AYRO, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations and Disposition of Operating Segment

Discontinued Operations and Disposition of Operating Segment

9 Months Ended

Sep. 30, 2019

DropCar Operating Services OnDemand [Member]

Discontinued Operations and Disposition of Operating Segment

On December 24, 2018, the Company completed the sale of WPCS International – Suisun City, Inc., a California corporation, its wholly-owned subsidiary, pursuant to the terms of a stock purchase agreement, dated December 10, 2018 by and between the Company and World Professional Cabling Systems, LLC, a California limited liability company. Upon the closing of the sale, the Purchaser acquired all of the issued and outstanding shares of common stock, no par value per share, of Suisun City Operations, for an aggregate purchase price of $3,500,000.

The operations and cash flows of the Suisun City Operations are presented as discontinued operations. The operating results of the Suisun City Operations for the three and nine months ended September 30, 2018 were as follows:

	For the Three Months Ended September 30, 2018			For the Nine Months Ended September 30, 2018

Revenues	$	3,222,928		$	10,871,777
Cost of revenues		2,649,168			8,576,847
Gross profit		573,760			2,294,930

Selling, general and administrative expenses		575,248			1,691,934
Depreciation and amortization		78,954			221,897
Total Operating Expenses		654,202			1,913,831

Operating income (loss)		(80,442	)		381,099

Interest expense, net		(3,294	)		(3,892	)

Net income (loss) from discontinued operations	$	(83,736	)	$	377,207