YayYo, Inc. Announces Results for Q1 2020
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YayYo, Inc. Announces Results for Q1 2020

Monday, May 18, 2020 12:15 PM
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Earnings

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
[email protected]
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.

YayYo Inc.
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