NOTE 15. SALE OF LEGACY ELECTRIC VEHICLE ASSETS

The Company’s operating subsidiary, AYRO Operating Company, Inc., historically designed, manufactured, and sold compact, sustainable electric vehicles (the “Legacy EV Business”). Operations of the Legacy EV Business ceased during 2025, the related long-lived assets had previously been written down to a carrying value zero. On June 11, 2026, AYRO Operating Company, Inc. entered into an Asset Purchase Agreement to sell substantially all of the tangible and intangible assets used in the Legacy EV Business, including vehicle and parts inventory, intellectual property, engineering designs and technical data, production and fabrication equipment, vehicles, and office furnishings, for aggregate consideration of $250,000, consisting of $25,000 paid at closing and $112,500 payable on each of the six-month and twelve-month anniversaries of closing, plus the assumption by the buyer of certain liabilities related to the Legacy EV Business. Cash, receivables, EV batteries and battery packs, and certain other assets were excluded from the sale.

The Company recognized a gain of $218,803 on the sale, reflecting the. Consideration received, less transaction costs, given the assets’ carrying value of zero at the date of sale. The gain is included in gain on sale of assets within other income (expense), net in the unaudited condensed consolidated statement of operations. Because the Company operates as a single reportable segment, the Legacy EV Business is not presented separately for segment reporting purposes (see Note 12. Segment Reporting).