YayYo, Inc. Announces Results for Third Quarter 2019

YayYo Inc.

Companies Mentioned:

Primary Exchange: NASDAQ
Under the Symbol: YAYO

YayYo, Inc. Announces Results for Third Quarter 2019

Monday, December 23, 2019 8:30 AM
  • Quarterly revenue up 95.0% year over year to $1,718,439
  • Nine-month revenue up 170.7% or $3,275,481 to $5,193,957 year over year
  • Net quarterly loss down 94.1% or $5,944,463 to $370,655 year over year
  • Geographic footprint increased to eight US Rideshare Rentals locations through Q3
  • $10.5M IPO proceeds used to reduce corporate debt and accelerate both vehicle deployment and geographic footprint growth to 12 cities as of December, 2019

BEVERLY HILLS, CA / ACCESSWIRE / December 23, 2019 / YayYo, Inc. ("YayYo" or "the Company") (NASDAQ: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 September 30, 2019.

"Our November IPO and subsequent public announcements represent the most recent data; however, the September quarter-end has important highlights including increased gross margins and year-over-year growth." Commented Jon Rosen, CEO. "We're pleased with the acceleration of auto inventory enabled by our Initial Public Offering in November. The IPO significantly reduced our debt and allowed us to generate valuable operating capital to rapidly acquire and deploy vehicles. We have a simple, strategic business model serving a massive and growing gig-economy. We operate with strong unit economics supporting robust demand among rideshare and delivery drivers." He added, "We expect the optimization of our balance sheet from the IPO to fuel near-term US footprint expansion, increase vehicle inventories, approach profitability and lead the market in 2020."

Third Quarter 2019 Highlights

  • Increase in revenue due to additional cars in fleet
  • Gross margin improved to 38% compared to 28% for the third quarter of 2018 due to fleet mix optimization and demand-driven pricing
  • Additional revenues and higher gross margin led to lower net quarterly loss
  • Deployment of vehicles into 8 key US geographical markets
  • Pre-IPO 350 vehicle rental fleet size with an approximate 40% gross margins per transaction

Additional

  • YayYo recently opened offices in Miami, Dallas, Hoboken, Seattle, Chicago and San Diego
  • YayYo completed a post-IPO acquisition of a rental fleet extending the company's reach to the New Jersey ridesharing market.
  • The company diversified its lease partners to include United MileFleet and LMP Automotive Holdings. The partnership with LMP also included fleet sourcing, adding to the company's vehicle diversity and faster, regional availability of cars for our rental fleet.

Our operations are organized into rideshare operations and fleet management.

Rideshare

Rideshare Car Rentals LLC, our wholly-owned subsidiary, is an online rideshare vehicle booking platform to service the ridesharing economy 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 drivers needing a suitable vehicle and rideshare 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 ridesharing 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.

Contact:

Jon Rosen
CEO, Yayyo & Rideshare Rentals
Phone: 310 734-7406
Email: [email protected]

Public Relations Contact:

MJ Clyburn
TraDigital IR
Phone: 212 389-9782 x 101
Email: [email protected]

## Financial Tables to Follow ##

YAYYO, INC.    
CONDENSED CONSOLIDATED BALANCE SHEETS    
As of September 30, 2019 and December 31, 2018    
     
 
  September 30,     December 31,  
 
  2019     2018  
 
  (unaudited)        
ASSETS
           
 
           
Current Assets:
           
Cash
  $ 81,340     $ 277,444  
Accounts receivable
    78,643       -  
Prepaid expenses
    107,506       108,900  
Total current assets
    267,489       386,344  
 
               
Equipment, net
    4,881       5,092  
Leased assets, net
    4,125,845       5,115,117  
Deferred offering costs
    93,000       66,500  
 
               
TOTAL ASSETS
  $ 4,491,215     $ 5,573,053  
 
               
LIABILITIES AND STOCKHOLDERS' DEFICIT
               
Current Liabilities:
               
Accounts payable
  $ 325,928     $ 719,386  
Accrued expenses
    770,084       494,066  
Notes payables, current (net of discount of $42,351 and $72,211)
    3,631,478       2,617,970  
Finance lease obligations, current
    1,358,002       1,562,651  
Total current liabilities
    6,085,492       5,394,073  
 
               
Finance lease obligations, net of current portion
    1,147,409       2,227,496  
 
               
TOTAL LIABILITIES
    7,232,901       7,621,569  
 
               
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; 26,802,803 and 26,718,676 shares issued and outstanding
    27       27  
Additional paid-in capital
    19,867,551       19,193,151  
Accumulated deficit
    (22,609,264 )     (21,241,694 )
Total stockholders' deficit
    (2,741,686 )     (2,048,516 )
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
  $ 4,491,215     $ 5,573,053  
YAYYO, INC.    
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS    
For the Three and Nine Months Ended September 30, 2019 and 2018 (unaudited)    
     
 
  Three Months Ended September 30,     Nine Months Ended September 30,  
 
  2019     2018     2019     2018  
 
                       
Revenue
  $ 1,718,439     $ 881,061     $ 5,193,957     $ 1,918,476  
 
                               
Cost of revenue
    1,067,373       632,681       3,111,614       1,360,305  
 
                               
Gross profit
    651,066       248,380       2,082,343       558,171  
 
                               
Operating expenses:
                               
Selling and marketing expenses
    80,039       34,500       182,645       125,995  
Product development
    -       -       -       9,699  
General and administrative expenses
    761,151       1,687,231       2,221,962       5,660,146  
Impairment of leased assets
    -       732,000       -       732,000  
Loss on the settlement of debt
    -       -       252,900       -  
Total operating expenses
    841,190       2,453,731       2,657,507       6,527,840  
 
                               
Loss from operations
    (190,124 )     (2,205,351 )     (575,164 )     (5,969,669 )
 
                               
Other income (expense):
                               
Interest and financing costs
    (180,531 )     (4,109,767 )     (792,406 )     (4,490,639 )
Total other income (expense)
    (180,531 )     (4,109,767 )     (792,406 )     (4,490,639 )
 
                               
Net loss
  $ (370,655 )   $ (6,315,118 )   $ (1,367,570 )   $ (10,460,308 )
 
                               
Weighted average shares outstanding :
                               
Basic
    26,802,803       26,501,331       26,774,636       26,226,596  
Diluted
    26,802,803       26,501,331       26,774,636       26,226,596  
 
                               
Loss per share
                               
Basic
  $ (0.01 )   $ (0.24 )   $ (0.05 )   $ (0.40 )
Diluted
  $ (0.01 )   $ (0.24 )   $ (0.05 )   $ (0.40 )
YAYYO, INC.    
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT    
For the Nine Months Ended September 30, 2019 and 2018 (unaudited)    
     
 
              Additional           Total  
 
  Common Stock     Paid-in     Accumulated     Stockholders'  
 
  Shares     Amount     Capital     Deficit     Deficit  
Balance, December 31, 2018
    26,718,676     $ 27     $ 19,193,151     $ (21,241,694 )   $ (2,048,516 )
 
                                       
Correction to outstanding shares
    (173 )                             -  
Issuance of common stock for settlement of debt
    84,300               674,400               674,400  
Net loss
                            (1,367,570 )     (1,367,570 )
 
                                       
Balance, September 30, 2019 (unaudited)
    26,802,803     $ 27     $ 19,867,551     $ (22,609,264 )   $ (2,741,686 )
 
                                       
Balance, December 31, 2017
    25,770,551       26       7,879,189       (8,052,572 )     (173,357 )
 
                                       
Issuance of common stock for cash
    46,330               307,924               307,924  
Value of common stock issued with notes payable
    155,850               407,791               407,791  
Value of warrants issued with notes payable
                    3,726,506               3,726,506  
Value of common stock issued with capital lease obligation
    91,500               732,000               732,000  
Issuance of common stock for services
    432,500       1       3,459,999               3,460,000  
Issuance of common stock for accounts payable
    14,945               119,274               119,274  
Stock option expense
                    678,351               678,351  
Net loss
                            (10,460,308 )     (10,460,308 )
 
                                       
Balance, September 30, 2018 (unaudited)
    26,511,676     $ 27     $ 17,311,034     $ (18,512,880 )   $ (1,201,819 )
YAYYO, INC.    
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS    
For the Nine Months Ended September 30, 2019 and 2018 (unaudited)    
     
 
  2019     2018  
CASH FLOWS FROM OPERATING ACTIVITIES:
           
Net loss
  $ (1,367,570 )   $ (10,460,308 )
Adjustments to reconcile net loss to net cash used in operating activities:
               
Depreciation and amortization
    730,610       313,051  
Stock option expense
    -       678,351  
Common stock issued for services
    -       3,460,000  
Amortization of debt discounts
    29,860       4,366,180  
Gain on disposal of assets
    -       (17,360 )
Impairment of leased assets
    -       732,000  
Loss on the settlement of debt
    252,900       -  
Changes in operating assets and liabilities:
               
Accounts receivable
    (78,643 )     (17,051 )
Prepaid expenses
    1,394       (1,972 )
Accounts payable
    (419,958 )     76,916  
Accrued expenses
    697,518       171,432  
Net cash used in operating activities
    (153,889 )     (698,761 )
 
               
CASH FLOWS FROM INVESTING ACTIVITIES:
               
Purchase of equipment
    -       (2,840 )
Net cash used in investing activities
    -       (2,840 )
 
               
CASH FLOWS FROM FINANCING ACTIVITIES:
               
Proceeds from sale of common stock
    -       307,924  
Proceeds from notes payable
    1,951,300       7,346,378  
Repayment of note payable
    (967,652 )     (6,024,041 )
Payment for debt issuance costs
    -       (178,228 )
Repayment of finance lease obligations
    (1,025,863 )     (599,670 )
Net cash provided by (used in) financing activities
    (42,215 )     852,363  
NET INCREASE (DECREASE) IN CASH
    (196,104 )     150,762  
CASH, BEGINNING OF PERIOD
    277,444       308,738  
CASH, END OF PERIOD
  $ 81,340     $ 459,500  
CASH PAID FOR:
               
Interest
  $ 715,250     $ 75,455  
Income taxes
  $ -     $ -  
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES
               
Payment of accounts payable/accrued expenses with common stock
  $ 421,500     $ 119,274  
Value of equity recorded as debt discounts
  $ -     $ 4,134,297  
Finance lease obligations
  $ 510,136     $ 1,228,067  

SOURCE: YayYo Inc.


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