true FY 0001086745

 0001086745

 2023-01-01
 2023-12-31

 0001086745

 2023-06-30

 0001086745

 2024-04-26

 UNITED
STATES

SECURITIES AND EXCHANGE COMMISSION

 Washington,
D.C. 20549

 FORM
 10-K/A

(Amendment No. 1)

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the fiscal year ended: December 31, 2023

 OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 For
the transition period from ___ to ___

 Commission
file number: 001-34643

 AYRO,
INC.

 (Exact
name of registrant as specified in its charter)

 Delaware

 98-0204758

 (State
 or other jurisdiction of

 incorporation
 or organization)

 (I.R.S.
 Employer

 Identification
 No.)

 E. Old Settlers Boulevard,

 Suite

 Round
 Rock, Texas

 78664

 (Address
 of principal executive offices)

 (Zip
 Code)

 (512) 994-4917

 (Registrant's
 telephone number, including area code)

 Securities
registered pursuant to Section 12(b) of the Exchange Act:

 Title
 of each Class

 Trading
 Symbol(s)

 Name
 of each exchange on which registered

 Common
 Stock, par value $0.0001 per share

 AYRO

 The
 Nasdaq Stock Market LLC

 Securities
registered pursuant to Section 12(g) of the Act: None

by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes No

by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes No

by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange
Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days. Yes No

by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule
405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant
was required to submit such files). Yes No

by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting
company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer",
"smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act:

 Large
 accelerated filer

 Accelerated
 filer

 Non-accelerated
 filer

 Smaller
 reporting company

 Emerging
 growth company

 If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness
of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered
public accounting firm that prepared or issued its audit report.

 If
securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant
included in the filing reflect the correction of an error to previously issued financial statements.

by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation
received by any of the registrant's executive officers during the relevant recovery period pursuant to § 240.10D-1(b).

by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes No

 The
aggregate market value of voting stock held by nonaffiliates of the registrant as of June 30, 2023, the last business day of the registrant's
most recently completed second quarter, was $ 24,515,119, based on a closing price of $5.44 on June 30, 2023. The registrant does not
have non-voting common stock outstanding.

 As
of April 26, 2024, the registrant had 4,995,537
 shares of common stock outstanding.

 DOCUMENTS
INCORPORATED BY REFERENCE

 None.

 Audit
 Firm ID

 Auditor
 Name:

 Auditor
 Location:

 Marcum
 LLP

 East
 Hanover, New Jersey

 TABLE
OF CONTENTS

 PAGE

 EXPLANATORY NOTE

 Item

 Directors, Executive Officers and Corporate Governance

 Item

 Executive Compensation

 Item

 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

 Item

 Certain Relationships and Related Transactions, and Director Independence

 Item

 Principal Accountant Fees and Services

 Item

 Exhibits and Financial Statement Schedules

 Signatures

 i

 EXPLANATORY
NOTE

 This
Amendment No. 1 to our Annual Report on Form 10-K (this "Amendment") amends the Annual Report on Form 10-K for the fiscal
year ended December 31, 2023 of AYRO, Inc., as originally filed with the Securities and Exchange Commission (the "SEC") on
April 1, 2024 (the "Form 10-K"). We are filing this Amendment to present the information required by Part III of Form 10-K
that was previously omitted from the Form 10-K in reliance on General Instruction G(3) to Form 10-K because a definitive proxy statement
containing such information will not be filed within 120 days after the end of the fiscal year covered by the Form 10-K. Accordingly,
the reference on the cover page of the Form 10-K to the incorporation by reference of our definitive proxy statement into Part III of
the Form 10-K has been removed.

 In
addition, Item 15 of Part IV has been solely amended to include a new certification by our principal executive officer and principal
financial officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. The certification of our principal executive officer and
principal financial officer is filed with this Amendment as Exhibit 31.1 hereto. Because no financial statements have been included in
this Amendment and this Amendment does not contain or amend any disclosure with respect to Items 307 and 308 of Regulation S-K, paragraphs
3, 4 and 5 of the certifications have been omitted. Additionally, we are not including the certificate under Section 906 of the Sarbanes-Oxley
Act of 2002 as no financial statements are being filed with this Amendment.

 Except
as described above, no other changes have been made to the Form 10-K. Other than the information specifically amended and restated herein,
this Amendment does not reflect events occurring after April 1, 2024, the date the Form 10-K was filed, or modify or update those disclosures
that may have been affected by subsequent events.

 PART
III

 ITEM
10. DIRECTORS, EXECUTIVE OFFICERS, AND CORPORATE GOVERNANCE

 Board
of Directors

 The
following table sets forth the name, age and positions of each member of our board of directors (the "Board") as of April
26, 2024:

 Name

 Age

 Since

 Position
 with the Company

 Silverman

 August
 2016

 Chairman, Principal Executive Officer, and Interim Principal Financial Officer and Principal Accounting Officer

 Sebastian
 Giordano

 February
 2013

 Greg
 Schiffman

 February
 2018

 Zvi
 Joseph

 January
 2018

 George
 Devlin

 May
 2020

 Wayne
 R. Walker

 November
 2020

 The
following sets forth biographical information and the qualifications and skills for each director:

Silverman. Mr. Silverman has been our director since May 28, 2020, and currently serves as our Executive Chairman and Principal
Executive Officer, as well as our Interim Principal Financial Officer and Principal Accounting Officer. Prior to his appointment to such
positions on December 13, 2023, Mr. Silverman served as Chairman of the Board. Prior to the Merger, Mr. Silverman had served as a member
of the DropCar Board of Directors since the 2018 Merger (as defined below). Mr. Silverman currently serves as the managing member of
Parkfield Funding LLC. Mr. Silverman was the co-founder of, and was previously a principal and managing partner of, Iroquois Capital
Management, LLC ("Iroquois"), an investment advisory firm. From its inception in 2003 until July 2016, Mr. Silverman served
as co-chief investment officer of Iroquois. While at Iroquois, he designed and executed complex transactions, structuring and negotiating
investments in both public and private companies, and was often called upon by such companies to solve inefficiencies relating to corporate
structure, cash flow, and management. From 2000 to 2003, Mr. Silverman served as co-chief investment officer of Vertical Ventures, LLC,
a merchant bank. Prior to forming Iroquois, Mr. Silverman was a director of Joele Frank, a boutique consulting firm specializing in mergers
and acquisitions. Previously, Mr. Silverman served as assistant press secretary to the President of the United States. Mr. Silverman
currently serves as a director of MYMD Pharmaceuticals, Inc. (NASDAQ: MYMD), Pharmacyte, Inc. (NASDAQ: PMCB), Synaptogenix, Inc. (NASDAQ:
SNPX) and Petros Pharmaceutical, Inc. (NASDAQ: PTPI), all of which are public companies. He previously served as a director of National
Holdings Corporation from July 2014 through August 2016 and as a director of Marker Therapeutics, Inc. from August 2016 until October
2018. Mr. Silverman received his B.A. from Lehigh University in 1992. Mr. Silverman's qualifications to sit on the Board include
his experience as an investment banker, management consultant and director of numerous public companies.

 Sebastian
Giordano. Mr. Giordano served as a member of the DropCar Board of Directors since the completion of the business combination
with DropCar, Inc. ("Private DropCar") and DC Acquisition Corporation, pursuant to which Private DropCar became a wholly
owned subsidiary of WPCS International Incorporated ("WPCS"), which then changed its name to DropCar on January 30, 2018
(the "2018 Merger"), and, prior to that time, served as a director of WPCS since February 2013, and has continued to serve
as a director of the Company following the Merger. Mr. Giordano served as the Interim Chief Executive Officer of WPCS from August 2013
until April 25, 2016, when the interim label was removed from his title. He served as the Chief Executive Officer of WPCS since such
time through the closing of the 2018 Merger. Mr. Giordano has served as Chairman and Chief Executive Officer of Transportation and Logistics
Systems, Inc. (OTC PINK: TLSS) since January 2022. Since 2002, Mr. Giordano has been Chief Executive Officer of Ascentaur, LLC, a business
consulting firm providing comprehensive strategic, financial and business development services to start-up, turnaround and emerging growth
companies. From 1998 to 2002, Mr. Giordano was Chief Executive Officer of Drive One, Inc., a safety training and education business.
From 1992 to 1998, Mr. Giordano was Chief Financial Officer of Sterling Vision, Inc., a retail optical chain. Mr. Giordano received B.B.A.
and MBA degrees from Iona College. Mr. Giordano's qualifications to sit on the Board include his broad management experience, including
having served as Chief Executive Officer of WPCS.

 Greg
Schiffman. Mr. Schiffman served as a member of the DropCar Board of Directors since the closing of the 2018 Merger, and has continued
to serve as a director of the Company following the Merger. Mr. Schiffman serves as a senior advisor to Absci Corporation. Mr. Schiffman
previously served as Chief Financial Officer of Absci Corporation from April 2020 until his retirement in August 2023. He previously
served as the Chief Financial Officer of Vineti, Inc. from October 2017 through April 2018. He also previously served as the Chief Financial
Officer of each of Iovance Biotherapeutics (formerly Lion Biotechnologies), from October 2016 through June 2017, Stem Cells, Inc., from
January 2014 through September 2016, Dendreon Corporation, from December 2006 through December 2013, and Affymetrix Corporation, from
August 2001 through November 2006. In November 2014, Dendreon Corporation filed for Chapter 11 bankruptcy protection. He currently serves
on the boards of directors of Nanomix Corporation (OTCQB: NNMX) and BioEclipse Therapeutics, Inc. Mr. Schiffman holds a B.S. in Accounting
from DePaul University and an MM (MBA) from Northwestern University Kellogg Graduate School of Management. Mr. Schiffman's qualifications
to sit on the Board include his financial background, business experience and education.

 Zvi
Joseph. Mr. Joseph served as a member of the DropCar Board of Directors since the closing of the 2018 Merger, and has continued
to serve as a director of the Company following the Merger. He has served as Deputy General Counsel of Amdocs Limited, a publicly traded
corporation that provides software and services to communications and media companies, since October 2005. He received his A.A.S. in
Business Administration from Rockland Community College, his B.A. in Literature from New York University and his J.D. from Fordham University
School of Law. He also holds a Certificate in Business Excellence from Columbia University School of Business and a Corporate Director
Certificate, Corporate Governance, from Harvard Business School. Mr. Joseph is NACD Directorship Certified. Mr. Joseph's qualifications
to sit on the Board include his legal experience and education.

 George
Devlin. Mr. Devlin has, since 2007, managed his own consulting business, Venture Connections (G&L Devlin Limited), primarily
focused on helping early-stage companies with fundraising, commercialization and strategic planning. From 2005 to 2007, Mr. Devlin worked
in operations at Texas Pacific Group (TPG – Private Equity), where he supported deal partners on due diligence and transformation
activities involved in deals. From 2002 to 2005, Mr. Devlin served as Chief Executive Officer of Vivecon, a Stanford University start-up
in Supply Chain Risk Management solutions. From 2001 to 2002, he served as Chief Operations Officer of Converge, Inc. From 1998 to 2001,
Mr. Devlin worked at Compaq Computer Corporation, eventually holding the post of Senior Vice President of Global Operations based in
Houston, Texas. He is a native of Scotland and graduated with a Business Studies diploma and a postgraduate diploma in Human Resources
from Glasgow Polytechnic, now called Caledonian University. Mr. Devlin's qualifications to sit on the Board include his international
experience and expertise, ranging from a successful career as an executive in a major global corporation (supply chain and operations)
to becoming an entrepreneur and helping many early-stage start-up technology companies globally.

 Wayne
R. Walker. Mr. Walker has over 35 years of experience in corporate governance, turnaround management, corporate restructuring
and bankruptcy matters. In 1998, Mr. Walker founded Walker Nell Partners, Inc., an international business consulting firm, and has served
as its president from its founding to the present. Before founding Walker Nell Partners, Inc., Mr. Walker worked for 15 years at the
DuPont Company in Wilmington, Delaware in the Securities and Bankruptcy group, where he worked in the Corporate Secretary's office
and served as Senior Counsel. From 2018 to the present, Mr. Walker has served as a director of Wrap Technologies, Inc. (NASDAQ: WRAP),
an innovator of modern policing solutions, where he also serves as Chair of the Nominating and Governance Committee and of the Compensation
Committee. From 2018 to the present, Mr. Walker has served as a director of Pitcairn Company and as the Chair of its Compensation Committee.
From 2013 to 2014, Mr. Walker served as Chairman of the Board of Directors of BridgeStreet Worldwide, Inc., a global provider of extended
corporate housing. From 2016 to 2018, Mr. Walker served as Chairman of the Board of Directors of Last Call Operating Companies, an owner
of various national restaurants. From 2013 to 2020, Mr. Walker served as Chairman of the Board of Trustees of National Philanthropic
Trust, a public charity. From 2018 to 2020, Mr. Walker served as Vice President of the Board of Education of the City of Philadelphia.
From 2020 to the present, Mr. Walker has served as a director of Petros Pharmaceuticals, Inc. (NASDAQ: PTPI), which focuses on men's
health, where he also serves as Chair of the Nominating and Governance Committee. Mr. Walker has also served on the board of directors
for the following companies and foundations: Seaborne Airlines, Inc., Green Flash Brewery, Inc., and Eagleville Hospital and Foundation.
Mr. Walker has a Doctor of Jurisprudence from Catholic University (Washington, DC) and a Bachelor of Arts from Loyola University (New
Orleans). He is an attorney licensed by the State Bar of Georgia. He is a member of the State Bar Association of Georgia, American Bar
Association, American Bankruptcy Institute and Turnaround Management Association. Mr. Walker's qualifications to sit on the Board
include his business experience and his extensive board experience.

Officers

 The
following table sets forth the names, ages and positions of our executive officers as of April 26, 2024:

 Name

 Age

 Officer
 Since

 Position
 with the Company

 Silverman

 August
 2016

 Chairman, Principal Executive Officer, and Interim Principal Financial Officer and Principal Accounting Officer

 Please
see the biography of Mr. Silverman on page 3 of this Amendment.

 Family
Relationships

 There
are no family relationships among any of our directors and executive officers.

 Involvement
in Certain Legal Proceedings

 None
of our directors or executive officers has been involved in any of the following events during the past ten years: (1) any bankruptcy
petition filed by or against any business of which such person was a general partner or executive officer either at the time of the bankruptcy
or within two years prior to that time; (2) any conviction in a criminal proceeding or being subject to a pending criminal proceeding
(excluding traffic violations and other minor offences); (3) being subject to any order, judgment, or decree, not subsequently reversed,
suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining, barring, suspending or otherwise
limiting his or her involvement in any type of business, securities or banking activities; or (4) being found by a court of competent
jurisdiction (in a civil action), the SEC or the Commodity Futures Trading Commission to have violated a federal or state securities
or commodities law, and the judgment has not been reversed, suspended, or vacated.

 Delinquent
Section 16(a) Reports

 Section
16(a) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), requires our officers and directors and persons
who beneficially own more than 10% of our ordinary shares to file reports of ownership and changes in ownership of such ordinary shares
with the SEC. These persons are required by SEC regulations to furnish us with copies of all Section 16(a) forms they file. As a matter
of practice, our legal team assists our officers and directors in preparing initial reports of ownership and reports of changes in ownership
and files those reports on their behalf. Based solely on our review of the copies of such forms we have received, we believe that all
required Section 16(a) reports were timely filed during our fiscal year ended December 31, 2023, except for the following: Joshua Silverman,
Wayne Walker, Zvi Joseph, George Devlin, Sebastian Giordano, and Gregory Schiffman each made a late Form 4 filing on February 3, 2023,
each with respect to an award of restricted shares of the Company's common stock and a broker-assisted sale of common stock.

 Corporate
Code of Conduct and Ethics and Whistleblower Policy

 We
have adopted a Corporate Code of Conduct and Ethics and Whistleblower Policy (the "Code of Conduct") that applies to all
of our associates, as well as each of our directors and certain persons performing services for us. The Code of Conduct addresses, among
other things, competition and fair dealing, conflicts of interest, protection and proper use of Company assets, government relations,
compliance with laws, rules and regulations and the process for reporting violations of the Code of Conduct, employee misconduct, improper
conflicts of interest or other violations. Our Code of Conduct is available on our website at  in the "Governance"
section found under the "Investors" tab. We intend to disclose any amendments to, or waivers from, our Code of Conduct at
the same web address provided above.

 Insider
Trading Policy

 We
have an insider trading policy that prohibits our directors, executive officers, employees, independent contractors, consultants and
their respective family members from the purchasing or selling our securities while being aware of material, non-public information about
the Company as well as disclosing such information to others who may trade in securities of the Company. Our insider trading policy also
prohibits our directors, executive officers, employees and their respective family members from engaging in hedging activities or other
short-term or speculative transactions in the Company's securities such as short sales, options trading, holding the Company's
securities in a margin account or pledging the Company's securities as collateral for a loan, without the advance approval of our
Chief Financial Officer.

Nominations by Security Holders

 There
have been no material changes to the procedures by which security holders may recommend nominees to our Board since those procedures
were described in our proxy statement for our 2023 Annual Meeting of Stockholders.

 Audit
Committee

 Our
Audit Committee is responsible for, among other matters:

 approving
 and retaining the independent auditors to conduct the annual audit of our financial statements;

 reviewing
 the proposed scope and results of the audit;

 reviewing
 and pre-approving audit and non-audit fees and services;

 reviewing
 accounting and financial controls with the independent auditors and our financial and accounting staff;

 reviewing
 and approving transactions between us and our directors, officers and affiliates;

 recognizing
 and preventing prohibited non-audit services;

 establishing
 procedures for complaints received by us regarding accounting matters;

 overseeing
 internal audit functions, if any; and

 preparing
 the report of the audit committee that the rules of the SEC require to be included in our annual meeting proxy statement.

 Our
Audit Committee is composed of Greg Schiffman (chairman), Zvi Joseph and Sebastian Giordano. Our Board has determined that Messrs. Schiffman,
Joseph and Giordano are independent in accordance with Nasdaq Rules and Rule 10A-3 under the Exchange Act. Our Board has also reviewed
the education, experience and other qualifications of each member of the Audit Committee. Based upon that review, our Board has determined
that Greg Schiffman qualifies as an "audit committee financial expert," as defined by the rules of the SEC.

 ITEM
11. EXECUTIVE COMPENSATION

 The
following is a discussion of the material components of the executive compensation arrangements of our named executive officers, comprised
of (i) all individuals who served as our principal executive officer during the fiscal year ended December 31, 2023, (ii) our two most
highly compensated executive officers, other than individuals who served as our principal executive officer, who were serving as executive
officers, as determined in accordance with the rules and regulations promulgated by the SEC, as of December 31, 2023, with compensation
during the fiscal year ended December 31, 2023 of $100,000 or more, and (iii) up to two additional individuals for whom disclosure would
have been provided pursuant to clause (ii) but for the fact that such individuals were not serving as executive officers on December
31, 2023 (the individuals falling within categories (i), (ii) and (iii) are collectively referred to as the "named executive officers").

 Our
named executive officers for 2023 were as follows:

 Silverman, Executive Chairman, Principal Executive Officer, and Interim Principal Financial Officer and Principal Accounting Officer;
 and

 Thomas
 M. Wittenschlaeger, Former Chief Executive Officer; and

 David
 E. Hollingsworth, Former Chief Financial Officer and Former Interim President of AYRO Operating Company, Inc., a subsidiary of the
 Company ( "AYRO Operating").

 Compensation
Philosophy and Process

 The
responsibility for establishing, administering and interpreting our policies governing the compensation and benefits for our executive
officers lies with our senior management, subject to the review and approval of our Board.

 The
goals of our executive compensation program are to attract, motivate and retain individuals with the skills and qualities necessary to
support and develop our business within the framework of our size and available resources. In 2023, we designed our executive compensation
program to achieve the following objectives:

 attract
 and retain executives experienced in developing and delivering products such as our own;

 motivate
 and reward executives whose experience and skills are critical to our success;

 reward
 performance; and

 align
 the interests of our executive officers and other key employees with those of our stockholders by motivating our executive officers
 and other key employees to increase stockholder value.

 Summary
Compensation Table

 The
following table sets forth all compensation earned, in all capacities, during the fiscal years ended December 31, 2023, and 2022 by the
Company's named executive officers.

 Name
and Principal
 Position

 Year

 Salary ($)

 Bonus ($)

 Stock Awards ($) (1)

 Option Awards ($) (1)

 All other compensation ($)

 Total ($)

 Joshua Silverman (2)

 2023

 132,996

 -

 148,000

 -

 -

 280,996

 Executive Chairman, Principal Executive Officer, and Interim Principal Financial Officer and Principal Accounting Officer

 2022

 132,996

 -

 148,000

 -

 10,230

 291,226

 Thomas M. Wittenschlaeger (3)

 2023

 268,333

 -

 -

 -

 -

 268,333

 Former Chief Executive Officer

 2022

 263,700

 132,500

 -

 -

 -

 396,200

 David E. Hollingsworth (4)

 2023

 231,667

 71,000

 -

 -

 -

 302,667

 Former Chief Financial Officer and Former Interim President of AYRO Operating

 2022

 209,675

 87,100

 2,760

 -

 -

 299,535

 (1)

 The
 dollar amounts in this column represent the aggregate grant date fair value computed in accordance with FASB ASC Topic 718. The assumptions
 underlying the determination of fair value of the awards are set forth in Note 3 of the financial statements included in our Annual
 Report on Form 10-K filed with the SEC on April 1, 2024.

 (2)

 Appointed
 as an officer of the Company effective as of December 13, 2023. Prior to such date, Mr. Silverman served as Chairman of the Board.

 On
 February 1, 2023, in connection with Mr. Silverman's service as a non-employee director and Chairman of the Board, and pursuant
 to the Plan, the Company issued to Mr. Silverman 24,667 shares of restricted stock. Such shares vested in four equal installments
 on each quarterly anniversary of the date of the grant, subject to the provision that Mr. Silverman had continuously provided services
 to the Company through that date.

 On
 March 1, 2024, in connection with Mr. Silverman's appointment to the position of Interim Principal Financial Officer and Principal
 Accounting Officer and Mr. Silverman's service as the Company's Executive Chairman and Principal Executive Officer, the
 Board increased Mr. Silverman's annual cash compensation to $280,000, effective as of December 1, 2023.

 (3)

 Resigned
 effective as of December 13, 2023.

 (4)

 Appointed
 as an officer of the Company effective as of January 14, 2022. Separated from his position with the Company effective as of March
 1, 2024.

 In
 connection with Mr. Hollingsworth's appointment as Interim President of AYRO Operating, effective as of December 13, 2023,
 Mr. Hollingsworth's base salary was increased to $270,000 per annum, and Mr. Hollingsworth was paid a one-time cash bonus of
 $25,000.

 Narrative
Disclosure to Summary Compensation Table

 The
material terms of the employment agreements with the named executive officers of the Company are summarized below.

 Terms
of Employment of Joshua Silverman

 On
December 14, 2023, the Board appointed Mr. Silverman to the position of Executive Chairman and Principal Executive Officer, effective
as of December 13, 2023. Mr. Silverman was not provided any additional compensation at such time for his service as Executive Chairman
and Principal Executive Officer. On March 1, 2024, in connection with the separation of Mr. Hollingsworth from his position with the
Company, the Board appointed Mr. Silverman to the position of Interim Principal Financial Officer and Principal Accounting Officer. In
consideration of such appointment and Mr. Silverman's service as the Company's Executive Chairman and Principal Executive
Officer, the Board increased Mr. Silverman's annual cash compensation to $280,000, effective as of December 1, 2023.

Employment Agreement with Thomas M. Wittenschlaeger

 On
September 23, 2021, the Company entered into an executive employment agreement (the "Wittenschlaeger Employment Agreement")
with Mr. Wittenschlaeger setting forth the terms and conditions of Mr. Wittenschlaeger's employment as the Company's Chief
Executive Officer, effective September 23, 2021. Pursuant to the Wittenschlaeger Employment Agreement, Mr. Wittenschlaeger served as
the Chief Executive Officer of the Company for a two-year initial term commencing on September 23, 2021, which term may be renewed for
up to three successive one-year terms, unless earlier terminated by either party in accordance with the terms of the Wittenschlaeger
Employment Agreement. Subject to the approval of the Company's stockholders, Mr. Wittenschlaeger also served as a member of the
Board.

 The
Wittenschlaeger Employment Agreement provided that Mr. Wittenschlaeger was entitled to receive an annual base salary of two hundred-eighty
thousand dollars ($280,000), payable in equal installments semi-monthly pursuant to the Company's normal payroll practices. For
the 2021 fiscal year, Mr. Wittenschlaeger was eligible to receive a partial bonus as determined by the Board, based upon the achievement
of short-term target objectives and performance criteria as agreed upon by Mr. Wittenschlaeger and the Board, with such partial bonus
payable no later than March 15, 2022. Mr. Wittenschlaeger was also eligible to receive, for subsequent fiscal years during the term of
his employment, periodic bonuses up to 50% of his annual base salary upon achievement of target objectives and performance criteria,
payable on or before March 15 of the fiscal year following the fiscal year to which the bonus relates. For the fiscal year ended December
31, 2022, Mr. Wittenschlaeger was awarded a bonus of $132,500. Targets and performance criteria were to be established by the Board after
consultation with Mr. Wittenschlaeger, but the evaluation of Mr. Wittenschlaeger's performance was to be at the Board's sole
discretion. The Wittenschlaeger Employment Agreement also entitled Mr. Wittenschlaeger to receive customary benefits and reimbursement
for ordinary business expenses and relocation expenses of $15,000.

 In
connection with Wittenschlaeger's appointment and as an inducement to enter into the Wittenschlaeger Employment Agreement, the
Company granted Mr. Wittenschlaeger 56,250 shares of the Company's restricted common stock, pursuant to a restricted stock award
agreement entered into by the Company with Mr. Wittenschlaeger on September 23, 2021, which shares would vest in tranches of 11,250 shares
upon the achievement of certain stock price, market capitalization and business milestones.

 The
Company was entitled to terminate Mr. Wittenschlaeger's employment due to death or disability, for cause (as defined in the Wittenschlaeger
Employment Agreement) at any time after providing written notice to Mr. Wittenschlaeger, and without cause at any time upon thirty days'
written notice. Mr. Wittenschlaeger was entitled to terminate his employment without good reason (as defined in the Wittenschlaeger Employment
Agreement) at any time upon thirty days' written notice or with good reason, which requires delivery of a notice of termination
within ninety days after Mr. Wittenschlaeger first learns of the existence of the circumstances giving rise to good reason, and failure
of the Company to cure the circumstances giving rise to the good reason within thirty days following delivery of such notice.

 If
Mr. Wittenschlaeger's employment were terminated by the Company for cause or if Mr. Wittenschlaeger resigns, Mr. Wittenschlaeger
would be entitled to receive, within thirty days of such termination, any accrued but unpaid base salary and expenses required to be
reimbursed pursuant to the Wittenschlaeger Employment Agreement. If Mr. Wittenschlaeger's employment were terminated due to his
death or disability, Mr. Wittenschlaeger or his estate would receive the accrued obligation Mr. Wittenschlaeger would have received upon
termination by the Company for cause or by Mr. Wittenschlaeger by resignation, and any earned, but unpaid, bonus for services rendered
during the year preceding the date of termination.

 If
Mr. Wittenschlaeger's employment were terminated by the Company without cause (as defined in the Wittenschlaeger Employment Agreement)
or upon non-renewal or by Mr. Wittenschlaeger for good reason, Mr. Wittenschlaeger would be entitled to receive the accrued obligation
Mr. Wittenschlaeger would have received upon termination by the Company for cause or by Mr. Wittenschlaeger by resignation, and any earned,
but unpaid, bonus for services rendered during the year preceding the date of termination. In addition, subject to compliance with the
restrictive covenants set forth in the Wittenschlaeger Employment Agreement and the execution of a release of claims in favor of the
Company, the Company would be required to pay the following severance payments and benefits: (i) an amount equal to twelve months'
base salary, payable in equal monthly installments over a twelve-month severance period; (ii) an amount equal to the greater of (x) the
most recent annual bonus earned by Mr. Wittenschlaeger, (y) the average of the immediately preceding two year's annual bonuses
earned by Mr. Wittenschlaeger, or (z) if Mr. Wittenschlaeger's termination of employment occurred during the first calendar year
of the initial employment term before any annual bonus for a full twelve-month period of service has been paid, then the target bonus
Mr. Wittenschlaeger would be eligible for under the Wittenschlaeger Employment Agreement; provided that, other than the first year of
the Wittenschlaeger Employment Agreement, no bonus amount would be payable if the bonuses for the year of termination are subject to
achievement of performance goals and such performance goals had not been achieved by the Company for such year; and (iii) an amount intended
to assist Mr. Wittenschlaeger with his post-termination health coverage, provided, however, that he would be under no obligation to use
such amounts to pay for continuation of coverage under the Company's group health plan pursuant to COBRA.

 If
Mr. Wittenschlaeger's employment were terminated by the Company without cause or by Mr. Wittenschlaeger for good reason or upon
non-renewal within 12 months following a change in control (as defined in the Wittenschlaeger Employment Agreement), Mr. Wittenschlaeger
would be entitled to receive the severance payments and benefits he would receive in the event that the Company were to terminate Mr.
Wittenschlaeger's employment without cause or upon non-renewal or by Mr. Wittenschlaeger for good reason set forth above. In addition,
certain performance milestones for his equity award would be waived, and certain unvested restricted shares would immediately vest and
no longer be subject to any holding period.

 The
Wittenschlaeger Employment Agreement also contained customary provisions relating to, among other things, confidentiality, non-competition,
non-solicitation, non-disparagement, and assignment of inventions requirements.

 General
Release and Severance Agreement

 On
December 11, 2023, Mr. Wittenschlaeger tendered his resignation from his roles as an officer, employee and director of the Company, effective
as of December 13, 2023 (the "Wittenschlaeger Effective Date"). In connection with Mr. Wittenschlaeger's resignation,
the Company and Mr. Wittenschlaeger entered into a General Release and Severance Agreement, dated December 13, 2023 (the "Wittenschlaeger
Separation Agreement"). Pursuant to the Wittenschlaeger Separation Agreement, Mr. Wittenschlaeger was entitled to (1) severance
pay in the amount of 12 months of his base salary of $280,000, less all lawful and authorized withholdings and deductions, to be paid
in 12 equal monthly installments, (2) a bonus payment in the amount of $114,800, less all lawful and authorized withholdings and deductions,
and (3) reimbursement for continuation coverage under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended ("COBRA")
for a period of up to 12 months following the Wittenschlaeger Effective Date, provided that Mr. Wittenschlaeger has not obtained subsequent
employment with comparable or better medical, vision and dental coverage.

 In
exchange for the consideration provided to Mr. Wittenschlaeger in the Wittenschlaeger Separation Agreement, Mr. Wittenschlaeger and the
Company agreed to mutually waive and release any claims in connection with Mr. Wittenschlaeger's employment, separation and resignation
from the Company. In connection with the execution of the Wittenschlaeger Separation Agreement, the Wittenschlaeger Employment Agreement
was terminated; provided, however, that certain surviving customary confidentiality provisions and restrictive covenants remain in full
force and effect. The Wittenschlaeger Separation Agreement also provided for certain customary covenants regarding confidentiality and
non-disparagement.

Employment Agreement with David E. Hollingsworth

 In
connection with Mr. Hollingsworth's appointment as the Company's Chief Financial Officer, on August 23, 2022, the Company
entered into an executive employment agreement (the "Hollingsworth Employment Agreement") with Mr. Hollingsworth setting
forth the terms and conditions of Mr. Hollingsworth's employment, effective August 23, 2022. The Hollingsworth Employment Agreement
provided that Mr. Hollingsworth would serve as the Chief Financial Officer of the Company for a two-year initial term commencing on August
23, 2022, which term may be renewed for up to two successive one-year terms, unless earlier terminated by either party in accordance
with the terms of the Hollingsworth Employment Agreement.

 The
Hollingsworth Employment Agreement provided that Mr. Hollingsworth was entitled to receive an annual base salary of two hundred-thirty
thousand dollars ($230,000), payable in equal installments semi-monthly pursuant to the Company's normal payroll practices. For
each fiscal year during the term of his employment, Mr. Hollingsworth was eligible to receive periodic bonuses of up to 40% of his annual
base salary upon achievement of target objectives and performance criteria, payable on or before March 15 of the fiscal year following
the fiscal year to which the bonus relates. Targets and performance criteria were to be established by the Board after consultation with
Mr. Hollingsworth and the Company's Chief Executive Officer, but the evaluation of Mr. Hollingsworth's performance would
be at the Board's sole discretion. For the fiscal year ended December 31, 2022, Mr. Hollingsworth was awarded a bonus of $87,100.
The Hollingsworth Employment Agreement also entitled Mr. Hollingsworth to receive customary benefits and reimbursement for ordinary business
expenses.

 In
connection with Mr. Hollingsworth's appointment and as an inducement to enter into the Hollingsworth Employment Agreement, the
Company granted Mr. Hollingsworth 12,500 shares of the Company's restricted common stock at a value of $0.24 per share, which shares
would vest in tranches of 3,125 shares upon the achievement of certain stock price, market capitalization and business milestones.

 The
Company was entitled to terminate Mr. Hollingsworth's employment due to death or disability, for cause (as defined in the Hollingsworth
Employment Agreement) at any time after providing written notice to Mr. Hollingsworth, and without cause at any time upon thirty days'
written notice. Mr. Hollingsworth was entitled to terminate his employment without good reason (as defined in the Hollingsworth Employment
Agreement) at any time upon thirty days' written notice or with good reason, which required delivery of a notice of termination
within ninety days after Mr. Hollingsworth first learned of the existence of the circumstances giving rise to good reason, and failure
of the Company to cure the circumstances giving rise to the good reason within thirty days following delivery of such notice.

 If
Mr. Hollingsworth's employment were terminated by the Company for cause, as a result of Mr. Hollingsworth's resignation or
as a result of the expiration of the term of the Hollingsworth Employment Agreement, Mr. Hollingsworth would be entitled to receive,
within thirty days of such termination, any accrued but unpaid base salary and expenses required to be reimbursed pursuant to the Hollingsworth
Employment Agreement. If Mr. Hollingsworth's employment were terminated due to his death or disability, Mr. Hollingsworth or his
estate would be entitled to receive the accrued obligations Mr. Hollingsworth would have received upon termination by the Company for
cause or by Mr. Hollingsworth by resignation, and any earned, but unpaid, bonus for services rendered during the year preceding the date
of termination.

 If
Mr. Hollingsworth's employment were terminated by the Company without cause (as defined in the Hollingsworth Employment Agreement)
or by Mr. Hollingsworth for good reason, Mr. Hollingsworth would be entitled to receive the accrued obligations he would have received
upon termination by the Company for cause or by Mr. Hollingsworth by resignation, and any earned, but unpaid, bonus for services rendered
during the year preceding the date of termination. In addition, subject to compliance with the restrictive covenants set forth in the
Hollingsworth Employment Agreement and the execution of a release of claims in favor of the Company, the Company would be required to
pay the following severance payments and benefits: (i) an amount equal to twelve months' base salary, payable in equal monthly
installments over a twelve-month severance period; (ii) an amount equal to the greater of (x) the most recent annual bonus earned by
Mr. Hollingsworth, (y) the average of the immediately preceding two year's annual bonuses earned by Mr. Hollingsworth, or (z) if
Mr. Hollingsworth's termination of employment occurred during the first calendar year of the initial employment term before any
annual bonus for a full twelve-month period of service has been paid, then the target bonus Mr. Hollingsworth would be eligible for under
the Hollingsworth Employment Agreement; provided that no bonus amount would be payable if the bonuses for the year of termination are
subject to achievement of performance goals and such performance goals were not achieved by the Company for such year; and (iii) an amount
intended to assist Mr. Hollingsworth with his post-termination health coverage, provided, however, that he was under no obligation to
use such amounts to pay for continuation of coverage under the Company's group health plan pursuant to COBRA.

 The
Hollingsworth Employment Agreement also contained customary provisions relating to, among other things, confidentiality, non-competition,
non-solicitation, non-disparagement, and assignment of inventions requirements.

 Appointment
as Interim President of AYRO Operating

 On
December 14, 2023, the Board of appointed Mr. Hollingsworth as Interim President of AYRO Operating, effective as December 13, 2023. In
connection with Mr. Hollingsworth's appointment, his base salary was increased to $270,000 per annum, and Mr. Hollingsworth was
paid a one-time cash bonus of $25,000.

 General
Release and Severance Agreement

 On
March 1, 2024, of the Company and Mr. Hollingsworth mutually agreed on the separation of Mr. Hollingsworth from his position with the
Company, effective as of March 1, 2024, pursuant to a General Release and Severance Agreement (the "Hollingsworth Separation Agreement").
Pursuant to the Hollingsworth Separation Agreement, Mr. Hollingsworth was entitled to severance pay in the amount of $225,000, less all
lawful and authorized withholdings and deductions, to be paid in 12 equal monthly installments.

 In
exchange for the consideration provided to Mr. Hollingsworth in the Hollingsworth Separation Agreement, Mr. Hollingsworth agreed to waive
and release any claims in connection with Mr. Hollingsworth's employment, separation and resignation from the Company. In connection
with the execution of the Hollingsworth Separation Agreement, the Hollingsworth Employment Agreement was terminated; provided, however,
that certain surviving customary confidentiality provisions and restrictive covenants remain in full force and effect. The Hollingsworth
Separation Agreement also provided for certain customary covenants regarding confidentiality and non-disparagement.

 Equity
Compensation

 AYRO,
Inc. 2020 Long-Term Incentive Plan

 On
April 21, 2020, our Board adopted the AYRO, Inc. 2020 Long-Term Incentive Plan (the "Plan," or the "2020 LTIP"),
subject to stockholder approval, which was obtained on May 28, 2020. Our outside directors and our employees, including the principal
executive officer, principal financial officer and other named executive officers, and certain contractors are all eligible to participate
in the Plan. The Plan was amended by stockholder vote on November 9, 2020, to increase the total number of shares of our common stock
authorized for issuance under the Plan to 4,089,650 shares. The Plan was further amended by stockholder vote on September 14, 2023, to
increase the total number of shares of our common stock authorized for issuance under the Plan by 5,750,000 shares to a total of 9,839,650
shares of common stock.

 Purpose.
The purpose of the Plan is to enable us to remain competitive and innovative in our ability to attract and retain the services of key
employees, key contractors, and non-employee directors of the Company or any of our subsidiaries. The Plan provides for the granting
of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance
awards, dividend equivalent rights, and other awards, which may be granted singly, in combination, or in tandem, and which may be paid
in cash or shares of our common stock. The Plan is expected to provide flexibility to our compensation methods in order to adapt the
compensation of our key employees, key contractors, and non-employee directors to a changing business environment, after giving due consideration
to competitive conditions and the impact of applicable tax laws.

 Effective
Date and Expiration. The Plan was approved by our Board on April 21, 2020 (the "Effective Date"), subject to the Plan's
approval by our stockholders. The Plan will terminate on the tenth anniversary of the Effective Date, unless sooner terminated by our
Board. No award may be made under the Plan after its termination date, but awards made prior to the termination date may extend beyond
that date in accordance with their terms.

 Share
Authorization. Subject to certain adjustments, the maximum number of shares of our common stock that may be issued pursuant to awards
under the Plan is 9,839,650 shares, 100% of which may be delivered as incentive stock options.

 Shares
to be issued may be made available from authorized but unissued shares of our common stock, shares held by us in our treasury, or shares
purchased by us on the open market or otherwise. During the term of the Plan, we will at all times reserve and keep enough shares available
to satisfy the requirements of the Plan. If an award under the Plan is cancelled, forfeited, or expires, in whole or in part, the shares
subject to such forfeited, expired, or cancelled award may again be awarded under the Plan. In the event that previously acquired shares
are delivered to us in full or partial payment of the option price upon the exercise of a stock option or other award granted under the
Plan, the number of shares available for future awards under the Plan shall be reduced only by the net number of shares issued upon the
exercise of the stock option or settlement of an award. Awards that may be satisfied either by the issuance of common stock or by cash
or other consideration shall be counted against the maximum number of shares that may be issued under the Plan only during the period
that the award is outstanding or to the extent the award is ultimately satisfied by the issuance of shares. An award will not reduce
the number of shares that may be issued pursuant to the Plan if the settlement of the award will not require the issuance of shares,
as, for example, a stock appreciation right that can be satisfied only by the payment of cash. Only shares forfeited back to us; shares
cancelled on account of termination, expiration, or lapse of an award; shares surrendered in payment of the option price of an option;
or shares withheld for payment of applicable employment taxes and/or withholding obligations resulting from the exercise of a stock option
shall again be available for grant as incentive stock options under the Plan, but shall not increase the maximum number of shares described
above as the maximum number of shares that may be delivered pursuant to incentive stock options.

 Administration.
The Plan shall be administered by our Board or such committee of the Board as it designated by it to administer the Plan (the "Committee").
At any time there is no Committee to administer the Plan, any reference to the Committee is a reference to the Board. The Committee will
determine the persons to whom awards are to be made; determine the type, size, and terms of awards; interpret the Plan; establish and
revise rules and regulations relating to the Plan; establish performance goals for awards and certify the extent of their achievement;
and make any other determinations that it believes are necessary for the administration of the Plan. The Committee may delegate certain
of its duties to one or more of our officers as provided in the Plan.

 Eligibility.
Employees (including any employee who is also a director or an officer), contractors, and non-employee directors of the Company or any
of our subsidiaries, whose judgment, initiative, and efforts contributed to or may be expected to contribute to our successful performance,
are eligible to participate in the Plan. As of the date hereof, we had 14 employees, one contractor and five non-employee directors who
would be eligible for awards under the Plan.

 Stock
Options. The Committee may grant either incentive stock options ("ISOs") qualifying under Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code"), or nonqualified stock options, provided that only employees of the Company
and our subsidiaries (excluding subsidiaries that are not corporations) are eligible to receive ISOs. Stock options may not be granted
with an option price less than 100% of the fair market value of a share of common stock on the date the stock option is granted. If an
ISO is granted to an employee who owns or is deemed to own more than 10% of the combined voting power of all classes of our stock (or
of any parent or subsidiary), the option price shall be at least 110% of the fair market value of a share of common stock on the date
of grant. The Committee will determine the terms of each stock option at the time of grant, including, without limitation, the methods
by or forms in which shares will be delivered to participants or registered in their names. The maximum term of each option, the times
at which each option will be exercisable, and provisions requiring forfeiture of unexercised options at or following termination of employment
or service generally are fixed by the Committee, except that the Committee may not grant stock options with a term exceeding 10 years
or, in the case of an ISO granted to an employee who owns or is deemed to own more than 10% of the combined voting power of all classes
of our stock (or of any parent or subsidiary), a term exceeding five years.

 Recipients
of stock options may pay the option price (i) in cash, check, bank draft, or money order payable to the order of the Company; (ii) by
delivering to us shares of common stock (included restricted stock) already owned by the participant having a fair market value equal
to the aggregate option price and that the participant has not acquired from us within six months prior to the exercise date; (iii) by
delivering to us or our designated agent an executed irrevocable option exercise form, together with irrevocable instructions from the
participant to a broker or dealer, reasonably acceptable to us, to sell certain of the shares purchased upon the exercise of the option
or to pledge such shares to the broker as collateral for a loan from the broker and to deliver to us the amount of sale or loan proceeds
necessary to pay the purchase price; (iv) by requesting us to withhold the number of shares otherwise deliverable upon exercise of the
stock option by the number of shares having an aggregate fair market value equal to the aggregate option price at the time of exercise
( i.e., a cashless net exercise); and (v) by any other form of valid consideration that is acceptable to the Committee in its sole
discretion.

 Stock
Appreciation Rights. The Committee is authorized to grant stock appreciation rights ("SARs") as a stand-alone award (or
freestanding SARs) or in conjunction with options granted under the Plan (or tandem SARs). SARs entitle a participant to receive an amount
equal to the excess of the fair market value of a share of common stock on the date of exercise over the fair market value of a share
of our common stock on the date of grant. The grant price of a SAR cannot be less than 100% of the fair market value of a share of our
common stock on the date of grant. The Committee will determine the terms of each SAR award at the time of the grant, including, without
limitation, the methods by or forms in which shares will be delivered to participants or registered in their names. The maximum term
of each SAR award, the times at which each SAR award will be exercisable, and provisions requiring forfeiture of unexercised SARs at
or following termination of employment or service generally are fixed by the Committee, except that no freestanding SAR may have a term
exceeding 10 years and no tandem SAR may have a term exceeding the term of the option granted in conjunction with the tandem SAR. Distributions
to the recipient may be made in common stock, cash, or a combination of both as determined by the Committee.

 Restricted
Stock and Restricted Stock Units. The Committee is authorized to grant restricted stock and restricted stock units. Restricted stock
consists of shares of our common stock that may not be sold, assigned, transferred, pledged, hypothecated, encumbered, or otherwise disposed
of, and that may be forfeited in the event of certain terminations of employment or service, prior to the end of the restricted period
as specified by the Committee. Restricted stock units are the right to receive shares of common stock at a future date in accordance
with the terms of such grant upon the attainment of certain conditions specified by the Committee, which include a substantial risk of
forfeiture and restrictions on their sale or other transfer by the participant. The Committee determines the eligible participants to
whom, and the time or times at which, grants of restricted stock or restricted stock units will be made; the number of shares or units
to be granted; the price to be paid, if any; the time or times within which the shares covered by such grants will be subject to forfeiture;
the time or times at which the restrictions will terminate; and all other terms and conditions of the grants. Restrictions or conditions
could include, but are not limited to, the attainment of performance goals (as described below), continuous service with us, the passage
of time, or other restrictions or conditions. Except as otherwise provided in the Plan or the applicable award agreement, a participant
shall have, with respect to shares of restricted stock, all of the rights of a stockholder of the Company holding the class of common
stock that is the subject of the restricted stock, including, if applicable, the right to vote the common stock and the right to receive
any dividends thereon.

 Dividend
Equivalent Rights. The Committee is authorized to grant a dividend equivalent right to any participant, either as a component of
another award or as a separate award, conferring upon the participant the right to receive credits based on the cash dividends that would
have been paid on the shares of common stock specified in the award as if such shares were held by the participant. The terms and conditions
of the dividend equivalent right shall be specified in the grant. Dividend equivalents credited to the holder of a dividend equivalent
right may be paid currently or may be deemed to be reinvested in additional shares. Any such reinvestment shall be at the fair market
value at the time thereof. A dividend equivalent right may be settled in cash, shares, or a combination thereof.

 Performance
Awards. The Committee may grant performance awards payable at the end of a specified performance period in cash, shares of common
stock, units, or other rights based upon, payable in, or otherwise related to our common stock. Payment will be contingent upon achieving
pre-established performance goals (as described below) by the end of the applicable performance period. The Committee will determine
the length of the performance period, the maximum payment value of an award, and the minimum performance goals required before payment
will be made, so long as such provisions are not inconsistent with the terms of the Plan, and to the extent an award is subject to Section
409A of the Code, are in compliance with the applicable requirements of Section 409A of the Code and any applicable regulations or guidance.
In certain circumstances, the Committee may, in its discretion, determine that the amount payable with respect to certain performance
awards will be reduced from the maximum amount of any potential awards. If the Committee determines, in its sole discretion, that the
established performance measures or objectives are no longer suitable because of a change in our business, operations, corporate structure,
or for other reasons that the Committee deems satisfactory, the Committee may modify the performance measures or objectives and/or the
performance period.

 Performance
Goals. Awards of restricted stock, restricted stock units, performance awards, and other awards under the Plan may be made subject
to the attainment of performance goals relating to one or more business criteria which shall consist of one or more or any combination
of the following criteria ("Performance Criteria"): cash flow; cost; revenues; sales; ratio of debt to debt plus equity;
net borrowing, credit quality, or debt ratings; profit before tax; economic profit; earnings before interest and taxes; earnings before
interest, taxes, depreciation, and amortization; gross margin; earnings per share (whether on a pre-tax, after-tax, operational, or other
basis); operating earnings; capital expenditures; expenses or expense levels; economic value added; ratio of operating earnings to capital
spending or any other operating ratios; free cash flow; net profit; net sales; net asset value per share; the accomplishment of mergers,
acquisitions, dispositions, public offerings, or similar extraordinary business transactions; sales growth; price of the shares; return
on assets, equity, or stockholders' equity; market share; inventory levels, inventory turn or shrinkage; or total return to stockholders.
Any Performance Criteria may be used to measure our performance as a whole or of any of our business units and may be measured relative
to a peer group or index. Any Performance Criteria may include or exclude (i) events that are of an unusual nature or indicate infrequency
of occurrence, (ii) gains or losses on the disposition of a business; (iii) changes in tax or accounting regulations or laws; (iv) the
effect of a merger or acquisition, as identified in our quarterly and annual earnings releases; or (v) other similar occurrences. In
all other respects, Performance Criteria shall be calculated in accordance with our financial statements, under generally accepted accounting
principles, or under a methodology established by the Committee prior to the issuance of an award, which is consistently applied and
identified in the Company's audited financial statements, including in footnotes, or the Compensation Discussion and Analysis section
of the Company's annual report.

 Other
Awards. The Committee may grant other forms of awards, based upon, payable in, or that otherwise relate to, in whole or in part,
shares of our common stock, if the Committee determines that such other form of award is consistent with the purpose and restrictions
of the Plan. The terms and conditions of such other form of award shall be specified in the grant. Such other awards may be granted for
no cash consideration, for such minimum consideration as may be required by applicable law, or for such other consideration as may be
specified in the grant.

 Vesting,
Forfeiture and Recoupment, Assignment. The Committee, in its sole discretion, may determine that an award will be immediately vested,
in whole or in part, or that all or any portion may not be vested until a date, or dates, subsequent to its date of grant, or until the
occurrence of one or more specified events, subject in any case to the terms of the Plan. If the Committee imposes conditions upon vesting,
then, subsequent to the date of grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion of
the award may be vested.

 The
Committee may impose on any award at the time of grant or thereafter, such additional terms and conditions as the Committee determines,
including terms requiring forfeiture of awards in the event of a participant's termination of service. The Committee will specify
the circumstances on which performance awards may be forfeited in the event of a termination of service by a participant prior to the
end of a performance period or settlement of such awards. Except as otherwise determined by the Committee, restricted stock will be forfeited
upon a participant's termination of service during the applicable restriction period. In addition, we may recoup all or any portion
of any shares or cash paid to a participant in connection with any award in the event of a restatement of the Company's financial
statements as set forth in the Company's clawback policy, if any, as such policy may be approved or modified by our Board from
time to time.

 Awards
granted under the Plan generally are not assignable or transferable except by will or by the laws of descent and distribution, except
that the Committee may, in its discretion and pursuant to the terms of an award agreement, permit transfers of nonqualified stock options
or SARs to (i) the spouse (or former spouse), children, or grandchildren of the participant ("Immediate Family Members");
(ii) a trust or trusts for the exclusive benefit of such Immediate Family Members; (iii) a partnership in which the only partners are
(a) such Immediate Family Members and/or (b) entities which are controlled by the participant and/or his or her Immediate Family Members;
(iv) an entity exempt from federal income tax pursuant to Section 501(c)(3) of the Code or any successor provision; or (v) a split interest
trust or pooled income fund described in Section 2522(c)(2) of the Code or any successor provision, provided that (x) there shall be
no consideration for any such transfer, (y) the applicable award agreement pursuant to which such nonqualified stock options or SARs
are granted must be approved by the Committee and must expressly provide for such transferability, and (z) subsequent transfers of transferred
nonqualified stock options or SARs shall be prohibited except those by will or the laws of descent and distribution.

 Adjustments
Upon Changes in Capitalization. In the event that any dividend or other distribution (whether in the form of cash, shares of our
common stock, other securities or other property), recapitalization, stock split, reverse stock split, rights offering, reorganization,
merger, consolidation, split-up, spin-off, split-off, combination, subdivision, repurchase, or exchange of shares of common stock or
other securities of the Company, issuance of warrants or other rights to purchase shares of common stock or other securities of the Company,
or other similar corporate transaction or event affects the fair value of an award, then the Committee shall adjust any or all of the
following so that the fair value of the award immediately after the transaction or event is equal to the fair value of the award immediately
prior to the transaction or event: (i) the number of shares and type of common stock (or the securities or property) which thereafter
may be made the subject of awards; (ii) the number of shares and type of common stock (or other securities or property) subject to outstanding
awards; (iii) the number of shares and type of common stock (or other securities or property) specified as the annual per-participant
limitation under the Plan; (iv) the option price of each outstanding stock option; (v) the amount, if any, we pay for forfeited shares
in accordance with the terms of the Plan; and (vi) the number of or exercise price of shares then subject to outstanding SARs previously
granted and unexercised under the Plan, to the end that the same proportion of our issued and outstanding shares of common stock in each
instance shall remain subject to exercise at the same aggregate exercise price; provided, however, that the number of shares of common
stock (or other securities or property) subject to any award shall always be a whole number. Notwithstanding the foregoing, no such adjustment
shall be made or authorized to the extent that such adjustment would cause the Plan or any stock option to violate Section 422 or Section
409A of the Code. All such adjustments must be made in accordance with the rules of any securities exchange, stock market, or stock quotation
system to which we are subject.

 Amendment
or Discontinuance of the Plan. Our Board may, at any time and from time to time, without the consent of participants, alter, amend,
revise, suspend, or discontinue the Plan in whole or in part; provided, however, that (i) no amendment that requires stockholder approval
in order for the Plan and any awards under the Plan to continue to comply with Sections 421 and 422 of the Code (including any successors
to such sections or other applicable law) or any applicable requirements of any securities exchange or inter-dealer quotation system
on which our stock is listed or traded, shall be effective unless such amendment is approved by the requisite vote of our stockholders
entitled to vote on the amendment; and (ii) unless required by law, no action by our Board regarding amendment or discontinuance of the
Plan may adversely affect any rights of any participants or obligations of the Company to any participants with respect to any outstanding
awards under the Plan without the consent of the affected participant.

 On
February 1, 2022, pursuant to the Plan, the Company issued 442,249 shares of restricted stock to non-executive directors at a value of
$1.29 per share. Such shares vested in four equal installments on each quarterly anniversary of the grant date, provided that each director
remained continuously employed by or provided services to the Company through the applicable vesting date subject to the terms and conditions
of the Plan.

 On
August 23, 2022, pursuant to the Hollingsworth Employment Agreement, the Company issued 100,000 shares of the Company's restricted
common stock to Mr. Hollingsworth at a value of $0.03 per share, which shares shall vest in tranches of 25,000 shares upon the achievement
of certain stock price, market capitalization and business milestones.

 On
February 1, 2023, pursuant to the Plan, the Company issued an aggregate of 760,668 shares of restricted stock to its non-employee directors
at a value of $0.75 per share. Such shares vested in four equal installments on each quarterly anniversary of the grant date, provided
that each director remained continuously employed by or provided services to the Company through the applicable vesting date subject
to the terms and conditions of the Plan.

 Outstanding
Equity Awards at Fiscal Year-End

 The
following table includes certain information with respect to all unexercised stock options and unvested shares of common stock outstanding
owned by the named executive officers as of December 31, 2023.

 Named Executive Officer or Director

 Number of

 securities

 underlying

 unexercised

 options (#)

 exercisable

 Number of

 securities

 underlying

 unexercised

 options (#)

 unexercisable

 Option

 exercise

 price($)

 Option

 expiration

 date

 Number of

 shares or

 units of

 stock that

 have not

 yet vested (#)

 Market

 value of

 shares or

 units of

 stock that

 have
not

 vested($) (3)

 Joshua Silverman

 Executive Chairman, Principal Executive Officer, and Interim Principal Financial Officer and Principal Accounting Officer

 -

 -

 -

 -

 6,167

 $
 10,854

 Thomas M. Wittenschlaeger
Former Chief Executive Officer

 -

 -

 -

 -

 56,250
 (1)

 $
 99,000

 David E. Hollingsworth
Former Chief Financial Officer and Former Interim President of AYRO Operating

 -

 -

 -

 -

 12,500
 (2)

 $
 22,000

 (1)

 These
 shares vest in five tranches upon the achievement of certain stock price, market capitalization and business milestones.

 (2)

 These
 shares vest in four tranches upon the achievement of certain stock price, market capitalization and business milestones.

 (3)

 Calculated
 based on the closing price of our common stock on December 29, 2023, which was $1.76.

 Retirement
Benefits

 We
do not currently have plans providing for the payment of retirement benefits to our officers or directors, other than as described under
"Narrative Disclosure to Summary Compensation Table" above.

 Change
in Control Agreements

 We
do not currently have any change-of-control or severance agreements with any of our executive officers or directors, other than as described
under "Narrative Disclosure to Summary Compensation Table" above. In the event of the termination of employment of the named
executive officers, any and all unexercised stock options shall expire and no longer be exercisable after a specified time following
the date of the termination, other than as described under "Narrative Disclosure to Summary Compensation Table" above.

Compensation

 The
following table sets forth summary information concerning the total compensation earned by the non-employee directors during the year
ended December 31, 2023, for services to the Company.

 Name

 Fees Earned or

 Paid in Cash ($)

 Stock

 Awards ($) (1)

 All other

 compensation

 Total ($)

 Greg Schiffman

 57,504

 -

 142,004

 Sebastian Giordano

 45,000

 -

 129,500

 Zvi Joseph

 56,496

 -

 140,996

 George Devlin

 45,000

 -

 129,500

 Wayne R. Walker

 45,000

 -

 129,500

 (1)

 Amounts
 reflect the full grant-date fair value of stock awards granted during the relevant fiscal year computed in accordance with ASC Topic
 718, rather than the amounts paid to or realized by the named individual. We provided information regarding the assumptions used
 to calculate the value of all stock awards and option awards made to our executive officers in Note 10 to the audited consolidated
 financial statements for the year ended December 31, 2023.

 On
January 24, 2023, the Board approved annual director compensation for the director compensation cycle beginning on February 1, 2023.
The Board approved the following annual cash retainer fees for the members of the Board: (A) to each non-employee director, an
annual cash retainer fee of $47,250; (B) to the Chairman of the Board, an additional annual cash retainer fee of $84,000; and (C) to
the chair of each Board committee, additional cash compensation as follows: (x) $12,500 to the Audit Committee Chair, (y) $11,500 to
the Compensation and Human Resources Committee Chair, and (z) $8,000 to the Nominating and Corporate Governance Committee Chair.
Notwithstanding such approval by the Board, the amounts paid to each non-employee director during the year ended December 31, 2023
are set forth in the table above. Additionally, on February 1, 2023, pursuant to the Plan, the Company issued an aggregate of 95,087
shares of restricted stock to its non-employee directors at a value of $6.00 per share, as shown in the following table:

 Awarded Shares

 Vesting Schedule

 George Devlin

 14,08

 Sebastian Giordano

 14,08

 Zvi Joseph

 14,08

 Greg Schiffman

 14,08

 Wayne Walker

 14,08

 (1)

 Vests
 in four equal installments on each quarterly anniversary of the date of the grant, provided that the director has continuously provided
 services to the Company through that date.

 ITEM
12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

 Equity
Compensation Plan Information

 Equity Compensation Plan Information

 (a)
 Number of Securities

to be Issued Upon

Exercise of

Outstanding Options,

Warrants and Rights

 (b)
 Weighted-Average

Exercise Price of

Outstanding Options,

Warrants and Rights (1)

 (c)
 Number of

Securities Remaining

Available for Future

Issuance under

Equity Compensation

Plans (Excluding

Securities Reflected

in Column (a))

 Plan Category:

 Equity compensation plans approved by security holders: 2020 LTIP (Options and Restricted Stock)(2)

 406,860

 $
 87.67

 823,097

 Equity compensation plans not approved by security holders: 2017 LTIP (Options) (3)

 12,101

 $
 95.51

 -

 Equity compensation plans approved by security holders: 2014 DropCar (Options) (4)

 7,680

 $
 375.60

 -

 Other equity compensation plans not approved by security holders

 -

 -

 -

 Total

 426,641

 823,097

 (1)

 The
 weighted-average exercise price set forth in this column is calculated excluding outstanding restricted stock awards since recipients
 of such awards are not required to pay an exercise price to receive shares subject to these awards.

 (2)

 Represents
 27,718 shares of common stock issuable upon exercise of options and 379,142 outstanding shares of restricted stock under 2020 LTIP.

 (3)

 Represents
 shares of common stock issuable upon exercise of options under the AYRO, Inc. 2017 Long Term Incentive Plan adopted by AYRO Operating
 prior to the Merger ("2017 LTIP," or "AYRO Operating Equity Plan").

 (4)

 Represents
 shares of common stock issuable upon exercise of options under the DropCar Amended and Restated 2014 Equity Incentive Plan ("2014
 DropCar".)

 AYRO
Operating Equity Plan

 Pursuant
to the Agreement and Plan of Merger, dated December 19, 2019 (the "Merger Agreement"), by and among the Company, previously
known as DropCar, Inc. ("DropCar"), ABC Merger Sub, Inc., a Delaware corporation and a wholly owned subsidiary of the Company
("Merger Sub"), and AYRO Operating Company, a Delaware corporation previously known as AYRO, Inc. ("AYRO Operating"),
Merger Sub was merged with and into AYRO Operating, with each issued and outstanding share of AYRO Operating's common stock, including
shares underlying AYRO Operating's outstanding equity awards and warrants, being converted into the right to receive 1.3634 shares
(the "Exchange Ratio") of the Company's Common Stock, and with AYRO Operating continuing after the merger as the surviving
entity and a wholly owned subsidiary of the Company (the "Merger"). Pursuant to the Merger Agreement, effective as of the
effective time of the Merger, we assumed the AYRO Operating Equity Plan, assuming all of AYRO Operating's rights and obligations
with respect to the options issued thereunder. Immediately thereafter, we terminated the AYRO Operating Equity Plan.

 The
AYRO Operating Equity Plan, effective as of January 1, 2017, allowed for the granting of a variety of equity-based awards to provide
AYRO Operating with flexibility in attracting and retaining key employees, consultants, and nonemployee directors and to provide such
persons with additional incentive opportunities designed to enhance AYRO Operating's profitable growth. Consequently, the AYRO
Operating Equity Plan primarily provided for the granting of incentive stock options, non-qualified stock options, restricted stock awards,
restricted stock units, stock appreciation rights, other stock-based awards, or a combination of the foregoing.

 Authorized
Shares. At inception, a total of 125,000 shares of AYRO Operating common stock (without giving effect to the Exchange Ratio or the
Reverse Split) that occurred immediately after the effective time of the Merger, were authorized for issuance under the AYRO Operating
Equity Plan. The AYRO Operating Equity Plan was amended from time to time to increase the maximum number of shares authorized for issuance
under the AYRO Operating Equity Plan. A total of 6,410,000 shares of common stock were authorized under the AYRO Operating Equity Plan,
without giving effect to the Exchange Ratio or the Reverse Split that occurred immediately after the effective time of the Merger.

 Plan
Administration. As permitted by the terms of the AYRO Operating Equity Plan, the AYRO Operating board of directors delegated administration
of the AYRO Operating Equity Plan to the compensation committee of AYRO Operating's board of directors (the "AYRO Operating
Committee"). As used herein with respect to the AYRO Operating Equity Plan, the term "AYRO Operating Committee" refers
to any committee AYRO Operating's board of directors may have appointed to administer the AYRO Operating Equity Plan as well as
to the board of directors itself. Subject to the provisions of the AYRO Operating Equity Plan, the AYRO Operating Committee had the power
to construe and interpret the AYRO Operating Equity Plan and awards granted under it and to determine the persons to whom and the dates
on which awards would have been granted, the number of shares of common stock to be subject to each award, the time or times during the
term of each award within which all or a portion of such award may have been exercised, the exercise price, the type of consideration
to have been paid, and the other terms and provisions of each award, which need not have been identical. All decisions, determinations
and interpretations by the AYRO Operating Committee regarding the AYRO Operating Equity Plan and any awards granted under it were final,
binding and conclusive on all participants or other persons claiming rights under the AYRO Operating Equity Plan or any award.

 Options.
 Options granted under the AYRO Operating Equity Plan may (i) either have been "incentive stock options" within the meaning
of Section 422 of the Code, or "nonqualified stock options," and (ii) became exercisable in cumulative increments ("vest")
as determined by the AYRO Operating Committee. Such increments may have been based on continued service to AYRO Operating over a certain
period of time, the occurrence of certain performance milestones, or other criteria as determined by the Committee. Options granted under
the AYRO Operating Equity Plan may have been subject to different vesting terms. The AYRO Operating Committee generally had the power
to accelerate the time during which an option may have vested or have been exercised. Options may not have had an exercise price per
share of less than 100% (110% in the case of a participant who owned more than 10% of the combined voting power of AYRO Operating or
an affiliate (a "10% Stockholder")) of the fair market value of a share of AYRO Operating common stock on the date of grant
or a term longer than ten years (five years in the case of a 10% Stockholder). To the extent provided by the terms of an option, a participant
may have satisfied any federal, state or local tax withholding obligation relating to the exercise of such option by a cash payment upon
exercise, by authorizing AYRO Operating to withhold a portion of the stock otherwise issuable to the participant upon exercise, or by
such other method as may be set forth in the option agreement or authorized by the AYRO Operating Committee. The treatment of options
under the AYRO Operating Equity Plan upon a participant's termination of employment with or service to AYRO Operating were set
forth in the applicable award agreement, which typically provided that the options will terminate three months after a termination of
employment or service. Incentive stock options are not transferable except by will or by the laws of descent and distribution, provided
that a participant may designate a beneficiary who may exercise an option following the participant's death. Non-qualified stock
options are transferable to certain permitted transferees (as provided in the AYRO Operating Equity Plan) to the extent included in the
option award agreement.

 Restricted
Stock and Restricted Stock Unit Awards. Subject to certain limitations, the AYRO Operating Committee was authorized to grant awards
of restricted stock and restricted stock units, which were rights to receive shares of AYRO Operating common stock or cash, as determined
by the AYRO Operating Committee and as set forth in the applicable award agreement, upon the settlement of the restricted stock units
at the end of a specified time period. The AYRO Operating Committee may have imposed any restrictions or conditions upon the vesting
of restricted stock or restricted stock unit awards, or that delay the settlement of a restricted stock unit award after it vests, that
the AYRO Operating Committee deemed appropriate and in accordance with the requirements of Section 409A of the Code and the regulations
and other authoritative guidance issued thereunder. Dividend equivalents may have been credited in respect of shares covered by a restricted
stock or a restricted stock unit award, as determined by the AYRO Operating Committee. At the discretion of the AYRO Operating Committee,
such dividend equivalents may have been converted into additional shares covered by restricted stock or restricted stock units, as applicable.
If a restricted stock or restricted stock unit award recipient's employment or service relationship with AYRO Operating terminated,
any unvested portion of the restricted stock or restricted stock unit award would be forfeited, unless the participant's award
agreement provided otherwise. Restricted stock and restricted stock unit awards are generally not transferable except (i) by will or
by the laws of descent and distribution or (ii) to certain permitted transferee, to the extent provided in the award agreement.

 Other
Awards. Other awards permitted under the AYRO Operating Equity Plan included stock appreciation rights, bonus stock, dividend equivalents,
and other stock-based awards that were denominated or payable in, valued in whole or in part by reference to or otherwise based on or
related to AYRO Operating common stock.

 Certain
Adjustments; Change in Control. In connection with any reorganization, recapitalization, reincorporation, reclassification, stock
dividend, dividend in property other than cash, stock split, liquidating dividend, combination of shares, exchange of shares, or other
change in AYRO Operating's capital structure, the AYRO Operating Committee would have appropriately adjusted the type(s), class(es)
and number of shares of common stock subject to the AYRO Operating Equity Plan (and the other share limits contained therein), and any
outstanding awards would also be appropriately adjusted as to the type(s), class(es), number of shares and exercise price per share of
common stock subject to such awards.

 In
the event of a "Change in Control" (as defined in the AYRO Operating Equity Plan), the AYRO Operating Committee would have
approved, without the consent or approval of any participant, one or more of the following alternatives with respect to outstanding awards
under the AYRO Operating Equity Plan: (i) accelerate the time at which outstanding awards may be exercised, whether in full or in part,
or for a limited period of time on or before a specified date after which date all unexercised awards and all rights of holders thereunder
shall terminate; (ii) require the surrender of some or all of a participant's outstanding awards, upon which such awards shall
be cancelled and the participant shall receive an amount in cash equal to the positive difference, if any, between the underlying stock's
then current fair market value over the award's exercise or purchase price, as applicable; or (iii) make such adjustments to outstanding
awards as the AYRO Operating Committee deemed appropriate to reflect such Change in Control. Any determination of the AYRO Operating
Committee with regard to any outstanding awards under the AYRO Operating Equity Plan in connection with a Change in Control would be
final, binding and conclusive.

 Amendment,
Termination. AYRO Operating's board of directors may have amended, altered, suspended, discontinued, or terminated the AYRO
Operating Equity Plan, provided that no such amendment would have adversely affected the rights of any participant without the participant's
consent

 Security
Ownership of Certain Beneficial Owners and Management

 The
following table sets forth information with respect to the beneficial ownership of our common stock as of April 26, 2024 by:

 each
 person known by us to beneficially own more than 5.0% of our common stock, Series H-6 Preferred Stock or Series H-7 Preferred Stock;

 each
 of our directors;

 each
 of our named executive officers; and

 all
 of our directors and executive officers as a group.

 The
percentages of voting securities beneficially owned are reported on the basis of regulations of the SEC governing the determination of
beneficial ownership of securities. Under the rules of the SEC, a person is deemed to be a beneficial owner of a security if that person
has or shares voting power, which includes the power to vote or to direct the voting of the security, or investment power, which includes
the power to dispose of or to direct the disposition of the security. Shares of Common Stock beneficially owned and the respective percentages
of beneficial ownership of Common Stock assumes the exercise of all options, warrants and other securities convertible into Common Stock
beneficially owned by such person or entity currently exercisable or exercisable within 60 days of April 26, 2024, subject to any applicable
beneficial ownership blockers. Except as indicated in the footnotes to this table, to our knowledge and subject to community property
laws where applicable, each beneficial owner named in the table below has sole voting and sole investment power with respect to all shares
beneficially owned and each person's address is c/o AYRO, Inc., 900 E. Old Settlers Boulevard, Suite 100, Round Rock, Texas 78664.

 Name

 Number of Shares of Common Stock Beneficially Owned (1)

 Percentage of Class

 Number of Shares of Series H-6 Preferred Stock Beneficially Owned (2)

 Percentage of Class

 Number of Shares of Series H-7 Preferred Stock Beneficially Owned (3)

 Percentage of Class

 Total Voting Power

 5% Beneficial Owner

 Alpha Capital Anstalt (4)

 542,083

 9.99
 %

 -

 *

 3,000

 13.64
 %

 12.06
 %

 The Hewlett Fund LP (5)

 554,443

 9.99
 %

 -

 *

 2,000

 9.09
 %

 10.23
 %

 Mainfield Enterprises, Inc. (6)

 262,370

 4.99
 %

 -

 *

 2,500

 11.36
 %

 7.90
 %

 Richard Abbe/ Iroquois Capital Management L.L.C. (7)

 553,333

 9.99
 %

 %

 14,000

 63.64
 %

 33.85
 %

 Named Executive Officers and Directors

 George Devlin (8)

 27,016

 *

 -

 *

 -

 *

 *

 Sebastian Giordano (9)

 28,280

 *

 -

 *

 -

 *

 *

 Wayne R. Walker (10)

 21,925

 *

 -

 *

 -

 *

 *

 Zvi Joseph (11)

 25,120

 *

 -

 *

 -

 *

 *

 Joshua Silverman (12)

 49,437

 *

 -

 *

 -

 *

 *

 Greg Schiffman (13)

 27,532

 *

 -

 *

 -

 *

 *

 David E. Hollingsworth

 -

 *

 -

 *

 -

 *

 *

 Thomas M. Wittenschlaeger (16)

 6,250

 *

 -

 *

 -

 *

 *

 All current executive officers and Directors as a group (6 persons)

 179,310

 3.58
 %

 -

 *

 -

 *

 2.03
 %

 *
represents ownership of less than 1%.

 (1)

 Percentage
 of Common Stock ownership is based on 4,995,537 shares of Common Stock issued and outstanding as of April 26, 2024.

 (2)

 Percentage
 of Series H-6 Preferred Stock ownership is based on 50 shares of Series H-6 Preferred Stock issued and outstanding as of April 26,
 2024.

 (3)

 Percentage
 of Series H-7 Preferred Stock ownership is based on 22,000 shares of Series H-7 Preferred Stock issued and outstanding as of April
 26, 2024.

 (4)

 Based
 on a Schedule 13G/A filed on August 15, 2023 by Alpha Capital Anstalt and on certain information made available to the Company. The
 address of Alpha Capital Anstalt is Altenbach 8, FL-9490 Vaduz, Furstentums, Liechtenstein. Includes (i) 111,361 shares of Common
 Stock, (ii) 3,000 shares of Series H-7 Preferred Stock, convertible into up to 1,500,000 shares of Common Stock within 60 days of
 April 26, 2024 (subject to a 9.99% beneficial ownership blocker), and (iii) warrants to purchase up to 1,500,000 shares of Common
 Stock exercisable within 60 days of April 26, 2024 (subject to a 9.99% beneficial ownership blocker).

 (5)

 Based
 on certain information made available to the Company. The address of The Hewlett Fund LP is 100 Merrick Road, Suite 400W, Rockville
 Centre, NY 11570. The Hewlett Fund LP is the beneficial owner of 2,000 shares of Series H-7 Preferred Stock, convertible into up
 to 1,000,000 shares of Common Stock within 60 days of April 26, 2024 (subject to a 9.99% beneficial ownership blocker), and warrants
 to purchase up to 1,000,000 shares of Common Stock exercisable within 60 days of April 26, 2024 (subject to a 9.99% beneficial ownership
 blocker).

 (6)

 Based
 on certain information made available to the Company. The address of Mainfield Enterprises Inc. is Ariel House, 74 Charlotte Street,
 London W1T4QJ, United Kingdom. Mainfield Enterprises Inc. is the beneficial owner of 2,500 shares of Series H-7 Preferred Stock,
 convertible into up to 1,250,000 shares of Common Stock within 60 days of April 26, 2024 (subject to a 4.99% beneficial ownership
 blocker), and warrants to purchase up to 1,250,000 shares of Common Stock exercisable within 60 days of April 26, 2024 (subject to
 a 4.99% beneficial ownership blocker).

 (7)

 Based
 on a Schedule 13G jointly filed on February 14, 2024 by Richard Abbe ("Mr. Abbe"), Kimberly Page ("Ms. Page")
 and Iroquois Capital Management L.L.C. and on certain information made available to the Company. Shares beneficially owned by Iroquois
 Capital Investment Group LLC ("ICIG") include (i) 6,500 shares of Common Stock, (ii) warrants exercisable within 60 days
 of April 26, 2024 to purchase up to 1,403,045 shares of Common Stock (subject to a 9.99% beneficial ownership blocker), (iii) 17
 shares of Series H-6 Preferred Stock, convertible into up to 62 shares of Common Stock within 60 days of April 26, 2024 (subject
 to a 9.99% beneficial ownership blocker), and (iv) 9,000 shares of Series H-7 Preferred Stock, convertible within 60 days of April
 26, 2024 into up to 4,500,062 shares of Common Stock (subject to a 9.99% beneficial ownership blocker). Shares beneficially owned
 by Iroquois Master Fund Ltd. ("IMF") include (i) 3,500 shares of Common Stock, (ii) warrants exercisable within 60 days
 of April 26, 2024 to purchase up to 2,665,016 shares of Common Stock (subject to a 9.99% beneficial ownership blocker), (iii) 33
 shares of Series H-6 Preferred Stock, convertible into up to 119 shares of Common Stock within 60 days of April 26, 2024 (subject
 to a 9.99% beneficial ownership blocker), and (iv) 5,000 shares of Series H-7 Preferred Stock, convertible within 60 days of April
 26, 2024 into up to 2,500,119 shares of Common Stock (subject to a 9.99% beneficial ownership blocker). Mr. Abbe exercises sole voting
 and dispositive power over the shares held by ICIG and shares voting and dispositive power over the shares held by IMF with Ms. Page.
 As such, Mr. Abbe may be deemed to be the beneficial owner of all shares of Common Stock held by and underlying the warrants and
 shares of preferred stock (each subject to certain beneficial ownership blockers) held by ICIG and IMF and Ms. Page may be deemed
 to be the beneficial owner of all shares of Common Stock held by and underlying the warrants and shares of preferred stock (each
 subject to certain beneficial ownership blockers) held by IMF.

 (8)

 Mr.
 Devlin's total includes 12,933 shares of Common Stock and 14,083 shares of Common Stock issuable upon the settlement of vested restricted stock units.

 (9)

 Mr.
 Giordano's total includes 14,197 shares of Common Stock and 14,083 shares of Common Stock issuable upon the settlement of vested restricted stock units.

 (10)

 Mr.
 Walker's total includes 7,842 shares of Common Stock and 14,083 shares of Common Stock issuable upon the settlement of vested restricted stock units.

 (11)

 Mr.
 Joseph's total includes 11,037 shares of Common Stock and 14,083 shares of Common Stock issuable upon the settlement of vested restricted stock units.

 (12)

 Mr.
 Silverman's total includes 24,770 shares of Common Stock and 24,667 shares of Common Stock issuable upon the settlement of vested restricted stock units.

 (13)

 Mr.
 Schiffman's total includes 13,449 shares of Common Stock and 14,083 shares of Common Stock issuable upon the settlement of vested restricted stock units.

 (14)

 Mr.
 Wittenschlaeger's total includes 6,250 shares of Common Stock.

 ITEM
13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

 Transactions
with related persons are governed by the Code of Conduct, which applies to all of our associates, as well as each of our directors and
certain persons performing services for us. The Code of Conduct covers a wide range of potential activities, including, among others,
conflicts of interest, self-dealing and related party transactions. Waiver of the policies set forth in the Code of Conduct will only
be permitted when circumstances warrant. Such waivers for directors and executive officers, or that provide a benefit to a director or
executive officer, may be made only by our Board, as a whole, or the Audit Committee and must be promptly disclosed as required by applicable
law or regulation. Absent such a review and approval process in conformity with the applicable guidelines relating to the particular
transaction under consideration, such arrangements are not permitted. All related party transactions for which disclosure is required
to be provided herein were approved in accordance with the Code of Conduct.

 Other
than as set forth below, we are not aware of any related party transactions that would require disclosure herein.

 August
2023 Private Placement

 On
August 7, 2023, the Company entered into a securities purchase agreement with certain existing investors (the "Investors"),
pursuant to which the Company agreed to sell to the Investors (i) an aggregate of 22,000 shares of Series H-7 Preferred Stock, initially
convertible into up to an aggregate of 2,750,000 shares of Common Stock at an initial conversion price of $8.00 per share, subject to
adjustment, and (ii) warrants initially exercisable for up to an aggregate of 2,750,000 shares of Common Stock at an initial exercise
price of $8.00 per share, subject to adjustment (collectively, the "Private Placement"). Following the September 2023 Reverse
Split, the conversion price for the Series H-7 Preferred Stock was reduced to $2.00 per share pursuant to the terms of the Series H-7
Preferred Stock Certificate of Designations and the exercise price for the warrants was reduced to $2.00 per share pursuant to the terms
of the warrants. The Private Placement closed on August 10, 2023. The aggregate gross proceeds from the Private Placement were approximately
$22 million. In connection with the Private Placement, the Company received investments of (i) $14.0 million from affiliates of Mr. Abbe
and Iroquois Capital Management L.L.C., (ii) $3.0 million from Alpha Capital Anstalt and (iii) $2.0 million from The Hewlett Fund LP,
each of whom is the beneficial owner of 5.0% or more of our Common Stock.

Independence

 We
are currently listed on the Nasdaq Capital Market and therefore rely on the definition of independence set forth in the Nasdaq Listing
Rules ("Nasdaq Rules"). Under the Nasdaq Rules, a director will only qualify as an "independent director" if,
in the opinion of our Board, that person does not have a relationship that would interfere with the exercise of independent judgment
in carrying out the responsibilities of a director. Based upon information requested from and provided by each director concerning his
background, employment, and affiliations, including family relationships, we have determined that our current directors Messrs. Giordano,
Schiffman, Joseph, Devlin and Walker have no material relationship with us that would interfere with the exercise of independent judgment
and are "independent directors" as that term is defined in the Nasdaq Listing Rules.

 ITEM
14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

 Fees
to Independent Registered Public Accounting Firm

 Our
independent registered public accounting firm is Marcum LLP (PCAOB Firm ID No.: 688) located in East Hanover, New Jersey.

 From
2019 until September 21, 2022, our independent accountant was Friedman LLP, which merged with Marcum LLP effective September 1, 2022.
The following table presents fees for professional audit services rendered (i) by Friedman LLP for the review of our quarterly financial
statements for the first and second quarters of 2022, and (ii) by Marcum LLP for the audit of our annual financial statements for the
years ended December 31, 2023 and December 31, 2022 and the review of our quarterly financial statements for the first, second and third
quarters of 2023 and the third quarter of 2022, and fees billed for other services rendered by Friedman LLP and Marcum LLP during those
periods. The percentage of services set forth above in the category audit related fees that were approved by the Audit Committee pursuant
to Rule 2-01(c)(7)(i)(C) (relating to the approval of a de minimis amount of non-audit services after the fact but before completion
of the audit) was 100%.

 2023

 2022

 Audit Fees: (1)

 $
 497,766

 $
 283,723

 Audit-Related Fees: (2)

 -

 -

 Tax Fees: (3)

 -

 -

 All Other Fees: (4)

 -

 -

 Total

 $
 497,766

 $
 283,723

 (1)

 Audit
 Fees include fees for services rendered for the audit of our annual financial statements, the review of financial statements included
 in our Quarterly Reports on Form 10-Q, assistance with and review of documents filed with the SEC and consents and other services
 normally provided in connection with regulatory filings. In 2023, $497,766 was billed by Marcum LLP for audit fees. In 2022, $283,723
 was billed for audit fees, of which $214,852 was billed by Friedman LLP and $68,871 was billed by Marcum LLP.

 (2)

 Audit-Related
 Fees principally include fees incurred for due diligence in connection with potential transactions and accounting consultations.

 (3)

 Tax
 Fees would include fees for services rendered for tax compliance, tax advice, and tax planning.

 (4)

 All
 Other Fees would include fees that do not constitute Audit Fees, Audit-Related Fees, or Tax Fees.

 Pre-Approval
Policies and Procedures

 Under
the Audit Committee's pre-approval policies and procedures, the Audit Committee is required to pre-approve the audit and non-audit
services performed by our independent registered public accounting firms. On an annual basis, the Audit Committee pre-approves a list
of services that may be provided by the independent registered public accounting firms without obtaining specific pre-approval from the
Audit Committee.

 The
Audit Committee has delegated pre-approval authority to the Audit Committee chairman and any pre-approved actions by the Audit Committee
chairman as designee are reported to the Audit Committee for approval at its next scheduled meeting.

 All
of the services rendered by Marcum LLP in 2023 and 2022, and by Friedman LLP in 2022, were pre-approved by the Audit Committee.

 PART
IV

 ITEM
15. EXHIBITS, AND FINANCIAL STATEMENT SCHEDULES.

 (a)
 The
 following exhibits are filed as part of this Amendment No. 1 to Annual Report on Form 10-K:

 Exhibit
 No.

 Description

 19.1*

 AYRO, Inc. Insider Trading Policy

 31.1*

 Certification of the Principal Executive Officer and Principal Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.

 *

 Furnished
 herewith.

 Certain
 of the schedules (and similar attachments) to these exhibits have been omitted in accordance with Regulation S-K Item 601(a)(5) of
 Regulation S-K under the Securities Act of 1933, as amended, because they do not contain information material to an investment or
 voting decision and that information is not otherwise disclosed in the exhibit or the disclosure document. The registrant hereby
 agrees to furnish a copy of all omitted schedules (or similar attachments) to the SEC upon its request.

 SIGNATURES

 Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.

 AYRO,
 INC.

 Dated:
 April 26, 2024

 By:

 /s/
 Joshua Silverman

 Silverman

 Chairman and Director

 (Principal
 Executive Officer, Principal Financial Officer and Principal Accounting Officer)