CONCENTRATIONS AND CREDIT RISK	12 Months Ended
Dec. 31, 2021
Risks and Uncertainties [Abstract]
CONCENTRATIONS AND CREDIT RISK	NOTE 13. CONCENTRATIONS AND CREDIT RISK Revenues In March 2019, the Company entered into a five-year Master Procurement Agreement, or the MPA, with Club Car for the sale of AYRO’s four-wheeled vehicle. The MPA grants Club Car the exclusive right to sell AYRO’s four-wheeled vehicle in North America, provided that Club Car orders at least 500 vehicles per year. The MPA has an initial term of five (5) years commencing January 1, 2019 and may be renewed by Club Car for successive one-year periods upon 60 days’ prior written notice. Two customers accounted for approximately 79% and 20%, respectively, of the Company’s revenues for the year ended December 31, 2021 and for 68% and 18%, respectively, for the year ended December 31, 2020. Accounts Receivable As of December 31, 2021 and 2020, two customers accounted for more than 10% of the Company’s gross accounts receivable. One customer accounted for approximately 87% and 74% as of December 31, 2021 and 2020, respectively. A second customer accounted for approximately 10% and 14% as of December 31, 2021 and 2020, respectively. Purchasing The Company places orders with various suppliers. During the years ended December 31, 2021 and 2020, two suppliers accounted for more than 10% of the Company’s raw materials. One supplier, Cenntro Automotive Group (“Cenntro”), a related party – see Note 14 – accounted for approximately 62% and 54%, respectively, of the Company’s purchases of raw materials during the years ended December 31, 2021 and 2020. The second supplier accounted for 9% and 11%, respectively, of the Company’s purchases of raw materials during the years ended December 31, 2021 and 2020. Any disruption in the operation of either of these suppliers could adversely affect the Company’s operations. Manufacturing Cenntro owns the design of the AYRO 411x model and has granted the Company an exclusive license to manufacture AYRO 411x model for sale in North America. The Company’s business is dependent on such license, and if it fails to comply with its obligations to maintain that license, the Company’s business will be substantially harmed. Under the Manufacturing License Agreement, dated April 27, 2017, between Cenntro and the Company, the Company is granted an exclusive license to manufacture and sell AYRO 411x in the United States, and the Company required to purchase the minimum volume of product units from Cenntro, among other obligations. AYRO, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

CONCENTRATIONS AND CREDIT RISK

12 Months Ended

Dec. 31, 2021

NOTE 13. CONCENTRATIONS AND CREDIT RISK

Revenues

In March 2019, the Company entered into a five-year Master Procurement Agreement, or the MPA, with Club Car for the sale of AYRO’s four-wheeled vehicle. The MPA grants Club Car the exclusive right to sell AYRO’s four-wheeled vehicle in North America, provided that Club Car orders at least 500 vehicles per year. The MPA has an initial term of five (5) years commencing January 1, 2019 and may be renewed by Club Car for successive one-year periods upon 60 days’ prior written notice. Two customers accounted for approximately 79% and 20%, respectively, of the Company’s revenues for the year ended December 31, 2021 and for 68% and 18%, respectively, for the year ended December 31, 2020.

Accounts Receivable

As of December 31, 2021 and 2020, two customers accounted for more than 10% of the Company’s gross accounts receivable. One customer accounted for approximately 87% and 74% as of December 31, 2021 and 2020, respectively. A second customer accounted for approximately 10% and 14% as of December 31, 2021 and 2020, respectively.

Purchasing

The Company places orders with various suppliers. During the years ended December 31, 2021 and 2020, two suppliers accounted for more than 10% of the Company’s raw materials. One supplier, Cenntro Automotive Group (“Cenntro”), a related party – see Note 14 – accounted for approximately 62% and 54%, respectively, of the Company’s purchases of raw materials during the years ended December 31, 2021 and 2020. The second supplier accounted for 9% and 11%, respectively, of the Company’s purchases of raw materials during the years ended December 31, 2021 and 2020. Any disruption in the operation of either of these suppliers could adversely affect the Company’s operations.

Manufacturing

Cenntro owns the design of the AYRO 411x model and has granted the Company an exclusive license to manufacture AYRO 411x model for sale in North America. The Company’s business is dependent on such license, and if it fails to comply with its obligations to maintain that license, the Company’s business will be substantially harmed. Under the Manufacturing License Agreement, dated April 27, 2017, between Cenntro and the Company, the Company is granted an exclusive license to manufacture and sell AYRO 411x in the United States, and the Company required to purchase the minimum volume of product units from Cenntro, among other obligations.

AYRO, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS