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

Commitments and Contingencies (Tables)

9 Months Ended

Sep. 30, 2020

The components of lease expense consist of the following:

	Three months ended September 30, 2020		Nine months ended September 30, 2020
Operating lease expense	$	61,196	$	168,260
Short-term lease expense		10,763		65,801
Total lease cost	$	71,959	$	234,061

Balance sheet information related to leases consists of the following:

	September 30, 2020
Assets
Operating lease – right-of-use asset	$	1,130,233
Total lease assets	$	1,130,233

Liabilities
Current liabilities:
Lease obligation – operating lease	$	118,466
Noncurrent liabilities:
Lease obligation - operating lease, net of current portion		1,035,051
Total lease liability	$	1,153,517

The weighted-average remaining lease term and discount rate is as follows:

Weighted average remaining lease term (in years) – operating lease			6.50
Weighted average discount rate – operating lease			10.41	%

Cash flow information related to leases consists of the following:

Nine months ended

September 30, 2020

Operating cash flows for operating leases

57,163

Supplemental non-cash amounts of lease liabilities arising from obtaining right of use assets

1,210,680

Future minimum lease payment under non-cancellable lease as of September 30, 2020 are as follows:

As of September 30, 2020	Operating Leases
2020, remaining	$	57,365
2021		234,628
2022		240,985
2023		247,533
2024		254,277
2025 and thereafter		574,530
Total minimum lease payments		1,609,318
Less effects of discounting		(455,801	)
Present value of future minimum lease payments	$	1,153,517