- 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.