Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 12, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2021 | |
Current Fiscal Year End Date | --12-31 | |
Entity File Number | 001-39132 | |
Entity Registrant Name | EVMO, INC. | |
Entity Central Index Key | 0001691077 | |
Entity Tax Identification Number | 95-3261426 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 433 N. Camden Drive | |
Entity Address, Address Line Two | Suite 600 | |
Entity Address, City or Town | Beverly Hills | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90210 | |
City Area Code | (310) | |
Local Phone Number | 926-2643 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Elected Not To Use the Extended Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 35,758,149 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets: | ||
Cash | $ 3,540,212 | $ 72,890 |
Accounts receivable | 635,736 | 119,239 |
Prepaid expenses | 192,492 | 23,861 |
Deferred offering costs | 479,330 | |
Total current assets | 4,847,770 | 215,990 |
Property and equipment, net | 46,471 | 1,908 |
Rental vehicles, net | 10,366,373 | 6,196,433 |
Right of use asset | 180,860 | |
Other assets | 100,000 | 200,000 |
TOTAL ASSETS | 15,541,474 | 6,614,331 |
Current Liabilities: | ||
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 | 1,920,254 | 1,426,425 |
Operating lease obligations, current | 138,630 | |
Total current liabilities | 6,162,643 | 4,461,560 |
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 | 2,495,616 | 926,453 |
Operating lease obligations, net of current portion | 50,996 | |
TOTAL LIABILITIES | 14,737,001 | 5,537,427 |
Commitments and contingencies | ||
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 | 38,206,344 | 29,750,864 |
Accumulated deficit | (39,705,657) | (28,673,992) |
Total stockholders’ equity | (1,499,277) | 1,076,904 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 15,541,474 | $ 6,614,331 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts payable related party | $ 670,047 | $ 590,176 |
Notes payable discount, current | 0 | 1,973 |
Notes payable discount, Noncurrent | $ 1,316,029 | $ 0 |
Temporary equity, par value | $ 0.000001 | $ 0.000001 |
Temporary equity, shares authorized | 230,550 | 230,550 |
Temporary equity, shares issued | 230,375 | |
Temporary equity, shares outstanding | 230,375 | |
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 | 35,758,149 | 31,981,374 |
Common stock, shares outstanding | 35,758,149 | 31,981,374 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,724,180 | $ 2,070,821 | $ 7,670,795 | $ 5,399,018 |
Cost of revenue | 2,285,878 | 1,194,957 | 5,982,075 | 3,891,307 |
Gross profit | 438,302 | 875,864 | 1,688,720 | 1,507,711 |
Operating expenses: | ||||
Selling and marketing expenses | 26,565 | 113,904 | 257,129 | 324,546 |
Product development | 46,500 | 106,766 | ||
General and administrative expenses | 3,218,912 | 1,088,152 | 6,151,507 | 3,845,768 |
Total operating expenses | 3,291,977 | 1,202,056 | 6,515,402 | 4,170,314 |
Loss from operations | (2,853,675) | (326,192) | (4,826,682) | (2,662,603) |
Other income (expense): | ||||
Interest and financing costs | (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) | (1,923,653) | (65,292) | (6,204,983) | (212,943) |
Net loss | $ (4,777,328) | $ (391,484) | $ (11,031,665) | $ (2,875,546) |
Weighted average shares outstanding : | ||||
Basic | 35,715,024 | 31,981,374 | 34,819,334 | 30,828,676 |
Diluted | 35,715,024 | 31,981,374 | 34,819,334 | 30,828,676 |
Loss per share | ||||
Basic | $ (0.13) | $ (0.01) | $ (0.32) | $ (0.09) |
Diluted | $ (0.13) | $ (0.01) | $ (0.32) | $ (0.09) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
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 | 457,242 | 457,242 | ||
Net loss | (1,761,220) | (1,761,220) | ||
Balance at Mar. 31, 2020 | $ 29 | 29,193,136 | (26,933,135) | 2,260,030 |
Balance, shares at Mar. 31, 2020 | 29,427,803 | |||
Balance at Dec. 31, 2019 | $ 29 | 28,735,894 | (25,171,915) | 3,564,008 |
Balance, shares at Dec. 31, 2019 | 29,427,803 | |||
Net loss | (2,875,546) | |||
Balance at Sep. 30, 2020 | $ 32 | 29,708,377 | (28,047,461) | 1,660,948 |
Balance, shares at Sep. 30, 2020 | 31,981,374 | |||
Balance at Mar. 31, 2020 | $ 29 | 29,193,136 | (26,933,135) | 2,260,030 |
Balance, shares at Mar. 31, 2020 | 29,427,803 | |||
Issuance of common stock for cash | $ 3 | 274,997 | 275,000 | |
Issuance of common stock for cash, shares | 2,553,571 | |||
Net loss | (722,842) | (722,842) | ||
Balance at Jun. 30, 2020 | $ 32 | 29,468,133 | (27,655,977) | 1,812,188 |
Balance, shares at Jun. 30, 2020 | 31,981,374 | |||
Stock option expense | 240,244 | 240,244 | ||
Net loss | (391,484) | (391,484) | ||
Balance at Sep. 30, 2020 | $ 32 | 29,708,377 | (28,047,461) | 1,660,948 |
Balance, shares at Sep. 30, 2020 | 31,981,374 | |||
Balance at Dec. 31, 2020 | $ 32 | 29,750,864 | (28,673,992) | 1,076,904 |
Balance, shares at Dec. 31, 2020 | 31,981,374 | |||
Issuance of common stock for cash | 50,000 | 50,000 | ||
Issuance of common stock for cash, shares | 100,000 | |||
Issuance of common stock for exercise of stock options | 15,400 | 15,400 | ||
Issuance of common stock for exercise of stock options, shares | 35,000 | |||
Issuance of common stock for cashless exercise of stock options | $ 1 | (1) | ||
Issuance of common stock for cashless exercise of stock options, shares | 960,550 | |||
Issuance of common stock for settlement of litigation | 1,103,750 | 1,103,750 | ||
Issuance of common stock for settlement of litigation, shares | 225,000 | |||
Issuance of common stock for conversion of convertible debt | $ 1 | 499,999 | 500,000 | |
Issuance of common stock for conversion of convertible debt, shares | 1,000,000 | |||
Issuance of common stock for settlement agreement | $ 1 | 3,240,599 | 3,240,600 | |
Issuance of common stock for settlement agreement, shares | 825,000 | |||
Issuance of common stock for financing cost | 1,440 | 1,440 | ||
Issuance of common stock for financing cost, shares | 600 | |||
Beneficial conversion feature associated with convertible debt | 30,000 | 30,000 | ||
Stock option expense | 193,587 | 193,587 | ||
Net loss | (4,417,663) | (4,417,663) | ||
Balance at Mar. 31, 2021 | $ 35 | 34,885,638 | (33,091,655) | 1,794,018 |
Balance, shares at Mar. 31, 2021 | 35,127,524 | |||
Balance at Dec. 31, 2020 | $ 32 | 29,750,864 | (28,673,992) | 1,076,904 |
Balance, shares at Dec. 31, 2020 | 31,981,374 | |||
Net loss | (11,031,665) | |||
Balance at Sep. 30, 2021 | $ 36 | 38,206,344 | (39,705,657) | (1,499,277) |
Balance, shares at Sep. 30, 2021 | 35,758,149 | |||
Balance at Mar. 31, 2021 | $ 35 | 34,885,638 | (33,091,655) | 1,794,018 |
Balance, shares at Mar. 31, 2021 | 35,127,524 | |||
Issuance of common stock for exercise of stock options | 71,700 | 71,700 | ||
Issuance of common stock for exercise of stock options, shares | 260,000 | |||
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 at Jun. 30, 2021 | $ 35 | 36,817,909 | (34,928,329) | 1,889,615 |
Balance, shares at Jun. 30, 2021 | 35,387,524 | |||
Issuance of common stock for exercise of stock options | 5,778 | 5,778 | ||
Issuance of common stock for exercise of stock options, shares | 26,875 | |||
Issuance of common stock for cashless exercise of stock options | $ 1 | (1) | ||
Issuance of common stock for cashless exercise of stock options, shares | 312,500 | |||
Issuance of common stock for settlement of litigation | 42,018 | 42,018 | ||
Issuance of common stock for settlement of litigation, shares | 31,250 | |||
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 at Sep. 30, 2021 | $ 36 | $ 38,206,344 | $ (39,705,657) | $ (1,499,277) |
Balance, shares at Sep. 30, 2021 | 35,758,149 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (11,031,665) | $ (2,875,546) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,525,332 | 1,047,075 |
Stock option expense | 356,227 | 697,486 |
Amortization of debt discounts | 1,643,408 | 27,719 |
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 | (516,497) | 5,993 |
Prepaid expenses and other assets | (68,631) | 350,927 |
Accounts payable | 1,656,997 | 908,051 |
Accrued expenses | 830,954 | 26,838 |
Customer deposit - related party | (150,000) | |
Operating lease liability | (68,595) | |
Net cash used in operating activities | (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 sale of common stock | 50,000 | 275,000 |
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 | (809,519) | (10,000) |
Repayment of finance lease obligations | (3,629,792) | (2,017,915) |
Payment of deferred offering costs | (35,000) | |
Net cash provided by (used in) financing activities | 4,968,567 | (1,360,240) |
NET INCREASE (DECREASE) IN CASH | 3,467,322 | (1,171,697) |
CASH, BEGINNING OF PERIOD | 72,890 | 1,256,429 |
CASH, END OF PERIOD | 3,540,212 | 84,732 |
CASH PAID FOR: | ||
Interest | 157,809 | 185,224 |
Income taxes | ||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Payment of accounts payable/accrued expenses with common stock | 1,103,750 | |
Finance lease obligations | $ 5,692,784 | $ 3,400,922 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
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 Delaware 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 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. Interim financial statements The unaudited condensed consolidated financial statements are prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (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, 2021 are not necessarily indicative of the results expected for the year ending December 31, 2021. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
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. EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) 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. Property and Equipment and Rental Vehicles 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: Schedule of Estimated Lives of Equipment Computer equipment 5 years Officer furniture 7 years Leasehold improvements 15 years or term of lease whichever is less Vehicles 5 years Long-Lived Assets The Company applies the provisions of ASC Topic 360, Property, Plant, and Equipment Revenue Recognition The Company recognizes all of its material revenue from renting its fleet of cars to TNC drivers. Revenue is recognized generally on a weekly basis based on the rental agreements. 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. Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation 2,737,500 758,125 1,631,250 3,221,000 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) Basic and Diluted Earnings Per Share Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share 0.000001 3,495,625 4,852,250 750,000 Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the nine months ended September 30, 2021 and 2020 were $ 257,129 324,546 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, 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. 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, 2021 and December 31, 2020, the Company did not identify any liabilities that are required to be presented on the balance sheet at fair value. Recent Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes Income Taxes EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) 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. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3 – Property and Equipment At September 30, 2021 and December 31, 2020, property and equipment consisted of the following: Schedule of Property and Equipment September 30, December 31, 2021 2020 Computer equipment $ 6,046 $ 6,046 Office furniture 17,401 - Leasehold improvement 29,650 - 53,097 6,046 Less accumulated depreciation (6,626 ) (4,138 ) Equipment, net $ 46,471 $ 1,908 Depreciation expense for equipment for the nine months ended September 30, 2021 and 2020 was $ 2,488 1,115 |
Rental Vehicles
Rental Vehicles | 9 Months Ended |
Sep. 30, 2021 | |
Rental Vehicles | |
Rental Vehicles | Note 4 – Rental Vehicles At September 30, 2021 and December 31, 2020, all of the Company’s rental vehicles consisted of the following: Schedule of Rental Vehicles September 30, December 31, 2021 2020 Rental vehicles $ 14,760,669 $ 9,067,885 14,760,669 9,067,885 Less accumulated depreciation (4,394,296 ) (2,871,452 ) Rental vehicles, net $ 10,366,373 $ 6,196,433 The Company’s leased assets, consisting of vehicles, are depreciated over their estimated useful life of five years 1,522,844 1,045,960 30 36 months EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 5 – Notes Payable Notes payable at September 30, 2021 and December 31, 2020 consisted of the following: Schedule of Notes Payable September 30, December 31, 2021 2020 $ - $ 304,667 Notes payable to individual investors; accrue interest at 8 principal payments equal to 1/12 of original balance plus interest due quarterly; August 9, 2020 March 26, 2021 $ - $ 304,667 Note payable to the Small Business Administration. The note bears interest at 3.75 requires monthly payments of $731 after 24 months from funding 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 1 184,775 - 8,000 Notes payable to a finance company, default interest at 14 10,000 40,000 December 15, 2021 - 355,438 Notes payable to a finance company, interest at LIBOR plus 10 0.4166 August 1, 2022 July 9, 2026 7,500,000 - Total notes payable 7,500,000 817,519 Unamortized debt discount (1,316,029 ) (1,973 ) Notes payable, net discount 6,183,971 815,546 Less current portion (156,225 ) (666,132 ) Long-term portion $ 6,027,746 $ 149,414 (A) On July 9, 2021 (the “Closing Date”), the Company 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 7.5 7.5 July 9, 2026 10.0 1.5 0.000001 2.10 450,000 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) 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 In connection with the issuance of this note payable, the Company also issued 450,000 2.10 778,697 600,000 1,378,697 A roll forward of notes payable from December 31, 2020 to September 30, 2021 is below: Schedule of Outstanding Notes Payable Notes payable, December 31, 2020 $ 815,546 Issued for cash 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 (809,519 ) Amortization of debt discounts 64,641 Notes payable, September 30, 2021 $ 6,183,971 |
Convertible Notes
Convertible Notes | 9 Months Ended |
Sep. 30, 2021 | |
Convertible Notes | |
Convertible Notes | Note 6 – Convertible Notes On January 8, 2021, the Company, issued a stand-alone $ 500,000 6 January 6, 2022 0.50 30,000 1,000,000 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 2,250,000 250,000 10 3.00 January 12, 2022 187,500 3.00 93,750 3.00 th 623,373 five years .089 0 190 1,761,866 488,134 810,633 1,298,767 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) A roll forward of convertible notes from December 31, 2020 to September 30, 2021 is below: Schedule of Outstanding Convertible Notes Payable 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 $ - |
Financing Lease Obligations
Financing Lease Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Financing Lease Obligations | |
Financing Lease Obligations | Note 7 – Financing Lease Obligations Lease obligations at September 30, 2021 and December 31, 2020 consisted of the following: Schedule of Lease Obligations September 30, December 31, 2021 2020 Lease obligations $ 4,415,870 $ 2,352,878 Less current portion (1,920,254 ) (1,426,425 ) Long-term portion $ 2,495,616 $ 926,453 A rollforward of lease obligations from December 31, 2020 to September 30, 2021 is below: Schedule of Outstanding Lease Obligations 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 Future payments under lease obligations are as follows: Schedule of Future Lease Obligations Twelve Months Ending September 30, 2022 $ 2,033,761 2023 1,500,065 2024 1,058,833 Total payments 4,592,659 Amount representing interest (176,789 ) Lease obligation, net $ 4,415,870 |
Operating Lease Obligations
Operating Lease Obligations | 9 Months Ended |
Sep. 30, 2021 | |
Operating Lease Obligations | |
Operating Lease Obligations | Note 8 – Operating Lease Obligations 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. EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of September 30, 2021: Schedule of Operating Lease Obligations 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 Lease obligations at September 30, 2021 consisted of the following: Schedule of Lease Obligation Maturity 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 The lease expense for the nine months ended September 30, 2021 was $ 100,817 92,050 1.25 15 |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Stockholders’ Equity | Note 8 – Stockholders’ Equity The Company has authorized 100,000,000 90,000,000 0.000001 10,000,000 0.000001 Series B Preferred Stock Pursuant to the Exchange Agreement (see Note 5), the Holder agreed to exchange the Prior Notes for 230,375 0.000001 93,750 3.00 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 The Series B Preferred Stock is subject to mandatory redemption in full at a redemption price initially equal to $ 10.00 10 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) 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. Common Stock During the nine months ended September 30, 2021, the Company: ● issued 100,0000 0.50 50,000 ● issued 295,000 321,875 92,878 ● issued 1,273,050 1,348,525 ● issued 600 ● issued 1,000,000 500,000 ● issued an aggregate of 256,250 1,145,768 ● issued 825,000 3,240,600 3,240,600 Stock Options The following is a summary of stock option activity: Summary of Stock Option Activity Weighted Weighted Average Average Remaining Aggregate Options Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2020 2,540,000 $ 0.22 4.52 $ 1,074,245 Granted 290,000 0.84 Forfeited (401,475 ) 0.22 Exercised (1,670,400 ) 0.230 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, 2021: Schedule of Options Outstanding by Exercise Price Range Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 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 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) Warrants The following is a summary of warrant activity: Summary of Warrant Activity Weighted Weighted Average Average Remaining Aggregate Warrants Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2020 1,631,250 $ 4.08 2.38 $ - Granted 1,106,250 2.64 Forfeited - Exercised - Outstanding, September 30, 2021 2,737,500 $ 3.50 2.89 $ - Exercisable, September 30, 2021 2,737,500 $ 3.50 2.89 $ - The exercise price for warrants outstanding at September 30, 2021: Schedule of Warrants Outstanding by Exercise Price Range Outstanding and Exercisable Number of Exercise Warrants Price 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 468,750 961,106 Schedule of Stock Options Value Assumptions Risk-free interest rate 0.76 0.87 % Expected life of the options 5 Expected volatility 180 190 % Expected dividend yield 0 % |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 10 – Related Party Transactions During the nine months ended September 30, 2021 and 2020, the Company expensed $ 2,356,924 1,715,237 670,047 265,257 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 $ 503,767 503,767 100,000 100,000 0 0 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Note 11 – 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, other than those described below. Anthony Davis v. YayYo, Inc., and Ramy El-Batrawi A complaint was filed on March 5, 2020, in the Los Angeles Superior Court by plaintiff Anthony Davis, who was hired by the Company as its CEO and as a director on or about December 2016. Mr. Davis’s employment with the Company ended after several months. As part of his compensation, Mr. Davis alleges that he expected to receive stock options in the Company. In his pleadings, Mr. Davis admits that he resigned from his executive officer and director positions, but asserts that he did not receive certain compensation in the form of stock options (he has also included a claim for wage and hour violations). The Company denies liability and has asserted that it has paid Mr. Davis all amounts due to him under his employment agreement, 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 defend 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”) On July 22 and July 23, 2020, respectively, two actions were filed in the Los Angeles Superior Court. The complaints underlying the State 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 initial public offering (the “IPO”); they purport to bring a securities class action on behalf of all purchasers of the Common Stock pursuant to the registration statement and prospectus filed with the SEC and distributed in connection with the Company’s IPO, which was launched on November 14, 2019. The State Case complaints allege misrepresentations and material omissions in the SEC filings in 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. It is the Company’s firm position that it accurately and completely disclosed all material facts and circumstances in its SEC filings relating to the IPO, and subsequently in its periodic SEC reports, including those that were potentially adverse to the Company’s operations and business prospects. The State Cases litigation is presently stayed pending the outcome of the federal securities case discussed below ( Hamlin v. YayYo, Inc 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., 20-cv-8591 (SVW)(now consolidated as “In re YayYo Securities Litigation”) These two actions were filed on September 9, 2020 and September 18, 2020, respectively, in the United States District Court for the Central District of California. Plaintiffs Jason Hamlin and William Koch each claim to have purchased the Common Stock as part of the IPO and, like the plaintiffs in the State Cases, purport to bring 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 Common Stock in the IPO. The first amended complaint, like the State Cases, alleges false statements and material omissions of material fact in connection with the SEC filings distributed in connection with the IPO. The defendants include directors of the Company and the underwriters of the IPO, WestPark Capital, Inc. (“WestPark”) and Aegis Capital Corp. The federal court has consolidated the two matters for all practical purposes. As with the State Cases, the Company denies liability and asserts that it accurately and completely disclosed all material facts and circumstances in its 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. Konop v. El-Batrawi, et al., 1:20-cv-1379- MN (Filed in Del. District Court) EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) 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. |
Settlements
Settlements | 9 Months Ended |
Sep. 30, 2021 | |
Settlements | |
Settlements | Note 12 – Settlements 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. 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, 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 agreed to sell to FirstFire one hundred fifty thousand ( 150,000 0.066667 10,000 Social Reality Settlement 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 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 Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 13 – Subsequent Events The Company has 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: ● The Company issued an aggregate of 187,500 ● 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 2,000,000 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
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. EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) |
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. |
Property and Equipment and Rental Vehicles | Property and Equipment and Rental Vehicles 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: Schedule of Estimated Lives of Equipment Computer equipment 5 years Officer furniture 7 years Leasehold improvements 15 years or term of lease whichever is less 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 all of its material revenue from renting its fleet of cars to TNC drivers. Revenue is recognized generally on a weekly basis based on the rental agreements. 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. |
Stock-Based Compensation | Stock-Based Compensation The Company records stock-based compensation in accordance with FASB ASC Topic 718, Compensation – Stock Compensation 2,737,500 758,125 1,631,250 3,221,000 EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) |
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 0.000001 3,495,625 4,852,250 750,000 |
Advertising Costs | Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the nine months ended September 30, 2021 and 2020 were $ 257,129 324,546 |
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, 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. 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, 2021 and December 31, 2020, 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 December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes Income Taxes EVmo, Inc. Notes to Condensed Consolidated Financial Statements For the Nine months Ended September 30, 2021 and 2020 (unaudited) 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) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Lives of Equipment | Schedule of Estimated Lives of Equipment Computer equipment 5 years Officer furniture 7 years Leasehold improvements 15 years or term of lease whichever is less Vehicles 5 years |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | At September 30, 2021 and December 31, 2020, property and equipment consisted of the following: Schedule of Property and Equipment September 30, December 31, 2021 2020 Computer equipment $ 6,046 $ 6,046 Office furniture 17,401 - Leasehold improvement 29,650 - 53,097 6,046 Less accumulated depreciation (6,626 ) (4,138 ) Equipment, net $ 46,471 $ 1,908 |
Rental Vehicles (Tables)
Rental Vehicles (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Rental Vehicles | |
Schedule of Rental Vehicles | At September 30, 2021 and December 31, 2020, all of the Company’s rental vehicles consisted of the following: Schedule of Rental Vehicles September 30, December 31, 2021 2020 Rental vehicles $ 14,760,669 $ 9,067,885 14,760,669 9,067,885 Less accumulated depreciation (4,394,296 ) (2,871,452 ) Rental vehicles, net $ 10,366,373 $ 6,196,433 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable at September 30, 2021 and December 31, 2020 consisted of the following: Schedule of Notes Payable September 30, December 31, 2021 2020 $ - $ 304,667 Notes payable to individual investors; accrue interest at 8 principal payments equal to 1/12 of original balance plus interest due quarterly; August 9, 2020 March 26, 2021 $ - $ 304,667 Note payable to the Small Business Administration. The note bears interest at 3.75 requires monthly payments of $731 after 24 months from funding 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 1 184,775 - 8,000 Notes payable to a finance company, default interest at 14 10,000 40,000 December 15, 2021 - 355,438 Notes payable to a finance company, interest at LIBOR plus 10 0.4166 August 1, 2022 July 9, 2026 7,500,000 - Total notes payable 7,500,000 817,519 Unamortized debt discount (1,316,029 ) (1,973 ) Notes payable, net discount 6,183,971 815,546 Less current portion (156,225 ) (666,132 ) Long-term portion $ 6,027,746 $ 149,414 (A) On July 9, 2021 (the “Closing Date”), the Company 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 7.5 7.5 July 9, 2026 10.0 1.5 0.000001 2.10 450,000 |
Schedule of Outstanding Notes Payable | A roll forward of notes payable from December 31, 2020 to September 30, 2021 is below: Schedule of Outstanding Notes Payable Notes payable, December 31, 2020 $ 815,546 Issued for cash 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 (809,519 ) Amortization of debt discounts 64,641 Notes payable, September 30, 2021 $ 6,183,971 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Convertible Notes | |
Schedule of Outstanding Convertible Notes Payable | A roll forward of convertible notes from December 31, 2020 to September 30, 2021 is below: Schedule of Outstanding Convertible Notes Payable 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 $ - |
Financing Lease Obligations (Ta
Financing Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Financing Lease Obligations | |
Schedule of Lease Obligations | Lease obligations at September 30, 2021 and December 31, 2020 consisted of the following: Schedule of Lease Obligations September 30, December 31, 2021 2020 Lease obligations $ 4,415,870 $ 2,352,878 Less current portion (1,920,254 ) (1,426,425 ) Long-term portion $ 2,495,616 $ 926,453 |
Schedule of Outstanding Lease Obligations | A rollforward of lease obligations from December 31, 2020 to September 30, 2021 is below: Schedule of Outstanding Lease Obligations 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 |
Schedule of Future Lease Obligations | Future payments under lease obligations are as follows: Schedule of Future Lease Obligations Twelve Months Ending September 30, 2022 $ 2,033,761 2023 1,500,065 2024 1,058,833 Total payments 4,592,659 Amount representing interest (176,789 ) Lease obligation, net $ 4,415,870 |
Operating Lease Obligations (Ta
Operating Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Operating Lease Obligations | |
Schedule of Operating Lease Obligations | The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of September 30, 2021: Schedule of Operating Lease Obligations 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 |
Schedule of Lease Obligation Maturity | Lease obligations at September 30, 2021 consisted of the following: Schedule of Lease Obligation Maturity 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 |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity: Summary of Stock Option Activity Weighted Weighted Average Average Remaining Aggregate Options Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2020 2,540,000 $ 0.22 4.52 $ 1,074,245 Granted 290,000 0.84 Forfeited (401,475 ) 0.22 Exercised (1,670,400 ) 0.230 Outstanding, September 30, 2021 758,125 $ 0.42 3.93 $ 514,928 Exercisable, September 30, 2021 413,875 $ 0.56 3.99 $ 262,473 |
Schedule of Options Outstanding by Exercise Price Range | The exercise price for options outstanding and exercisable at September 30, 2021: Schedule of Options Outstanding by Exercise Price Range Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 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 |
Summary of Warrant Activity | The following is a summary of warrant activity: Summary of Warrant Activity Weighted Weighted Average Average Remaining Aggregate Warrants Exercise Contractual Intrinsic Outstanding Price Life Value Outstanding, December 31, 2020 1,631,250 $ 4.08 2.38 $ - Granted 1,106,250 2.64 Forfeited - Exercised - Outstanding, September 30, 2021 2,737,500 $ 3.50 2.89 $ - Exercisable, September 30, 2021 2,737,500 $ 3.50 2.89 $ - |
Schedule of Warrants Outstanding by Exercise Price Range | The exercise price for warrants outstanding at September 30, 2021: Schedule of Warrants Outstanding by Exercise Price Range Outstanding and Exercisable Number of Exercise Warrants Price 450,000 $ 2.10 656,250 3.00 1,500,000 4.00 131,250 5.00 2,737,500 |
Schedule of Stock Options Value Assumptions | Schedule of Stock Options Value Assumptions Risk-free interest rate 0.76 0.87 % Expected life of the options 5 Expected volatility 180 190 % Expected dividend yield 0 % |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details Narrative) | 9 Months Ended |
Sep. 30, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Entity Incorporation, Date of Incorporation | Jun. 21, 2016 |
Entity Incorporation, State or Country Code | DE |
Schedule of Estimated Lives of
Schedule of Estimated Lives of Equipment (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Computer Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated lives | 5 years |
Officer Furniture [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated lives | 7 years |
Leasehold Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated use of lives, description | 15 years or term of lease whichever is less |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated lives | 5 years |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
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. | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 2,737,500 | 1,631,250 | |
Common Stock, Par or Stated Value Per Share | $ 0.000001 | $ 0.000001 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 3,495,625 | 4,852,250 | |
Advertising costs | $ 257,129 | $ 324,546 | |
Series B Preferred Stock [Member] | |||
Debt Conversion, Converted Instrument, Shares Issued | 750,000 | ||
Warrants [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 2,737,500 | 1,631,250 | |
Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 758,125 | 3,221,000 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | $ 53,097 | $ 6,046 |
Less accumulated depreciation | (6,626) | (4,138) |
Equipment, net | 46,471 | 1,908 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | 6,046 | 6,046 |
Officer Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | 17,401 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Equipment, gross | $ 29,650 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 2,488 | $ 1,115 |
Schedule of Rental Vehicles (De
Schedule of Rental Vehicles (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Rental Vehicles, gross | $ 14,760,669 | $ 9,067,885 |
Less accumulated depreciation | (4,394,296) | (2,871,452) |
Rental Vehicles, net | 10,366,373 | 6,196,433 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental Vehicles, gross | $ 14,760,669 | $ 9,067,885 |
Rental Vehicles (Details Narrat
Rental Vehicles (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense for leased assets | $ 2,488 | $ 1,115 |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Finance lease term | 30 months | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Finance lease term | 36 months | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Depreciation expense for leased assets | $ 1,522,844 | $ 1,045,960 |
Schedule of Notes Payable (Deta
Schedule of Notes Payable (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 | |
Short-term Debt [Line Items] | |||
Total notes payable | $ 7,500,000 | $ 817,519 | |
Unamortized debt discount | (1,316,029) | ||
Unamortized debt discount | 0 | (1,973) | |
Notes payable, net discount | 6,183,971 | 815,546 | |
Less current portion | (156,225) | (666,132) | |
Long-term portion | 6,027,746 | 149,414 | |
London Interbank Offered Rate (LIBOR) [Member] | |||
Short-term Debt [Line Items] | |||
Total notes payable | [1] | 7,500,000 | |
Notes Payable One [Member] | |||
Short-term Debt [Line Items] | |||
Total notes payable | 304,667 | ||
Notes Payable Two [Member] | |||
Short-term Debt [Line Items] | |||
Total notes payable | 149,414 | ||
Notes Payable Three [Member] | |||
Short-term Debt [Line Items] | |||
Total notes payable | 8,000 | ||
Notes Payable Four [Member] | |||
Short-term Debt [Line Items] | |||
Total notes payable | $ 355,438 | ||
[1] | On July 9, 2021 (the “Closing Date”), the Company 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 7.5 7.5 July 9, 2026 10.0 1.5 0.000001 2.10 450,000 |
Schedule of Notes Payable (De_2
Schedule of Notes Payable (Details) (Parenthetical) - USD ($) | Jul. 09, 2021 | Sep. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument [Line Items] | ||||
Note payable | $ 6,183,971 | $ 815,546 | ||
Debt forgiven amount | $ 8,000 | |||
Common stock par value | $ 0.000001 | $ 0.000001 | ||
Common Stock [Member] | ||||
Debt Instrument [Line Items] | ||||
Vesting share based compensation | 450,000 | |||
Term Loan Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Common stock par value | $ 0.000001 | |||
Warrant Exercise price per share | $ 2.10 | |||
Term Loan Agreement [Member] | EICF Agent LLC [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument stated percentage | 10.00% | |||
Debt face amount | $ 15,000,000 | |||
Term loan facility | 7,500,000 | |||
Line of credit borrowing capacity | $ 7,500,000 | |||
London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument stated percentage | [1] | 10.00% | ||
Debt instrument maturity date | [1] | Jul. 9, 2026 | ||
Debt instrument principal percentage montly | [1] | 0.4166% | ||
London Interbank Offered Rate (LIBOR) [Member] | Term Loan Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity date | Jul. 9, 2026 | |||
Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Conversion share issued | 1,500,000 | |||
Unsecured Note Payable To Individual Investors [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument stated percentage | 8.00% | |||
Debt instrument payment terms | principal payments equal to 1/12 of original balance plus interest due quarterly; | |||
Unsecured Note Payable To Individual Investors [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity date | Aug. 9, 2020 | |||
Unsecured Note Payable To Individual Investors [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity date | Mar. 26, 2021 | |||
Note payable to the Small Business Administration [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument stated percentage | 3.75% | |||
Note Payable to Small Business Administration [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument payment terms | requires monthly payments of $731 after 24 months from funding | |||
Debt instrument maturity date, description | due 30 years from the date of issuance | |||
Paycheck Protection Program [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument stated percentage | 1.00% | |||
Debt instrument payment terms | The loan has terms of 24 months | |||
Note payable | $ 192,775 | |||
Debt forgiven amount | $ 184,775 | |||
Notes Payable to Finance Company [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument stated percentage | 14.00% | |||
Debt instrument maturity date | Dec. 15, 2021 | |||
Notes Payable to Finance Company [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt monthly principal payments | $ 10,000 | |||
Notes Payable to Finance Company [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt monthly principal payments | $ 40,000 | |||
Note Payable [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument maturity date | [1] | Aug. 1, 2022 | ||
[1] | On July 9, 2021 (the “Closing Date”), the Company 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 7.5 7.5 July 9, 2026 10.0 1.5 0.000001 2.10 450,000 |
Schedule of Outstanding Notes P
Schedule of Outstanding Notes Payable (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Debt Disclosure [Abstract] | ||
Notes payable, December 31, 2020 | $ 815,546 | |
Issued for cash | 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 | (809,519) | $ (10,000) |
Amortization of debt discounts | 64,641 | |
Notes payable, September 30, 2021 | $ 6,183,971 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - USD ($) | Jul. 08, 2021 | Sep. 30, 2021 |
Short-term Debt [Line Items] | ||
Amortization of debt discounts | $ 64,641 | |
Debt instrument Unamortized discount | $ 1,316,029 | |
Note Payable [Member] | Warrant [Member] | ||
Short-term Debt [Line Items] | ||
Number of warrants issued to purchase shares | 450,000 | |
Warrant exercise price per share | $ 2.10 | |
Proceeds from issuance of warrants | $ 778,697 | |
Amortization of debt discounts | 600,000 | |
Debt instrument Unamortized discount | $ 1,378,697 | |
Exchange Agreement [Member] | Holder [Member] | ||
Short-term Debt [Line Items] | ||
Debt Interest percentage | 12.50% |
Schedule of Outstanding Convert
Schedule of Outstanding Convertible Notes Payable (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Short-term Debt [Line Items] | ||
Amortization of debt discounts | $ 1,643,408 | $ 27,719 |
Convertible Note Payable [Member] | ||
Short-term Debt [Line Items] | ||
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 |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) - USD ($) | Apr. 12, 2021 | Feb. 12, 2021 | Jan. 08, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Debt Instrument, Unamortized Discount | $ 1,316,029 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 2,737,500 | 1,631,250 | ||||
Fair Value Adjustment of Warrants | $ 961,107 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||
Convertible Note Payable [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Debt Conversion, Converted Instrument, Shares Issued | 1,000,000 | |||||
Mr John Gray [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Convertible Notes Payable | $ 500,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 6.00% | |||||
Debt Instrument, Maturity Date | Jan. 6, 2022 | |||||
Debt Instrument, Convertible, Conversion Price | $ 0.50 | |||||
Debt Instrument, Unamortized Discount | $ 30,000 | |||||
Debt Conversion, Converted Instrument, Shares Issued | 1,000,000 | |||||
Investors [Member] | Securities Purchase Agreement [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Convertible Notes Payable | $ 2,250,000 | |||||
Debt Instrument, Interest Rate, Stated Percentage | 10.00% | |||||
Debt Instrument, Maturity Date | Jan. 12, 2022 | |||||
Debt Instrument, Convertible, Conversion Price | $ 3 | |||||
Debt Instrument, Unamortized Discount | $ 250,000 | |||||
Original Issue Discount Convertible Promissory Note Percentage | 12.50% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding, Number | 187,500 | |||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3 | |||||
Additional warrant issued | 93,750 | |||||
Fair Value Adjustment of Warrants | $ 623,373 | |||||
Warrants and Rights Outstanding, Term | 5 years | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.089% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 190.00% | |||||
Debt Instrument, Convertible, Beneficial Conversion Feature | $ 810,633 | |||||
Investors [Member] | Securities Purchase Agreement [Member] | Convertible Note Payable [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Convertible Notes Payable | 1,761,866 | |||||
Investors [Member] | Securities Purchase Agreement [Member] | Warrant [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Convertible Notes Payable | 488,134 | |||||
Investors [Member] | Securities Purchase Agreement [Member] | Convertible Note And Warrant [Member] | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Debt Instrument, Unamortized Discount | $ 1,298,767 |
Schedule of Lease Obligations (
Schedule of Lease Obligations (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Lease Obligations | ||
Lease obligations | $ 4,415,870 | $ 2,352,878 |
Less current portion | (1,920,254) | (1,426,425) |
Long-term portion | $ 2,495,616 | $ 926,453 |
Schedule of Outstanding Lease O
Schedule of Outstanding Lease Obligations (Details) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Financing Lease Obligations | |
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 |
Schedule of Future Lease Obliga
Schedule of Future Lease Obligations (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Lease Obligations | ||
2022 | $ 2,033,761 | |
2023 | 1,500,065 | |
2024 | 1,058,833 | |
Total payments | 4,592,659 | |
Amount representing interest | (176,789) | |
Lease obligation, net | $ 4,415,870 | $ 2,352,878 |
Schedule of Operating Lease Obl
Schedule of Operating Lease Obligations (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Lease Obligations | ||
Total lease assets | $ 180,860 | |
Operating lease liability, Current | 138,630 | |
Operating lease liability, Noncurrent | 50,996 | |
Total lease liability | $ 189,626 |
Schedule of Lease Obligation Ma
Schedule of Lease Obligation Maturity (Details) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Operating Lease Obligations | ||
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 |
Operating Lease Obligations (De
Operating Lease Obligations (Details Narrative) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Operating Lease Obligations | |
Operating Lease, Expense | $ 100,817 |
Operating Lease, Cost | $ 92,050 |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 3 months |
Operating Lease, Weighted Average Discount Rate, Percent | 15.00% |
Summary of Stock Option Activit
Summary of Stock Option Activity (Details) - Equity Option [Member] | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Offsetting Assets [Line Items] | |
Number of Shares Options Outstanding, Beginning Balance | shares | 2,540,000 |
Weighted Average Exercise Price Outstanding, Beginning Balance | $ / shares | $ 0.22 |
Weighted Average Remaining Contractual Life Outstanding, Beginning | 4 years 6 months 7 days |
Aggregate Intrinsic Value Outstanding, Beginning Balance | $ | $ 1,074,245 |
Number of Options, Granted | shares | 290,000 |
Weighted Average Exercise Price, Granted | $ / shares | $ 0.84 |
Number of Options, Forfeited | shares | (401,475) |
Weighted Average Exercise Price, Forfeited | $ / shares | $ 0.22 |
Number of Options, Exercised | shares | (1,670,400) |
Weighted Average Exercise Price, Exercised | $ / shares | $ 0.230 |
Number of Shares Options Outstanding, Ending Balance | shares | 758,125 |
Weighted Average Exercise Price Outstanding, Ending Balance | $ / shares | $ 0.42 |
Weighted Average Remaining Contractual Life Outstanding, Ending | 3 years 11 months 4 days |
Aggregate Intrinsic Value Outstanding, Ending Balance | $ | $ 514,928 |
Number of Shares Options, Exercisable | shares | 413,875 |
Weighted Average Exercise Price, Exercisable Ending Balance | $ / shares | $ 0.56 |
Weighted Average Remaining Contractual Life, Exercisable | 3 years 11 months 26 days |
Aggregate Intrinsic Value Outstanding, Exercisable Ending | $ | $ 262,473 |
Schedule of Options Outstanding
Schedule of Options Outstanding by Exercise Price Range (Details) | Sep. 30, 2021$ / sharesshares |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 758,125 |
Number of Options Exercisable | 413,875 |
Exercise Price Range One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 20,000 |
Exercise Price Outstanding | $ / shares | $ 0.210 |
Number of Options Exercisable | 20,000 |
Exercise Price Exercisable | $ / shares | $ 0.210 |
Exercise Price Range Two [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 528,125 |
Exercise Price Outstanding | $ / shares | $ 0.215 |
Number of Options Exercisable | 252,625 |
Exercise Price Exercisable | $ / shares | $ 0.215 |
Exercise Price Range Three [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 15,000 |
Exercise Price Outstanding | $ / shares | $ 0.220 |
Number of Options Exercisable | 2,500 |
Exercise Price Exercisable | $ / shares | $ 0.220 |
Exercise Price Rang Four [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 155,000 |
Exercise Price Outstanding | $ / shares | $ 0.530 |
Number of Options Exercisable | 98,750 |
Exercise Price Exercisable | $ / shares | $ 0.530 |
Exercise Price Rang Five [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 20,000 |
Exercise Price Outstanding | $ / shares | $ 2.120 |
Number of Options Exercisable | 20,000 |
Exercise Price Exercisable | $ / shares | $ 2.120 |
Exercise Price Rang Six [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Options Outstanding | 20,000 |
Exercise Price Outstanding | $ / shares | $ 3.800 |
Number of Options Exercisable | 20,000 |
Exercise Price Exercisable | $ / shares | $ 3.800 |
Summary of Warrant Activity (De
Summary of Warrant Activity (Details) | 9 Months Ended |
Sep. 30, 2021USD ($)$ / sharesshares | |
Equity [Abstract] | |
Number of Shares, Warrants Outstanding Beginning | 1,631,250 |
Weighted Average Exercise Price, Warrants Outstanding Beginning | $ / shares | $ 4.08 |
Weighted Average Remaining Contractual Life, Warrants Outstanding Beginning | 2 years 4 months 17 days |
Aggregate Intrinsic Value, Warrants Outstanding Beginning | $ | |
Number of Shares, Warrants Granted | 1,106,250 |
Weighted Average Exercise Price, Warrants Granted | $ / shares | $ 2.64 |
Number of Shares, Warrants Forfeited | |
Number of Shares, Warrants Exercised | |
Number of Shares, Warrants Outstanding Ending | 2,737,500 |
Weighted Average Exercise Price, Warrants Outstanding Ending | $ / shares | $ 3.50 |
Weighted Average Remaining Contractual Life, Warrants Outstanding Ending | 2 years 10 months 20 days |
Aggregate Intrinsic Value, Warrants Outstanding Ending | $ | |
Number of Shares, Warrants Exercisable Ending | 2,737,500 |
Weighted Average Exercise Price, Per Share Exercisable | $ / shares | $ 3.50 |
Weighted Average Remaining Contractual Life, Warrants Exercisable | 2 years 10 months 20 days |
Aggregate Intrinsic Value, Exercisable | $ |
Schedule of Warrants Outstandin
Schedule of Warrants Outstanding by Exercise Price Range (Details) | Sep. 30, 2021$ / sharesshares |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Warrants Outstanding and Exercisable | 2,737,500 |
Exercise Price Range One [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Warrants Outstanding and Exercisable | 450,000 |
Exercise Price Outstanding and Exercisable | $ / shares | $ 2.10 |
Exercise Price Range Two [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Warrants Outstanding and Exercisable | 656,250 |
Exercise Price Outstanding and Exercisable | $ / shares | $ 3 |
Exercise Price Range Three [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Warrants Outstanding and Exercisable | 1,500,000 |
Exercise Price Outstanding and Exercisable | $ / shares | $ 4 |
Exercise Price Range Four [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of Warrants Outstanding and Exercisable | 131,250 |
Exercise Price Outstanding and Exercisable | $ / shares | $ 5 |
Schedule of Stock Options Value
Schedule of Stock Options Value Assumptions (Details) | 9 Months Ended |
Sep. 30, 2021 | |
Expected life of the options | 5 years |
Expected dividend yield | 0.00% |
Minimum [Member] | |
Risk-free interest rate | 0.76% |
Expected volatility | 180.00% |
Maximum [Member] | |
Risk-free interest rate | 0.87% |
Expected volatility | 190.00% |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Class of Stock [Line Items] | |||||||
Capital stock shares authorized | 100,000,000 | 100,000,000 | |||||
Common stock shares authorized | 90,000,000 | 90,000,000 | 90,000,000 | ||||
Common stock par value | $ 0.000001 | $ 0.000001 | $ 0.000001 | ||||
Preferred stock shares authorized | 10,000,000 | 10,000,000 | 10,000,000 | ||||
Preferred stock par value | $ 0.000001 | $ 0.000001 | $ 0.000001 | ||||
Number of shares issued during period, value | $ 50,000 | $ 275,000 | |||||
Number of shares issued for options exercised, value | $ 5,778 | $ 71,700 | 15,400 | ||||
Issuance of common stock for cashless exercise of stock options | |||||||
Warrant outstanding | 2,737,500 | 2,737,500 | 1,631,250 | ||||
Fair value of warrants | $ 961,107 | ||||||
Acuitas Group Holdings L L C [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued during period | 825,000 | ||||||
Number of shares issued during period, value | $ 3,240,600 | ||||||
Payment of Financing and Stock Issuance Costs | $ 3,240,600 | ||||||
Convertible Note Payable [Member] | |||||||
Class of Stock [Line Items] | |||||||
Debt conversion, converted instrument, shares issued | 1,000,000 | ||||||
Debt conversion shares issued, value | $ 500,000 | ||||||
Equity Option [Member] | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common stock for cashless exercise of stock options, shares | 92,878 | ||||||
Stock Options [Member] | |||||||
Class of Stock [Line Items] | |||||||
Issuance of common stock for cashless exercise of stock options, shares | $ 1,273,050 | ||||||
Warrant [Member] | |||||||
Class of Stock [Line Items] | |||||||
Warrant outstanding | 468,750 | 468,750 | |||||
Fair value of warrants | $ 961,106 | ||||||
Boardof Director [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued during period | 100 | ||||||
Shares issued price per share | $ 0.50 | $ 0.50 | |||||
Number of shares issued during period, value | $ 50,000 | ||||||
Investors [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued during period | 600 | ||||||
Stock Options [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued for options exercised | 295,000 | ||||||
Number of shares issued for options exercised, value | $ 321,875 | ||||||
Issuance of common stock for cashless exercise of stock options | $ 1,348,525 | ||||||
Series B Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock redemption price per share | $ 10 | $ 10 | |||||
Proceeds from issuance of redeemable preferred stock | $ 10,000,000 | ||||||
Debt conversion, converted instrument, shares issued | 750,000 | ||||||
Exchange Agreement [Member] | Warrant [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of warrant purchase shares | 93,750 | 93,750 | |||||
Warrant Exercise price per share | $ 3 | $ 3 | |||||
Exchange Agreement [Member] | Series B Convertible Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock par value | 0.000001 | $ 0.000001 | |||||
Number of shares issued converted | 230,375 | ||||||
Exchange Agreement [Member] | Series B Preferred Stock [Member] | |||||||
Class of Stock [Line Items] | |||||||
Preferred stock convertible conversion price | $ 3 | $ 3 | |||||
Legal Settlements [Member] | |||||||
Class of Stock [Line Items] | |||||||
Number of shares issued during period | 256,250 | ||||||
Number of shares issued during period, value | $ 1,145,768 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Related Party Transaction [Line Items] | |||
Proceeds from Related Party Debt | $ 503,766 | $ 200,000 | |
Repayments of Related Party Debt | 603,766 | 150,000 | |
Insurance Brokerage Firm [Member] | |||
Related Party Transaction [Line Items] | |||
Related Party Transaction, Expenses from Transactions with Related Party | 2,356,924 | $ 1,715,237 | |
Accounts Payable, Related Parties | 670,047 | $ 265,257 | |
Executive Chairman [Member] | |||
Related Party Transaction [Line Items] | |||
Proceeds from Related Party Debt | 503,767 | ||
Repayments of Related Party Debt | 503,767 | ||
Due to Related Parties | 0 | ||
Former C E O [Member] | |||
Related Party Transaction [Line Items] | |||
Repayments of Related Party Debt | 100,000 | ||
Due to Related Parties | $ 0 | $ 100,000 |
Settlements (Details Narrative)
Settlements (Details Narrative) - Settlement Agreement [Member] - FirstFire Global Opportunities Fund, LLC [Member] | Feb. 11, 2021USD ($)$ / sharesshares |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |
Number of shares sold | shares | 150,000 |
Sale of stock price per share | $ / shares | $ 0.066667 |
Aggregate amount | $ | $ 10,000 |
Subsequent Events (Details Narr
Subsequent Events (Details Narrative) - Subsequent Event [Member] | Nov. 12, 2021USD ($)shares |
Subsequent Event [Line Items] | |
Loss contingency sought value | $ | $ 1,000,000 |
Guarantee litigation shares | 2,000,000 |
Convertible Note Agreement [Member] | |
Subsequent Event [Line Items] | |
Number of warrant issued | 187,500 |