~~[X]~~☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

~~[ ]~~☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ~~[X]~~ ☒ No ~~[ ]~~☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ~~[X]~~ ☒ No ~~[ ]~~☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ~~[ ]~~☐ Accelerated filer ~~[ ]~~ ☐ Non-accelerated filer ~~[X]~~ ☒ Smaller reporting company ~~[X]~~☒ Emerging growth company ~~[X]~~☒

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ~~[ ]~~☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ~~[ ]~~ ☐ No ~~[X]~~ ☒

Indicate the number of shares outstanding of each of the issuer’s classes of ~~common stock,~~Common Stock, as of the latest practicable ~~date:~~date.

~~31,981,374~~35,758,149 shares of ~~common stock,~~Common Stock, $0.000001 par value, as of November ~~10, 2020~~12, 2021

~~RIDESHARE RENTAL, INC. (FORMERLY YAYYO, INC.)~~Condensed Consolidated Balance Sheets

	September 30,			December 31,			September 30,			December 31,
	2020			2019			2021			2020
	(unaudited)						(unaudited)
ASSETS
Current Assets:
Cash	$	84,732		$	1,256,429		$	3,540,212		$	72,890
Accounts receivable		53,338			59,331			635,736			119,239
Prepaid expenses		431,973			782,900			192,492			23,861
Deferred offering costs								479,330			-
Total current assets		570,043			2,098,660			4,847,770			215,990

Equipment, net		2,280			3,395
Property and equipment, net								46,471			1,908
Rental vehicles, net		7,140,289			4,737,047			10,366,373			6,196,433
Deposit on vehicles		-			164,080
Right of use asset								180,860			-
Other assets		200,000			200,000			100,000			200,000
TOTAL ASSETS	$	7,912,612		$	7,203,182		$	15,541,474		$	6,614,331

LIABILITIES AND STOCKHOLDERS’ DEFICIT
LIABILITIES AND STOCKHOLDERS’ EQUITY

Current Liabilities:
Accounts payable (including $692,386 and $394,183 to related party)	$	1,453,305		$	545,254
Accrued expenses (including $0 and $171,665 to related party)		432,815			405,977
Notes payables, current (net of discount of $4,570 and $32,289)		497,872			287,378
Advance from related party		50,000			-
Accounts payable (including $670,047 and $590,176 to related party)							$	2,849,876		$	1,157,299
Accrued expenses								1,097,658			961,704
Notes payables, current (net of discount of $0 and $1,973)								156,225			666,132
Customer deposit - related party								-			150,000
Advance from related parties								-			100,000
Finance lease obligations, current		1,689,534			1,416,446			1,920,254			1,426,425
Operating lease obligations, current								138,630			-
Total current liabilities		4,123,526			2,655,055			6,162,643			4,461,560

Note payable, net of current portion		149,900			-
Note payable, net of current portion (net of discount of $1,316,029 and $0)								6,027,746			149,414
Finance lease obligations, net of current portion		1,978,238			984,119			2,495,616			926,453

Operating lease obligations, net of current portion								50,996			-
TOTAL LIABILITIES		6,251,664			3,639,174			14,737,001			5,537,427

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; 31,981,374 and 29,427,803 shares issued and outstanding		32			29
Series B Preferred stock, $0.000001 par value; 230,550 shares authorized; 230,375 and nil shares issued and outstanding								2,303,750			-

STOCKHOLDERS’ EQUITY
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; 35,758,149 and 31,981,374 shares issued and outstanding								36			32
Additional paid-in capital		29,708,377			28,735,894			38,206,344			29,750,864
Accumulated deficit		(28,047,461	)		(25,171,915	)		(39,705,657	)		(28,673,992	)
Total stockholders’ deficit		1,660,948			3,564,008
TOTAL LIABILITIES AND STOCKHOLDERS’ DEFICIT	$	7,912,612		$	7,203,182
Total stockholders’ equity								(1,499,277	)		1,076,904
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY							$	15,541,474		$	6,614,331

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

~~CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS~~Condensed Consolidated Statements of Operations

For the Three and Nine Months Ended September 30, 2021 and 2020 ~~and 2019~~ (unaudited)


	Three Months Ended September 30,						Nine Months Ended September 30,						Three Months Ended September 30,						Nine Months Ended September 30,
	2020			2019			2020			2019			2021			2020			2021			2020

Revenue	$	2,070,821		$	1,718,439		$	5,399,018		$	5,193,957		$	2,724,180		$	2,070,821		$	7,670,795		$	5,399,018

Cost of revenue		1,194,957			1,067,373			3,891,307			3,111,614			2,285,878			1,194,957			5,982,075			3,891,307

Gross profit		875,864			651,066			1,507,711			2,082,343			438,302			875,864			1,688,720			1,507,711

Operating expenses:
Selling and marketing expenses		113,904			80,039			324,546			182,645			26,565			113,904			257,129			324,546
Product development														46,500			-			106,766			-
General and administrative expenses		1,088,152			761,151			3,845,768			2,221,962			3,218,912			1,088,152			6,151,507			3,845,768
Loss on the settlement of debt		-			-			-			252,900
Total operating expenses		1,202,056			841,190			4,170,314			2,657,507			3,291,977			1,202,056			6,515,402			4,170,314

Loss from operations		(326,192	)		(190,124	)		(2,662,603	)		(575,164	)		(2,853,675	)		(326,192	)		(4,826,682	)		(2,662,603	)

Other income (expense):
Interest and financing costs		(65,292	)		(180,531	)		(212,943	)		(792,406	)		(2,007,194	)		(65,292	)		(6,296,524	)		(212,943	)
Other income														83,541			-			83,541			-
Gain on forgiveness of debt														-			-			8,000			-
Total other income (expense)		(65,292	)		(180,531	)		(212,943	)		(792,406	)		(1,923,653	)		(65,292	)		(6,204,983	)		(212,943	)

Net loss	$	(391,484	)	$	(370,655	)	$	(2,875,546	)	$	(1,367,570	)	$	(4,777,328	)	$	(391,484	)	$	(11,031,665)		$	(2,875,546	)

Weighted average shares outstanding :
Basic		31,981,374			26,802,803			30,828,676			26,774,636			35,715,024			31,981,374			34,819,334			30,828,676
Diluted		31,981,374			26,802,803			30,828,676			26,774,636			35,715,024			31,981,374			34,819,334			30,828,676

Loss per share
Basic	$	(0.01	)	$	(0.01	)	$	(0.09	)	$	(0.05	)	$	(0.13	)	$	(0.01	)	$	(0.32	)	$	(0.09	)
Diluted	$	(0.01	)	$	(0.01	)	$	(0.09	)	$	(0.05	)	$	(0.13	)	$	(0.01	)	$	(0.32	)	$	(0.09	)

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

~~CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)~~Condensed Consolidated Statements of Stockholders’ Equity

For the Three and Nine Months Ended September 30, 2021 and 2020 ~~and 2019~~ (unaudited)

						Additional					Total
	Common Stock					Paid-in		Accumulated			Stockholders’							Additional						Total
														Common Stock				Paid-in			Accumulated			Stockholders’
														Shares		Amount		Capital			Deficit			Equity (Deficit)
Balance, December 31, 2020															31,981,374	$	32	$	29,750,864		$	(28,673,992	)	$	1,076,904

Issuance of common stock for cash															100,000		-		50,000			-			50,000
Issuance of common stock for exercise of stock options															35,000		-		15,400			-			15,400
Issuance of common stock for cashless exercise of stock options															960,550		1		(1	)		-			-
Issuance of common stock for settlement of litigation															225,000		-		1,103,750			-			1,103,750
Value of warrants issued with note payable
Issuance of common stock for conversion of convertible debt															1,000,000		1		499,999			-			500,000
Issuance of common stock for settlement agreement															825,000		1		3,240,599			-			3,240,600
Issuance of common stock for financing cost															600		-		1,440			-			1,440
Beneficial conversion feature associated with convertible debt															-		-		30,000			-			30,000
Value of warrants issued with convertible debt
Fair value of warrants issued for financing costs
Stock option expense															-		-		193,587			-			193,587
Net loss															-		-		-			(4,417,663	)		(4,417,663	)

Balance, March 31, 2021															35,127,524		35		34,885,638			(33,091,655	)		1,794,018

Issuance of common stock for exercise of stock options															260,000		-		71,700			-			71,700
Issuance of common stock for settlement of litigation															-							-			-
Issuance of common stock for conversion of convertible debt																						-			-
Issuance of common stock for settlement agreement																						-			-
Issuance of common stock for financing cost																						-			-
Beneficial conversion feature associated with convertible debt															-		-		810,634			-			810,634
Value of warrants issued with convertible debt															-		-		488,133			-			488,133
Fair value of warrants issued for financing costs															-		-		457,417			-			457,417
Stock option expense															-		-		104,387			-			104,387
Net loss															-		-		-			(1,836,674	)		(1,836,674	)

Balance, June 30, 2021															35,387,524		35		36,817,909			(34,928,329	)		1,889,615

Issuance of common stock for exercise of stock options															26,875		-		5,778			-			5,778
Issuance of common stock for cashless exercise of stock options															312,500		1		(1	)		-			-
Issuance of common stock for settlement of litigation															31,250		-		42,018			-			42,018
Value of warrants issued with note payable															-		-		778,697			-			778,697
Fair value of warrants issued for financing costs															-		-		503,690			-			503,690
Stock option expense															-		-		58,253			-			58,253
Net loss															-		-		-			(4,777,328	)		(4,777,328	)

Balance, September 30, 2021															35,758,149	$	36	$	38,206,344		$	(39,705,657	)	$	(1,499,277	)
	Shares			Amount		Capital		Deficit			Equity (Deficit)
Balance, December 31, 2019		29,427,803		$	29	$	28,735,894	$	(25,171,915	)	$	3,564,008			29,427,803	$	29	$	28,735,894		$	(25,171,915	)	$	3,564,008

Stock option expense							457,242					457,242			-		-		457,242			-			457,242
Net loss									(1,761,220	)		(1,761,220	)		-		-		-			(1,761,220	)		(1,761,220	)

Balance, March 31, 2020		29,427,803			29		29,193,136		(26,933,135	)		2,260,030			29,427,803		29		29,193,136			(26,933,135	)		2,260,030

Issuance of common stock for cash		2,553,571			3		274,997					275,000			2,553,571		3		274,997						275,000
Net loss									(722,842	)		(722,842	)		-		-		-			(722,842	)		(722,842	)

Balance, June 30, 2020		31,981,374			32		29,468,133		(27,655,977	)		1,812,188			31,981,374		32		29,468,133			(27,655,977	)		1,812,188
Balance															31,981,374		32		29,468,133			(27,655,977	)		1,812,188

Stock option expense							240,244					240,244			-		-		240,244			-			240,244
Net loss									(391,484	)		(391,484	)		-		-					(391,484	)		(391,484	)

Balance, September 30, 2020		31,981,374		$	32	$	29,708,377	$	(28,047,461	)	$	1,660,948			31,981,374	$	32	$	29,708,377		$	(28,047,461	)	$	1,660,948

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	)

Issuance of common stock for settlement of debt		4,300					34,400					34,400
Net loss									(417,452	)		(417,452	)

Balance, June 30, 2019		26,802,976			27		19,867,551		(22,238,609	)		(2,371,031	)

Correction to outstanding shares		(173	)
Net loss									(370,655	)		(370,655	)

Balance, September 30, 2019		26,802,803		$	27	$	19,867,551	$	(22,609,264	)	$	(2,741,686	)
Balance															31,981,374	$	32	$	29,708,377		$	(28,047,461	)	$	1,660,948

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

~~CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS~~Condensed Consolidated Statements of Cash Flows

For the Nine Months Ended September 30, 2021 and 2020 ~~and 2019~~ (unaudited)

	2020			2019			2021			2020

CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$	(2,875,546	)	$	(1,367,570	)	$	(11,031,665	)	$	(2,875,546	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization		1,047,075			730,610			1,525,332			1,047,075
Stock option expense		697,486			-			356,227			697,486
Common stock issued for services		-			-
Amortization of debt discounts		27,719			29,860			1,643,408			27,719
Loss on the settlement of debt		-			252,900
Common stock issued for financing costs								1,440			-
Preferred stock issued for financing costs								53,750			-
Common stock issued for settlement agreement								3,240,600			-
Common stock issued for litigation settlement								42,018			-
Gain on forgiveness of debt								(8,000	)		-
Fair value of warrants issued for financing costs								961,107			-
Operating lease expense								77,361			-
Changes in operating assets and liabilities:
Accounts receivable		5,993			(78,643	)		(516,497	)		5,993
Prepaid expenses		350,927			1,394
Prepaid expenses and other assets								(68,631	)		350,927
Accounts payable		908,051			(419,958	)		1,656,997			908,051
Accrued expenses		26,838			697,518			830,954			26,838
Customer deposit - related party								(150,000	)		-
Operating lease liability								(68,595	)		-
Net cash used in operating activities		188,543			(153,889	)		(1,454,194	)		188,543

CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment								(47,051	)		-
Net cash used in investing activities								(47,051	)		-


CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from notes payable		342,675			1,951,300
Proceeds from sale of common stock		275,000			-			50,000			275,000
Proceeds from advance from related party		200,000			-
Repayment of advance from related party		(150,000	)		-
Proceeds from exercise of stock options								92,878			-
Proceeds from advance from related parties								503,766			200,000
Repayment of advance from related parties								(603,766	)		(150,000	)
Proceeds from convertible note payable								2,500,000			-
Proceeds from notes payable, net								6,900,000			342,675
Repayment of notes payable		(10,000	)		(967,652	)		(809,519	)		(10,000	)
Repayment of finance lease obligations		(2,017,915	)		(1,025,863	)		(3,629,792	)		(2,017,915	)
Payment of deferred offering costs								(35,000	)		-
Net cash provided by (used in) financing activities		(1,360,240	)		(42,215	)		4,968,567			(1,360,240	)

NET INCREASE (DECREASE) IN CASH		(1,171,697	)		(196,104	)		3,467,322			(1,171,697	)

CASH, BEGINNING OF PERIOD		1,256,429			277,444			72,890			1,256,429

CASH, END OF PERIOD	$	84,732		$	81,340		$	3,540,212		$	84,732

CASH PAID FOR:
Interest	$	185,224		$	715,250		$	157,809		$	185,224
Income taxes	$	-		$	-		$	-		$	-

SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES
Payment of accounts payable/accrued expenses with common stock	$	-		$	421,500		$	1,103,750		$	-
Value of equity recorded as debt discounts	$	-		$	-
Finance lease obligations	$	3,400,922		$	510,136		$	5,692,784		$	3,400,922

The accompanying footnotes are an integral part of these unaudited condensed consolidated financial statements.

For the Nine ~~Months~~months Ended September 30, 2021 and 2020 ~~and 2019~~ (unaudited)

~~Rideshare Rental,~~EVmo, Inc. (the “Company”) was incorporated on June 21, 2016 under the laws of the state of Delaware originally as a limited liability company and subsequently ~~changed~~converted to a Delaware C corporation. OnThe Company was originally incorporated under the name of YayYo, Inc. and changed its name to Rideshare Rental, Inc. on September 11, ~~2020,~~2020. On March 1, 2021, the Company changed its name from ~~YayYo,~~Rideshare Rental, Inc. to ~~Rideshare Rental,~~EVmo, Inc. The accompanying financial statements are retroactively restated to present the Company as a C corporation from June 21, 2016. The ~~Company’s operations at present consist entirely of the rental of cars~~Company primarily rents vehicles to drivers for ridesharing Transportation Network Companies (“TNCs”) such as Uber and Lyft, ~~drivers.~~as well as drivers in the delivery gig-economy.

The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP).

On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease (COVID-19) a “Public Health Emergency of International Concern,” and on March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic.” In response, numerous states and cities ordered their residents to cease traveling to non-essential jobs and to curtail all unnecessary travel, and similar restrictions were recommended by the federal government. Beginning in the first quarter of 2020, which saw the initial rapid spread of COVID-19, rideshare companies were severely and negatively impacted, as demand plummeted. Consequently, the Company experienced a decline in revenue during the first half of 2020, which had a negative impact on its cash flows, but it then saw a positive upward movement in revenue during the second half of 2020, which continued into the first half of 2021. In early 2021, several vaccinations for COVID-19 received emergency-use authorization from the Food and Drug Administration, and many of the lockdown restrictions imposed by state and local governments, including those of the markets in which the Company operates, appear to be abating. The pandemic has not yet ended, however, and there have been multiple waves where infections, hospitalizations, and deaths have sharply increased. The Company therefore cannot predict the ultimate impact that COVID-19 may have on its business this year, and possibly beyond.

We have identified the impact of the COVID-19 pandemic as a risk and uncertainty that has had a material impact on our operating results throughout the nine months ended September 30, 2020, and that we expect to have a potentially material effect on our future. For further information on how COVID-19 has affected our operating results and the ongoing risk it presents, we refer you to both Management’s Discussion and Analysis of Financial Condition and Results of Operations included in Item 2 of this Part I of this quarterly report on Form 10-Q, and to the risk factor included in Item 1A of Part II.

The unaudited condensed consolidated financial statements are prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission ~~(“SEC”~~(the “SEC”). The information furnished herein reflects all adjustments, consisting only of normal recurring adjustments, which in the opinion of management, are necessary to fairly state the Company’s financial position, the results of its operations, and cash flows for the periods presented. Certain information and footnote disclosures normally present in annual financial statements prepared in accordance with accounting principles generally accepted in the United States of America were omitted pursuant to such rules and regulations. The results of operations for the nine months ended September 30, ~~2020~~2021 are not necessarily indicative of the results expected for the year ending December 31, ~~2020.~~2021.

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned ~~operating~~ subsidiaries, Distinct Cars, LLC and RideShare Car Rentals, ~~LLC along with two other wholly-owned subsidiaries that have not had operations to date.~~LLC. All significant intercompany transactions and balances have been eliminated.

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. It is possible that accounting estimates and assumptions may be material to the Company due to the levels of subjectivity and judgment involved.

For the purpose of the statement of cash flows, cash equivalents include time deposits, certificate of deposits, and all highly liquid debt instruments with original maturities of three months or less.

Property and Equipment and Rental Vehicles are stated at cost. Expenditures for maintenance and repairs are charged to earnings as incurred; additions, renewals and betterments are capitalized. When equipment is retired or otherwise disposed of, the related cost and accumulated depreciation are removed from the respective accounts, and any gain or loss is included in operations. Depreciation of equipment and rental vehicles is provided using the straight-line method for substantially all assets with estimated lives as follows:

The Company applies the provisions of ASC Topic 360, Property, Plant, and Equipment, which addresses financial accounting and reporting for the impairment or disposal of long-lived assets. ASC 360 requires impairment losses to be recorded on long-lived assets used in operations when indicators of impairment are present and the undiscounted cash flows estimated to be generated by those assets are less than the assets’ carrying amounts. In that event, a loss is recognized based on the amount by which the carrying amount exceeds the fair value of the long-lived assets. Loss on long-lived assets to be disposed of is determined in a similar manner, except that fair values are reduced for the cost of disposal. Based on its review at September 30, ~~2020,~~2021, the Company determined that no impairment charge was necessary.

The Company recognizes all of its material revenue from ~~fees generated through~~ renting its fleet of cars to ~~Uber and Lyft~~TNC drivers. Revenue is recognized generally on a weekly basis based on the ~~terms of our~~ rental ~~agreements, which are generally entered into on a weekly basis.~~agreements. The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers.

The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes. ASC 740 requires a company to use the asset and liability method of accounting for income taxes, whereby deferred tax assets are recognized for deductible temporary differences, and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion, or all of, the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment.

Under ASC 740, a tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized on examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The adoption had no effect on the Company’s consolidated financial statements.

The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation. FASB ASC Topic 718 requires companies to measure compensation cost for stock-based employee compensation at fair value at the grant date and recognize the expense over the employee’s requisite service period. The Company recognizes in the statement of operations the grant-date fair value of stock options and other equity-based compensation issued to employees and non-employees. There were ~~1,631,250~~2,737,500 warrants and ~~3,221,000~~758,125 options outstanding as of September 30, 2021 and 1,631,250 warrants and 3,221,000 options outstanding as of September 30, 2020.

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~Notes to Condensed Consolidated Financial Statements

For the Nine ~~Months~~months Ended September 30, 2021 and 2020 ~~and 2019~~ (unaudited)

Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share. Basic earnings per share (“EPS”) is based on the weighted average number of common shares outstanding. Diluted EPS is based on the assumption that all dilutive securities are converted. Dilution is computed by applying the treasury stock method. Under this method, options and warrants are assumed to be exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase shares of the Company’s common stock, par value $0.000001 (the “Common Stock”) at the average market price during the period. ~~There were 4,852,250~~Due to the net loss incurred potentially dilutive ~~securities outstanding at September 30, 2020. Basic and~~instruments would be anti-dilutive. Accordingly, diluted ~~earnings~~loss per share is the same as basic loss for all periods ~~presented since the~~presented. There were 3,495,625 and 4,852,250 potentially dilutive ~~securities are anti-dilutive due to~~options and warrants outstanding at September 30, 2021 and 2020, respectively, and 750,000 shares potentially issuable upon the ~~net losses incurred.~~conversion of outstanding shares of Series B Preferred Stock at September 30, 2021.

The Company expenses the cost of advertising as incurred. Advertising costs for the nine months ended September 30, 2021 and 2020 were $257,129and ~~2019 were $324,546 and $182,645,~~$324,546, respectively.

The Company applies the provisions of ASC 820-10, “Fair Value Measurements and Disclosures.” ASC 820-10 defines fair value, and establishes a three-level valuation hierarchy for disclosures of fair value measurement that enhances disclosure requirements for fair value measures. The three levels of valuation hierarchy are defined as follows:

For certain financial instruments, the carrying amounts reported in the balance sheets for cash and current liabilities, including convertible notes payable, each qualify as financial instruments and are a reasonable estimate of their fair values because of the short period of time between the origination of such instruments and their expected realization and their current market rate of interest.

At September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, the Company did not identify any liabilities that are required to be presented on the balance sheet at fair value.

~~In June 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) ASU 2018-07,~~ ~~Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting~~, which simplifies the accounting for share-based payments granted to nonemployees for goods and services and aligns most of the guidance on such payments to nonemployees with the requirements for share-based payments granted to employees. ASU 2018-07 is effective on January 1, 2019. Early adoption is permitted. The adoption of this ASU did not have an impact on its financial statements.

~~In May 2014, the FASB issued ASU No. 2014-09,~~ ~~Revenue from Contracts with Customers~~. ASU 2014-09 is a comprehensive revenue recognition standard that will supersede nearly all existing revenue recognition guidance under current U.S. GAAP and replace it with a principle-based approach for determining revenue recognition. ASU 2014-09 will require that companies recognize revenue based on the value of transferred goods or services as they occur in the contract. The ASU also will require additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to obtain or fulfill a contract. ASU 2014-09 is effective for interim and annual periods beginning after December 15, 2017. Early adoption is permitted only in annual reporting periods beginning after December 15, 2016, including interim periods therein. Entities will be able to transition to the standard either retrospectively or as a cumulative-effect adjustment as of the date of adoption. The Company adopted this ASU beginning on January 1, 2018 and used the modified retrospective method of adoption. The adoption of this ASU did not have a material impact on the Company’s financial statements and disclosures.

In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes which amends ASC 740 Income Taxes (ASC 740). This update is intended to simplify accounting for income taxes by removing certain exceptions to the general principles in ASC 740 and amending existing guidance to improve consistent application of ASC 740. This update is effective for fiscal years beginning after December 15, 2021. The guidance in this update has various elements, some of which are applied on a prospective basis and others on a retrospective basis with earlier application permitted. The Company is currently evaluating the effect of this ASU on the Company’s consolidated financial statements and related disclosures.

~~NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS~~Notes to Condensed Consolidated Financial Statements

In August 2020, the FASB issued ASU 2020-06,Debt—Debt with Conversion and ~~2019 (unaudited)~~

Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40)—Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. ASU 2020-06 reduces the number of accounting models for convertible debt instruments and convertible preferred stock. For convertible instruments with conversion features that are not required to be accounted for as derivatives under Topic 815, Derivatives and Hedging, or that do not result in substantial premiums accounted for as paid-in capital, the embedded conversion features no longer are separated from the host contract. ASU 2020-06 also removes certain conditions that should be considered in the derivatives scope exception evaluation under Subtopic 815-40, Derivatives and Hedging—Contracts in Entity’s Own Equity, and clarify the scope and certain requirements under Subtopic 815-40. In addition, ASU 2020-06 improves the guidance related to the disclosures and earnings-per-share (EPS) for convertible instruments and contract in an entity’s own equity. ASU 2020-06 is effective for public business entities that meet the definition of a SEC filer, excluding entities eligible to be smaller reporting companies as defined by the SEC, which includes the Company, for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted, but no earlier than fiscal years beginning after December 15, 2020, including interim periods within those fiscal years. The FASB specified that an entity should adopt the guidance as of the beginning of its annual fiscal year. The Company is currently evaluating the impact this ASU will have on its consolidated financial statements.

Management does not believe that any recently issued, but not yet effective, accounting standards could have a material effect on the accompanying financial statements. As new accounting pronouncements are issued, we will adopt those that are applicable under the circumstances.

At September 30, ~~2020~~2021 and December 31, ~~2019~~2020, property and equipment consisted of the following:

	September 30,			December 31,			September 30,			December 31,
	2020			2019			2021			2020

Computer equipment	$	6,046		$	6,046		$	6,046		$	6,046
Office furniture								17,401			-
Leasehold improvement								29,650			-
		6,046			6,046			53,097			6,046
Less accumulated depreciation		(3,766	)		(2,651	)		(6,626	)		(4,138	)
Equipment, net	$	2,280		$	3,395		$	46,471		$	1,908

Depreciation expense for equipment for the nine months ended September 30, 2021 and 2020 was $2,488and ~~2019 was $1,115 and $211,~~$1,115, respectively.

At September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, all of the Company’s rental vehicles consisted of the following:

	September 30,			December 31,			September 30,			December 31,
	2020			2019			2021			2020

Rental vehicles	$	9,622,805		$	6,284,211		$	14,760,669		$	9,067,885
		9,622,805			6,284,211			14,760,669			9,067,885
Less accumulated depreciation		(2,482,516	)		(1,547,164	)		(4,394,296	)		(2,871,452	)
Rental vehicles, net	$	7,140,289		$	4,737,047		$	10,366,373		$	6,196,433

The Company’s leased assets, consisting of vehicles, are depreciated over their estimated useful life of five ~~years.~~years. Depreciation expense for leased assets for the nine months ended September 30, 2021 and 2020 was $1,522,844and ~~2019 was $1,045,960 and $730,399,~~$1,045,960, respectively. The lease terms are generally for 30 to 36 months and the Company has the right to purchase the leased assets at the end of the lease terms for generally a nominal amount.

For the Nine ~~Months~~months Ended September 30, 2021 and 2020 ~~and 2019~~ (unaudited)

Notes payable at September 30, ~~2020~~2021 and December 31, ~~2019~~2020 consisted of the following:

	September 30,			December 31,			September 30,			December 31,
	2020			2019			2021			2020
Notes payable to individual investors; accrue interest at 8% per annum; principal payments equal to 1/12 of original balance plus interest due quarterly; due from dates ranging from August 9, 2020 to March 26, 2021; unsecured (A)	$	309,667			319,667
Note payable to the Small Business Administration. The note bears interest at 3.75% per annum, requires monthly payments of $731 after 12 months from funding and is due 30 years from the date of issuance.		149,900			-
Note payable issued under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act. The loan has terms of 24 months and accrues interest at 1% per annum. The Company expects some or all of this loan to be forgiven as provided for in the CARES Act.		192,775			-
							$	-		$	304,667
Notes payable to individual investors; accrue interest at 8% per annum; principal payments equal to 1/12 of original balance plus interest due quarterly; due from dates ranging from August 9, 2020 to March 26, 2021; unsecured							$	-		$	304,667
Note payable to the Small Business Administration. The note bears interest at 3.75% per annum, requires monthly payments of $731 after 24 months from funding and is due 30 years from the date of issuance.								-			149,414
Note payable issued under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security (“CARES”) Act in the amount of $192,775. The loan has terms of 24 months and accrues interest at 1% per annum. During the year ended December 31, 2020, $184,775 of this loan has been forgiven as provided for in the CARES Act.								-			8,000
Notes payable to a finance company, default interest at 14% per annum; monthly principal payments ranging from $10,000 to $40,000 with unpaid principal due on December 15, 2021								-			355,438
Notes payable to a finance company, interest at LIBOR plus 10% per annum; monthly principal payments of 0.4166% of principal balance beginning August 1, 2022, with unpaid principal due on July 9, 2026 (A)								7,500,000			-
Total notes payable		652,342			319,667			7,500,000			817,519
Unamortized debt discount		(4,570	)		(32,289	)		(1,316,029	)		(1,973	)
Notes payable, net discount		647,772			287,378			6,183,971			815,546
Less current portion		(497,872	)		(287,378	)		(156,225	)		(666,132	)
Long-term portion	$	149,900		$	0		$	6,027,746		$	149,414

In connection with the Company’s entry into the Term Loan Agreement, the Company entered into an exchange agreement, dated as of July 8, 2021 (the “Exchange Agreement”), with the holder (the “Holder”) of the Company’s 12.5% OID convertible promissory notes (See Note 6) due January 12, 2022 issued on April 12, 2021 (the “Prior Notes”).

In connection with the issuance of ~~these notes~~this note payable, ~~in 2018 and 2017,~~ the Company also issued ~~an aggregate of 24,050~~450,000 warrants to purchase shares of its ~~common stock to these note holders as additional incentive to make the loans.~~Common Stock with an exercise price of $2.10 per shares. The aggregate relative fair value of these ~~shares of common stock~~warrants was ~~$119,875~~$778,697 and was recorded as a discount on the note payable and as additional paid in capital. In addition, the Company incurred $600,000 of cost related to this note payable. The total discount of ~~$119,875~~$1,378,697 is being amortized over the term of the notes payable. During the nine months ended September 30, 2020 and 2019, $27,719 and $29,860, respectively, was charged to interest expense as amortization of the discounts, with an unamortized balance of $4,570 at September 30, 2020.

A ~~rollforward~~roll forward of notes payable from December 31, ~~2019~~2020 to September 30, ~~2020~~2021 is below:

Notes payable, December 31, 2019	$	287,378

Notes payable, December 31, 2020				$	815,546
Issued for cash		342,675			7,500,000
Payment of cost associated with issuance of note payable					(600,000	)
Debt discount related to notes payable					(778,697	)
Forgiveness of note payable					(8,000	)
Repayments		(10,000	)		(809,519	)
Amortization of debt discounts		27,719			64,641
Notes payable, September 30, 2020	$	647,772
Notes payable, September 30, 2021				$	6,183,971

On January 8, 2021, the Company, issued a stand-alone $500,000 convertible promissory note to Mr. John Gray, principal of one of the Company’s largest stockholders, the Gray Mars Venus Trust, Arizona 2015, an Arizona asset management limited partnership. The convertible note accrues interest at a fixed rate of 6% and will mature on January 6, 2022. Any unpaid principal balance on the convertible note may be converted at any time, at the option of Mr. Gray, into shares of the Company’s Common Stock at a price of $0.50 per share. The Company recorded a beneficial conversion feature associated with this convertible note of $30,000 which was recorded as a debt discount. On February 12, 2021, Mr. Gray converted the full amount of the convertible promissory note into 1,000,000 shares of the Company’s Common Stock.

On April 12, 2021, the Company, entered into a securities purchase agreement with a certain investor in connection with the issuance, as of that same date, of a 12.5% original issue discount convertible promissory note and a common stock purchase warrant. The note has an original principal amount of $2,250,000, with an original issue discount of $250,000. It bears interest at a fixed rate of 10%, is convertible into shares of Common Stock at a price of $3.00 per share (subject to adjustment as set forth in the note), and matures on January 12, 2022. The warrant grants the right to purchase 187,500 shares of common stock at an exercise price of $3.00, subject to adjustment as set forth therein, and is exercisable at any time within five years of the date of issuance. The agreement provides that additional warrants, each for 93,750 shares of common stock with an exercise price of $3.00 per share, will be issued by the Company to the investor on the 12^th day of each month that the note remains outstanding. Both the note and the warrant include anti-dilution provisions in which the conversion price of the note and the exercise price of the warrant will be reduced to equal the conversion or exercise price, as applicable, of any subsequently-issued derivative security to acquire shares of common stock, or their equivalent, should that conversion or exercise price be lower than that of the note or the warrant. To account for the note and warrant, the Company first determined the value of the note and the fair value of the detachable warrants issued in connection with this convertible note. The estimated value of the warrants of $623,373 was determined using the Black-Scholes option pricing model and the following assumptions: term of five years, a risk free interest rate of .089%, a dividend yield of 0% and volatility of 190%. The face amount of the convertible note of $2,250,000 was proportionately allocated to the convertible note and the warrant in the amount of $1,761,866 and $488,134, respectively. Since the Company’s stock price exceeded the conversion price on the transaction date, there is an embedded beneficial conversion feature present in the convertible note of $810,633. The combined discount of $1,298,767 plus the original issue discount are recorded as a debt discount to the convertible note and are being amortized over the year life of the note. In July 2021, the Company and noteholder agreed to convert the convertible note into 230,250 shares of the Company’s Series B Preferred Stock.

A roll forward of convertible notes from December 31, 2020 to September 30, 2021 is below:

Lease obligations at September 30, ~~2020~~2021 and December 31, ~~2019~~2020 consisted of the following:

	September 30,			December 31,			September 30,			December 31,
	2020			2019			2021			2020

Lease obligations	$	3,667,772		$	2,400,565		$	4,415,870		$	2,352,878
Less current portion		(1,689,534	)		(1,416,446	)		(1,920,254	)		(1,426,425	)
Long-term portion	$	1,978,238		$	984,119		$	2,495,616		$	926,453

A rollforward of lease obligations from December 31, ~~2019~~2020 to September 30, ~~2020~~2021 is below:

Twelve months ending September 30,
2021	$	1,844,204
Twelve Months Ending September 30,
2022		1,126,489		$	2,033,761
2023		472,290			1,500,065
2024		488,362			1,058,833
Total payments		3,931,345			4,592,659
Amount representing interest		(263,573	)		(176,789	)
Lease obligation, net	$	3,667,772		$	4,415,870

The Company determines whether a contract is or contains a lease at inception of the contract and whether that lease meets the classification criteria of a finance or operating lease. When available, the Company uses the rate implicit in the lease to discount lease payments to present value; however, the Company’s leases do not provide a readily determinable implicit rate. Therefore, the Company discounts lease payments based on an estimate of its incremental borrowing rate.

The Company leases its corporate office space under an operating lease that expires in 2023. The Company accounts for this lease under the provisions of ASC 842 Leases.

The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of September 30, 2021:

The lease expense for the nine months ended September 30, 2021 was $100,817. The cash paid under operating leases for the nine months ended September 30, 2021 was $92,050. At September 30, 2021, the weighted average remaining lease terms were 1.25 years and the weighted average discount rate was 15%.

The Company has authorized 100,000,000 shares of capital stock, ~~with~~which consists of 90,000,000 shares of ~~common stock, $0.000001~~Common Stock, $0.000001 par value per share, and 10,000,000 shares of preferred stock, ~~$0.000001~~$0.000001 par value per share.

Pursuant to the Exchange Agreement (see Note 5), the Holder agreed to exchange the Prior Notes for 230,375 shares of Series B convertible preferred stock, par value $0.000001 per share (the “Series B Preferred Stock”), and a warrant (the “Exchange Warrant”). The Exchange Warrant grants the Holder the right to purchase 93,750 shares of Common Stock at an exercise price of $3.00, subject to adjustment as set forth therein. The Exchange Warrant is exercisable in full at any time within five years of the date of issuance. Additional warrants on substantially identical terms as the Exchange Warrant will be issued by the Company to the Holder monthly until such time as the Series B Preferred Stock is redeemed in full, upon which a final warrant will be issued.

Shares of the Series B Preferred Stock is convertible at any time at the option of the holder thereof into shares of Common Stock at an initial conversion price of $3.00 per share, subject to adjustment as set forth in the Certificate of Designation.

The Series B Preferred Stock is subject to mandatory redemption in full at a redemption price initially equal to $10.00 per share, within 15 business days after the date on which the Company has completed an equity financing resulting in total proceeds of at least $10 million. At any time after January 12, 2022, provided that the Company has paid in full all obligations outstanding under the Term Loan Agreement, the holders of a majority of the outstanding shares of Series B Preferred Stock shall be entitled to require the Company to redeem the Preferred Stock at the then applicable redemption price, and any such redemption of Series B Preferred Stock shall be prior and superior to the redemption of any and all other equity securities of the Company duly tendered for redemption.

If, at any time while the Series B Preferred Stock is outstanding, the Company completes any single public offering or private placement of its equity, equity-linked or debt securities (each, a “Future Transaction”), the holders of the Series B Preferred Stock may, in their sole discretion, elect to apply all, or any portion, of the then outstanding Preferred Stock and any accrued but unpaid dividends, as purchase consideration for such Future Transaction. The conversion price applicable to such conversion shall equal seventy percent (70%) of the cash purchase price paid per share, unit or other security denomination for the securities of the Company issued to other investors in the Future Transaction.

During the nine months ended September 30, ~~2020,~~2021, the Company sold an aggregate of 2,553,571 shares of common stock to three investors for cash proceeds of $275,000, of which 125,000 shares and $25,000 was to a member of the Company’s board of directors.Company:

						Weighted									Weighted
				Weighted		Average							Weighted		Average
				Average		Remaining		Aggregate					Average		Remaining		Aggregate
	Options			Exercise		Contractual		Intrinsic		Options			Exercise		Contractual		Intrinsic
	Outstanding			Price		Life		Value		Outstanding			Price		Life		Value
Outstanding, December 31, 2019		300,000		$	8.00		1.00	$	-
Outstanding, December 31, 2020											2,540,000		$	0.22		4.52	$	1,074,245
Granted		4,005,000			1.63						290,000			0.84
Forfeited		(1,084,000	)		4.00						(401,475	)		0.22
Exercised		-									(1,670,400	)		0.230
Outstanding, September 30, 2020		3,221,000		$	1.43		4.03	$	-
Exercisable, September 30, 2020		1,853,458		$	2.32		3.48	$	-
Outstanding, September 30, 2021											758,125		$	0.42		3.93	$	514,928
Exercisable, September 30, 2021											413,875		$	0.56		3.99	$	262,473

The exercise price for options outstanding and exercisable at September 30, ~~2020:~~2021:

Outstanding	Outstanding			Exercisable				Outstanding			Exercisable
Number of	Number of	Exercise		Number of		Exercise			Exercise		Number of	Exercise
Options	Options	Price		Options		Price			Price		Options	Price
	2,505,000	$	0.22		1,137,458	$	0.22
	416,000		4.00		416,000		4.00
	300,000		8.00		300,000		8.00
	3,221,000				1,853,458
20,000									$	0.210	20,000	$	0.210
528,125										0.215	252,625		0.215
15,000										0.220	2,500		0.220
155,000										0.530	98,750		0.530
20,000										2.120	20,000		2.120
20,000										3.800	20,000		3.800
758,125											413,875

~~RIDESHARE RENTAL, INC. (FORMERLY YAYYO, INC.)~~Notes to Condensed Consolidated Financial Statements

For the Nine ~~Months~~months Ended September 30, 2021 and 2020 ~~and 2019~~ (unaudited)

					Weighted								Weighted
			Weighted		Average						Weighted		Average
			Average		Remaining		Aggregate				Average		Remaining		Aggregate
	Warrants		Exercise		Contractual		Intrinsic		Warrants		Exercise		Contractual		Intrinsic
	Outstanding		Price		Life		Value		Outstanding		Price		Life		Value
Outstanding, December 31, 2019		1,631,250	$	4.08		3.38	$	-
Outstanding, December 31, 2020										1,631,250	$	4.08		2.38	$	-
Granted		-								1,106,250		2.64
Forfeited		-								-
Exercised		-								-
Outstanding, September 30, 2020		1,631,250	$	4.08		2.63	$	-
Exercisable, September 30, 2020		1,631,250	$	4.08		2.63	$	-
Outstanding, September 30, 2021										2,737,500	$	3.50		2.89	$	-
Exercisable, September 30, 2021										2,737,500	$	3.50		2.89	$	-

Outstanding and Exerciseable
Outstanding and Exercisable				Outstanding and Exercisable
Number of	Number of	Exercise			Exercise
Warrants	Warrants	Price			Price
	1,500,000	$	4.00
	131,250		5.00
	1,631,250
450,000					$	2.10
656,250						3.00
1,500,000						4.00
131,250						5.00
2,737,500

In connection with a convertible note discussed in Note 6, the Company has issued an aggregate of 468,750 warrants. The fair value of the warrants was determined to be $961,106, using a Black-Scholes model, and has been recorded as financing costs in the accompanying statements of operations for the nine months ended September 30, 2021. The Company used the following assumptions in determining the fair value:

Beginning on February 1, 2019, the Company entered into a consulting agreement with the individual who currently serves as its Chief Executive Officer and director, paid him $167,000 pursuant to this consulting agreement, and terminated it effective September 1, 2019. Also during the nine months ended September 30, 2020, the Company’s CEO and director advanced the Company $200,000 and the Company repaid $150,000. At September 30, 2020, $50,000 was owed to the Company’s CEO and director related to this advance.

During the nine months ended September 30, ~~2020~~2021 and ~~2019,~~2020, the Company expensed ~~$32,173~~$2,356,924 and $138,747, respectively, in advertising expenses from a company whose CEO was also a former director of the Company. At September 30, 2020 and December 31, 2019, $324,920 and $394,183, respectively, was owed to this company and is included in accounts payable in the accompanying consolidated balance sheets.

~~During the nine months ended September 30, 2020 and 2019, the Company expensed $1,715,237 and $1,569,919,~~$1,715,237, respectively, in insurance expense related to insuring the Company fleet of vehicles from an insurance brokerage firm whose owner is also a stockholder of the Company. At September 30, ~~2020~~2021 and December 31, ~~2019, $367,466~~2020, $670,047 and ~~$171,665,~~$265,257, respectively, was owed to this insurance brokerage from and is included in accounts payable ~~and accrued expenses~~ in the accompanying consolidated balance sheets.

The Company’s Executive Chairman and former CEO have made advances the Company. During the nine months ended September 30, 2021, the Company’s Executive Chairman loaned the Company $503,767 and was repaid $503,767. The Company’s former CEO loaned the Company $100,000 in 2020, and, during the nine months ended September 30, 2021 was repaid $100,000. At September 30, 2021, the Company owed its Executive Chairman and former CEO $0 and $0, respectively.

From time to time, the Company may become involved in lawsuits and other legal proceedings that arise in the course of business. Litigation is subject to inherent uncertainties, and it is not possible to predict the outcome of litigation with total confidence. ~~Other than what is disclosed herein, the~~The Company is currently not aware of any legal proceedings or potential claims against it whose outcome would be likely, individually or in the aggregate, to have a material adverse effect on the Company’s business, financial condition, operating results, or cash ~~flows.~~flows, other than those described below.

This action was filed on February 11, 2020, in the Superior Court of the State of California for the County of Los Angeles. Plaintiff Social Reality Inc. is a media company that the Company had contracted with to provide certain specified services. Plaintiff has sued the Company for breach of contract and related causes of action, arising from claims that the Company has failed to pay for outstanding invoices for services rendered, which the Company disputes. The plaintiff filed a motion for prejudgment attachment which was heard on July 28, 2020. The Superior Court denied the writ of attachment on the merits. The parties had a case management conference in October 2020. The Company believes that it has both valid defenses and counterclaims to the lawsuit, and will vigorously defend against it.

~~This action~~A complaint was filed on March 5, 2020, in the Los Angeles Superior Court ~~of the State of California for the County of Los Angeles. Plaintiff~~by plaintiff Anthony Davis, ~~acted as the Company’s Chief Executive Officer from approximately December 2016 through April 2017 Mr. El-Batrawi is the founder of~~who was hired by the Company as its CEO and ~~our current Chief Executive Officer and one of our directors, and was involved,~~as a director on or about December 2016. Mr. Davis’s employment with the ~~complaint alleges, in Plaintiff’s hiring and termination.~~Company ended after several months. As part of his ~~severance~~ compensation, Mr. Davis ~~was granted~~alleges that he expected to receive stock options in the Company. In his pleadings, Mr. Davis ~~claims~~admits that he resigned from his executive officer and director positions, but asserts that he did not receive certain compensation in the ~~Company breached its agreement to award him certain~~form of stock options ~~and includes~~(he has also included a claim for wage and hour ~~violations. The lawsuit also seeks declaratory and injunctive relief. Mr. Davis also included a claim under California Unfair Practices Act.~~violations). The Company denies ~~all~~ liability ~~asserts~~and has asserted that it has paid Mr. Davis all amounts due to him under his ~~separation~~employment agreement, ~~with~~while also asserting that Mr. Davis failed to exercise his stock options before they expired on December 31, 2018. The Company filed a demurrer to the first amended complaint, which the Superior Court granted in part and denied in part on September 8, 2021. The Plaintiff since filed a second amended complaint, to which the Company has filed an answer. The Company’s position is that the lawsuit entirely lacks merit, and the Company intends to ~~vigorously~~ defend ~~against this lawsuit.~~it vigorously.

Ivan Rung v. YayYo, Inc., Ramy El-Batrawi, et al., 20STCV27876 and Michael Vanbecelaere v. YayYo, Inc., Ramy El-Batrawi, et al., 20STCV28066 (Vanbecelaere)(hereafter the “State Cases”)

~~This action was filed on~~On July 22 and July 23, 2020, respectively, two actions were filed in the Los Angeles Superior ~~Court of~~Court. The complaints underlying the State ~~of California for the County of Los Angeles. Plaintiff~~Cases differ only by a few words and some random punctuation marks, and are therefore virtually identical. Plaintiffs Ivan Rung and Michael Vanbecelaere each claimed to have purchased the Common Stock as part of the Company’s ~~stock and purported~~initial public offering (the “IPO”); they purport to bring a securities class action on behalf of all purchasers of the ~~Company’s stock,~~Common Stock pursuant to the ~~Registration Statement~~registration statement and ~~Prospectus~~prospectus filed with the SEC and distributed in connection with the Company’s IPO, which was launched on November ~~13, 2019 initial public stock offering (“IPO”).~~14, 2019. The ~~complaint alleged~~State Case complaints allege misrepresentations and material omissions in ~~its IPO-related disclosure. In its answer,~~ the ~~Company denied liability and asserted that it accurately and completely disclosed all material facts and occurrences, including adverse ones,~~SEC filings in ~~its Registration Statement, related public filings and other public statements, and further asserted that the Complaint’s alleged violations~~violation of Sections 11 and 15 of the Securities Act of 1933, as amended (the “Securities Act”),. The Company has and continues to vigorously deny any and all liability and asserts that the State Cases are baseless. Plaintiff’s counsel voluntarily dismissed this action on August 31, 2020, after admitting that Mr. Rung was not a suitable class representative. Instead plaintiff’s counsel are pursuing the highly similar case brought by ~~Michael Vanbecelaere, as described below~~.

This action was filed on July 23, 2020, in the Superior Court of the State of California for the County of Los Angeles, also as a purported class action. Plaintiff Michael Vanbecelaere claims to have purchasedIt is the Company’s stock “traceable to the IPO” and brings a securities class action pursuant to Sections 11 and 15 of the Securities Act on behalf of all purchasers of the Company’s stock. The complaint alleges that there were materially false statements and material omissions in the Registration Statement and Prospectus filed with the SEC and provided to prospective investors in connection with the Company’s IPO on November 13, 2019. The Company denies liability and assertsfirm position that it accurately and completely disclosed all material facts and ~~occurrences, including adverse ones,~~circumstances in its ~~IPO-related registration statement~~SEC filings relating to the IPO, and ~~related public filings,~~subsequently in its periodic SEC reports, including those that were potentially adverse to the Company’s operations and ~~that~~business prospects. The State Cases litigation is presently stayed pending the ~~Complaint’s alleged violations of Sections 11 and 15~~outcome of the ~~Securities Act are baseless.~~federal securities case discussed below (Hamlin v. YayYo, Inc.), as to which, as noted below, the parties have announced a “settlement in principle”, which is subject to court approval in the district court. The Company ~~intends~~anticipates filing motions to ~~vigorously defend~~dismiss the ~~lawsuit.~~purported class actions in Superior Court on the basis of the anticipated approval of the federal settlement.

Jason Hamlin v. YayYo, Inc., Ramy El-Batrawi, et al., 20-cv-8235 (SVW) and William Koch v. YayYo, Inc., Ramy El-Batrawi, et ~~al,~~al., 20-cv-8591 (SVW)(now consolidated as “In re YayYo Securities Litigation”)

These two actions were filed on September 9, 2020 and ~~September18,~~September 18, 2020, respectively, in the United States District Court for the Central District of ~~California, both cases as purported class actions.~~California. Plaintiffs Jason Hamlin and William Koch each claim to have purchased the ~~Company’s stock “traceable~~Common Stock as part of the IPO and, like the plaintiffs in the State Cases, purport to ~~the IPO” and likein the pending state court action described immediately above,~~ bring ~~this~~a securities class action pursuant to Sections 11 and 15 of the Securities Act, as well as and Section 17(a) and 10(b)(5) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) on behalf of all purchasers of the ~~Company’s stock.~~Common Stock in the IPO. The first amended complaint, like the State Cases, alleges ~~that there were materially~~ false statements and material omissions ~~in the registration statement and prospectus filed with the SEC and provided to prospective investors~~of material fact in connection with the ~~Company’s IPO on November 13, 2019~~SEC filings distributed in connection with the IPO. The defendants include directors of the ~~company~~Company and the underwriters of the IPO, ~~Westpark~~WestPark Capital, Inc. (“WestPark”) and Aegis Capital Corp. The federal court has ~~now~~ consolidated the two matters for all ~~purposes, and an initial status conference has been scheduled and held.~~practical purposes. As with the ~~state court case described above,~~State Cases, the Company denies liability and asserts that it accurately and completely disclosed all ~~materially adverse~~material facts ~~events~~ and ~~occurrences~~circumstances in its ~~IPO-related registration statement and related public~~SEC filings, and that the complaint’s alleged violations of securities laws are baseless. Please see Note 13- Subsequent Events for a description of a provisional settlement of this litigation.

On October 12, 2020 a complaint was filed in Delaware District Court, which has since been transferred to the U.S. District Court for the Central District of California, and assigned as a related case to the judge in the pending federal securities action described immediately above. This case is a purported shareholder derivative action, in which the Company is a nominal defendant, alleging that the Company’s executive officers and directors at the time of its IPO made false and misleading statements relating to the Company’s business, operations, and future prospects and that the directors breached their fiduciary duties in doing so. The Company believes that the allegations of the complaint are spurious and will vigorously defend the case at trial.

On February 11, 2021, the Company, entered into a settlement agreement and mutual release (the “Settlement Agreement”) with FirstFire Global Opportunities Fund, LLC, a Delaware limited liability company (“FirstFire”), relating to a pending action in the U.S. District Court in the Southern District of New York, FirstFire Global Opportunities Fund, LLC v. WestPark Capital, Inc. et. al., No. 1:20-cv-03327-LLS. The other parties to the Settlement Agreement are the Company’s co-defendants in the litigation, WestPark, Mr. Richard A. Rappaport and Mr. Ramy El-Batrawi, former chief executive officer of the Company.

This litigation was commenced by FirstFire in April 2020 and subsequently amended in December 2020. FirstFire was a subscriber to the Company’s initial public offering of Common Stock, in November 2019 (the “IPO”). It alleged in the lLitigation that the Company and the other named defendants had, in connection with the IPO and the registration statement on Form S-1 filed thereto, committed violations of Sections 11, 12(a) and 15 of the Securities Act of 1933, ~~are baseless.~~as amended (the “Securities Act”), Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Rule 10b-5 promulgated under the Exchange Act. Each of the Company, WestPark, Mr. Rappaport and Mr. El-Batrawi vigorously denied and disputed these allegations.

In consideration of the releases, covenants, terms and conditions set forth in the Settlement Agreement, FirstFire agreed to dismiss the litigation with prejudice, to not file any further litigation relating to the IPO, and to waive and relinquish any and all claims on shares of Common Stock other than as specified in the Settlement Agreement. The Company ~~intends~~agreed to ~~vigorously defend these lawsuits~~sell to FirstFire one hundred fifty thousand (150,000) shares of Common Stock (the “Settlement Shares”), with such shares issued pursuant to the exemption from registration under Rule 506(b) of the Act. The purchase price of the Settlement Shares was $0.066667 per share, or an aggregate of $10,000. Any resale of the Settlement Shares by FirstFire shall be subject to the conditions of Rule 144 of the Act. None of WestPark, Mr. Rappaport or Mr. El-Batrawi contributed to the Settlement Shares or any other consideration under the Settlement Agreement.

On February 19, 2021, the Company entered into a confidential settlement agreement and mutual release with SRAX, Inc., a Delaware corporation formerly known as Social Reality, Inc. (“SRAX”), relating to an action brought by SRAX against the Company in ~~federal court.~~Los Angeles Superior Court on or around February 11, 2020. A description of this litigation has been included by the Company in its prior filings.

The Company and SRAX mutually agreed to keep the material terms of this settlement confidential, subject to disclosure as required by applicable law or regulation.

~~Subsequent to September 30, 2020, the~~The Company has ~~received an advance from a related party, its current Chief Executive Officer, for $25,000.~~evaluated subsequent events through November 12, 2021. The Company has determined there were no subsequent events that require recognition or disclosure in the financial statements, except as discussed below:

Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Certain statements made herein, as well as in other filings we make with the SEC and other written and oral information we release, regarding our future performance constitute “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as “may,” “should,” “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential,” “continue” and similar references to future periods. Such statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. The forward-looking statements included herein are based on current expectations that involve numerous risks and uncertainties. Our plans and objectives are based, in part, on assumptions involving the continued expansion of ~~business. Assumptions relating to the foregoing~~business, which assumptions involve judgments with respect to, among other things, future economic, competitive and market conditions and future business decisions, all of which are difficult or impossible to predict accurately and many of which are beyond our control. Although we believe our assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate, and, therefore, there can be no assurance the forward-looking statements included herein will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by us or any other person that our objectives and plans will be achieved. Our actual results may differ materially from those anticipated in these forward-looking statements as a result of various factors, including those described in Part II, Item 1A, “Risk Factors” and elsewhere in this report and as also may be described from time to time in future reports we file with the SEC. You should read such information in conjunction with our consolidated financial statements and related notes and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this report. There also may be other factors that we cannot anticipate or that are not described in this report, generally because we do not currently perceive them to be material. Such factors could cause results to differ materially from our expectations.

Forward-looking statements speak only as of the date they are made, and we do not undertake to update these statements other than as required by law. You are advised, however, to review any further disclosures we make on related subjects in our periodic filings with the SEC.

The Company was formed on June 21, 2016 ~~as a limited liability company~~ under the name “YayYo, LLC,” which was converted into a Delaware corporation pursuant to the unanimous written consent of our former manager and members in a transaction intended to be tax-free under the Internal Revenue Code (the “Conversion”). ~~All of YayYo, LLC’s liabilities and assets, including its intellectual property, were automatically assumed by the~~ Company ~~which~~ now operates as a “C” corporation formed under the laws of the State of Delaware. On September 11, 2020, YayYo, Inc. changed its name to Rideshare Rental, Inc. On March 1, 2021, the Company changed its name from Rideshare Rental, Inc. to EVmo, Inc.

The Company is a holding company operating through its wholly-owned subsidiaries, ~~including~~ Distinct Cars, LLC ~~a Delaware limited liability company (“Distinct Cars”)~~ and Rideshare Car Rentals, ~~LLC, a Delaware limited liability company (“Rideshare”).~~LLC.

The Company’s operating business divisions include (i) an online rideshare vehicle booking platform to service the ridesharing economy through Rideshare ~~(the “Rideshare Platform”)~~Car Rentals, i.e., the Rideshare Platform, and (ii) the maintenance of a fleet of standard passenger vehicles to be made commercially available for rent through Distinct ~~Cars (“Fleet Management”). Through Rideshare and Distinct Cars, the~~Cars. The Company seeks to become the leading provider of a standard rental vehicles to drivers in the ridesharing economy.

On March 16, 2018, we ~~closed our Regulation A+~~completed an offering under Regulation AA+ of the Securities Act, which was qualified by the SEC on March 15, 2017. We sold a total of 365,306 shares of ~~our common stock.~~Common Stock. We received cash proceeds of $1.8 million, net of commissions and other costs associated with the gross offering proceeds or payable by us.

On November 15, 2019, the Company closed its initial public offering of 2,625,000 common shares at $4.00 per share, for gross proceeds, before underwriting discounts and commissions and expenses, of $10.5 ~~million.~~million, and the shares became listed on the Nasdaq Capital Market (“Nasdaq”) under the symbol ~~“YAYO”.~~“YAYO.”

On February 10, 2020, the Company notified Nasdaq of its intent to voluntarily delist its Common Stock from Nasdaq. In connection therewith, the Company notified Nasdaq of the Company’s intention to file a Form 25 with the SEC on or about February 20, 2020. The Company elected to effect the voluntary delisting of its ~~common stock~~Common Stock after discussions with Nasdaq’s staff and based on the determination of the Company’s ~~board~~Board of ~~directors~~Directors that voluntarily delisting the Common Stock from Nasdaq was in the best interests of the Company and its stockholders. Following delisting from Nasdaq, the ~~Company’s~~ Common Stock now trades on the ~~OTC~~ Pink Open Market, still under the trading symbol, “YAYO.”

~~Please refer~~On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease (COVID-19) a “Public Health Emergency of International Concern,” and on March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic.” In response, numerous states and cities ordered their residents to cease traveling to non-essential jobs and to curtail all unnecessary travel, and similar restrictions were recommended by the ~~risk factor included~~federal government. Beginning in ~~Item 1A~~the first quarter of ~~Part II~~2020, which saw the initial rapid spread of COVID-19, rideshare companies were severely and negatively impacted, as demand plummeted. Consequently, the Company experienced a decline in revenue during the first half of 2020, which had a negative impact on its cash flows, but it then saw a positive upward movement in revenue during the second half of 2020, which has continued into the first half of 2021. In early 2021, several vaccinations for COVID-19 received emergency-use authorization from the Food and Drug Administration, and many of the lockdown restrictions imposed by state and local governments, including those of the markets in which the Company operates, appear to be abating. The pandemic has not yet ended, however, and there have been multiple waves where infections, hospitalizations, and deaths have sharply increased. The Company therefore cannot predict the ultimate impact that COVID-19 may have on its business this ~~quarterly report on Form 10-Q.~~year, and possibly beyond.

The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Distinct Cars, LLC and ~~Rideshare, as well as two other wholly-owned subsidiaries that~~RideShare Car Rentals, LLC. All significant intercompany transactions and balances have ~~not had operations to date.~~been eliminated.

Consolidated Results of Operations—Three Months Ended September 30, ~~2020,~~2021, Compared to Three Months Ended September 30, ~~2019.~~2020

Revenue for the three months ended September 30, ~~2020~~2021 was ~~$2,070,821,~~$2,724,180, an increase of ~~$352,382~~$653,359 or ~~20.5%~~31.6% compared to revenue for the three months ended September 30, ~~2019~~2020 of ~~$1,718,439.~~$2,070,821. The increase is principally due to an increase in our rental fleet. During the three months ended September 30, ~~2020,~~2021, the average weekly rental income per vehicle placed in service was ~~$339~~$416 compared to ~~$336~~$339 for the same period in ~~2019.~~2020. Our revenues declined in March and April of 2020 due to COVID -19 and began to recover in May and June 2020. Our revenue ~~for the third quarter of~~since June 2020 ~~was~~is back to pre-COVID-19 levels, but there is no assurance that this trend will continue.

The principal components of costs of revenue are depreciation of the vehicles, vehicle insurance and maintenance.

Cost of revenues for the three months ended September 30, ~~2020~~2021 were ~~$1,194,957,~~$2,285,878, an increase of ~~$127,584~~$1,090,921 or ~~12.0%~~91.3% compared to cost of revenues for the three months ended September 30, ~~2019~~2020 of ~~$1,067,373.~~$1,194,957. The increase is due to higher depreciation expense and insurance expense due to an increase in fleet size ~~offset by lower repairs~~ and higher maintenance ~~costs in 2020.~~costs. For the three months ended September 30, ~~2020~~2021 and ~~2019~~2020 our cost of revenue was ~~57.7%~~83.9% and ~~62.1%~~57.7% of our revenue, respectively. The increase in the cost of revenue as a percentage of revenue is due to ~~the decrease in average weekly rental income due to the COVID – 19 outbreak.~~higher maintenance and insurance costs.

Selling and marketing expenses for the three months ended September 30, ~~2020~~2021 were ~~$113,904,~~$26,565, representing ~~an increase~~a decrease of ~~$33,865~~$87,339 or ~~42.3%~~76.7% over the three months ended September 30, ~~2019~~2020 of ~~$80,039.~~$113,904. The ~~increase~~decrease is due to ~~an increase~~a decrease in advertising to gig-economy drivers as we have maintained a high utilization rate for our ~~rentals to Uber and Lyft drivers.~~vehicles.

General and administrative expenses for the three months ended September 30, ~~2020~~2021 were ~~$1,088,152,~~$3,218,912, representing an increase of ~~$327,001~~$2,130,760 or ~~43.0%~~195.8% over the three months ended September 30, ~~2019~~2020 of ~~$761,151.~~$1,088,152. The increase is principally due to higher ~~payroll costs as we hired additional personnel for our expanding operations, higher occupancy costs~~professional fees, salaries, and ~~stock-based compensation expense of $240,244~~litigation settlement during the three months ended September 30, ~~2020.~~2021.

Total operating expenses for the three months ended September 30, ~~2020~~2021 were ~~$1,202,056,~~$3,291,977, representing an increase of ~~$360,866~~$2,089,921 or ~~42.9%~~173.9% compared to the three months ended September 30, ~~2019~~2020 of ~~$841,190.~~$1,202,056. The increase is due to the reasons described above.

Interest and financing expenses for the three months ended September 30, ~~2020~~2021 were ~~$65,292~~$2,007,194 compared to ~~$180,531~~$65,292 for the three months ended September 30, ~~2019.~~2020. The ~~decrease~~increase in interest and financing cost for the three months ended September 30, ~~2020 is~~2021 was due to ~~a decrease in high interest rate~~full amortization of debt ~~outstanding.~~discounts due to the $2.250 million convertible note being converted to preferred stock and issuance of additional warrants associated with the $2.250 million convertible note.

The net loss for the three months ended September 30, ~~2020~~2021 was ~~$391,484,~~$4,777,328, representing an increase of ~~$20,829~~$4,385,844 or ~~5.6%~~1,120.3% compared to the three months ended September 30, ~~2019~~2020 of ~~$370,655.~~$391,484. The increase is due to the reasons described above.

Consolidated Results of Operations—Nine ~~months~~Months Ended September 30, ~~2020,~~2021, Compared to Nine ~~months~~Months Ended September 30, ~~2019.~~2020

Revenue for the nine months ended September 30, ~~2020~~2021 was ~~$5,399,018,~~$7,670,795, an increase of ~~$205,061~~$2,271,777 or ~~3.9%~~42.1% compared to revenue for the nine months ended September 30, ~~2019~~2020 of ~~$5,193,957.~~$5,399,018. The increase is principally due to an increase in our rental ~~fleet offset by a decrease in our average weekly rental income levels throughout the nine months ended September 30, 2020 due to the COVID-19 outbreak.~~fleet. During the nine months ended September 30, ~~2020,~~2021, the average weekly rental income per vehicle placed in service was ~~$298~~$411 compared to ~~$338~~$298 for the same period in ~~2019.~~2020. Our revenues declined in March and April of 2020 due to COVID -19 and began to recover in May and June 2020. Our revenue since June ~~are~~2020 is back to pre-COVID-19 levels, but there is no assurance that this trend will continue.

The principal components of costs of revenue are depreciation of the vehicles, vehicle insurance and maintenance.

Cost of revenues for the nine months ended September 30, ~~2020~~2021 were ~~$3,891,307,~~$5,982,075, an increase of ~~$779,693~~$2,098,768 or ~~25.1%~~53.7% compared to cost of revenues for the nine months ended September 30, ~~2019~~2020 of ~~$3,111,614.~~$3,891,307. The increase is due to higher depreciation expense and insurance expense due to an increase in fleet size and higher ~~repairs and~~ maintenance ~~due to the age of the fleet.~~costs. For the nine months ended September 30, ~~2020~~2021 and ~~2019~~2020 our cost of revenue was ~~72.1%~~78.0% and ~~59.9%~~72.1% of our revenue, respectively. The increase in the cost of revenue as a percentage of revenue is due to ~~the decrease in average weekly rental income due to the COVID – 19 outbreak.~~higher maintenance and insurance costs.

Selling and marketing expenses for the nine months ended September 30, ~~2020~~2021 were ~~$324,546,~~$257,129, representing ~~an increase~~a decrease of ~~$141,901~~$67,417 or ~~77.7%~~20.8% over the nine months ended September 30, ~~2019~~2020 of ~~$182,645.~~$324,546. The ~~increase~~decrease is due to ~~an increase~~a decrease in advertising to gig-economy drivers as we have maintained a high utilization rate for our ~~rentals to Uber and Lyft drivers.~~vehicles.

General and administrative expenses for the nine months ended September 30, ~~2020~~2021 were ~~$3,845,768,~~$6,151,507, representing an increase of ~~$1,623,806~~$2,305,739 or ~~73.1%~~60.0% over the nine months ended September 30, ~~2019~~2020 of ~~$2,221,962.~~$3,845,768. The increase is principally due to higher ~~payroll costs (including stock option expense of $697,486) as we hired additional personnel for our expanding operations and higher management~~professional fees, salaries, and ~~higher occupancy costs.~~

~~Loss on the settlement of debt for~~during the nine months ended September 30, 2020 was $0 as compared to $252,900 for the same period in 2019. During the months ended September 30, 2019, we settled outstanding debt of $421,500 with 84,300 shares of common stock valued at $674,400.2021.

Total operating expenses for the nine months ended September 30, ~~2020~~2021 were ~~$4,170,314,~~$6,515,402, representing an increase of ~~$1,512,807~~$2,345,088 or ~~56.9%~~56.2% compared to the nine months ended September 30, ~~2019~~2020 of ~~$2,657,507.~~$4,170,314. The increase is due to the reasons described above.

Interest and financing expenses for the nine months ended September 30, ~~2020~~2021 were ~~$212,943~~$6,296,524 compared to ~~$792,406~~$212,943 for the nine months ended September 30, ~~2019.~~2020. The ~~decrease~~increase in interest and financing cost for the nine months ended September 30, ~~2020~~2021 was due to the issuance of 825,000 shares of Common Stock to Acuitas Group Holdings, LLC, (“Acuitas”), which is now the Company’s largest shareholder, in connection with a ~~decrease~~settlement agreement between Acuitas and X, LLC, a company owned by the Company’s former chief executive officer. The Board of Directors deemed it was in ~~outstanding debt.~~the best interest of the Company to issue the shares to Acuitas. The value of the shares was $3,240,600, which was based on the market price of the Common Stock at the grant date. The $3,240,600 was expensed as financing costs as the dispute underlying the settlement agreement related to an anti-dilution of a prior investment in the Company by Acuitas. Also, the increase in interest and financing expenses for the nine months ended September 30, 2021 was due to full amortization of debt discounts due to the $2.25 million convertible note being converted to shares of Series B Preferred Stock and issuance of additional warrants associated with the $2.25 million convertible note.

Gain on forgiveness of debt for the nine months ended September 30, 2021 was $8,000 as compared to $0 for the same period in 2020, as, during the nine months ended September 30, 2021, the remaining amount we received under the Paycheck Protection Program of the Coronavirus Aid, Relief and Economic Security Act was forgiven.

The net loss for the nine months ended September 30, ~~2020~~2021 was ~~$2,875,546,~~$11,031,665, representing an increase of ~~$1,507,976~~$8,156,119 or ~~110.3%~~283.6% compared to the nine months ended September 30, ~~2019~~2020 of ~~$1,367,570.~~$2,875,546. The increase is due to the reasons described above.

~~Initial Public Offering.~~On November ~~13,~~15, 2019, we closed our initial public offering of ~~common stock~~Common Stock registered on an S-1 Registration Statement under the Securities Act, which was declared effective on November 13, 2019. We sold a total of 2,625,000 common shares at a price of $4.00 per share. Total gross proceeds from the offering were $10,500,000, before deducting underwriting discounts and commissions and other offering expenses.

During the year ended December 31, 2020, we sold an aggregate of 2,553,571 shares of Common Stock to three investors for cash proceeds of $275,000, of which 125,000 shares was sold to a member of our Board of Directors for cash consideration of $25,000.

On January 8, 2021, we received $500,000 from a convertible note from one of our stockholders. The note is convertible into shares of Common Stock at $0.50 per share. The note was converted into 1,000,000 shares of Common Stock in February 2021.

On April 12, 2021, we entered into a securities purchase agreement with a certain investor in connection with the issuance of a 12.5% original issue discount convertible promissory note and a common stock purchase warrant. The note has an original principal amount of $2,250,000, with an original issue discount of $250,000. It bears interest at a fixed rate of 10%, and is convertible into shares of common stock at a price of $3.00 per share (subject to adjustment as set forth in the note). The note was set to mature on January 12, 2022; however, in July 2021, the Company and the noteholder agreed to convert the note into 230,250 shares of Series B Preferred Stock.

On July 9, 2021 (the “Closing Date”), we entered into a Term Loan, Guarantee and Security Agreement (the “Term Loan Agreement”) with EICF Agent LLC (“EICF”), as agent for the lenders, and Energy Impact Credit Fund I, LP, as lender (the “Lender”), providing for a secured term loan facility in an aggregate principal amount of up to $15.0 million (collectively, the “Term Loans”), consisting of a $7.5 million closing date term loan facility (the “Closing Date Term Loan”) and up to $7.5 million of borrowings under a delayed draw term loan facility (the “Delayed Draw Term Loan Facility”). The Closing Date Term Loan was fully drawn on the Closing Date, while the Delayed Draw Term Loan Facility is available upon the satisfaction of certain conditions precedent specified in the Term Loan Agreement. The Term Loan Agreement matures on July 9, 2026. Borrowings under the Term Loan Agreement bear interest at the London Interbank Offered Rate (“LIBOR”), plus a margin of 10.0%.

During the nine months ended September 30, 2021, we sold 100,000 shares of Common Stock to a member of our Board of Directors for cash consideration of $50,000.

At September 30, ~~2020,~~2021, the Company’s current assets totaled ~~$570,043,~~$4,847,770, current liabilities totaled ~~$4,123,526,~~$6,162,643, and working capital was a deficit of ~~$3,553,483.~~$1,314,873. At December 31, ~~2019,~~2020, the Company’s current assets totaled ~~$2,098,660,~~$215,990, current liabilities totaled ~~$2,655,055,~~$4,461,560, and working capital was a deficit of ~~$556,395.~~$4,245,570.

Regarding current liabilities, the amounts categorized as accounts payable and accrued expenses totaled ~~$1,886,120~~$3,947,534 and ~~$951,231~~$2,119,003 as of September 30, ~~2020~~2021 and December 31, ~~2019,~~2020, respectively, an increase of ~~$934,889~~$1,828,531 or ~~98.3%.~~86.3%, due to accrual for legal settlement of $1,000,000 and increase in amounts due for professional services.

Since inception, our principal sources of operating funds have been proceeds from equity financings, including the sale of our common stock to initial investors known to management and principal shareholders of the Company. We do not expect that our current cash on hand will fund our existing operations and future business growth. We will need to raise additional capital in order execute our business plan and growth goals for at least the next ~~twelve-month period.~~twelve months. If the Company is unable to raise sufficient ~~additional~~ funds, it will have to execute a slower than planned growth path, reduce overhead and scale back its business plan until sufficient additional capital is raised to support further operational expansion and growth. As of September 30, ~~2020,~~2021, the Company had ~~$84,732~~$3,540,212 in cash. The Company ~~generated $188,543~~used $1,454,194 of cash for operating activities for the nine months ended September 30, ~~2020.~~2021. The Company is seeking to raise additional capital. If the Company is not successful in raising additional capital it will be forced to significantly scale back its business operations and it growth plans. ~~In addition, the COVID-19 virus and the related impact it is having on the U.S. economy is currently having a negative impact on the cash flows of our business. However, we~~We were able to obtain two loans totaling $342,675 related to new legislation passed as a result of ~~COVID-19.~~ COVID-19, of which $192,775 was forgiven in 2020 and 2021.

During the nine months ended September 30, ~~2020, the Company’s principal executive officer advanced the Company $200,000, of which the Company has repaid $150,000, leaving $50,000 outstanding.~~

~~During the nine months ended September 30, 2020,~~2021, the Company had capital expenditures of ~~$3,705,417~~$5,692,784 in leased vehicles. At September 30, ~~2020,~~2021, most of the Company’s vehicles were ~~finance~~financed with leases. At September 30, ~~2020~~2021 the Company had ~~$9,622,805~~$14,760,669 of rental vehicles, net of accumulated depreciation in the amount of ~~$2,482,516,~~$4,394,296, totaling ~~$7,140,289~~$10,366,373 in net rental vehicles. At December 31, ~~2019~~2020 the Company had ~~$6,284,211~~$9,067,885 of rental vehicles, net of accumulated depreciation in the amount of ~~$1,547,164,~~$2,871,452, totaling ~~$4,737,047~~$6,196,433 in net rental vehicles. The Company’s rental vehicles are depreciated over their estimated useful life of five years. The lease terms for those rental vehicles ~~that are leased~~ are generally for three years, and the Company has the right to purchase the leased assets for $1 each at the end of the lease terms.

Net cash ~~provided by~~used in operating activities for the nine months ended September 30, ~~2020~~2021 totaled ~~$188,543,~~$1,454,194, which was an increase of ~~$342,432 or 223%~~$1,642,737 from the net cash ~~used in~~provided by operating activities of ~~$153,889~~$188,543 for the same period in ~~2019.~~2020. The ~~increase~~change is principally due to the change in ~~accounts payable~~operating assets and ~~accrued expenses,~~liabilities, and non-cash expense items.

Net cash used in investing activities for the nine months ended September 30, 2021 totaled $47,051, which was an increase of $47,051 from $0 for the same period in 2020. The change is principally due to the purchase of property and equipment.

Net cash ~~used in~~provided by financing activities for the nine months ended September 30, ~~2020~~2021 totaled ~~$1,360,240,~~$4,968,567, which was ~~a change~~an increase of ~~$1,318,025~~$6,328,807 from the net cash used in financing activities of ~~$42,215~~$1,360,240 for the same period in ~~2019.~~2020. The change is principally due to cash received from the sale of Common Stock, exercise was stock options, convertible note and note payable in 2021 offset by an increase in payments on financing lease ~~obligations in 2020 and proceeds of $1,951,300 from notes payable in 2019 compared to $342,675 in 2020. In addition, we sold $275,000 of common stock in 2020 compared to $0 in 2019.~~obligations.

Our plan of operations is currently focused on the growth and ongoing development of our operating ~~business segments:~~businesses: (i) ~~our~~the Rideshare Platform, offered through ~~the Company’s wholly-owned subsidiary~~ Rideshare, and (ii) ~~our~~ Fleet Management, ~~business,~~ made commercially available through ~~the Company’s wholly-owned subsidiary~~ Distinct Cars. We expect to incur substantial expenditures in the foreseeable future for the ~~potential~~enhanced operations of our ~~business segments~~businesses and related, ongoing, internal research and development. Moreover, we have embarked on “EV strategy” in which we intend to replace our entire fleet of vehicles with all electric vehicles within a relatively short period of time. At this time, we cannot reliably estimate the nature, timing or aggregate amount of such costs. Our Rideshare Platform will require extensive technical evaluation, potential regulatory review and approval, significant marketing efforts and substantial investment before it or any successors could provide usall of the costs associated with ~~any revenue. Further, we intend to continue to build our corporate and operational infrastructure and to build interest in our product and service offerings.~~these.

~~As noted above, the~~The continuation of our current plan of operations ~~requires~~may require us to raise significant additional capital ~~immediately.~~within a short period of time. If we are successful in raising capital, we believe that the Company will have sufficient cash resources to fund its plan of operations. The cash flow from our ~~current vehicle leasing business~~Rideshare Platform and, especially, Fleet Management businesses and our existing capital resources are sufficient for us to continue our current operations, but for us to fully execute our business plan we will likely require significant additional capital.

We continually evaluate our plan of operations ~~discussed above~~ to determine the manner in which we can most effectively utilize our limited cash resources. The timing of completion of any aspect of our plan of operations is highly dependent upon the availability of cash to implement that aspect of the plan and other factors beyond our control. There is no assurance that we will successfully obtain the required capital or revenues, or, if obtained, that the amounts will be sufficient to fund our ongoing operations. The inability to secure additional capital would have a material adverse effect on us, including the possibility that we would have to sell or forego a portion or all of our assets or cease operations. If we discontinue our operations, we will not have sufficient funds to pay any amounts to our stockholders.

Even if we raise additional capital in the near future, if our operating ~~business segments~~businesses fail to achieve anticipated financial results, our ability to raise additional capital ~~in the future~~thereafter to fund our ~~operating business segments~~operations would likely be seriously impaired. If in the future we are not able to demonstrate favorable financial results or projections from our operating ~~business segments,~~businesses, we will likely not be able to raise the capital we need to continue our then current business operations and business activities, and we will likely not have sufficient liquidity or cash resources to continue operating.

Because our working capital requirements depend upon numerous factors, there can be no assurance that our current cash resources will be sufficient to fund our operations. At present, we have no committed external sources of capital, and we do not expect any significant product revenues for the foreseeable future. Thus, we will require immediate additional financing to fund future operations. There can be no assurance, however, that we will be able to obtain funds on acceptable terms, if at all.

During fiscal years 2017, 2018 and 2019, the Company entered into a series of monthly vehicle leasing agreements with ACME Auto Leasing, LMP Financial Services and United Mile Fleet, each with an approximate lease term of 12 to 36 months. As of September 30, 2020 and December 31, 2019, the Company had total lease obligations in the amount of $3,667,772 and $2,400,565, respectively. The Company owes monthly payments under each Lease Agreement ranging from approximately $285 per month to $621 per month. At the end of the term of the Lease Agreement, lessee has the right to purchase ownership and title of the subject vehicle for a nominal payment. In addition, the Lease Agreements are subject to and secured by a grant of a purchase money security interest on each leased vehicle.

We leased and maintained primary offices at 433 North Camden Drive, Suite 600, Beverly Hills, California 90210 and 6600 Sunset Blvd., Los Angeles, CA 90028, the latter being the location where the majority of our operations and staff conduct activities on a daily basis. We do not currently own any real property.

In the ordinary course of our business, we are not exposed to market risk of the sort that may arise from changes in interest rates or foreign currency exchange rates, or that may otherwise arise from transactions in derivatives.

Our consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP. Preparation of these financial statements requires us to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue, costs and expenses and related disclosures. We base our estimates on historical experience and on various other assumptions that we believe to be reasonable. In many instances, we could have reasonably used different accounting estimates and in other instances changes in the accounting estimates are reasonably likely to occur from period to period. This applies in particular to useful lives of non-current assets and valuation allowance for deferred tax assets. Actual results could differ significantly from our estimates. To the extent that there are material differences between these estimates and actual results, our future financial statement presentation, financial condition, results of operations and cash flows will be affected. We believe that the accounting policies discussed below are critical to understanding our historical and future performance, as these policies relate to the more significant areas involving our judgments and estimates.

The Company has not changed its estimate for the useful lives of its equipment and rental vehicles, but would expect that a decrease in the estimated useful lives of equipment and rental vehicles of one year would result in an annual increase to depreciation expense of approximately $740,000, and an increase in the estimated useful lives of equipment and rental vehicles of one year would result in an annual decrease to depreciation expense of approximately $450,000.

The Company recognizes revenue primarily from renting its fleet of cars to drivers for TNC companies, such as Uber and Lyft, ~~drivers. Revenue is recognized~~ based on ~~the~~their rental agreements, which are generally administered on a weekly basis. The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers.

We consider a signed contract or other similar documentation reflecting the terms and conditions under which products will be provided to be persuasive evidence of an arrangement. Collectability is assessed based on a number of factors, including payment history and the creditworthiness of a customer. If it is determined that collection is not reasonably assured, revenue is not recognized until collection becomes reasonably assured, which is generally upon receipt of cash.

Certain conditions may exist as of the date the financial statements are issued, which may result in a loss to the Company, but which will only be resolved when one or more future events occur or fail to occur. The Company’s management, in consultation with its legal counsel as appropriate, assesses such contingent liabilities, and such assessment inherently involves an exercise of judgment. In assessing loss contingencies related to legal proceedings that are pending against the Company or unasserted claims that may result in such proceedings, the Company, in consultation with legal counsel, evaluates the perceived merits of any legal proceedings or unasserted claims, as well as the perceived merits of the amount of relief sought or expected to be sought therein. If the assessment of a contingency indicates it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates a potentially material loss contingency is not probable, but is reasonably possible, or is probable, but cannot be estimated, then the nature of the contingent liability, together with an estimate of the range of possible loss, if determinable and material, would be disclosed. Loss contingencies considered remote are generally not disclosed unless they involve guarantees, in which case the guarantees would be disclosed.

We maintain a set of disclosure controls and procedures (as defined in Rule 13a-15(e) of the Exchange Act) designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in rules and forms adopted by the SEC.

In accordance with Rule 13a-15(b) of the Exchange Act, as of the end of the period covered by this quarterly report on Form 10-Q, an evaluation was carried out under the supervision and with the participation of our management, including our Chief Executive Officer (“CEO”) and Chief Financial Officer (“CFO”), to assess the effectiveness of our disclosure controls and procedures as of September 30, ~~2020.~~2021. Based upon that evaluation, our CEO and CFO concluded that our disclosure controls and procedures were not effective to provide reasonable assurance that information required to be disclosed by us in reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and is accumulated and communicated to our management, including the CEO and CFO, as appropriate to allow timely decisions regarding required disclosure due to a material weakness.

A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material misstatement of the Company’s annual or interim financial statements will not be prevented or detected on a timely basis.

We do not have sufficient segregation of duties within accounting functions, which is a basic internal control. Due to our size and nature, segregation of all conflicting duties may not always be possible and may not be economically feasible. However, to the extent possible, the initiation of transactions, the custody of assets and the recording of transactions should be performed by separate individuals. Management evaluated the impact of our failure to have segregation of duties on our assessment of our disclosure controls and procedures and has concluded that the control deficiency that resulted represented a material weakness.

To address this material weakness, management performed additional analyses and other procedures to ensure that the financial statements included herein fairly present, in all material respects, our financial position, results of operations and cash flows for the periods presented.

There were no changes in our internal control over financial reporting, as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act, during our most recently completed fiscal quarter that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

~~Please refer to Note 9~~For a description of ~~our Condensed Consolidated Financial Statements for a discussion of all material~~the pending legal ~~proceedings.~~proceedings that could be material to the Company, please see Note 11- Contingencies.

~~COVID-19 has had a negative impact on our business the first half of 2020 and continues to present a material risk to our operations~~

In December 2019, a novel strain of coronavirus surfaced in China, which has and is continuing to spread throughout the world, including the United States. On January 30, 2020, the World Health Organization declared the outbreak of the coronavirus disease (COVID-19) a “Public Health Emergency of International Concern,” and on March 11, 2020, the World Health Organization characterized the outbreak as a “pandemic.” The governors of New York, California and several other states, as well as mayors of many cities, have ordered their residents to cease traveling to non-essential jobs and to curtail all unnecessary travel, and to stay in their homes as much as possible in the coming weeks, as the nation confronts the escalating coronavirus outbreak, and similar restrictions have been recommended by the federal authorities and authorities in many other states and cities. Since the beginning of 2020 and the spread of COVID-19, rideshare companies have increasingly been negatively impacted. According to its recent investor update call, Uber’s gross bookings in Seattle are down by 60-70%, and Uber assumes similar declines in other big cities hit by COVID-19. As Americans practice social distancing and self-isolation, Uber, Lyft, and other rideshare companies have seen a steep decline in ridership and revenue, as a result. Given that rideshare drivers are both at risk themselves and of risk to the public, and in addition to decreased demand overall, less people are even still driving.

~~As a result, the~~ Company has seen a decline in revenue during the first half of 2020 which is having a negative impact on the cash flows of the business, but saw a positive upward movement in revenue during the third quarter ended September 30, 2020. The Company has seen increased demand from drivers wanting to rent carsNot required under Regulation S-K for ridesharing purposes and new drivers renting cars for both rideshare and delivery gig economy. With the recent increase in the number of positive COVID-19 cases, the Company is not able to predict the ultimate impact that COVID -19 will have on its business. If another lockdown were to occur, the Company could be forced to significantly scale back its business operations and its growth plans, and could ultimately have a significant negative impact on the Company. The Company cannot at this time estimate the long term effect of this unprecedented situation on any of the rideshare market, or the delivery gig economy in general, or the Company in particular.“smaller reporting companies.”

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

~~Securities registered pursuant to Section 12(b) of the Act:~~

Title of each class	Trading Symbol	Name of each exchange on which registered
None	N/A	N/A

PART I FINANCIAL INFORMATION:

Item 1.	Financial Statements	1

	Condensed Consolidated Balance Sheets as of September 30, ~~2020~~2021 and December 31, ~~2019~~2020 (unaudited)	1

	Condensed Consolidated Statements of Operations for the Three and Nine months Ended September 30, 2021 and 2020 ~~and 2019~~ (unaudited)	2

	Condensed Consolidated Statements of Stockholders’ Equity for the Three and Nine ~~months~~Months Ended September 30, 2021 and 2020 ~~and 2019~~ (unaudited)	3

	Condensed Consolidated Statements of Cash Flows for the Nine ~~months~~Months Ended September 30, 2021 and 2020 ~~and 2019~~ (unaudited)	4

	Notes to Condensed Consolidated Financial Statements (unaudited)	5

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	1417

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	2023

Item 4.	Controls and Procedures	2023

PART II OTHER INFORMATION:

Item 1.	Legal Proceedings	2124

Item 1A.	Risk Factors	2224

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	2224

Item 3.	Defaults Upon Senior Securities	2224

Item 4.	Mine Safety Disclosures	2324

Item 5.	Other Information	2324

Item 6.	Exhibits	2324

	Signatures	2425

	Computer equipment	5 years
~~Vehicles~~	Officer furniture	7 years
	Leasehold improvements	15 years or term of lease whichever is less
	Vehicles	5 years

	●	Level 1 inputs to the valuation methodology are quoted, unadjusted prices for identical assets or liabilities in active markets.

	●	Level 2 inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, as well as other than quoted prices for identical assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

	●	Level 3 inputs to the valuation methodology are unobservable and significant to the fair value measurement.


Convertible notes, December 31, 2020	$	-
Issued for cash		2,500,000
Issued for original issue discount		250,000
Debt discount related to convertible notes		(1,578,767	)
Conversion to common stock		(500,000	)
Conversion to preferred stock		(2,250,000	)
Amortization of debt discounts		1,578,767
Convertible notes, September 30, 2021	$	-

Lease obligations, December 31, 2019	$	2,400,565
New lease obligations		3,705,417
Disposal of leased vehicles		(420,295	)
Payments on lease obligations		(2,017,915	)
Lease obligations, September 30, 2020	$	3,667,772


Lease obligations, December 31, 2020	$	2,352,878
New lease obligations		5,692,784
Payments on lease obligations		(3,629,792	)
Lease obligations, September 30, 2021	$	4,415,870

		September 30,
	Classification on Balance Sheet	2021
Assets
Operating lease assets	Operating lease right of use assets	$	180,860
Total lease assets		$	180,860

Liabilities
Current liabilities
Operating lease liability	Current operating lease liability	$	138,630
Noncurrent liabilities
Operating lease liability	Long-term operating lease liability		50,996
Total lease liability		$	189,626

Twelve Months Ending September 30,	Leases
2022	$	157,800
2023		52,600
Total payments		210,400
Less: imputed interest		(20,774	)
Total obligation		189,626
Less: current portion		(138,630	)
Non-current capital leases obligations	$	50,996

	●	issued 100,0000 shares of Common Stock to a member of the Company’s Board of Directors, in a negotiated transaction for $0.50 per share, or aggregate cash consideration of $50,000;
	●	issued 295,000 shares of Common Stock for the exercise of 321,875 stock options for cash consideration of $92,878;
	●	issued 1,273,050 shares of Common Stock for the cashless exercise of 1,348,525 stock options;
	●	issued 600 shares of Common Stock to an investor in connection with a prior note payable agreement;
	●	issued 1,000,000 shares of Common Stock in connection with the conversion of a convertible note payable for $500,000;
	●	issued an aggregate of 256,250 shares of Common Stock in connection with legal settlements. The shares were valued at $1,145,768 which was based on the market price of the Common Stock on the grant date; and
	●	issued 825,000 shares to Acuitas Group Holdings, LLC, (“Acuitas”) which is now the Company’s largest shareholder, in connection with a settlement agreement between Acuitas and X, LLC, a company owned by the Company’s former chief executive officer. The board of directors deemed it was in the best interest of the Company to issue the shares to Acuitas. The value of the shares was $3,240,600 which is based on the market price of the Company’s Common Stock at the grant date. The $3,240,600 was expensed as financing costs as the dispute underlying the settlement agreement related to an anti-dilution of a prior investment in the Company by Acuitas.

Risk-free interest rate	0.76 – 0.87	%
Expected life of the options	5 years
Expected volatility	180%-190	%
Expected dividend yield	0	%

●	The Company issued an aggregate of 187,500 warrants pursuant to the terms of the convertible note agreement discussed in Note 6.

●	The parties to the In re YayYo Securities Litigation described in Note 11 above have, after extensive negotiations, recently filed a “Notice of Pending Settlement” with the court, which is subject to approval by the district court and which, if approved, will resolve the pending class actions upon payment by the Company of approximately $1,000,000 to the class. The Company’s Executive Chairman has provided his personal guarantee for the whole amount due to the plaintiffs, and the Board of Directors has agreed to issue 2,000,000 shares of Common Stock as consideration for the guarantee. The motion for approval of the settlement is scheduled to be heard by the court on or around November 19, 2021.

Exhibit		Description
31.1		C~~Certification~~ertification of the Chief Executive Officer pursuant to Rule 13a-14(a)
31.2		Certification of the Chief Financial Officer and Secretary pursuant to Rule 13a-14(a)
32.1		Certification of the Chief Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2		Certification of the Chief Financial Officer and Secretary furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

~~RIDESHARE RENTAL,~~EVMO, INC.
		(Registrant)
~~By:~~	~~/s/ Ramy El-Batrawi~~
By:	~~Ramy El-Batrawi,~~/s/ Stephen Sanchez
	Stephen Sanchez, Chief Executive Officer

	/s/ Ryan Saathoff
	Ryan Saathoff, Chief Financial Officer

Date:	November ~~12, 2020~~15, 2021