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*
*March 31,* *December 31,*
*2020* *2019*
*(unaudited)*
*ASSETS*
Current Assets:
Cash
$ 37,579 $ 1,256,429
Accounts receivable
37,839 59,331
Prepaid expenses
768,440 782,900
Total current assets
843,858 2,098,660
Equipment, net
3,093 3,395
Rental vehicles, net
6,832,929 4,737,047
Deposit on vehicles
35,537 164,080
Deferred offering costs
- -
Other assets
200,000 200,000
*TOTAL ASSETS*
$ 7,915,417 $ 7,203,182
*LIABILITIES AND STOCKHOLDERS' DEFICIT*
Current Liabilities:
Accounts payable (including $529,649 and $394,183 to related party)
$ 1,075,228 $ 545,254
Accrued expenses (including $0 and $171,665 to related party)
257,761 405,977
Notes payables, current (net of discount of $22,336 and $32,289)
297,331 287,378
Finance lease obligations, current
1,715,134 1,416,446
Total current liabilities
3,345,454 2,655,055
Finance lease obligations, net of current portion
2,309,933 984,119
*TOTAL LIABILITIES*
5,655,387 3,639,174
Commitments and contingencies
- -
*STOCKHOLDERS' DEFICIT*
Preferred stock, $0.000001 par value; 10,000,000 shares authorized; nil shares issued and outstanding
- -
Common stock, $0.000001 par value; 90,000,000 shares authorized; 29,427,803 and 29,427,803 shares issued and outstanding
29 29
Additional paid-in capital
29,193,136 28,735,894
Accumulated deficit
(26,933,135 ) (25,171,915 )
Total stockholders' deficit
2,260,030 3,564,008
*TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT*
$ 7,915,417 $ 7,203,182 *YAYYO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
For the Three Months Ended March 31, 2020 and 2019 (unaudited)*
*Three Months Ended March 31,*
*2020* *2019*
*Revenue*
$ 1,747,642 $ 1,778,601
*Cost of revenue*
1,401,291 1,082,170
*Gross profit*
346,351 696,431
*Operating expenses:*
Selling and marketing expenses
131,509 81,738
General and administrative expenses
1,896,206 785,183
Loss on the settlement of debt
- 240,000
Total operating expenses
2,027,715 1,106,921
*Loss from operations*
(1,681,364 ) (410,490 )
*Other income (expense):*
Interest and financing costs
(79,856 ) (168,973 )
Total other income (expense)
(79,856 ) (168,973 )
*Net loss*
$ (1,761,220 ) $ (579,463 )
*Weighted average shares outstanding :*
Basic
29,427,803 26,721,343
Diluted
29,427,803 26,721,343
*Loss per share*
Basic
$ (0.06 ) $ (0.02 )
Diluted
$ (0.06 ) $ (0.02 )*YAYYO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (DEFICIT)
For the Three Months Ended March 31, 2020 and 2019 (unaudited)*
*Additional* *Total*
*Common Stock* *Paid-in* *Accumulated* *Stockholders'*
*Shares* *Amount* *Capital* *Deficit* *Equity (Deficit)*
*Balance, December 31, 2019*
29,427,803 $ 29 $ 28,735,894 $ (25,171,915 ) $ 3,564,008
Stock option expense
457,242 457,242
Net loss
(1,761,220 ) (1,761,220 )
*Balance, March 31, 2020*
29,427,803 $ 29 $ 29,193,136 $ (26,933,135 ) $ 2,260,030
*Balance, December 31, 2018*
26,718,676 $ 27 $ 19,193,151 $ (21,241,694 ) $ (2,048,516 )
Issuance of common stock for settlement of debt
80,000 640,000 640,000
Net loss
(579,463 ) (579,463 )
*Balance, March 31, 2019*
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) *
*2019* *2018*
*CASH FLOWS FROM OPERATING ACTIVITIES:*
$ (1,761,220 ) $ (579,463 )
Net loss
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization
314,785 241,879
Stock option expense
457,242 -
Common stock issued for services
- -
Amortization of debt discounts
9,953 9,844
Loss on the settlement of debt
- 240,000
Changes in operating assets and liabilities:
Accounts receivable
21,492 -
Prepaid expenses
14,460 (17,858 )
Accounts payable
529,974 (132,283 )
Accrued expenses
(148,216 ) 92,324
Net cash used in operating activities
(561,530 ) (145,557 )
*CASH FLOWS FROM INVESTING ACTIVITIES:*
Deposit for vehicles
(35,537 ) -
Net cash used in investing activities
(35,537 ) -
*CASH FLOWS FROM FINANCING ACTIVITIES:*
Proceeds from notes payable
- 680,000
Repayment of notes payable
- (199,141 )
Repayment of finance lease obligations
(621,783 ) (297,703 )
Net cash provided by (used in) financing activities
(621,783 ) 183,156
*NET INCREASE (DECREASE) IN CASH*
(1,218,850 ) 37,599
*CASH, BEGINNING OF PERIOD*
1,256,429 277,444
*CASH, END OF PERIOD*
$ 37,579 $ 315,043
*CASH PAID FOR:*
Interest
$ 69,903 $ 148,511
Income taxes
$ - $ -
*SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES*
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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