Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Mar. 29, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Entity Registrant Name | EVmo, Inc. | ||
Entity Central Index Key | 0001691077 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2020 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business Flag | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4,136,945 | ||
Entity Common Stock, Shares Outstanding | 35,127,524 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2020 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Current Assets: | ||
Cash | $ 72,890 | $ 1,256,429 |
Accounts receivable | 119,239 | 59,331 |
Prepaid expenses | 23,861 | 782,900 |
Total current assets | 215,990 | 2,098,660 |
Equipment, net | 1,908 | 3,395 |
Rental vehicles, net | 6,196,433 | 4,737,047 |
Deposit on vehicles | 164,080 | |
Other assets | 200,000 | 200,000 |
TOTAL ASSETS | 6,614,331 | 7,203,182 |
Current Liabilities: | ||
Accounts payable (including $590,176 and $394,183 to related party) | 1,157,299 | 545,254 |
Accrued expenses (including $0 and $171,665 to related party) | 961,704 | 405,977 |
Notes payables, current (net of discount of $1,973 and $32,289) | 666,132 | 287,378 |
Customer deposit - related party | 150,000 | |
Advance from related party | 100,000 | |
Finance lease obligations, current | 1,426,425 | 1,416,446 |
Total current liabilities | 4,461,560 | 2,655,055 |
Note payable, net of current portion | 149,414 | |
Finance lease obligations, net of current portion | 926,453 | 984,119 |
TOTAL LIABILITIES | 5,537,427 | 3,639,174 |
Commitments and contingencies | ||
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; 31,981,374 and 29,427,803 shares issued and outstanding | 32 | 29 |
Additional paid-in capital | 29,750,864 | 28,735,894 |
Accumulated deficit | (28,673,992) | (25,171,915) |
Total stockholders' equity | 1,076,904 | 3,564,008 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 6,614,331 | $ 7,203,182 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts payable related party | $ 590,176 | $ 394,183 |
Accrued expenses related party | 0 | 171,665 |
Net of debt discount, current | $ 1,973 | $ 32,289 |
Preferred stock, par value | $ 0.000001 | $ 0.000001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | ||
Preferred stock, shares outstanding | ||
Common stock, par value | $ 0.000001 | $ 0.000001 |
Common stock, shares authorized | 90,000,000 | 90,000,000 |
Common stock, shares issued | 31,981,374 | 29,427,803 |
Common stock, shares outstanding | 31,981,374 | 29,427,803 |
Consolidated Statement of Opera
Consolidated Statement of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 7,621,180 | $ 6,914,910 |
Cost of revenue | 5,263,474 | 4,673,870 |
Gross profit | 2,357,706 | 2,241,040 |
Operating expenses: | ||
Selling and marketing expenses | 490,403 | 765,441 |
Product development | 13,500 | |
General and administrative expenses | 5,288,316 | 4,023,921 |
Loss on the settlement of debt | 252,900 | |
Total operating expenses | 5,778,719 | 5,055,762 |
Loss from operations | (3,421,013) | (2,814,722) |
Other income (expense): | ||
Interest and financing costs | (265,839) | (1,115,499) |
Gain on forgiveness of debt | 184,775 | |
Total other income (expense) | (81,064) | (1,115,499) |
Net loss | $ (3,502,077) | $ (3,930,221) |
Weighted average shares outstanding : | ||
Basic | 31,118,425 | 27,112,557 |
Diluted | 31,118,425 | 27,112,557 |
Loss per share | ||
Basic | $ (0.11) | $ (0.14) |
Diluted | $ (0.11) | $ (0.14) |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Total |
Balance at Dec. 31, 2018 | $ 27 | $ 19,193,151 | $ (21,241,694) | $ (2,048,516) |
Balance, shares at Dec. 31, 2018 | 26,718,676 | |||
Correction to outstanding | ||||
Correction to outstanding, shares | (173) | |||
Offering costs | $ (1,631,655) | $ (1,631,655) | ||
Issuance of common stock for settlement of debt | 674,400 | 674,400 | ||
Issuance of common stock for settlement of debt, shares | 84,300 | |||
Proceeds from the sale of common stock | $ 2 | 10,499,998 | 10,500,000 | |
Proceeds from the sale of common stock, shares | 2,625,000 | |||
Net loss | (3,930,221) | (3,930,221) | ||
Balance at Dec. 31, 2019 | $ 29 | 28,735,894 | (25,171,915) | 3,564,008 |
Balance, shares at Dec. 31, 2019 | 29,427,803 | |||
Stock option expense | 739,973 | 739,973 | ||
Issuance of common stock for cash | $ 3 | $ 274,997 | 275,000 | |
Issuance of common stock for cash, shares | 2,553,571 | |||
Net loss | $ (3,502,077) | (3,502,077) | ||
Balance at Dec. 31, 2020 | $ 32 | $ 29,750,864 | $ (28,673,992) | $ 1,076,904 |
Balance, shares at Dec. 31, 2020 | 31,981,374 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (3,502,077) | $ (3,930,221) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 1,436,383 | 995,228 |
Stock option expense | 739,973 | |
Common stock issued for services | ||
Amortization of debt discounts | 30,316 | 39,922 |
Loss on the settlement of debt | 252,900 | |
Gain on forgiveness of debt | (184,775) | |
Changes in operating assets and liabilities: | ||
Accounts receivable | (59,908) | (59,331) |
Prepaid expenses | 759,039 | (674,000) |
Other assets | (200,000) | |
Accounts payable | 612,045 | (174,132) |
Accrued expenses | 555,727 | 333,411 |
Customer deposit - related party | 150,000 | |
Net cash provided by (used in) operating activities | 536,723 | (3,416,223) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of vehicles | (225,000) | |
Deposit for vehicles | (164,080) | |
Net cash used in investing activities | (389,080) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from sale of common stock | 275,000 | 10,500,000 |
Offering costs paid | (1,565,155) | |
Proceeds from advance from related party | 250,000 | |
Repayment of advance from related party | (150,000) | |
Proceeds from notes payable | 342,675 | 2,009,300 |
Repayment of notes payable | (15,486) | (4,379,814) |
Repayment of finance lease obligations | (2,422,451) | (1,780,043) |
Net cash provided by (used in) financing activities | (1,720,262) | 4,784,288 |
NET INCREASE (DECREASE) IN CASH | (1,183,539) | 978,985 |
CASH, BEGINNING OF YEAR | 1,256,429 | 277,444 |
CASH, END OF YEAR | 72,890 | 1,256,429 |
CASH PAID FOR: | ||
Interest | 185,224 | 1,105,049 |
Income taxes | ||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Payment of accounts payable/accrued expenses with common stock | 421,500 | |
Finance lease obligations | $ 3,705,417 | $ 1,159,470 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Note 1 - Organization and Basis of Presentation Organization and Line of Business 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 to a C corporation. The Company was originally incorporated under the name of YayYo, Inc. and changed its name to Rideshare Rental, Inc. on September 11, 2020. On March 1, 2021, the Company changed its name from Rideshare Rental, Inc. to EVmo, Inc. The accompanying financial statements are retroactively restated to present the Company as a C corporation from June 21, 2016. The Company rents vehicles to Uber and Lyft drivers and drivers in the gig-ecomony. Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (GAAP). Risk and Uncertainties 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 on 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. 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. 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 second half of 2020. The Company has seen increased demand from drivers wanting to rent cars for ridesharing purposes and new drivers renting cars for both rideshare and delivery gig economy. 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 the rideshare market or delivery gig economy in general or the Company in particular. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 2 – Summary of Significant Accounting Policies Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Distinct Cars, LLC and RideShare Car Rentals, LLC. All significant intercompany transactions and balances have been eliminated. Use of Estimates 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. Cash Equivalents 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. Equipment and Rental Vehicles 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: Computer equipment 5 years Vehicles 5 years Long-Lived Assets The Company applies the provisions of ASC Topic 360, Property, Plant, and Equipment Revenue Recognition The Company recognizes revenue from renting its fleet of cars to ridesharing and delivery gig drivers. Revenue is recognized based on the rental agreements which are generally on a weekly basis. The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes 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. Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation Basic and Diluted Earnings Per Share Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the years ended December 31, 2020 and 2019 were $490,403 and $765,441, respectively. Research and Development Costs The Company expenses its research and development costs as incurred. Research and developments costs for the years ended December 31, 2020 and 2019 were $0 and $13,500, respectively. Fair Value Measurements The Company applies the provisions of ASC 820-10, “Fair Value Measurements and Disclosures.” ● Level 1 inputs to the valuation methodology are quoted 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, 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. 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 December 31, 2020 and 2019, the Company did not identify any liabilities that are required to be presented on the balance sheet at fair value. Recent Accounting Pronouncements 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 In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes Income Taxes In August 2020, the FASB issued ASU 2020-06 , Debt—Debt with Conversion and 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. Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity 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. |
Equipment
Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Equipment | Note 3 – Equipment At December 31, 2020 and 2019 equipment consisted of the following: 2020 2019 Computer equipment $ 6,046 $ 6,046 6,046 6,046 Less accumulated depreciation (4,138 ) (2,651 ) Equipment, net $ 1,908 $ 3,395 Depreciation expense for equipment for the years ended December 31, 2020 and 2019 was $1,487 and $1,697, respectively. |
Rental Vehicles
Rental Vehicles | 12 Months Ended |
Dec. 31, 2020 | |
Rental Vehicles | |
Rental Vehicles | Note 4 – Rental Vehicles At December 31, 2020 and 2019 all of the Company’s rental vehicles consisted of the following: 2020 2019 Rental vehicles $ 9,067,885 $ 6,284,211 9,067,885 6,284,211 Less accumulated depreciation (2,871,452 ) (1,547,164 ) Rental vehicles, net $ 6,196,433 $ 4,737,047 The Company’s rental vehicles are depreciated over their estimated useful life of five years. Depreciation expense for leased assets for the years ended December 31, 2020 and 2019 was $1,434,896 and $993,531, respectively. A majority of the rental vehicles are leased with terms are generally for 12 to 36 months and the Company has the right to purchase the vehicles at the end of the lease terms. |
Notes Payable
Notes Payable | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 5 – Notes Payable Notes payable at December 31, 2020 and 2019 consisted of the following: 2020 2019 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) $ 304,667 319,667 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. 149,414 - 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 - Total notes payable 817,519 319,667 Unamortized debt discount (1,973 ) (32,289 ) Notes payable, net discount 815,546 287,378 Less current portion (666,132 ) (287,378 ) Long-term portion $ 149,414 $ - (A) In connection with the issuance of these notes payable in 2018 and 2017, the Company also issued an aggregate of 24,050 shares of its common stock to these note holders as additional incentive to make the loans. The aggregate relative fair value of these shares of common stock was $119,875 and was recorded as a discount on the note payable and as additional paid in capital. The discount of $119,875 is being amortized over the term of the notes payable. During the years ended December 31, 2020 and 2019, $30,316 and $39,922, respectively, was charged to interest expense as amortization of the discounts, with an unamortized balance of $1,93 at December 31, 2020. A rollforward of notes payable from December 31, 2018 to December 31, 2020 is below: Notes payable, December 31, 2018 $ 2,617,970 Issued for cash 2,009,300 Repayments (4,379,814 ) Amortization of debt discounts 39,922 Notes payable, December 31, 2019 287,378 Issued for cash 342,675 Lease obligation converted to note payable 355,438 Forgiveness of note payable (184,775 ) Repayments (15,486 ) Amortization of debt discounts 30,316 Notes payable, December 31, 2020 $ 815,546 Future payments under note payable obligations are as follows: Years ending December 31, 2021 $ 668,105 2022 3,104 2023 3,175 2024 3,296 2025 3,422 Thereafter 136,417 $ 817,519 |
Lease Obligations
Lease Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease Obligations | Note 6 – Lease Obligations Lease obligations at December 31, 2020 and 2019 consisted of the following: 2020 2019 Lease obligations $ 2,352,878 $ 2,400,565 Less current portion (1,426,425 ) (1,416,446 ) Long-term portion $ 926,453 $ 984,119 A rollforward of lease obligations from December 31, 2018 to December 31, 2020 is below: Lease obligations, December 31, 2018 $ 3,790,147 New lease obligations 1,159,470 Disposal of leased vehicles (769,009 ) Payments on lease obligations (1,780,043 ) Lease obligations, December 31, 2019 2,400,565 New lease obligations 3,705,417 Disposal of leased vehicles (975,215 ) Lease obligation converted to note payable (355,438 ) Payments on lease obligations (2,422,451 ) Lease obligations, December 31, 2020 $ 2,352,878 Future payments under lease obligations are as follows: Years ending December 31, 2021 $ 1,531,108 2022 769,619 2023 210,219 Total payments 2,510,946 Amount representing interest (158,068 ) Lease obligation, net $ 2,352,878 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Note 7 – Stockholders’ Equity The Company authorized 100,000,000 shares of capital stock with consists of 90,000,000 shares of common stock, $0.000001 par value per share and 10,000,000 shares of preferred stock, $0.000001 par value per share. Common Stock During the year ended December 31, 2020, 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. During the years ended December 31, 2019, the Company: ● issued 84,300 shares of common stock to vendors in satisfaction of $421,500 of accounts payable and accrued expenses. The 84,300 shares were valued at $674,000; therefore the Company took a charge to earnings of $252,900 related to the settlement of debt during the years ended December 31, 2019; ● issued 2,625,000 shares of common shares in connection with its initial public offering at $4.00 per share. Total gross proceeds from the offering were $10,500,000, before deducting underwriting discounts and commissions and other offering expenses. Stock Options The following is a summary of stock option activity: Weighted Weighted Average Average Remaining Aggregate Options Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2018 300,000 $ 8.00 2.00 $ - Granted - $ Forfeited - Exercised - Outstanding, December 31, 2019 300,000 $ 8.00 1.00 $ - Granted 4,040,000 1.62 Forfeited (1,800,000 ) 4.67 Exercised - Outstanding, December 31, 2020 2,540,000 $ 0.22 4.52 $ 1,074,245 Exercisable, December 31, 2020 1,162,875 $ 0.22 4.52 $ 491,821 The exercise price for options outstanding and exercisable at December 31, 2020: Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 2,505,000 $ 0.215 1,147,875 $ 0.215 35,000 0.220 15,000 0.220 2,540,000 1,162,875 For options granted during the year ended December 31, 2020 where the exercise price equaled the stock price at the date of the grant, the weighted-average fair value of such options was $0.211 and the weighted-average exercise price of such options was $0.215. For options granted during the year ended December 31, 2020 where the exercise price was greater than the stock price at the date of the grant, the weighted-average fair value of such options was $1.11 and the weighted-average exercise price of such options was $4.00. No options were granted during the year ended December 31, 2020 where the exercise price was less than the stock price at the date of grant. The fair value of the stock options is being amortized to stock option expense over the vesting period. The Company recorded stock option expense of $739,973 and $0 during the years ended December 31, 2020 and 2019, respectively. At December 31, 2020, the unamortized stock option expense was $253,830. The assumptions used during the year ended December 31, 2020 in calculating the fair value of options granted using the Black-Scholes option-pricing model for options granted are as follows: Risk-free interest rate 0.28% - 1.59 % Expected life of the options 5.0 years Expected volatility 195%-212 % Expected dividend yield 0 % The following is a summary of warrant activity: Weighted Weighted Average Average Remaining Aggregate Warrants Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2018 1,500,000 $ 4.00 4.44 $ 6,000,000 Granted 131,250 5.00 Forfeited - Exercised - Outstanding, December 31, 2019 1,631,250 $ 4.08 3.38 $ - Granted - Forfeited - Exercised - Outstanding, December 31, 2020 1,631,250 $ 4.08 2.38 $ - Exercisable, December 31, 2020 1,631,250 $ 4.08 2.38 $ - The exercise price for warrants outstanding at December 31, 2020: Outstanding and Exerciseable Number of Exercise Warrants Price 1,500,000 $ 4.00 131,250 5.00 1,631,250 In connection with the Company’s initial public offering, the Company issued the underwriters a total of 131,250 warrants to purchase shares of the Company’s common stock for $5.00 per share. The warrants expire in November 2024. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 8 – Related Party Transactions During the years ended December 31, 2020 and 2019, the Company paid management fees of $0 and $0, respectively, to a company that is owned by the Company’s Chief Executive Officer and director. Beginning on February 1, 2019, the Company entered into a consulting agreement with this individual and paid $167,000 under the consulting agreement. The consulting agreement was terminated effective September 1, 2019. Also during the years ended December 31, 2020, the Company’s CEO and director advanced the Company $250,000 and the Company repaid $150,000. At December 31, 2020, $100,000 was owed to the Company’s CEO and director related to this advance. During the years ended December 31, 2020 and 2019, the Company expensed $32,173 and $587,261, respectively, in advertising expenses from a company whose CEO was also a former director of the Company. At December 31, 2020 and 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 years ended December 31, 2020 and 2019, the Company expensed $2,321,186 and $2,214,985, 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 December 31, 2020 and 2019, $265,257 and $171,665, respectively, was owed to this insurance brokerage from and is included in accounts payable and accrued expenses in the accompanying consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 9 – Income Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A full valuation allowance is established against all net deferred tax assets as of December 31, 2020 and 2019 based on estimates of recoverability. While the Company has optimistic plans for its business strategy, it determined that such a valuation allowance was necessary given the current and expected near term losses and the uncertainty with respect to its ability to generate sufficient profits from its business model. Because of the impacts of the valuation allowance, there was no income tax expense or benefit for the years ended December 31, 2020 and 2019. A reconciliation of the differences between the effective and statutory income tax rates for the years ended December 31, 2020 and 2019: 2020 2019 Amount Percent Amount Percent Federal statutory rates $ (735,436 ) 21.0 % $ (825,346 ) 21.0 % State income taxes (245,145 ) 7.0 % (275,115 ) 7.0 % Permanent differences 335,916 -9.6 % (69,409 ) 1.8 % Valuation allowance against net deferred tax assets 644,665 -18.4 % 1,169,870 -29.8 % Effective rate $ - 0.0 % $ - 0.0 % At December 31, 2020 and 2019, the significant components of the deferred tax assets are summarized below: 2020 2019 Deferred income tax asset Net operation loss carryforwards 3,173,878 2,419,531 Accrued expenses 50,205 159,887 Total deferred income tax asset 3,224,084 2,579,418 Less: valuation allowance (3,224,084 ) (2,579,418 ) Total deferred income tax asset $ - $ - The valuation allowance increased by $644,665 and $1,081,921 in 2020 and 2019, respectively, as a result of the Company generating additional net operating losses. The Company has recorded as of December 31, 2020 and 2019 a valuation allowance of $3,224,084 and $2,549,418, respectively, as it believes that it is more likely than not that the deferred tax assets will not be realized in future years. Management has based its assessment on the Company’s lack of profitable operating history. The Company conducts an analysis of its tax positions and has concluded that it has no uncertain tax positions as of December 31, 2020 and 2019. The Company has net operating loss carry-forwards of approximately $11,300,000. Such amounts are subject to IRS code section 382 limitations and expire in 2031. The 2018, 2019 and 2020 tax year is still subject to audit. |
Contingencies
Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 10 - Contingencies Legal Proceedings 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. 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. Anthony Davis v. EVmo, Inc. (formerly YayYo, Inc.), and Ramy El-Batrawi This action was filed on March 5, 2020, in the Superior Court of the State of California for the County of Los Angeles. 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 the Company and its former Chief Executive Officer and director, and was involved, the complaint alleges, in Mr. Davis’s hiring and termination after a brief tenure as CEO. As part of his severance compensation, Mr. Davis was granted stock options to purchase shares of Common Stock. Mr. Davis claims that the Company breached its agreement to award him these stock options and includes a claim for wage and hour violations. The lawsuit also seeks declaratory and injunctive relief. Mr. Davis also included a claim under the California Unfair Practices Act. The Company has denied all liability, asserts that it has paid Mr. Davis all amounts due to him under his separation agreement with the Company, and has vigorously defended this lawsuit. The Company has filed a demurrer in connection with this litigation and that demurrer is expected to be resolved at a hearing in May 2021. If the case is not dismissed at that time, the Company will conduct discovery and file a motion for summary judgment. In Re YayYo Securities Litigation Two actions styled as securities class actions were filed in the United States District Court for the Central District of California, on September 9, 2020 ( Hamlin v. YayYo Koch v. YayYo et al Michael Vanbecelaere v. YayYo, Inc, et al. Two actions styled as securities class actions were filed in the Superior Court of the State of California for the County of Los Angeles, on July 22, 2020 and July 23, 2020, respectively. The plaintiffs to each action individually alleged misrepresentations and material omissions in the registration statement on Form S-1 that the Company filed with the SEC in connection with its initial public offering, which was declared effective on November 13, 2019, claiming violations of Sections 11 and 15 of the Securities Act. Each action purported to bring a securities class action against the Company; one of the two lawsuits was dismissed on the basis that the lead plaintiff in one of the actions was not a suitable class representative, and that plaintiff later joined the lawsuit brought by the other one. In its answer, the Company denied liability and asserted that it accurately and completely disclosed all material facts and occurrences, including adverse ones, in its registration statement, related public filings and other public statements, and further asserted that the alleged violations of Sections 11 and 15 of the Securities Act are baseless. Each of the parties to this litigation has mutually agreed to request a stay of the proceedings pending a mediation that is tentatively scheduled for April 29, 2021, which will also include the parties to the action described immediately above. Uptick Capital, LLC v. EVmo, Inc. (formerly YayYo, Inc.) On March 5, 2021, Uptick Capital, LLC (“Uptick”), filed an arbitration demand with the American Arbitration Association (“AAA”) alleging breach of contract with respect to an Advisory Agreement that Uptick asserts it entered into with the Company on August 7, 2017. The claim filed with the AAA alleges that “pursuant to the terms of the Advisory Agreement, Uptick was entitled to receive $2,500 per month for three months” plus “an issuance of restricted shares of $50,000 worth of YayYo common stock in exchange for providing certain consulting services to YayYo.” The agreement, according to the demand, was renewed once. The Company has not yet formally responded to the arbitration claim but denies liability and intends to vigorously defend this arbitration on the basis that Uptick failed to comply with the contract. It is unknown what the potential liabilities are but, as of the date of this Report, the Company believes they should not exceed $10,000 in cash and $100,000 worth of stock. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11 – Subsequent Events Convertible promissory note On January 8, 2021, the Company, issued a stand-alone $500,000 convertible promissory note (the “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 “Gray Trust”), in return for a loan extended by Mr. Gray to the Company in the principal amount of the Note. The Note will accrue interest at a fixed rate of 6% and will mature on January 6, 2022. Any unpaid principal balance on the Note may be converted at any time, at the option of Mr. Gray, into shares of the Company’s Common Stock, par value $0.000001 per share (the “Common Stock”), at a price of $0.50 per share. Upon conversion, the common shares Mr. Gray receives will have registration rights, as specified in the Note. 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. FirstFire Settlement 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. The 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, par value $0.000001 (the “Common Stock”), in November 2019 (the “IPO”). It alleged in the Litigation 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, as amended (the “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 has 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 has agreed to sell to FirstFire one hundred fifty thousand (150,000) shares of Common Stock (the “Settlement Shares”) on or around February 15, 2021, with such shares to be issued pursuant to the exemption from registration under Rule 506(b) of the Act. The purchase price of the Settlement Shares will be $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 are contributing to the Settlement Shares or any other consideration under the Settlement Agreement. Social Reality Settlement On February 19, 2021, Rideshare Rental, Inc., a Delaware corporation formerly known as YayYo, Inc. (the “Company”), entered into a confidential settlement agreement and mutual release (the “Agreement”) with SRAX, Inc., a Delaware corporation formerly known as Social Reality, Inc. (“SRAX”), relating to an action brought by SRAX against the Company in Los Angeles Superior Court on or around February 11, 2020 (the “Litigation”). A description of the Litigation has been included by the Company in its prior filings, most recently in its quarterly report on Form 10-Q for the quarterly period ended September 30, 2020, filed on November 12, 2020. The Company and SRAX have mutually agreed to keep the material terms of the Agreement confidential, subject to disclosure as required by applicable law or regulation. Common stock issuances In addition to the above issuance of common stock subsequent to December 31, 2020, the Company has issued the following shares of common stock: ● 100,000 shares to a member of the Company’s board of directors for cash proceeds of $50,000; ● 960,550 shares to the Company’s former Chief Executive Officer for the cashless exercise of 1,000,000 stock options; ● 35,000 shares for the exercise of stock options for cash proceeds of $15,450; and ● 825,000 shares to our Executive Chairman in connection with an anti-dilutive agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Distinct Cars, LLC and RideShare Car Rentals, LLC. All significant intercompany transactions and balances have been eliminated. |
Use of Estimates | Use of Estimates 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. |
Cash Equivalents | Cash Equivalents 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. |
Equipment and Rental Vehicles | Equipment and Rental Vehicles 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: Computer equipment 5 years Vehicles 5 years |
Long-Lived Assets | Long-Lived Assets The Company applies the provisions of ASC Topic 360, Property, Plant, and Equipment |
Revenue Recognition | Revenue Recognition The Company recognizes revenue from renting its fleet of cars to ridesharing and delivery gig drivers. Revenue is recognized based on the rental agreements which are generally on a weekly basis. The Company recognizes revenue in accordance with FASB ASC 606, Revenue From Contracts with Customers |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes 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. |
Stock-Based Compensation | Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation |
Basic and Diluted Earnings Per Share | Basic and Diluted Earnings Per Share Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share |
Advertising Costs | Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the years ended December 31, 2020 and 2019 were $490,403 and $765,441, respectively. |
Research and Development Costs | Research and Development Costs The Company expenses its research and development costs as incurred. Research and developments costs for the years ended December 31, 2020 and 2019 were $0 and $13,500, respectively. |
Fair Value Measurements | Fair Value Measurements The Company applies the provisions of ASC 820-10, “Fair Value Measurements and Disclosures.” ● Level 1 inputs to the valuation methodology are quoted 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, 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. 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 December 31, 2020 and 2019, the Company did not identify any liabilities that are required to be presented on the balance sheet at fair value. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes Income Taxes In August 2020, the FASB issued ASU 2020-06 , Debt—Debt with Conversion and 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. Derivatives and Hedging Derivatives and Hedging—Contracts in Entity’s Own Equity 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. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Lives of Equipment | Depreciation of equipment and rental vehicles is provided using the straight-line method for substantially all assets with estimated lives as follows: Computer equipment 5 years Vehicles 5 years |
Equipment (Tables)
Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Equipment | At December 31, 2020 and 2019 equipment consisted of the following: 2020 2019 Computer equipment $ 6,046 $ 6,046 6,046 6,046 Less accumulated depreciation (4,138 ) (2,651 ) Equipment, net $ 1,908 $ 3,395 |
Rental Vehicles (Tables)
Rental Vehicles (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Rental Vehicles | |
Schedule of Rental Vehicles | At December 31, 2020 and 2019 all of the Company’s rental vehicles consisted of the following: 2020 2019 Rental vehicles $ 9,067,885 $ 6,284,211 9,067,885 6,284,211 Less accumulated depreciation (2,871,452 ) (1,547,164 ) Rental vehicles, net $ 6,196,433 $ 4,737,047 |
Notes Payable (Tables)
Notes Payable (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable at December 31, 2020 and 2019 consisted of the following: 2020 2019 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) $ 304,667 319,667 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. 149,414 - 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 - Total notes payable 817,519 319,667 Unamortized debt discount (1,973 ) (32,289 ) Notes payable, net discount 815,546 287,378 Less current portion (666,132 ) (287,378 ) Long-term portion $ 149,414 $ - (A) In connection with the issuance of these notes payable in 2018 and 2017, the Company also issued an aggregate of 24,050 shares of its common stock to these note holders as additional incentive to make the loans. The aggregate relative fair value of these shares of common stock was $119,875 and was recorded as a discount on the note payable and as additional paid in capital. The discount of $119,875 is being amortized over the term of the notes payable. During the years ended December 31, 2020 and 2019, $30,316 and $39,922, respectively, was charged to interest expense as amortization of the discounts, with an unamortized balance of $1,93 at December 31, 2020. |
Schedule of Outstanding Notes Payable | A rollforward of notes payable from December 31, 2018 to December 31, 2020 is below: Notes payable, December 31, 2018 $ 2,617,970 Issued for cash 2,009,300 Repayments (4,379,814 ) Amortization of debt discounts 39,922 Notes payable, December 31, 2019 287,378 Issued for cash 342,675 Lease obligation converted to note payable 355,438 Forgiveness of note payable (184,775 ) Repayments (15,486 ) Amortization of debt discounts 30,316 Notes payable, December 31, 2020 $ 815,546 |
Schedule of Future Payments Under Note Payable Obligations | Future payments under note payable obligations are as follows: Years ending December 31, 2021 $ 668,105 2022 3,104 2023 3,175 2024 3,296 2025 3,422 Thereafter 136,417 $ 817,519 |
Lease Obligations (Tables)
Lease Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease Obligations | Lease obligations at December 31, 2020 and 2019 consisted of the following: 2020 2019 Lease obligations $ 2,352,878 $ 2,400,565 Less current portion (1,426,425 ) (1,416,446 ) Long-term portion $ 926,453 $ 984,119 |
Schedule of Outstanding Lease Obligations | A rollforward of lease obligations from December 31, 2018 to December 31, 2020 is below: Lease obligations, December 31, 2018 $ 3,790,147 New lease obligations 1,159,470 Disposal of leased vehicles (769,009 ) Payments on lease obligations (1,780,043 ) Lease obligations, December 31, 2019 2,400,565 New lease obligations 3,705,417 Disposal of leased vehicles (975,215 ) Lease obligation converted to note payable (355,438 ) Payments on lease obligations (2,422,451 ) Lease obligations, December 31, 2020 $ 2,352,878 |
Schedule of Future Lease Obligations | Future payments under lease obligations are as follows: Years ending December 31, 2021 $ 1,531,108 2022 769,619 2023 210,219 Total payments 2,510,946 Amount representing interest (158,068 ) Lease obligation, net $ 2,352,878 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity: Weighted Weighted Average Average Remaining Aggregate Options Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2018 300,000 $ 8.00 2.00 $ - Granted - $ Forfeited - Exercised - Outstanding, December 31, 2019 300,000 $ 8.00 1.00 $ - Granted 4,040,000 1.62 Forfeited (1,800,000 ) 4.67 Exercised - Outstanding, December 31, 2020 2,540,000 $ 0.22 4.52 $ 1,074,245 Exercisable, December 31, 2020 1,162,875 $ 0.22 4.52 $ 491,821 |
Schedule of Options Outstanding by Exercise Price Range | The exercise price for options outstanding and exercisable at December 31, 2020: Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 2,505,000 $ 0.215 1,147,875 $ 0.215 35,000 0.220 15,000 0.220 2,540,000 1,162,875 |
Schedule of Fair Value of Options Granted Assumptions | The assumptions used during the year ended December 31, 2020 in calculating the fair value of options granted using the Black-Scholes option-pricing model for options granted are as follows: Risk-free interest rate 0.28% - 1.59 % Expected life of the options 5.0 years Expected volatility 195%-212 % Expected dividend yield 0 % |
Summary of Warrant Activity | The following is a summary of warrant activity: Weighted Weighted Average Average Remaining Aggregate Warrants Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2018 1,500,000 $ 4.00 4.44 $ 6,000,000 Granted 131,250 5.00 Forfeited - Exercised - Outstanding, December 31, 2019 1,631,250 $ 4.08 3.38 $ - Granted - Forfeited - Exercised - Outstanding, December 31, 2020 1,631,250 $ 4.08 2.38 $ - Exercisable, December 31, 2020 1,631,250 $ 4.08 2.38 $ - |
Schedule of Warrants Outstanding by Exercise Price Range | The exercise price for warrants outstanding at December 31, 2020: Outstanding and Exerciseable Number of Exercise Warrants Price 1,500,000 $ 4.00 131,250 5.00 1,631,250 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Reconcilation Between Effective and Statutory Income Tax Rates | A reconciliation of the differences between the effective and statutory income tax rates for the years ended December 31, 2020 and 2019: 2020 2019 Amount Percent Amount Percent Federal statutory rates $ (735,436 ) 21.0 % $ (825,346 ) 21.0 % State income taxes (245,145 ) 7.0 % (275,115 ) 7.0 % Permanent differences 335,916 -9.6 % (69,409 ) 1.8 % Valuation allowance against net deferred tax assets 644,665 -18.4 % 1,169,870 -29.8 % Effective rate $ - 0.0 % $ - 0.0 % |
Schedule of Significant Components of Deferred Tax Assets | At December 31, 2020 and 2019, the significant components of the deferred tax assets are summarized below: 2020 2019 Deferred income tax asset Net operation loss carryforwards 3,173,878 2,419,531 Accrued expenses 50,205 159,887 Total deferred income tax asset 3,224,084 2,579,418 Less: valuation allowance (3,224,084 ) (2,579,418 ) Total deferred income tax asset $ - $ - |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details Narrative) | 12 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Date of incorporation | Jun. 21, 2016 |
Place of incorporation | DE |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Impairment charge | |||
Tax Examination, Description | 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. | ||
Number of warrant shares outstanding | 1,631,250 | 1,631,250 | 1,500,000 |
Number of stock options shares outstanding | 2,540,000 | 300,000 | 300,000 |
Potentially dilutive securities outstanding | 4,171,250 | 1,931,250 | |
Advertising costs | $ 490,403 | $ 765,441 | |
Research and development costs | $ 13,500 | ||
Warrants [Member] | |||
Number of warrant shares outstanding | 1,631,250 | 1,631,250 | |
Options [Member] | |||
Number of stock options shares outstanding | 2,540,000 | 300,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Estimated Lives of Equipment (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Computer Equipment [Member] | |
Estimated lives | 5 years |
Vehicles [Member] | |
Estimated lives | 5 years |
Equipment (Details Narrative)
Equipment (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Depreciation expense | $ 1,434,896 | $ 993,531 |
Equipment [Member] | ||
Depreciation expense | $ 1,487 | $ 1,697 |
Equipment - Schedule of Equipme
Equipment - Schedule of Equipment (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Equipment, gross | $ 6,046 | $ 6,046 |
Less accumulated depreciation | (4,138) | (2,651) |
Equipment, net | 1,908 | 3,395 |
Computer Equipment [Member] | ||
Equipment, gross | $ 6,046 | $ 6,046 |
Rental Vehicles (Details Narrat
Rental Vehicles (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Depreciation expense for leased assets | $ 1,434,896 | $ 993,531 |
Minimum [Member] | ||
Finance lease term | 12 months | |
Maximum [Member] | ||
Finance lease term | 36 months | |
Vehicles [Member] | ||
Estimated useful life | 5 years |
Rental Vehicles - Schedule of R
Rental Vehicles - Schedule of Rental Vehicles (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Rental Vehicles, gross | $ 9,067,885 | $ 6,284,211 |
Less accumulated depreciation | (2,871,452) | (1,547,164) |
Rental Vehicles, net | 6,196,433 | 4,737,047 |
Vehicles [Member] | ||
Rental Vehicles, gross | $ 9,067,885 | $ 6,284,211 |
Notes Payable - Schedule of Not
Notes Payable - Schedule of Notes Payable (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Total notes payable | $ 817,519 | $ 319,667 | ||
Unamortized debt discount | (1,973) | (32,289) | ||
Notes payable, net discount | 815,546 | 287,378 | $ 2,617,970 | |
Less current portion | (666,132) | (287,378) | ||
Long-term portion | 149,414 | |||
Notes Payable One [Member] | ||||
Total notes payable | [1] | 304,667 | 319,667 | |
Notes Payable Two [Member] | ||||
Total notes payable | 149,414 | |||
Notes Payable Three [Member] | ||||
Total notes payable | 8,000 | |||
Notes Payable Four [Member] | ||||
Total notes payable | $ 355,438 | |||
[1] | In connection with the issuance of these notes payable in 2018 and 2017, the Company also issued an aggregate of 24,050 shares of its common stock to these note holders as additional incentive to make the loans. The aggregate relative fair value of these shares of common stock was $119,875 and was recorded as a discount on the note payable and as additional paid in capital. The discount of $119,875 is being amortized over the term of the notes payable. During the years ended December 31, 2020 and 2019, $30,316 and $39,922, respectively, was charged to interest expense as amortization of the discounts, with an unamortized balance of $1,93 at December 31, 2020. |
Notes Payable - Schedule of N_2
Notes Payable - Schedule of Notes Payable (Details) (Parenthetical) - USD ($) | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortization of debt discount | $ 30,316 | $ 39,922 | ||
Unsecured Note Payable To Individual Investors [Member] | ||||
Debt instrument interest rate | 8.00% | |||
Debt instrument payment terms | Principal payments equal to 1/12 of original balance plus interest due quarterly | Principal payments equal to 1/12 of original balance plus interest due quarterly. | ||
Debt instrument maturity date, description | Due from dates ranging from August 9, 2020 to March 26, 2021 | Due from dates ranging from August 9, 2020 to March 26, 2021. | ||
Shares issued during period as incentive for loans | 24,050 | 24,050 | ||
Shares issued during period as incentive for loans, value recorded as discount | $ 119,875 | $ 119,875 | ||
Amortization of debt discount | $ 119,875 | $ 119,875 | ||
Interest expense | $ 30,316 | $ 39,922 | ||
Unamortized debt discount | $ 193 | |||
Unsecured Note Payable To Individual Investors [Member] | Minimum [Member] | ||||
Debt instrument maturity date | Aug. 9, 2020 | Aug. 9, 2020 | ||
Unsecured Note Payable To Individual Investors [Member] | Maximum [Member] | ||||
Debt instrument maturity date | Mar. 26, 2021 | Mar. 26, 2021 | ||
Note payable to the Small Business Administration [Member] | ||||
Debt instrument interest rate | 3.75% | |||
Note payable to the Small Business Administration [Member] | ||||
Debt instrument payment terms | Requires monthly payments of $731 after 12 months from funding | |||
Debt instrument maturity date, description | Due 30 years from the date of issuance. | |||
Paycheck Protection Program [Member] | ||||
Debt instrument interest rate | 1.00% | |||
Debt instrument payment terms | The loan has terms of 24 months | |||
Debt instrument maturity date, description | 184,775 of this loan has been forgiven as provided for in the CARES Act. | |||
Notes Payable Finance Company [Member] | ||||
Debt instrument interest rate | 14.00% | |||
Debt instrument maturity date | Dec. 15, 2021 | |||
Debt instrument payment terms | monthly principal payments ranging from $10,000 to $40,000 | |||
Debt instrument maturity date, description | principal due on December 15, 2021 |
Notes Payable - Schedule of Out
Notes Payable - Schedule of Outstanding Notes Payable (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | ||
Notes payable, beginning of the period | $ 287,378 | $ 2,617,970 |
Issued for cash | 342,675 | 2,009,300 |
Lease obligation converted to note payable | 355,438 | |
Forgiveness of note payable | (184,775) | |
Repayments | (15,486) | (4,379,814) |
Amortization of debt discounts | 30,316 | 39,922 |
Notes payable, end of the period | $ 815,546 | $ 287,378 |
Notes Payable - Schedule of Fut
Notes Payable - Schedule of Future Payments Under Note payable Obligations (Details) | Dec. 31, 2020USD ($) |
Debt Disclosure [Abstract] | |
2021 | $ 668,105 |
2022 | 3,104 |
2023 | 3,175 |
2024 | 3,296 |
2025 | 3,422 |
Thereafter | 136,417 |
Notes payable | $ 817,519 |
Lease Obligations - Schedule of
Lease Obligations - Schedule of Lease Obligations (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
Lease obligations | $ 2,352,878 | $ 2,400,565 | $ 3,790,147 |
Less current portion | (1,426,425) | (1,416,446) | |
Long-term portion | $ 926,453 | $ 984,119 |
Lease Obligations - Schedule _2
Lease Obligations - Schedule of Outstanding Lease Obligations (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Lease obligations, beginning balance | $ 2,400,565 | $ 3,790,147 |
New lease obligations | 3,705,417 | 1,159,470 |
Disposal of leased vehicles | (975,215) | (769,009) |
Lease obligation converted to note payable | (355,438) | |
Payments on lease obligations | (2,422,451) | (1,780,043) |
Lease obligations, ending balance | $ 2,352,878 | $ 2,400,565 |
Lease Obligations - Schedule _3
Lease Obligations - Schedule of Future Lease Obligations (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | |||
2021 | $ 1,531,108 | ||
2022 | 769,619 | ||
2023 | 210,219 | ||
Total payments | 2,510,946 | ||
Amount representing interest | (158,068) | ||
Lease obligation, net | $ 2,352,878 | $ 2,400,565 | $ 3,790,147 |
Stockholders' Equity (Details N
Stockholders' Equity (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Capital stock shares authorized | 100,000,000 | |
Common stock shares authorized | 90,000,000 | 90,000,000 |
Common stock par value | $ 0.000001 | $ 0.000001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock par value | $ 0.000001 | $ 0.000001 |
Proceeds from common stock sold | $ 275,000 | $ 10,500,000 |
Number of shares issued during period, value | 275,000 | |
Loss on the settlement of debt | 252,900 | |
Weighted-average fair value of options | $ 0.211 | |
Weighted-average exercise price of options | ||
Stock option expense | $ 739,973 | |
Unamortized stock option expense | $ 253,830 | |
Minimum [Member] | ||
Weighted-average fair value of options | $ 1.11 | |
Weighted-average exercise price of options | $ 4 | |
Initial Public Offering [Member] | ||
Number of shares issued during period, shares | 2,625,000 | |
Sale of stock, price per share | $ 4 | |
Proceeds from issuance of public offering | $ 10,500,000 | |
Number of warrants outstanding | 131,250 | |
Exercise price outstanding | $ 5 | |
Warrant expire date | Nov. 30, 2024 | |
Three Investors [Member] | ||
Common stock sold | 2,553,571 | |
Proceeds from common stock sold | $ 275,000 | |
Board of Director [Member] | ||
Common stock sold | 125,000 | |
Proceeds from common stock sold | $ 25,000 | |
Vendors [Member] | ||
Number of shares issued during period, shares | 84,300 | |
Accounts payable and accrued expenses | $ 421,500 | |
Number of shares issued during period, value | $ 674,000 |
Stockholders' Equity - Summary
Stockholders' Equity - Summary of Stock Option Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Number of Shares Options Outstanding, Beginning Balance | 300,000 | 300,000 |
Number of Options, Granted | 4,040,000 | |
Number of Options, Forfeited | (1,800,000) | |
Number of Options, Exercised | ||
Number of Shares Options Outstanding, Ending Balance | 2,540,000 | 300,000 |
Number of Shares Options, Exercisable | 1,162,875 | |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ 8 | $ 8 |
Weighted Average Exercise Price, Granted | 1.62 | |
Weighted Average Exercise Price, Forfeited | 4.67 | |
Weighted Average Exercise Price, Exercised | ||
Weighted Average Exercise Price Outstanding, Ending Balance | 0.22 | $ 8 |
Weighted Average Exercise Price, Exercisable Ending Balance | $ 0.22 | |
Weighted Average Remaining Contractual Life Outstanding, Beginning | 1 year | 2 years |
Weighted Average Remaining Contractual Life Outstanding, Ending | 4 years 6 months 7 days | 1 year |
Weighted Average Remaining Contractual Life, Exercisable | 4 years 6 months 7 days | |
Aggregate Intrinsic Value Outstanding, Beginning Balance | ||
Aggregate Intrinsic Value Outstanding, Ending Balance | 1,074,245 | |
Aggregate Intrinsic Value Outstanding, Exercisable Ending | $ 491,821 |
Stockholders' Equity - Schedule
Stockholders' Equity - Schedule of Options Outstanding by Exercise Price Range (Details) | Dec. 31, 2020$ / sharesshares |
Number of Options Outstanding | 2,540,000 |
Number of Options Exercisable | 1,162,875 |
Exercise Price Range One [Member] | |
Number of Options Outstanding | 2,505,000 |
Exercise Price Outstanding | $ / shares | $ 0.215 |
Number of Options Exercisable | 1,147,875 |
Exercise Price Exercisable | $ / shares | $ 0.215 |
Exercise Price Range Two [Member] | |
Number of Options Outstanding | 35,000 |
Exercise Price Outstanding | $ / shares | $ 0.220 |
Number of Options Exercisable | 15,000 |
Exercise Price Exercisable | $ / shares | $ 0.220 |
Stockholders' Equity - Schedu_2
Stockholders' Equity - Schedule of Fair Value of Options Granted Assumptions (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Risk-free interest rate, minimum | 0.28% |
Risk-free interest rate,maximum | 1.59% |
Expected life of the options | 5 years |
Expected volatility, minimum | 195.00% |
Expected volatility, maximum | 212.00% |
Expected dividend yield | 0.00% |
Stockholders' Equity - Summar_2
Stockholders' Equity - Summary of Warrant Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity [Abstract] | ||
Number of Shares, Warrants Outstanding Beginning | 1,631,250 | 1,500,000 |
Number of Shares, Warrants Granted | 131,250 | |
Number of Shares, Warrants Forfeited | ||
Number of Shares, Warrants Exercised | ||
Number of Shares, Warrants Outstanding Ending | 1,631,250 | 1,631,250 |
Number of Shares, Warrants Exercisable Ending | 1,631,250 | |
Weighted Average Exercise Price, Warrants Outstanding Beginning | $ 4.08 | $ 4 |
Weighted Average Exercise Price, Warrants Granted | 5 | |
Weighted Average Exercise Price, Warrants Forfeited | ||
Weighted Average Exercise Price, Warrants Exercised | ||
Weighted Average Exercise Price, Warrants Outstanding Ending | 4.08 | $ 4.08 |
Weighted Average Exercise Price, Per Share Exercisable | $ 4.08 | |
Weighted Average Remaining Contractual Life, Warrants Outstanding Beginning | 3 years 4 months 17 days | 4 years 5 months 9 days |
Weighted Average Remaining Contractual Life, Warrants Outstanding Ending | 2 years 4 months 17 days | 3 years 4 months 17 days |
Weighted Average Remaining Contractual Life, Warrants Exercisable | 2 years 4 months 17 days | |
Aggregate Intrinsic Value, Warrants Outstanding Beginning | $ 6,000,000 | |
Aggregate Intrinsic Value, Warrants Outstanding Ending | ||
Aggregate Intrinsic Value, Exercisable |
Stockholders' Equity - Schedu_3
Stockholders' Equity - Schedule of Warrants Outstanding by Exercise Price Range (Details) | Dec. 31, 2020$ / sharesshares |
Number of Warrants Outstanding and Exercisable | 1,631,250 |
Exercise Price Range One [Member] | |
Number of Warrants Outstanding and Exercisable | 1,500,000 |
Exercise Price Outstanding and Exercisable | $ / shares | $ 4 |
Exercise Price Range Two [Member] | |
Number of Warrants Outstanding and Exercisable | 131,250 |
Exercise Price Outstanding and Exercisable | $ / shares | $ 5 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 11 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 30, 2020 | Dec. 30, 2019 | |
Repayments of related Party Debt | $ 150,000 | ||||
Proceeds from related party debt | 250,000 | ||||
Advertising expenses | 490,403 | 765,441 | |||
Insurance Brokerage Firm [Member] | |||||
Advance from related party | $ 171,665 | $ 265,257 | |||
Insurance expenses paid during period for related party | 2,321,186 | 2,214,985 | |||
Chief Executive Officer and Director [Member] | |||||
Management fees | 0 | 0 | |||
Repayments of related Party Debt | $ 167,000 | 150,000 | |||
Proceeds from related party debt | 250,000 | ||||
Advance from related party | 100,000 | ||||
Advertising expenses | 32,173 | 587,261 | |||
Accounts payable to related party | $ 394,183 | $ 324,920 | $ 394,183 |
Income Taxes (Details Narrative
Income Taxes (Details Narrative) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Increase (decrease) in valuation allowance | $ 644,665 | $ 1,081,921 |
Valuation allowance against net deferred tax assets, amount | 3,224,084 | 2,579,418 |
Uncertain tax positions | ||
Operating loss carryforwards, net | $ 11,300,000 | |
Operating loss carryforwards expiration year | 2031 |
Income Taxes - Schedule of Reco
Income Taxes - Schedule of Reconcilation Between Effective and Statutory Income Tax Rates (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Federal statutory rates, amount | $ (735,436) | $ (825,346) |
Federal statutory rates, percent | 21.00% | 21.00% |
State income taxes, amount | $ (245,145) | $ (275,115) |
State income taxes, percent | 7.00% | 7.00% |
Permanent differences, amount | $ 335,916 | $ (69,409) |
Permanent differences, percent | (9.60%) | 1.80% |
Valuation allowance against net deferred tax assets, amount | $ 644,665 | $ 1,169,870 |
Valuation allowance against net deferred tax assets, percent | (18.40%) | (29.80%) |
Effective rate, amount | ||
Effective rate, percent | 0.00% | 0.00% |
Income Taxes - Schedule of Sign
Income Taxes - Schedule of Significant Components of Deferred Tax Assets (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Net operation loss carryforwards | $ 3,173,878 | $ 2,419,531 |
Accrued expenses | 50,205 | 159,887 |
Total deferred income tax asset | 3,224,084 | 2,579,418 |
Less: valuation allowance | (3,224,084) | (2,579,418) |
Total deferred income tax asset |
Contingencies (Details Narrativ
Contingencies (Details Narrative) - Uptick Capital, LLC [Member] - Advisory Agreement [Member] | Aug. 07, 2017USD ($)shares |
Proceeds from contingencies | $ 2,500 |
Number of common shares restricted | shares | 50,000 |
Potential liabilities in cash | $ 10,000 |
Potential liabilities in stock | $ 100,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - USD ($) | Feb. 15, 2021 | Feb. 12, 2021 | Jan. 08, 2021 | Mar. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Common stock, par value | $ 0.000001 | $ 0.000001 | ||||
Stock issued during period, value | $ 275,000 | |||||
Proceeds from issuance of common stock | $ 275,000 | $ 10,500,000 | ||||
Subsequent Event [Member] | ||||||
Cashless exercise of stock options | $ 35,000 | |||||
Proceeds from stock options exercised | $ 15,450 | |||||
Subsequent Event [Member] | Board of Directors [Member] | ||||||
Common stock shares issued | 100,000 | |||||
Proceeds from issuance of common stock | $ 50,000 | |||||
Subsequent Event [Member] | Chief Executive Officer [Member] | ||||||
Common stock shares issued | 960,550 | |||||
Cashless exercise of stock options | $ 1,000,000 | |||||
Subsequent Event [Member] | Executive Chairman [Member] | ||||||
Common stock shares issued | 825,000 | |||||
Subsequent Event [Member] | FirstFire Settlement [Member] | ||||||
Common stock, par value | $ 0.000001 | |||||
Shares price | $ 0.066667 | |||||
Stock issued during period, shares | 150,000 | |||||
Stock issued during period, value | $ 10,000 | |||||
Subsequent Event [Member] | Convertible Promissory Note [Member] | ||||||
Debt face value | $ 500,000 | |||||
Interest rate | 6.00% | |||||
Debt instrument maturity date | Jan. 6, 2022 | |||||
Common stock, par value | $ 0.000001 | |||||
Shares price | $ 0.50 | |||||
Converted instrument, shares issued | 1,000,000 |