YayYo, Inc. Announces Results for Q1 2020
BEVERLY HILLS, CA / ACCESSWIRE / May 18, 2020 / YayYo, Inc. (“YayYo” or “the Company”) (OTC PINK:YAYO), a leading provider of vehicles to the rideshare industry, through its wholly-owned subsidiary, Rideshare Car Rentals, LLC, today announced financial results for the quarter ended March 31, 2020.
Q1 2020 Highlights
- Decrease in revenue of only 1.7% during COVID-19 shutdowns
- Gross margin decreased to 19.8% compared to 39.2% for Q1 2019 due to decreased utilization
“Covid-19 did affect our first quarter. We where focused on renting cars to the rideshare industry. We quickly pivoted our marketing form renting cars for rideshare to renting cars for delivery services bringing our utilization rate back up. ” said Ramy El-Batrawi, CEO. ” As of mid May we have brought are rental number back to the level of pre Covid-19 shutdown. With the additional cars that where bought in the first quarter we should see growth come back in future quarters. We believe we are well positioned to capture more market share as other companies in our sector has shut down their operations during this shut down”
Rideshare Car Rentals LLC, our wholly-owned subsidiary, is an online rideshare and Gig Economy vehicle booking platform which includes both our owned-fleet and third party fleets.
Fleet Management
Distinct Cars LLC, our wholly-owned subsidiary, maintains a fleet of passenger vehicles that are commercially available for rent by gig-economy drivers.
About YayYo, Inc.
YayYo bridges the gap between rideshare and delivery drivers needing a suitable vehicle and rideshare and delivery companies that depend on attracting and keeping drivers. YayYo uniquely supports drivers in both the higher and lower economic categories with innovative policies and programs. YayYo seeks to become the preeminent provider of rental vehicles to drivers in the ever-expanding Gig Economy.
YayYo Inc provides SEC filings, investor events, press and earnings releases, about our financial performance, on the investor relations section of our website (yayyo.com).
Forward-Looking Statement Disclaimer
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this press release are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the company believes may affect its financial condition, results of operations, business strategy and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the company cautions investors that actual results may differ materially from the anticipated results.
Company Contact:
Ramy El-Batrawi
Investors@yayyo.com
888-209-5643
YAYYO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
As of March 31, 2020 and December 31, 2019
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March 31, | December 31, | ||||||
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2020 | 2019 | ||||||
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(unaudited) | |||||||
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ASSETS
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||||||||
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Current Assets:
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||||||||
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Cash
|
$ | 37,579 | $ | 1,256,429 | ||||
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Accounts receivable
|
37,839 | 59,331 | ||||||
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Prepaid expenses
|
768,440 | 782,900 | ||||||
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Total current assets
|
843,858 | 2,098,660 | ||||||
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||||||||
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Equipment, net
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3,093 | 3,395 | ||||||
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Rental vehicles, net
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6,832,929 | 4,737,047 | ||||||
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Deposit on vehicles
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35,537 | 164,080 | ||||||
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Deferred offering costs
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– | – | ||||||
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Other assets
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200,000 | 200,000 | ||||||
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TOTAL ASSETS
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$ | 7,915,417 | $ | 7,203,182 | ||||
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LIABILITIES AND STOCKHOLDERS’ DEFICIT
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Current Liabilities:
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||||||||
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Accounts payable (including $529,649 and $394,183 to related party)
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$ | 1,075,228 | $ | 545,254 | ||||
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Accrued expenses (including $0 and $171,665 to related party)
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257,761 | 405,977 | ||||||
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Notes payables, current (net of discount of $22,336 and $32,289)
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297,331 | 287,378 | ||||||
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Finance lease obligations, current
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1,715,134 | 1,416,446 | ||||||
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Total current liabilities
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3,345,454 | 2,655,055 | ||||||
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||||||||
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Finance lease obligations, net of current portion
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2,309,933 | 984,119 | ||||||
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||||||||
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TOTAL LIABILITIES
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5,655,387 | 3,639,174 | ||||||
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||||||||
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Commitments and contingencies
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– | – | ||||||
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STOCKHOLDERS’ DEFICIT
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||||||||
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Preferred stock, $0.000001 par value; 10,000,000 shares authorized; nil shares issued and outstanding
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– | – | ||||||
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Common stock, $0.000001 par value; 90,000,000 shares authorized; 29,427,803 and 29,427,803 shares issued and outstanding
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29 | 29 | ||||||
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Additional paid-in capital
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29,193,136 | 28,735,894 | ||||||
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Accumulated deficit
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(26,933,135 | ) | (25,171,915 | ) | ||||
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Total stockholders’ deficit
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2,260,030 | 3,564,008 | ||||||
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TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT
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$ | 7,915,417 | $ | 7,203,182 | ||||
YAYYO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2020 and 2019 (unaudited)
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Three Months Ended March 31, | |||||||
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2020 | 2019 | ||||||
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Revenue
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$ | 1,747,642 | $ | 1,778,601 | ||||
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||||||||
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Cost of revenue
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1,401,291 | 1,082,170 | ||||||
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||||||||
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Gross profit
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346,351 | 696,431 | ||||||
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Operating expenses:
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||||||||
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Selling and marketing expenses
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131,509 | 81,738 | ||||||
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General and administrative expenses
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1,896,206 | 785,183 | ||||||
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Loss on the settlement of debt
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– | 240,000 | ||||||
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Total operating expenses
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2,027,715 | 1,106,921 | ||||||
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Loss from operations
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(1,681,364 | ) | (410,490 | ) | ||||
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Other income (expense):
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Interest and financing costs
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(79,856 | ) | (168,973 | ) | ||||
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Total other income (expense)
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(79,856 | ) | (168,973 | ) | ||||
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Net loss
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$ | (1,761,220 | ) | $ | (579,463 | ) | ||
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Weighted average shares outstanding :
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||||||||
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Basic
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29,427,803 | 26,721,343 | ||||||
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Diluted
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29,427,803 | 26,721,343 | ||||||
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||||||||
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Loss per share
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||||||||
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Basic
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$ | (0.06 | ) | $ | (0.02 | ) | ||
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Diluted
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$ | (0.06 | ) | $ | (0.02 | ) | ||
YAYYO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
For the Three Months Ended March 31, 2020 and 2019 (unaudited)
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Additional | Total | ||||||||||||||||||
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Common Stock | Paid-in | Accumulated | Stockholders’ | ||||||||||||||||
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Shares | Amount | Capital | Deficit | Equity (Deficit) | |||||||||||||||
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Balance, December 31, 2019
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29,427,803 | $ | 29 | $ | 28,735,894 | $ | (25,171,915 | ) | $ | 3,564,008 | ||||||||||
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Stock option expense
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457,242 | 457,242 | ||||||||||||||||||
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Net loss
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(1,761,220 | ) | (1,761,220 | ) | ||||||||||||||||
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Balance, March 31, 2020
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29,427,803 | $ | 29 | $ | 29,193,136 | $ | (26,933,135 | ) | $ | 2,260,030 | ||||||||||
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Balance, December 31, 2018
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26,718,676 | $ | 27 | $ | 19,193,151 | $ | (21,241,694 | ) | $ | (2,048,516 | ) | |||||||||
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Issuance of common stock for settlement of debt
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80,000 | 640,000 | 640,000 | |||||||||||||||||
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Net loss
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(579,463 | ) | (579,463 | ) | ||||||||||||||||
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Balance, March 31, 2019
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26,798,676 | $ | 27 | $ | 19,833,151 | $ | (21,821,157 | ) | $ | (1,987,979 | ) | |||||||||
YAYYO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
For the Three Months Ended March 31, 2020 and 2019 (unaudited)
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2019 | 2018 | ||||||
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CASH FLOWS FROM OPERATING ACTIVITIES:
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$ | (1,761,220 | ) | $ | (579,463 | ) | ||
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Net loss
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Adjustments to reconcile net loss to net cash used in operating activities:
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||||||||
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Depreciation and amortization
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314,785 | 241,879 | ||||||
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Stock option expense
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457,242 | – | ||||||
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Common stock issued for services
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– | – | ||||||
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Amortization of debt discounts
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9,953 | 9,844 | ||||||
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Loss on the settlement of debt
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– | 240,000 | ||||||
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Changes in operating assets and liabilities:
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||||||||
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Accounts receivable
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21,492 | – | ||||||
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Prepaid expenses
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14,460 | (17,858 | ) | |||||
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Accounts payable
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529,974 | (132,283 | ) | |||||
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Accrued expenses
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(148,216 | ) | 92,324 | |||||
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Net cash used in operating activities
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(561,530 | ) | (145,557 | ) | ||||
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CASH FLOWS FROM INVESTING ACTIVITIES:
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Deposit for vehicles
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(35,537 | ) | – | |||||
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Net cash used in investing activities
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(35,537 | ) | – | |||||
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CASH FLOWS FROM FINANCING ACTIVITIES:
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Proceeds from notes payable
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– | 680,000 | ||||||
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Repayment of notes payable
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– | (199,141 | ) | |||||
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Repayment of finance lease obligations
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(621,783 | ) | (297,703 | ) | ||||
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Net cash provided by (used in) financing activities
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(621,783 | ) | 183,156 | |||||
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NET INCREASE (DECREASE) IN CASH
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(1,218,850 | ) | 37,599 | |||||
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CASH, BEGINNING OF PERIOD
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1,256,429 | 277,444 | ||||||
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CASH, END OF PERIOD
|
$ | 37,579 | $ | 315,043 | ||||
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CASH PAID FOR:
|
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Interest
|
$ | 69,903 | $ | 148,511 | ||||
|
Income taxes
|
$ | – | $ | – | ||||
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SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES
|
||||||||
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Payment of accounts payable/accrued expenses with common stock
|
$ | – | $ | 400,000 | ||||
|
Value of equity recorded as debt discounts
|
$ | – | $ | – | ||||
|
Finance lease obligations
|
$ | 2,246,285 | $ | 510,136 | ||||
SOURCE: YayYo, Inc.
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https://www.accesswire.com/590291/YayYo-Inc-Announces-Results-for-Q1-2020