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

Quarterly report pursuant to Section 13 or 15(d)

COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

6 Months Ended

Oct. 31, 2015

COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

NOTE 6 - COSTS AND ESTIMATED EARNINGS ON UNCOMPLETED CONTRACTS

The asset, “Costs and estimated earnings in excess of billings on uncompleted contracts”, represents revenue recognized in excess of amounts billed. The liability, “Billings in excess of costs and estimated earnings on uncompleted contracts”, represents billings in excess of revenue recognized. Costs and estimated earnings on uncompleted contracts consist of the following at October 31, 2015 and April 30, 2015:

	October 31, 2015		April 30, 2015

Costs incurred on uncompleted contracts	$	31,508,372	$	32,008,307
Estimated contract earnings		5,301,063		6,031,338
		36,809,435		38,039,645
Less: Billings to date		37,773,214		38,965,672
Total	$	(963,779)	$	(926,027)

Costs and estimated earnings in excess of billings on uncompleted contracts	$	585,721	$	420,434
Billings in excess of cost and estimated earnings on uncompleted contracts		1,549,500		1,346,461
Total	$	(963,779)	$	(926,027)

Revisions in the estimated gross profits on contracts and contract amounts are made in the period in which circumstances requiring the revisions become known. Although management believes it has established adequate procedures for estimating costs to complete on open contracts, it is at least reasonably possible that additional significant costs could occur on contracts prior to completion.