggregate intrinsic value of stock options vested and exercisable | $ 0 | |||
Stock or Unit Option Plan Expense | 32,376 | 269,895 | ||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 58,199 | |||
2020 Long Term Incentive Plan [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of stock options available for grants | 1,255,590 | |||
Directors [Member] | 2020 Long Term Incentive Plan [Member] | Drop Car Inc [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Number of shares reserved | 4,089,650 | |||
Directors [Member] | 2020 Long-Term Incentive Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Share-Based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 1,250,305 | |||
Share-Based Payment Arrangement, Expense | $ 255,734 | $ 1,429,528 | ||
Director [Member] | 2020 Long-Term Incentive Plan [Member] | Restricted Stock [Member] | ||||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | ||||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 442,248 | 172,000 | ||
Shares Issued, Price Per Share | $ 1.29 | $ 7.66 |
CONCENTRATIONS AND CREDIT RISK
CONCENTRATIONS AND CREDIT RISK (Details Narrative) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 | |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | One Supplier [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 65.00% | 30.00% | |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Two Supplier [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 15.00% | 22.00% | |
Cost of Goods and Service, Product and Service Benchmark [Member] | Supplier Concentration Risk [Member] | Third Supplier [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 16.00% | ||
One Customer [Member] | Sales Revenue [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 99.00% | 72.00% | |
One Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 99.00% | 87.00% | |
Two Customer [Member] | Sales Revenue [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 1.00% | 24.00% | |
Two Customer [Member] | Accounts Receivable [Member] | Customer Concentration Risk [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk percentage | 10.00% |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) | Sep. 25, 2020 | Jan. 02, 2019 | Mar. 31, 2022 | Mar. 31, 2021 | Dec. 31, 2021 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Stock-based compensation | $ 288,110 | $ 1,699,423 | |||
Cost of goods and services sold | 1,177,145 | $ 644,503 | |||
Other accrued liabilities, current | 476,280 | $ 476,280 | |||
Karma Automotive, LLC [Member] | First Production Level Builds [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Settlement of multiple employment disputes | 641,140 | ||||
Reduce of prepaid litigation expense | 468,480 | ||||
Cost of goods and services sold | 73,333 | ||||
Drop Car Operating Inc [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Settlement of multiple employment disputes | $ 232,000 | ||||
Remaning accounts payable and accrued liabilities | 3,500 | 3,500 | |||
Legal fees | 45,000 | ||||
Loss contingency damages awarded value | 45,000 | 45,000 | |||
Other liabilities | 186,000 | 186,000 | |||
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 | ||||
Production cost balance remained | 350,660 | ||||
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 | ||||
Supply Chain Agreement [Member] | |||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||
Prepaid expense | 1,483,546 | 1,469,743 | |||
Accrued liabilities | $ 780,340 | $ 867,727 |