Exhibit 99.5
 
 
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
 
On December 19, 2019, DropCar, ABC Merger Sub, Inc., a wholly-owned subsidiary of DropCar (“Merger Sub”) and AYRO, Inc. (“AYRO”) entered into an agreement and plan of merger and reorganization (as may be amended from time to time, the “Merger Agreement”), which provides for, among other things, the merger of AYRO with and into Merger Sub, with AYRO continuing as the surviving corporation and a wholly-owned subsidiary of DropCar. The unaudited pro forma condensed combined financial statements as of and for the nine months ended September 30, 2019, and for the year ended December 31, 2018, give effect to the proposed merger of Merger Sub with and into AYRO, and have been prepared under the acquisition method of accounting with AYRO treated as the accounting acquirer. AYRO is anticipated to be the accounting acquirer based upon the terms of the merger and other factors, such as the number of shares to be issued to AYRO stockholders under the Merger Agreement, relative voting rights and the composition of the combined company’s board and senior management. The unaudited pro forma condensed financial statements also give effect to the proposed disposition by DropCar of the assets associated with its business of providing vehicle support, fleet logistics and concierge services for both consumers and the automotive industry to DC Partners Acquisition, LLC (the “Parent Legacy Asset Disposition”).
 
The unaudited pro forma condensed combined balance sheet as of September 30, 2019 combines the historical condensed balance sheet of AYRO as of September 30, 2019 and the historical condensed consolidated balance sheet of DropCar as of September 30, 2019, giving pro forma effect to the merger and the Parent Legacy Asset Disposition as if such transactions had been completed on September 30, 2019. The unaudited pro forma condensed combined statements of operations for the year ended December 31, 2018 and the nine months ended September 30, 2019, combine the historical audited condensed statement of operations of DropCar for its fiscal year ended December 31, 2018 and the historical unaudited condensed statement of operations of DropCar for the nine months ended September 30, 2019, respectively, and the historical audited condensed statements of operations of AYRO for its fiscal year ended December 31, 2018 and the historical unaudited condensed statements of operations of AYRO for the nine months ended September 30, 2019, respectively, giving pro forma effect to the merger and the Parent Legacy Asset Disposition as if such transactions had been completed on January 1, 2018. The historical financial information has been adjusted in the respective unaudited pro forma condensed combined financial statements to give effect to pro forma events that are (1) directly attributable to the merger or the Parent Legacy Asset Disposition, (2) factually supportable, and (3) with respect to the statements of operations, expected to have a continuing impact on the combined company.
 
The unaudited pro forma condensed combined financial statements presented are based on the assumptions and adjustments described in the accompanying notes. The pro forma condensed combined financial statements are presented for illustrative purposes only and do not purport to represent what the financial position or results of operations would have been if the proposed merger or the Parent Legacy Asset Disposition had been completed as of the dates indicated in the unaudited pro forma condensed combined financial statements or that will be realized upon the consummation of the proposed transactions.
 
The application of the acquisition method of accounting is dependent upon certain valuations and other studies that have yet to be completed or have not progressed to a stage where there is sufficient information for a definitive measurement. Accordingly, the pro forma adjustments are preliminary, subject to further revision as additional information becomes available and additional analyses are performed, and have been made solely for the purpose of providing unaudited pro forma condensed combined financial statements. Upon consummation of the merger, final valuations and studies will be performed. Differences between these preliminary estimates and the final acquisition accounting may occur and these differences could have a material impact on the accompanying unaudited pro forma condensed combined financial statements and the combined company’s future financial position and results of operations. Fair values determined as of the assumed acquisition dates are based on the most recently available information. To the extent there are significant changes to DropCar’s or AYRO’s business, or as new information becomes available, the assumptions and estimates herein could change significantly.
 
Because AYRO will be treated as the accounting acquirer, AYRO’s assets and liabilities will be recorded at their precombination carrying amounts and the historical operations that are reflected in the financial statements will be those of AYRO. DropCar’s assets and liabilities will be measured and recognized at their fair values as of the date of the merger, and consolidated with the assets, liabilities and results of operations of AYRO after the consummation of the merger. The unaudited pro forma condensed combined statements of operations include certain acquisition accounting adjustments described therein.
 
The unaudited pro forma condensed combined statements of operations do not include (a) the impacts of any revenue, cost or other operating synergies that may result from the merger or any related restructuring costs; (b) certain amounts resulting from the merger that were determined to be of a non-recurring nature; and (c) the impact of the proposed reverse stock split described elsewhere in this joint proxy and consent solicitation statement/prospectus.
 
 
 
 
 
 
Notes to Unaudited Pro Forma Condensed Consolidated Financial Statements
1. Description of the Transaction and Basis of Pro Forma Presentation
 
The unaudited pro forma condensed combined financial statements were prepared in accordance with accounting principles generally accepted in the United States of America and pursuant to the rules and regulations of SEC Regulation S-X, and present the pro forma financial position and results of operations of the surviving company based upon the historical data of DropCar and Ayro, after giving effect to the merger.
 
Proposed Merger
 
Pursuant to the merger agreement, a wholly owned subsidiary of DropCar will be merged with and into Ayro, with Ayro continuing after the merger as the surviving corporation and a wholly-owned subsidiary of DropCar. DropCar will issue to Ayro stockholders 0.9444 shares of DropCar common stock per share of Ayro common stock, pursuant to the terms of the Merger Agreement. On a pro forma basis, based upon the number of shares of DropCar common stock expected to be issued in the merger (including in respect of outstanding Ayro options and warrants), (i) current DropCar stockholders and their designees will own approximately 20% of the combined company and current Ayro stockholders and their designees will own approximately 80% of the combined company, in each case excluding the shares to be held in escrow to secure indemnification obligations.
 
Treatment of Stock Options and Warrants in the Merger
 
All Ayro stock options granted under the Ayro stock option plans (whether or not then exercisable) that are outstanding prior to the effective time of the merger will convert into options to purchase DropCar common stock, retaining their same vesting schedules. All warrants to purchase shares of Ayro capital stock that are outstanding prior to the effective time of the merger will be cancelled. At the effective time of the merger, the warrants will be converted into and exchangeable for warrants to purchase shares of DropCar common stock equal to the number of shares Ayro common stock issuable upon exercise of such warrants multiplied by the Exchange Ratio with an exercise price equal to the exercise price of such warrants divided by the Exchange Ratio. After the effective time, all outstanding and unexercised Ayro stock options assumed by DropCar may be exercised solely for shares of DropCar common stock. The number of shares of DropCar common stock subject to each Ayro stock option assumed by DropCar shall be determined by multiplying (a) the number of shares of Ayro common stock that were subject to such Ayro stock option, as in effect immediately prior to the effective time of the merger by (b) the Exchange Ratio, as defined in the merger agreement, and rounding the resulting number down to the nearest whole number of shares of DropCar common stock. The per share exercise price for the DropCar common stock issuable upon exercise of each Ayro stock options assumed by DropCar shall be determined by dividing (x) the per share exercise price of Ayro common stock subject to such Ayro stock option, as in effect immediately prior to the effective time of the merger, by (y) the Exchange Ratio and rounding the resulting exercise price up to the nearest whole cent. Refer to the section entitled “Merger Agreement — Effects of Merger; Merger Consideration” elsewhere in this joint proxy and consent solicitation statement/prospectus for further information regarding the exchange ratio.
 
Vesting of most DropCar equity awards issued and outstanding will be accelerated to 100% at the Effective Time of the merger, and all such equity awards issued and outstanding at the time of the merger will remain issued and outstanding. For accounting purposes, since the awards become fully vested contemporaneously with the consummation of the merger, any remaining unrecognized compensation cost associated with the original grant date fair value of the awards would be recognized in DropCar’s precombination financial statements.
 
As a condition to the Closing, DropCar is obligated to raise $6 million, in equity financing (the “Merger Financing”) and/or convertible debt financing. The Merger Financing is expected to close immediately prior to or simultaneously with the Closing. In addition, the consummation of the Merger is subject to customary conditions, including, without limitation, (a) approval by the DropCar and Ayro stockholders of the Merger Agreement and the transactions contemplated thereby; (b) the absence of any law, order, injunction or other legal restraint prohibiting the Merger; and (c) receipt of approval from NASDAQ to list the shares of DropCar common stock on The NASDAQ Capital Market post-Merger. Moreover, each party’s obligation to consummate the Merger is subject to certain other conditions, including, without limitation, (i) the accuracy of the other party’s representations and warranties (subject to customary qualifiers), and (ii) the other party’s compliance with its covenants and agreements contained in the Merger Agreement (subject to customary qualifiers). The Merger Agreement contains specified termination rights for both the DropCar and Ayro, and further provides that, upon termination of the Merger Agreement under specified circumstances, either party may be required to pay the other party a termination fee of  $1,000,000, which, under specified circumstances, may include reimbursement for various expenses incurred in connection with the proposed Merger.
 
 
 
1
 
 
DropCar, Inc., and Subsidiaries
PROFORMA Condensed Consolidated Balance Sheets
As of September 30, 2019
(Unaudited)
 
 
 
AYRO, Inc.
 
 
DropCar, Inc.
 
 
Pro Forma Adjustments for Disposition
 
 
Pro Forma As Adjusted
 
 
Pro Forma Adjustments for AYRO Reverse Acquisition
 
 
 
 
 
 
 
ASSETS
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
CURRENT ASSETS:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash
 $60,823 
 $2,594,888 
 $(2,594,888)
 $60,823 
 $6,000,000 
(1)
 $6,060,823 
Accounts receivable, net
  395,521 
  176,328 
  (176,328)
  395,521 
  - 
    
  395,521 
Inventories
  1,115,171 
  - 
  - 
  1,115,171 
  - 
    
  1,115,171 
Prepaid expenses and other current assets
  203,980 
  311,567 
  (311,567)
  203,980 
  - 
    
  203,980 
Total current assets
  1,775,495 
  3,082,783 
  (3,082,783)
  1,775,495 
  6,000,000 
    
  7,775,495 
 
    
    
    
    
    
    
    
Property and equipment, net
  751,159 
  28,255 
  (28,255)
  751,159 
  - 
    
  751,159 
Capitalized software costs, net
  - 
  478,129 
  (478,129)
  - 
  - 
    
  - 
Operating lease right-of-use asset
  - 
  3,772 
  (3,772)
  - 
  - 
    
  - 
Other assets
  313,389 
  3,525 
  (3,525)
  313,389 
    
    
  313,389 
 
    
    
    
    
    
    
    
TOTAL ASSETS
 $2,840,043 
 $3,596,464 
 $(3,596,464)
 $2,840,043 
 $6,000,000 
    
 $8,840,043 
 
    
    
    
    
    
    
    
LIABILITIES AND STOCKHOLDERS' EQUITY
    
    
    
    
    
    
    
 
    
    
    
    
    
    
    
CURRENT LIABILITIES:
    
    
    
    
    
    
    
Accounts payable
 $2,237,418 
 $274,446 
 $(274,446)
 $2,237,418 
 $(1,237,729)
(8) (9)
 $999,689 
Accrued Expenses
  724,535 
  1,254,351 
  (1,254,351)
  724,535 
  (39,003)
(3)
  685,532 
Deferred revenue
  - 
  304,683 
  (304,683)
  - 
  - 
       
  - 
Related Party Payables
  15,000 
  - 
  - 
  15,000 
  - 
       
  15,000 
Notes Payable, net of debt discount, current portion
  452,604 
  - 
  - 
  452,604 
  (445,801)
(2)
  6,803 
Total current liabilities
  3,429,558 
  1,833,480 
  (1,833,480)
  3,429,558 
  (1,722,533)
       
  1,707,025 
 
    
    
    
    
    
       
    
Notes payable, net of debt discount
  23,399 
  - 
  - 
  23,399 
  137,729 
(8)
  161,128 
TOTAL LIABILITIES
  3,452,957 
  1,833,480 
  (1,833,480)
  3,452,957 
  (1,584,804)
       
  1,868,153 
 
    
    
    
    
    
       
    
COMMITMENTS AND CONTINGENCIES
    
    
    
    
    
       
    
 
    
    
    
    
    
       
    
STOCKHOLDERS' EQUITY:
    
    
    
    
    
       
    
Ayro Preferred stock, $0.001 par value, 8,472,500 shares authorized
    
    
    
    
    
       
    
Ayro Series Seed 1 Preferred Stock 3,272,500 shares designated, 3,272,500 shares issued and outstanding;
  3,272,500 
  - 
  - 
  3,272,500 
  (3,272,500)
(4)
  - 
Ayro Series Seed 2 Preferred Stock 2,200,000 shares designated, 1,907,682 shares issued and outstanding;
  3,268,444 
  - 
  - 
  3,268,444 
  (3,268,444)
(4)
  - 
Ayro Series Seed 3 Preferred Stock 3,000,000 shares designated, 303,500 shares issued and outstanding;
  607,000 
  - 
  - 
  607,000 
  (607,000)
(4)
  - 
DropCar Preferred stock, $0.0001 par value, 5,000,000 shares authorized
    
    
  - 
  - 
    
       
  - 
DropCar Series seed preferred stock, 842,405 shares authorized, zero issued and outstanding
  - 
  - 
  - 
  - 
  - 
       
  - 
DropCar Series A preferred stock, 1,963,877 shares authorized, zero issued and outstanding
  - 
  - 
  - 
  - 
  - 
       
  - 
DropCar Convertible Series H, 8,500 shares designated, 8 shares issued and outstanding;
  - 
  - 
  - 
  - 
  - 
       
  - 
DropCar Convertible Series H-1, 9,488 shares designated, zero shares issued and outstanding
  - 
  - 
  - 
  - 
  - 
       
  - 
DropCar Convertible Series H-2, 3,500 shares designated, zero shares issued and outstanding
  - 
  - 
  - 
  - 
  - 
       
  - 
DropCar Convertible Series H-3, 8,461 shares designated, 2,189 shares issued and outstanding;
  - 
  - 
  - 
  - 
  - 
       
  - 
DropCar Convertible Series H-4, 30,000 shares designated, 5,028 and 26,619 shares issued and outstanding as of September 30, 2019 and December 31, 2018, respectively;
  - 
  1 
  (1)
  - 
  - 
       
  - 
Ayro Common stock, $0.001 par value; 26,347,500 shares authorized, 10,614,545 issued and outstanding as of September 30, 2019
  12,819 
  - 
  - 
  12,819 
  (12,819)
(5)
  - 
DropCar Common stock, $0.0001 par value; 100,000,000 shares authorized, 4,061,882 issued and outstanding as of September 30, 2019
  - 
  406 
  (406)
  - 
  1,494 
(1) (4) (5)
  1,494 
Additional paid in capital
  2,734,852 
  35,192,968 
  (35,192,968)
  2,734,852 
  14,765,773 
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
  17,500,625 
Accumulated deficit
  (10,508,529)
  (33,430,391)
  33,430,391 
  (10,508,529)
  (21,700)
(8) (9) (10)
  (10,530,229)
 
    
    
    
    
    
    
    
TOTAL STOCKHOLDERS' EQUITY
  (612,914)
  1,762,984 
  (1,762,984)
  (612,914)
  7,584,804 
    
  6,971,890 
 
    
    
    
    
    
    
    
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 $2,840,043 
 $3,596,464 
 $(3,596,464)
 $2,840,043 
 $6,000,000 
    
 $8,840,043 
 
(1) - Investment in Ayro of $6,000,000 included as part of the merger and stock purchase agreements
(2) - Conversion of $640,000 notes payable, net of $194,199 discount on debt into shares of the Company's stock
(3) - Conversion of $39,003 of accrued expenses on notes payable into shares of Company's stock
(4) - Conversion of Ayro preferred stock into common stock 1:1
(5) - Conversion of Ayro common stock into Dropcar common stock
(6) - Interest expense of $49,344 on debt issued in 2019 to 12 individual lenders converted to stock prior to signing of the merger agreement
(7) - Interest expense of $60,649 expensed as discount on debt for debt issued in 2019, converted to equity prior to signing of the merger agreement
(8) - conversion of $137,729 account payable to service provider to long term note payable
(9) - conversion of $1,100,000 account payable to Cenntro Automotive Group to 1,100,000 shares of the company's preferred stock
(10) - Stock-based compensation expense for DropCar employees that is triggered by a change of control of $131,693
 
 
 
 
2
 

DropCar, Inc., and Subsidiaries
PROFORMA Condensed Consolidated Statements of Operations
For the Nine Months Ended September 30, 2019
(Unaudited)
 
 
 
AYRO, Inc.
 
 
DropCar, Inc.
 
 
Pro Forma Adjustments for Disposition
 
 
Pro Forma As Adjusted
 
 
Pro Forma Adjustments for AYRO Reverse Acquisition
 
 
 
 
 
Pro Forma Results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
REVENUES
 $745,530 
 $3,441,307 
 $(3,441,307)
 $745,530 
 $- 
 

 
 $745,530 
 
    
    
    
    
    
 
    
COST OF REVENUE
  577,539 
  3,206,524 
  (3,206,524)
  577,539 
  - 
 
  577,539 
 
    
    
    
    
    
 
    
GROSS PROFIT (LOSS)
  167,991 
  234,783 
  (234,783)
  167,991 
  - 
 
  167,991 
 
    
    
    
    
    
 
    
OPERATING EXPENSES
    
    
    
    
    
 
    
Research and development expenses
  987,350 
  460,426 
  (460,426)
  987,350 
  - 
 
  987,350 
Sales and marketing expenses
  932,903 
  601,746 
  (601,746)
  932,903 
  - 
 
  932,903 
General and administrative expenses
  3,230,430 
  2,865,218 
  (2,865,218)
  3,230,430 
  131,693 
(10)
  3,362,123 
TOTAL OPERATING EXPENSES
  5,150,683 
  3,927,390 
  (3,927,390)
  5,150,683 
  131,693 
       
  5,282,376 
 
    
    
    
    
    
       
    
OPERATING LOSS
  (4,982,691)
  (3,692,607)
  3,692,607 
  (4,982,691)
  (131,693)
       
  (5,114,384)
 
    
    
    
    
    
       
    
Other income (expense), net
  (231,886)
  15,937 
  (15,937)
  (231,886)
  109,993 
(11) (12)
  (121,893)
 
    
    
    
    
    
       
    
LOSS FROM CONTINUING OPERATIONS
  (5,214,578)
  (3,676,670)
  3,676,670 
  (5,214,578)
  (21,700)
       
  (5,236,278)
 
    
    
    
    
    
       
    
NET LOSS
 $(5,214,578)
 $(3,676,670)
 $3,676,670 
 $(5,214,578)
 $(21,700)
       
 $(5,236,278)
 
    
    
    
    
    
       
    
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS
 $(5,214,578)
 $(3,676,670)
 $3,676,670 
 $(5,214,578)
 $(21,700)
       
 $(5,236,278)
 
    
    
    
    
    
       
    
LOSS PER SHARE FROM CONTINUING OPERATIONS:
    
    
    
    
    
       
    
   Basic
 $(0.51)
 $(1.09)
 $ 
 $(0.38)
 $ 
       
 $(0.12)
   Diluted
 $(0.51)
 $(1.09)
 $ 
 $(0.38)
 $ 
       
 $(0.12)
EARNINGS (LOSS) PER SHARE FROM DISCONTINUED OPERATIONS:
    
    
    
    
    
       
    
   Basic
 $- 
 $- 
 $ 
 $- 
 $ 
       
 $- 
   Diluted
 $- 
 $- 
 $ 
 $- 
 $ 
       
 $- 
NET LOSS PER SHARE:
    
    
    
    
    
       
    
   Basic
 $(0.51)
 $(1.09)
 $ 
 $(0.38)
 $ 
       
 $(0.12)
   Diluted
 $(0.51)
 $(1.09)
 $ 
 $(0.38)
 $ 
       
 $(0.12)
WEIGHTED AVERAGE SHARES OUTSTANDING
    
    
    
    
    
       
    
   Basic
  10,263,192 
  3,381,026 
  - 
  13,644,218 
  30,038,655 
(13) (14)
  43,682,873 
   Diluted
  10,263,192 
  3,381,026 
  - 
  13,644,218 
  30,038,655 
       
  43,682,873 
 
AYRO shares outstanding
  10,263,192 
Exchange Ratio
  0.9444 
 
(10) - Stock-based compensation expense for DropCar employees that is triggered by a change of control of $131,693
(11) - Interest expense of $49,344 on debt issued in 2019 to 12 individual lenders converted to stock prior to signing of the merger agreement
(12) - Interest expense of $60,649 expensed as discount on debt for debt issued in 2019, converted to equity prior to signing of the merger agreement
(13) - AYRO outstanding shares multiplied by Merger Exchange Ratio of 0.9444 represents an adjustment of (570,633) shares
(14) - To give effect of the $6m equity raise with merger representing 30,609,288 shares
 
 
 
3
 
 
 
DropCar, Inc., and Subsidiaries
PROFORMA Condensed Consolidated Statements of Operations
For the Year Ended December 31, 2018
 
 
 
AYRO, Inc.
 
 
DropCar, Inc.
 
 
Pro Forma
Adjustments for Disposition
 
 
Pro Forma
As Adjusted
 
 
Pro Forma Adjustments for AYRO Reverse Acquisition
 
 
Pro Forma
Results
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
NET REVENUES
 $5,302,964 
  6,077,667 
  (6,077,667)
 $5,302,964 
 $- 
 $5,302,964 
 
    
    
    
    
    
    
COST OF REVENUES
  5,008,700 
  7,863,673 
  (7,863,673)
  5,008,700 
  - 
  5,008,700 
 
    
    
    
    
    
    
GROSS LOSS
  294,264 
  (1,786,006)
  1,786,006 
  294,264 
  - 
  294,264 
 
    
    
    
    
    
    
OPERATING EXPENSES
    
    
    
    
    
    
Research and development expenses
  768,381 
  322,269 
  (322,269)
  768,381 
  - 
  768,381 
Sales and marketing expenses
  999,723 
  - 
  - 
  999,723 
  - 
  999,723 
General and administrative expenses
  2,578,079 
  - 
  - 
  2,578,079 
  - 
  2,578,079 
Sales, general and administrative expenses (1)
  - 
  11,350,406 
  (11,350,406)
  - 
  - 
  - 
Depreciation and amortization (1)
  - 
  354,657 
  (354,657)
  - 
  - 
  - 
TOTAL OPERATING EXPENSES
  4,346,183 
  12,027,332 
  (12,027,332)
  4,346,183 
  - 
  4,346,183 
 
    
    
    
    
    
    
OPERATING LOSS
  (4,051,920)
  (13,813,339)
  13,813,338 
  (4,051,920)
  - 
  (4,051,920)
 
    
    
    
    
    
    
Other income (expense), net
  (144,571)
  (1,081,226)
  1,081,226 
  (144,571)
  - 
  -144,571 
 
    
    
    
    
    
    
LOSS FROM CONTINUING OPERATIONS
  (4,196,491)
  (14,894,564)
  14,894,564 
  (4,196,491)
  - 
  (4,196,491)
 
    
    
    
    
    
    
DISCONTINUED OPERATIONS
    
    
    
    
    
    
Income from operations of discontinued component
  - 
  315,119 
  (315,119)
  - 
  - 
  0 
Loss on sale of component
  - 
  (4,169,718)
  4,169,718 
  - 
  - 
  0 
LOSS ON DISCONTINUED OPERATIONS
  - 
  (3,854,599)
  3,854,599 
  - 
  - 
  - 
 
    
    
    
    
    
    
 
    
    
    
    
    
    
NET LOSS
  (4,196,491)
  (18,749,163)
  18,749,163 
  (4,196,491)
  - 
 $(4,196,491)
 
    
    
    
    
    
    
Deemed dividend on exchange of warrants
  - 
  (1,399,661)
  1,399,661 
  - 
  - 
  0 
 
    
    
    
    
    
    
NET LOSS ATTRIBUTABLE TO COMMON STOCKHOLDERS
 $(4,196,491)
 $(20,148,824)
 $20,148,824 
 $(4,196,491)
 $- 
 $(4,196,491)
 
    
    
    
    
    
    
 
    
    
    
    
    
    
 
    
    
    
    
    
    
 
    
    
    
    
    
    
 
    
    
    
    
    
    
AMOUNTS ATTRIBUTABLE TO COMMON STOCKHOLDERS
    
    
    
    
    
    
Loss from continuing operations
 $(4,196,491)
 $(16,294,225)
 $16,294,225 
 $(4,196,491)
 $- 
 $(4,196,491)
Loss from discontinued operations
  - 
  (3,854,599)
  3,854,599 
  - 
  - 
  - 
NET LOSS
 $(4,196,491)
 $(20,148,824)
 $20,148,824 
 $(4,196,491)
 $- 
 $(4,196,491)
 
    
    
    
    
    
    
 
    
    
    
    
    
    
NET LOSS PER COMMON SHARE, BASIC AND DILUTED
    
    
    
    
    
    
Continuing operations
 $(0.41)
 $(12.04)
 $ 
 $(0.36)
 $ 
 $(0.10)
Discontinued operations
  - 
  (2.85)
    
  - 
    
  - 
NET LOSS PER COMMON SHARE, BASIC AND DILUTED
 $(0.41)
 $(14.89)
 $ 
 $(0.36)
 $ 
 $(0.10)
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING, BASIC AND DILUTED
  10,242,650 
  1,352,826 
    
  11,595,476 
  32,087,397(13) (14)
 43,682,873 
 
AYRO shares outstanding
  10,242,650 
Exchange Ratio
  0.9444 

(1) as previously reported on DropCar, Inc.'s From 10-K for the year ended December 31, 2018

 
 
4
 
 
Notes to merger proforma adjustments
 
The following pro forma adjustments are based on preliminary estimates, which may change significantly as additional information is obtained:
 
(1)
Investment in Ayro of $6,000,000 included as part of the merger and stock purchase agreements
(2)
Conversion of $640,000 notes payable, net of $194,199 discount on debt into shares of the Company's stock
(3)
Conversion of $39,003 of accrued expenses on notes payable into shares of Company's stock
(4)
Conversion of Ayro preferred stock into common stock 1:1
(5)
Conversion of Ayro common stock into Dropcar common stock
(6)
Interest expense of $49,344 on debt issued in 2019 to 12 individual lenders converted to stock prior to signing of the merger agreement
(7)
Interest expense of $60,649 expensed as discount on debt for debt issued in 2019, converted to equity prior to signing of the merger agreement
(8)
Conversion of $137,729 account payable to service provider to long term note payable
(9)
Conversion of $1,100,000 account payable to Cenntro Automotive Group to 1,100,000 shares of the company's preferred stock
(10)
Stock-based compensation expense for DropCar employees that is triggered by a change of control of $131,693
(11)
Interest expense of $49,344 on debt issued in 2019 to 12 individual lenders converted to stock prior to signing of the merger agreement
(12)
Interest expense of $60,649 expensed as discount on debt for debt issued in 2019, converted to equity prior to signing of the merger agreement
(13)
AYRO outstanding shares multiplied by Merger Exchange Ratio of 0.9444 represents an adjustment of (570,633) shares
(14)
To give effect of the $6m equity raise with merger representing 30,609,288 shares
 
 
 
5
 
 
 
 
 
 Notes to Unaudited Pro Forma Condensed Combined Financial Statements
 
2. Accounting Policies and Merger Pro Forma Adjustments
 
Based on Ayro’s review of DropCar’s summary of significant accounting policies disclosed in DropCar’s financial statements, the nature and amount of any adjustments to the historical financial statements of DropCar to conform its accounting policies to those of Ayro are not expected to be significant.
 
 
6