Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2022 | Nov. 14, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
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 | 81-3028414 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 2301 N. Sepulveda Blvd. | |
Entity Address, City or Town | Manhattan Beach | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 90266 | |
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 | 69,702,649 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash | $ 4,332,459 | $ 1,853,928 |
Accounts receivable | 785,487 | 751,450 |
Prepaid expenses | 609,701 | |
Deferred offering costs | 862,855 | |
Total current assets | 5,117,946 | 4,077,934 |
Property and equipment, net | 42,991 | 45,601 |
Rental vehicles, net | 22,250,585 | 8,887,319 |
Right of use asset | 30,340 | 149,759 |
Other assets | 1,477,471 | 100,000 |
TOTAL ASSETS | 28,919,333 | 13,260,613 |
Current Liabilities: | ||
Accounts payable (including $504,403 and $670,047 to related party) | 1,391,469 | 3,784,315 |
Credit Cards | 130,702 | |
Accrued expenses | 352,697 | 1,156,265 |
Notes payables, current (net of discount of $0 and $0) | 437,500 | 156,225 |
Customer deposit - related party | ||
Finance lease obligations, current | 4,839,040 | 1,810,374 |
Operating lease obligations, current | 38,532 | 143,894 |
Total current liabilities | 7,189,940 | 7,051,073 |
Advance from related parties, non-current | 600,000 | |
Note payable, net of current portion (net of discount of $1,024,595 and $1,246,566) | 5,975,405 | 6,097,209 |
Finance lease obligations, net of current portion | 9,819,373 | 2,178,836 |
Operating lease obligations, net of current portion | 12,988 | |
TOTAL LIABILITIES | 23,584,718 | 15,340,106 |
Commitments and contingencies | ||
Series B Preferred stock, $0.000001 par value; 230,550 shares authorized; nil and 230,375 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;69,827,149 and 35,758,149 shares issued and outstanding | 70 | 36 |
Additional paid-in capital | 53,212,179 | 39,275,591 |
Accumulated deficit | (47,877,634) | (43,658,870) |
Total stockholders’ equity | 5,334,615 | (4,383,243) |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 28,919,333 | $ 13,260,613 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Accounts payable related party | $ 504,403 | $ 670,047 |
Notes payable discount, current | 0 | 0 |
Notes payable discount, non current | $ 1,024,595 | $ 1,246,566 |
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 | 69,827,149 | 35,758,149 |
Common stock, shares outstanding | 69,827,149 | 35,758,149 |
Series B Preferred Stock [Member] | ||
Temporary stock, par value | $ 0.000001 | $ 0.000001 |
Temporary stock, shares authorized | 230,550 | 230,550 |
Temporary stock, shares issued | 230,375 | |
Temporary stock, shares outstanding | 230,375 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Revenue | $ 3,551,699 | $ 2,724,180 | $ 8,888,034 | $ 7,670,795 |
Cost of revenue* | 2,579,086 | 2,285,878 | 6,636,641 | 5,982,075 |
Gross profit | 972,613 | 438,302 | 2,251,393 | 1,688,720 |
Operating expenses: | ||||
Selling and marketing expenses | 99,843 | 26,565 | 244,226 | 257,129 |
Product development | 85,667 | 46,500 | 160,167 | 106,766 |
General and administrative expenses | 1,580,058 | 3,218,912 | 4,616,652 | 6,151,507 |
Total operating expenses | 1,765,568 | 3,291,977 | 5,021,045 | 6,515,402 |
Loss from operations | (792,955) | (2,853,675) | (2,769,652) | (4,826,682) |
Other income (expense): | ||||
Interest and financing costs | (712,952) | (2,007,194) | (1,449,120) | (6,296,524) |
Other income | 83,541 | 83,541 | ||
Gain on forgiveness of debt | 8,000 | |||
Total other income (expense) | (712,952) | (1,923,653) | (1,449,120) | (6,204,983) |
Net loss | $ (1,505,907) | $ (4,777,328) | $ (4,218,772) | $ (11,031,665) |
Weighted average shares outstanding: | ||||
Basic | 69,887,149 | 35,715,024 | 69,887,149 | 34,819,334 |
Diluted | 69,887,149 | 35,715,024 | 69,887,149 | 34,819,334 |
Loss per share | ||||
Basic | $ (0.02) | $ (0.13) | $ (0.06) | $ (0.32) |
Diluted | $ (0.02) | $ (0.13) | $ (0.06) | $ (0.32) |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 32 | $ 29,750,864 | $ (28,673,992) | $ 1,076,904 |
Beginning 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 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 financing cost | 1,440 | 1,440 | ||
Issuance of common stock for financing cost, shares | 600 | |||
Stock option expense | 193,587 | 193,587 | ||
Net loss | (4,417,663) | (4,417,663) | ||
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 settlement agreement | $ 1 | 3,240,599 | 3,240,600 | |
Issuance of common stock for settlement agreement, shares | 825,000 | |||
Beneficial conversion feature associated with convertible debt | 30,000 | 30,000 | ||
Ending balance, value at Mar. 31, 2021 | $ 35 | 34,885,638 | (33,091,655) | 1,794,018 |
Ending Balance, shares at Mar. 31, 2021 | 35,127,524 | |||
Beginning balance, value at Dec. 31, 2020 | $ 32 | 29,750,864 | (28,673,992) | 1,076,904 |
Beginning Balance, shares at Dec. 31, 2020 | 31,981,374 | |||
Net loss | (11,031,665) | |||
Ending balance, value at Sep. 30, 2021 | $ 36 | 38,206,344 | (39,705,657) | (1,499,277) |
Ending Balance, shares at Sep. 30, 2021 | 35,758,149 | |||
Beginning balance, value at Mar. 31, 2021 | $ 35 | 34,885,638 | (33,091,655) | 1,794,018 |
Beginning 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 | |||
Stock option expense | 104,387 | 104,387 | ||
Net loss | (1,836,674) | (1,836,674) | ||
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 | ||
Ending balance, value at Jun. 30, 2021 | $ 35 | 36,817,909 | (34,928,329) | 1,889,615 |
Ending 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 | |||
Stock option expense | 58,253 | 58,253 | ||
Net loss | (4,777,328) | (4,777,328) | ||
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 | |||
Fair value of warrants issued for financing costs | 503,690 | 503,690 | ||
Value of warrants issued with note payable | 778,697 | 778,697 | ||
Ending balance, value at Sep. 30, 2021 | $ 36 | 38,206,344 | (39,705,657) | (1,499,277) |
Ending Balance, shares at Sep. 30, 2021 | 35,758,149 | |||
Beginning balance, value at Dec. 31, 2021 | $ 36 | 39,275,591 | (43,658,870) | (4,383,243) |
Beginning Balance, shares at Dec. 31, 2021 | 35,769,524 | |||
Issuance of common stock for cash | $ 28 | 13,700,000 | 13,700,028 | |
Issuance of common stock for cash, shares | 27,400,000 | |||
Issuance of common stock for exercise of stock options | $ 1 | 69,996 | 69,997 | |
Issuance of common stock for exercise of stock options, shares | 91,500 | |||
Issuance of common stock for conversion of convertible debt | $ 1 | 64,063 | 64,064 | |
Issuance of common stock for conversion of convertible debt, shares | 5,699,408 | |||
Issuance of common stock for financing cost | $ 1 | 1 | ||
Issuance of common stock for financing cost, shares | 535,967 | |||
Stock option expense | 26,116 | 26,116 | ||
Net loss | (1,510,052) | (1,510,052) | ||
Ending balance, value at Mar. 31, 2022 | $ 67 | 53,135,766 | (45,168,922) | 7,966,911 |
Ending Balance, shares at Mar. 31, 2022 | 69,496,399 | |||
Beginning balance, value at Dec. 31, 2021 | $ 36 | 39,275,591 | (43,658,870) | (4,383,243) |
Beginning Balance, shares at Dec. 31, 2021 | 35,769,524 | |||
Net loss | (4,218,772) | |||
Ending balance, value at Sep. 30, 2022 | $ 70 | 53,212,179 | (47,877,634) | 5,334,615 |
Ending Balance, shares at Sep. 30, 2022 | 69,702,649 | |||
Beginning balance, value at Mar. 31, 2022 | $ 67 | 53,135,766 | (45,168,922) | 7,966,911 |
Beginning Balance, shares at Mar. 31, 2022 | 69,496,399 | |||
Issuance of common stock for cash | ||||
Issuance of common stock for exercise of stock options | 42,328 | 42,328 | ||
Issuance of common stock for exercise of stock options, shares | 196,875 | |||
Stock option expense | 22,868 | 22,868 | ||
Net loss | (1,202,805) | (1,202,805) | ||
Ending balance, value at Jun. 30, 2022 | $ 67 | 53,200,962 | (46,371,727) | 6,829,302 |
Ending Balance, shares at Jun. 30, 2022 | 69,693,274 | |||
Issuance of common stock for cash | $ 3 | 2,013 | 2,016 | |
Issuance of common stock for cash, shares | 9,375 | |||
Stock option expense | 9,204 | 9,204 | ||
Net loss | (1,505,907) | (1,505,907) | ||
Ending balance, value at Sep. 30, 2022 | $ 70 | $ 53,212,179 | $ (47,877,634) | $ 5,334,615 |
Ending Balance, shares at Sep. 30, 2022 | 69,702,649 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net loss | $ (4,218,772) | $ (11,031,665) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 1,927,404 | 1,525,332 |
Stock option expense | 58,188 | 356,227 |
Amortization of debt discounts | 219,982 | 1,643,408 |
Common stock issued for financing costs | 34 | 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 | 119,419 | 77,361 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (34,037) | (516,497) |
Vehicle Deposits | (794,952) | |
Prepaid expenses and other assets | 253,998 | (68,631) |
Accounts payable | (2,392,846) | 1,656,997 |
Accrued expenses | (763,608) | 830,954 |
Credit Cards | 130,702 | |
Customer deposit - related party | (150,000) | |
Operating lease liability | (118,350) | (68,595) |
Net cash used in operating activities | (5,612,838) | (1,454,194) |
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 | 13,700,000 | 50,000 |
Proceeds from exercise of stock options | 44,344 | 92,878 |
Proceeds from advance from related parties | 600,000 | 503,766 |
Repayment of advance from related parties | (603,766) | |
Proceeds from convertible note payable | 2,500,000 | |
Proceeds from notes payable, net | 6,900,000 | |
Repayment of notes payable | (62,500) | (809,519) |
Redemption of Preferred Stock | (2,303,750) | |
Repayment and down payment of lease vehicle purchase | (4,502,934) | (3,629,792) |
Payment of deferred offering costs | 862,855 | (35,000) |
Net cash provided by (used in) financing activities | 8,091,369 | 4,968,567 |
NET INCREASE (DECREASE) IN CASH | 2,478,531 | 3,467,322 |
CASH, BEGINNING OF PERIOD | 1,853,928 | 72,890 |
CASH, END OF PERIOD | 4,332,459 | 3,540,212 |
CASH PAID FOR: | ||
Interest | 1,449,120 | 157,809 |
Income taxes | ||
SUPPLEMENTAL NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Payment of accounts payable/accrued expenses with common stock | 1,103,750 | |
Finance lease obligations | $ 14,658,413 | $ 5,692,784 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
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. (“EVmo” or the “Company”) was incorporated on June 21, 2016 Delaware EVmo is a holding company operating principally through two wholly-owned subsidiaries: (i) RideShare Car Rentals LLC, a Delaware limited liability company (“RideShare”), and (ii) Distinct Cars, LLC, a Delaware limited liability company (“Distinct Cars”). RideShare offers an online bookings platform (the “Rideshare Platform”) while Distinct Cars maintains a fleet of passenger vehicles and transit vans for use in the last-mile logistical space for rent to our customers who are drivers in the ridesharing and delivery gig industries, while also providing them with insurance coverage and issuing them insurance cards in their own names. This enables such drivers to meet the vehicle suitability and other requirements of rideshare and delivery gig companies, also known as transportation network companies (“TNCs”),such as Uber, Lyft, DoorDash and Grubhub. Through RideShare and Distinct Cars, we seek to become a leading provider of rental vehicles to drivers in the ridesharing and delivery gig spaces, and an industry leader in supplying transit vans for last-mile logistics. “Gig” generally refers to a labor market characterized by the prevalence of short-term contracts or freelance work as opposed to permanent jobs. Basis of Presentation The accounting and reporting policies of the Company conform to accounting principles generally accepted in the United States of America (“GAAP”). The Accounting Standards Codification (“ASC”), maintained by the Financial Accounting Standards Board (the “FASB”), is the current single official source of GAAP. Impact of COVID-19 on our Business 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, it 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 our cash flows, but we then saw a positive upward movement in revenue during the second half of 2020, which continued through fiscal 2021. This was consistent with the experience of the TNCs whose drivers we service. According to Bloomberg Second Measure, Uber and Lyft sales were up 104% and 84% year-over-year, respectively, in February 2022 from one year earlier, even in spite of the Delta and Omicron variants that resulted in spikes of infections through periods of 2021. Given the current prevalence of FDA-approved eligible vaccines across nearly all age groups, the marked overall decrease in the number of COVID-19 infections, hospitalizations and deaths in the first nine months of 2022, and the lifting of most pandemic restrictions in our active markets, we are optimistic that COVID-19 will not have a material impact on our operations in the current fiscal year. However, certain factors- including, for example, a new, more aggressive and deadly variant that is resistant to the vaccines- could reverse the positive trends of recent months and alter our prediction. Interim financial statements The unaudited condensed 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 results and regulations. The results of operations for the six months ended June 30, 2022 are not necessarily indicative of the results expected for the fiscal year ending December 31, 2022. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2022 | |
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 operating subsidiaries, Distinct Cars and RideShare, and two other subsidiaries, EV Vehicles, LLC, a Delaware limited liability company, and Premier Mobility Insurance, Inc,, an Oklahoma limited liability company (“Premier Mobility”), that are not yet operational. All significant intercompany transactions and balances have been eliminated. EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) 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. 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 Officer furniture 7 Leasehold improvements 15 years or term of lease whichever is less Vehicles 5 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 ASC Topic 606, Revenue From Contracts with Customers Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) 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 ASC Topic 718, Compensation – Stock Compensation 8,847,842 455,750 2,737,500 758,125 Basic and Diluted Earnings Per Share Earnings per share is calculated in accordance with ASC Topic 260, Earnings Per Share 0.000001 9,303,592 3,495,625 Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the nine months ended September 30, 2022 and 2021 were $ 244,226 257,129 Fair Value Measurements The Company applies the provisions of ASC Topic 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. EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) At September 30, 2022 and 2021, 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 Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for 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. |
Property and Equipment
Property and Equipment | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Note 3 – Property and Equipment At September 30, 2022 and December 31, 2021 equipment consisted of the following: Schedule of Property and Equipment September 30, December 31, 2022 2021 Computer equipment $ 6,046 $ 6,046 Office furniture 17,401 17,401 Leasehold improvement 29,650 29,650 Property and equipment 53,097 53,097 Less accumulated depreciation (10,106 ) (7,496 ) Equipment, net $ 42,991 $ 45,601 Depreciation expense for equipment for the nine months ended September 30, 2022 and 2021 was $ 2,610 2,488 EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) |
Rental Vehicles
Rental Vehicles | 9 Months Ended |
Sep. 30, 2022 | |
Rental Vehicles | |
Rental Vehicles | Note 4 – Rental Vehicles At September 30, 2022 and December 31, 2021 all of the Company’s rental vehicles consisted of the following: Schedule of Rental Vehicles September 30, December 31, 2022 2021 Rental vehicles $ 28,229,346 $ 13,514,619 Rental vehicles, gross 28,229,346 13,514,619 Less accumulated depreciation (5,978,761 ) (4,627,300 ) Rental vehicles, net $ 22,250,585 $ 8,887,319 The Company’s rental vehicles are depreciated over their estimated useful life of five years 1,881,134 1,522,844 36 60 |
Notes Payable
Notes Payable | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Notes Payable | Note 5 – Notes Payable Notes payable at September 30, 2022 and December 31, 2021 consisted of the following: Schedule of Notes Payable September 30, December 31, 2022 2021 Advance from related parties, non-current (B) 600,000 - Notes payable to a finance company, interest at the London Interbank Offered Rate (“LIBOR”) plus 10% 0.4166% (A) 7,437,500 7,500,000 Total notes payable 8,037,500 7,500,000 Unamortized debt discount (1,024,595 ) (1,246,566 ) Notes payable, net discount 7,012,905 6,253,434 Less current portion (437,500 ) (156,225 ) Long-term portion $ 6,575,405 $ 6,097,209 (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 2.10 450,000 900,000 450,000 2.10 711,656 1.33 900,000 1,174,311 0.71 (B) On September 30, 2022 (the “Issuance Date”), Terren S. Peizer, executive chairman of the board of directors of the Company, agreed to provide financing to the Company in the amount of $ 600,000 3,640,000 0.33 EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (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% 110,325 0.000001 3,152,143 0.35 110,525 3,157,857 0.35 9,525 128,125 0.50 A rollforward of the EIP note payable from December 31, 2021 to September 30, 2022 is below: Schedule of Outstanding Notes Payable Notes payable, December 31, 2021 $ 7,500,000 Issued for cash - Lease obligation converted to note payable - Forgiveness of note payable - Repayments 62,500 Amortization of debt discounts - Notes payable, September 30, 2022 7,437,500 Future payments under EIP note payable obligations are as follows: Schedule of Future Payments Under Note Payable Obligations Years ending December 31, 2022 $ 93,750 2023 374,940 2024 374,940 2025 374,940 2026 6,218,930 Thereafter Notes payable $ 7,437,500 |
Convertible Notes
Convertible Notes | 9 Months Ended |
Sep. 30, 2022 | |
Convertible Notes | |
Convertible Notes | Note 6 – Convertible Notes 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% 2,250,000 1,761,866 488,134 810,633 1,298,767 230,375 As described in Note 5- “Notes Payable,” in connection with the Company’s entry into the Term Loan Agreement, the Company also entered into the Exchange Agreement. This Exchange Agreement resulted in the issuance of preferred stock that was later either converted to Common Stock or redeemed after completion of the equity capital raise in January 2022. On January 22, 2022, 110,325 3,152,143 0.35 110,525 3,157,857 0.35 9,525 128,125 0.50 EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) Leased vehicle obligations at September 30, 2022 and December 31, 2021 consisted of the following: Schedule of Leased Vehicle Obligations September 30, December 31, 2022 2021 Leased vehicle obligations $ 14,658,413 $ 3,989,210 Less current portion (4,839,040 ) (1,810,374 ) Long-term portion $ 9,819,373 $ 2,178,836 A rollforward of vehicle lease obligations from December 31, 2021 to September 30, 2022 is below: Schedule of Vehicle Lease Obligations Lease vehicle obligations, December 31, 2021 $ 3,989,210 New lease vehicle obligations 7,966,487 Disposal of leased vehicles (1,526,515 ) Lease obligation converted to note payable - Payments on lease obligations (1,897,711 ) Lease obligations, June 30, 2022 $ 8,531,471 New lease vehicle obligations 8,953,442 Disposal of leased vehicles (- ) Lease obligation converted to note payable - Payments on lease obligations (2,826,500 ) Lease obligations, September 30, 2022 $ 14,658,413 Future payments under lease obligations are as follows: Schedule of Future Lease Obligations Years Ending December 31, 2022 $ 2,705,192 2023 6,347,491 2024 6,979,478 2025 2,747,076 2026 548,652 Total payments 19,327,889 Amount representing interest (4,669,476 ) Lease obligation, net $ 14,658,413 EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) |
Operating Lease Obligations
Operating Lease Obligations | 9 Months Ended |
Sep. 30, 2022 | |
Operating Lease Obligations | |
Operating Lease Obligations | Note 7 – 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 Topic 842- Leases The table below presents the lease related assets and liabilities recorded on the Company’s consolidated balance sheets as of September 30, 2022: Schedule of Operating Lease Obligations Classification on Balance Sheet September 30, Assets Operating lease assets Operating lease right of use assets $ 30,340 Total lease assets $ 30,340 Liabilities Current liabilities Operating lease liability Current operating lease liability $ 38,532 Noncurrent liabilities Operating lease liability Long-term operating lease liability - Total lease liability $ 38,532 Lease obligations at September 30, 2022 consisted of the following: Schedule of Lease Obligation Maturity Years Ending December 31, 2022 $ 25,382 2023 13,150 Total payments 38,532 Total obligation Less: current portion (38,532 ) Non-current capital leases obligations $ - EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) |
Stockholders_ Equity
Stockholders’ Equity | 9 Months Ended |
Sep. 30, 2022 | |
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- “Notes Payable”), the Holder agreed to exchange the Prior Notes for 230,375 93,750 3.00 Pursuant to its Certificate of Designation and the Exchange Agreement, as applicable, the Series B Preferred Stock had the following features: ● The Series B Preferred Stock was 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 was subject to mandatory redemption in full at a redemption price initially equal to $ 10.00 10 ● If, at any time while the Series B Preferred Stock is outstanding, the Company completed any single public offering or private placement of its equity, equity-linked or debt securities (each, a “Future Transaction”), the Holder could, in its 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 would equal seventy percent ( 70% On January 22, 2022, 110,325 3,152,143 0.35 110,525 3,157,857 0.35 9,525 128,125 0.50 Common Stock During the nine months ended June 30, 2022, the Company: ● issued 27,400,000 0.50 ● issued 3,152,143 0.35 110,325 ● issued 3,157,857 0.35 110,525 196,875 EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) Stock Options The following is a summary of stock option activity: Summary of Stock Option Activity Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, December 31, 2021 766,750 $ 0.53 3.76 $ 98,937 Granted 60,000 0.43 4.52 5,400 Forfeited (104,750 ) Exercised (206,250 ) 0.215 Outstanding, September 30, 2022 515,750 $ 0.46 4.10 $ 97,822 Exercisable, September 30, 2022 494,500 $ 0.46 3.86 $ 97,822 The exercise price for options outstanding and exercisable at September 30, 2022: Schedule of Options Outstanding by Exercise Price Range Options Price Options Price Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 20,000 $ 0.21 20,000 $ 0.21 205,750 0.215 205,750 0.215 15,000 0.22 15,000 0.22 155,000 0.53 133,750 0.53 20,000 0.94 20,000 0.94 20,000 2.12 20,000 2.12 20,000 3.80 20,000 3.8 20,000 0.39 20,000 0.39 20,000 0.55 20,000 0.55 20,000 0.36 20,000 0.36 515,750 494,500 For options granted during the nine months ended September 30, 2022 where the exercise price equaled the stock price at the date of the grant, the weighted-average fair value of such options was $ 0.43 0.46 EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) 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 $ 58,188 356,227 18,004. Warrants The following is a summary of warrant activity: Summary of Warrant Activity Weighted Weighted Average Average Aggregate Warrants Exercise Remaining Intrinsic Outstanding Price Contractual Life Value Outstanding, December 31, 2021 4,454,717 $ 2.53 3.17 $ - Granted 4,393,125 0.34 4.80 Forfeited - Exercised - Outstanding September 30, 2022 8,847,842 $ 1.44 4.21 Exercisable, September 30, 2022 8,847,842 $ 1.44 4.21 The exercise price for warrants outstanding at September 30, 2022: Schedule of Warrants Outstanding by Excise Price Range Outstanding and Exercisable Number of Warrants Exercise Price 1,500,000 $ 4.00 65,625 5.00 65,625 5.00 187,500 3.00 93,750 3.00 93,750 3.00 711,656 1.33 93,750 3.00 93,750 3.00 93,750 3.00 1,174,311 0.71 93,750 3.00 93,750 3.00 93,750 3.00 128,125 0.50 625,000 0.40 3,640,000 0.33 8,847,842 EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) |
Related Party Transactions
Related Party Transactions | 9 Months Ended |
Sep. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 9 – Related Party Transactions During the nine months ended September 30, 2022 and 2021, the Company expensed $ 1,671,630 2,386,623 As described in Note 5, herein, on September 30, 2022, Terren S. Peizer, executive chairman of the board of directors of the Company, agreed to provide financing to the Company in the amount of $ 600,000 3,640,000 0.33 |
Contingencies
Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
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 litigation or asserted potential litigation 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 has 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. This lawsuit is currently in the discovery phase. Bellridge Capital, LP, v. EVmo, Inc., 1:21-cv-07091-PGG (Filed in Southern District of New York) In the first half of 2021, a warrant holder, Bellridge Capital, LP, sought to exercise a warrant for 1,500,000 4.00 EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) |
Settlements
Settlements | 9 Months Ended |
Sep. 30, 2022 | |
Settlements | |
Settlements | Note 11 – Settlements 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 from the consolidated federal securities cases discussed below ( In re YayYo Securities Litigation In re YayYo Securities Litigation 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. and Aegis Capital Corp. The federal court consolidated the two matters for all practical purposes. As with the State Cases, the Company denied liability and asserted 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. The parties to the federal court litigation announced on October 21, 2021 that they had reached a settlement, which received preliminary approval by the district court on January 13, 2022, allowing the notice of the proposed settlement to be distributed to all class members, who unless they object or drop out, will be bound by the multi-million dollar settlement. The Company’s portion of the settlement was $ 1 On July 12, 2022, the district court presiding over In re YayYo Securities Litigation Konop v. El-Batrawi, et al., 1:20-cv-1379- MN (Filed in Del. District Court) On October 12, 2020, a complaint was filed in Delaware District Court, which complaint was subsequently transferred to the U.S. District Court for the Central District of California, and assigned as a related case to the judge in In re YayYo Securities Litigation In re YayYo Securities Litigation |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12 – Subsequent Events There are no material subsequent events as of November 14, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned operating subsidiaries, Distinct Cars and RideShare, and two other subsidiaries, EV Vehicles, LLC, a Delaware limited liability company, and Premier Mobility Insurance, Inc,, an Oklahoma limited liability company (“Premier Mobility”), that are not yet operational. All significant intercompany transactions and balances have been eliminated. EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) |
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. |
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 Officer furniture 7 Leasehold improvements 15 years or term of lease whichever is less Vehicles 5 |
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 ASC Topic 606, Revenue From Contracts with Customers |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) 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 ASC Topic 718, Compensation – Stock Compensation 8,847,842 455,750 2,737,500 758,125 |
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 9,303,592 3,495,625 |
Advertising Costs | Advertising Costs The Company expenses the cost of advertising as incurred. Advertising costs for the nine months ended September 30, 2022 and 2021 were $ 244,226 257,129 |
Fair Value Measurements | Fair Value Measurements The Company applies the provisions of ASC Topic 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. EVmo, Inc. Notes to Consolidated Financial Statements For the Nine Months Ended September 30, 2022 and 2021 (unaudited) At September 30, 2022 and 2021, 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 Accounting Standards Update (“ASU”) 2019-12, Simplifying the Accounting for 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) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Lives of Equipment | Schedule of Estimated Lives of Equipment Computer equipment 5 Officer furniture 7 Leasehold improvements 15 years or term of lease whichever is less Vehicles 5 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | At September 30, 2022 and December 31, 2021 equipment consisted of the following: Schedule of Property and Equipment September 30, December 31, 2022 2021 Computer equipment $ 6,046 $ 6,046 Office furniture 17,401 17,401 Leasehold improvement 29,650 29,650 Property and equipment 53,097 53,097 Less accumulated depreciation (10,106 ) (7,496 ) Equipment, net $ 42,991 $ 45,601 |
Rental Vehicles (Tables)
Rental Vehicles (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Rental Vehicles | |
Schedule of Rental Vehicles | At September 30, 2022 and December 31, 2021 all of the Company’s rental vehicles consisted of the following: Schedule of Rental Vehicles September 30, December 31, 2022 2021 Rental vehicles $ 28,229,346 $ 13,514,619 Rental vehicles, gross 28,229,346 13,514,619 Less accumulated depreciation (5,978,761 ) (4,627,300 ) Rental vehicles, net $ 22,250,585 $ 8,887,319 |
Notes Payable (Tables)
Notes Payable (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Notes Payable | Notes payable at September 30, 2022 and December 31, 2021 consisted of the following: Schedule of Notes Payable September 30, December 31, 2022 2021 Advance from related parties, non-current (B) 600,000 - Notes payable to a finance company, interest at the London Interbank Offered Rate (“LIBOR”) plus 10% 0.4166% (A) 7,437,500 7,500,000 Total notes payable 8,037,500 7,500,000 Unamortized debt discount (1,024,595 ) (1,246,566 ) Notes payable, net discount 7,012,905 6,253,434 Less current portion (437,500 ) (156,225 ) Long-term portion $ 6,575,405 $ 6,097,209 (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 2.10 450,000 900,000 450,000 2.10 711,656 1.33 900,000 1,174,311 0.71 (B) On September 30, 2022 (the “Issuance Date”), Terren S. Peizer, executive chairman of the board of directors of the Company, agreed to provide financing to the Company in the amount of $ 600,000 3,640,000 0.33 |
Schedule of Outstanding Notes Payable | A rollforward of the EIP note payable from December 31, 2021 to September 30, 2022 is below: Schedule of Outstanding Notes Payable Notes payable, December 31, 2021 $ 7,500,000 Issued for cash - Lease obligation converted to note payable - Forgiveness of note payable - Repayments 62,500 Amortization of debt discounts - Notes payable, September 30, 2022 7,437,500 |
Schedule of Future Payments Under Note Payable Obligations | Future payments under EIP note payable obligations are as follows: Schedule of Future Payments Under Note Payable Obligations Years ending December 31, 2022 $ 93,750 2023 374,940 2024 374,940 2025 374,940 2026 6,218,930 Thereafter Notes payable $ 7,437,500 |
Convertible Notes (Tables)
Convertible Notes (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Convertible Notes | |
Schedule of Leased Vehicle Obligations | Leased vehicle obligations at September 30, 2022 and December 31, 2021 consisted of the following: Schedule of Leased Vehicle Obligations September 30, December 31, 2022 2021 Leased vehicle obligations $ 14,658,413 $ 3,989,210 Less current portion (4,839,040 ) (1,810,374 ) Long-term portion $ 9,819,373 $ 2,178,836 |
Schedule of Vehicle Lease Obligations | A rollforward of vehicle lease obligations from December 31, 2021 to September 30, 2022 is below: Schedule of Vehicle Lease Obligations Lease vehicle obligations, December 31, 2021 $ 3,989,210 New lease vehicle obligations 7,966,487 Disposal of leased vehicles (1,526,515 ) Lease obligation converted to note payable - Payments on lease obligations (1,897,711 ) Lease obligations, June 30, 2022 $ 8,531,471 New lease vehicle obligations 8,953,442 Disposal of leased vehicles (- ) Lease obligation converted to note payable - Payments on lease obligations (2,826,500 ) Lease obligations, September 30, 2022 $ 14,658,413 |
Schedule of Future Lease Obligations | Future payments under lease obligations are as follows: Schedule of Future Lease Obligations Years Ending December 31, 2022 $ 2,705,192 2023 6,347,491 2024 6,979,478 2025 2,747,076 2026 548,652 Total payments 19,327,889 Amount representing interest (4,669,476 ) Lease obligation, net $ 14,658,413 |
Operating Lease Obligations (Ta
Operating Lease Obligations (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022: Schedule of Operating Lease Obligations Classification on Balance Sheet September 30, Assets Operating lease assets Operating lease right of use assets $ 30,340 Total lease assets $ 30,340 Liabilities Current liabilities Operating lease liability Current operating lease liability $ 38,532 Noncurrent liabilities Operating lease liability Long-term operating lease liability - Total lease liability $ 38,532 |
Schedule of Lease Obligation Maturity | Lease obligations at September 30, 2022 consisted of the following: Schedule of Lease Obligation Maturity Years Ending December 31, 2022 $ 25,382 2023 13,150 Total payments 38,532 Total obligation Less: current portion (38,532 ) Non-current capital leases obligations $ - |
Stockholders_ Equity (Tables)
Stockholders’ Equity (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Equity [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity: Summary of Stock Option Activity Options Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value Outstanding, December 31, 2021 766,750 $ 0.53 3.76 $ 98,937 Granted 60,000 0.43 4.52 5,400 Forfeited (104,750 ) Exercised (206,250 ) 0.215 Outstanding, September 30, 2022 515,750 $ 0.46 4.10 $ 97,822 Exercisable, September 30, 2022 494,500 $ 0.46 3.86 $ 97,822 |
Schedule of Options Outstanding by Exercise Price Range | The exercise price for options outstanding and exercisable at September 30, 2022: Schedule of Options Outstanding by Exercise Price Range Options Price Options Price Outstanding Exercisable Number of Exercise Number of Exercise Options Price Options Price 20,000 $ 0.21 20,000 $ 0.21 205,750 0.215 205,750 0.215 15,000 0.22 15,000 0.22 155,000 0.53 133,750 0.53 20,000 0.94 20,000 0.94 20,000 2.12 20,000 2.12 20,000 3.80 20,000 3.8 20,000 0.39 20,000 0.39 20,000 0.55 20,000 0.55 20,000 0.36 20,000 0.36 515,750 494,500 |
Summary of Warrant Activity | The following is a summary of warrant activity: Summary of Warrant Activity Weighted Weighted Average Average Aggregate Warrants Exercise Remaining Intrinsic Outstanding Price Contractual Life Value Outstanding, December 31, 2021 4,454,717 $ 2.53 3.17 $ - Granted 4,393,125 0.34 4.80 Forfeited - Exercised - Outstanding September 30, 2022 8,847,842 $ 1.44 4.21 Exercisable, September 30, 2022 8,847,842 $ 1.44 4.21 |
Schedule of Warrants Outstanding by Excise Price Range | The exercise price for warrants outstanding at September 30, 2022: Schedule of Warrants Outstanding by Excise Price Range Outstanding and Exercisable Number of Warrants Exercise Price 1,500,000 $ 4.00 65,625 5.00 65,625 5.00 187,500 3.00 93,750 3.00 93,750 3.00 711,656 1.33 93,750 3.00 93,750 3.00 93,750 3.00 1,174,311 0.71 93,750 3.00 93,750 3.00 93,750 3.00 128,125 0.50 625,000 0.40 3,640,000 0.33 8,847,842 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details Narrative) | 9 Months Ended |
Sep. 30, 2022 | |
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, 2022 | |
Property, Plant and Equipment [Line Items] | |
Estimated lives | 5 years |
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, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | |
Tax examination, description | 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 | ||
Common stock, par value | $ 0.000001 | $ 0.000001 | |
Potentially dilutive options and warrants outstanding | 9,303,592 | 3,495,625 | |
Advertising costs | $ 244,226 | $ 257,129 | |
Warrant [Member] | |||
Warrants outstanding | $ 8,847,842 | $ 2,737,500 | |
Options [Member] | |||
Options outstanding | 455,750 | 758,125 |
Schedule of Property and Equipm
Schedule of Property and Equipment (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 53,097 | $ 53,097 |
Less accumulated depreciation | (10,106) | (7,496) |
Equipment, net | 42,991 | 45,601 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 6,046 | 6,046 |
Officer Furniture [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | 17,401 | 17,401 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment | $ 29,650 | $ 29,650 |
Property and Equipment (Details
Property and Equipment (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 2,610 | $ 2,488 |
Schedule of Rental Vehicles (De
Schedule of Rental Vehicles (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Rental vehicles, gross | $ 28,229,346 | $ 13,514,619 |
Less accumulated depreciation | (5,978,761) | (4,627,300) |
Rental vehicles, net | 22,250,585 | 8,887,319 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Rental vehicles, gross | $ 28,229,346 | $ 13,514,619 |
Rental Vehicles (Details Narrat
Rental Vehicles (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lease term | 36 months | |
Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Lease term | 60 months | |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Estimated useful life | 5 years | |
Depreciation | $ 1,881,134 | $ 1,522,844 |
Schedule of Notes Payable (Deta
Schedule of Notes Payable (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 | |
Short-Term Debt [Line Items] | |||
Advance from related parties, non-current | $ 600,000 | ||
Total notes payable | 8,037,500 | $ 7,500,000 | |
Unamortized debt discount | (1,024,595) | (1,246,566) | |
Notes payable, net discount | 7,012,905 | 6,253,434 | |
Less current portion | (437,500) | (156,225) | |
Long-term portion | 6,575,405 | 6,097,209 | |
Notes Payable Two [Member] | |||
Short-Term Debt [Line Items] | |||
Advance from related parties, non-current | [1] | 600,000 | |
Notes Payable Three [Member] | |||
Short-Term Debt [Line Items] | |||
Total notes payable | [2] | $ 7,437,500 | $ 7,500,000 |
[1]On September 30, 2022 (the “Issuance Date”), Terren S. Peizer, executive chairman of the board of directors of the Company, agreed to provide financing to the Company in the amount of $ 600,000 3,640,000 0.33 15.0 7.5 7.5 July 9, 2026 10.0% 1.5 2.10 450,000 900,000 450,000 2.10 711,656 1.33 900,000 1,174,311 0.71 |
Schedule of Notes Payable (De_2
Schedule of Notes Payable (Details) (Parenthetical) - USD ($) | 9 Months Ended | |||
Jul. 09, 2021 | Sep. 30, 2022 | Jan. 06, 2022 | Oct. 31, 2021 | |
Debt Instrument [Line Items] | ||||
Due to Related Parties, Noncurrent | $ 600,000 | |||
Number of warrants | 8,847,842 | |||
Board of Directors Chairman [Member] | ||||
Debt Instrument [Line Items] | ||||
Due to Related Parties, Noncurrent | $ 600,000 | |||
Warrant One [Member] | ||||
Debt Instrument [Line Items] | ||||
Warrant exercise price | $ 1.33 | |||
Warrant adjusted exercise price | 711,656 | |||
Warrant Two [Member] | ||||
Debt Instrument [Line Items] | ||||
Warrant exercise price | $ 0.71 | |||
Warrant adjusted exercise price | 1,174,311 | |||
Terren S Peizer Warrant [Member] | Board of Directors Chairman [Member] | ||||
Debt Instrument [Line Items] | ||||
Number of warrants | 3,640,000 | |||
Exercise price | $ 0.33 | |||
Notes Payable to Finance Company [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument periodic payment principal percentage | 0.4166% | |||
Notes Payable to Finance Company [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable rate | 10% | |||
Term Loan Agreement [Member] | Energy Impact Credit Fund LLP [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt principal amount | $ 15,000,000 | |||
Debt instrument maturity date | Jul. 09, 2026 | |||
Warrants for common shares | 450,000 | 900,000 | ||
Warrant exercise price | $ 2.10 | |||
Number of common stock exercisable | 450,000 | |||
Term Loan Agreement [Member] | Energy Impact Credit Fund LLP [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Warrants for common shares | 1,500,000 | |||
Term Loan Agreement [Member] | Energy Impact Credit Fund LLP [Member] | Closing Date Term Loan [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt principal amount | $ 7,500,000 | |||
Term Loan Agreement [Member] | Energy Impact Credit Fund LLP [Member] | Delayed Draw Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt principal amount | $ 7,500,000 | |||
Term Loan Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Energy Impact Credit Fund LLP [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, variable rate | 10% |
Schedule of Outstanding Notes P
Schedule of Outstanding Notes Payable (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | |
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Debt Disclosure [Abstract] | ||||
Notes payable beginning balance | $ 7,500,000 | $ 7,500,000 | ||
Issued for cash | $ 6,900,000 | |||
Lease obligation converted to note payable | ||||
Forgiveness of note payable | ||||
Repayments | 62,500 | |||
Amortization of debt discounts | ||||
Notes payable ending balance | $ 7,437,500 | $ 7,437,500 |
Schedule of Future Payments Und
Schedule of Future Payments Under Note Payable Obligations (Details) | Sep. 30, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2022 | $ 93,750 |
2023 | 374,940 |
2024 | 374,940 |
2025 | 374,940 |
2026 | 6,218,930 |
Notes payable | $ 7,437,500 |
Notes Payable (Details Narrativ
Notes Payable (Details Narrative) - $ / shares | 9 Months Ended | |||
Mar. 22, 2022 | Jan. 22, 2022 | Sep. 30, 2022 | Dec. 31, 2021 | |
Preferred stock, par value | $ 0.000001 | $ 0.000001 | ||
Holder [Member] | ||||
Debt instrument, conversion price | $ 0.50 | |||
Number of common shares warrant issued | 128,125 | |||
Common Stock [Member] | ||||
Number of shares issued on conversion | 3,157,857 | 3,152,143 | ||
Debt instrument, conversion price | $ 0.35 | $ 0.35 | ||
Series B Preferred Stock [Member] | ||||
Number of shares converted | 110,525 | 110,325 | ||
Preferred stock, par value | $ 0.000001 | |||
Number of shares redeemed | 9,525 | |||
Exchange Agreement [Member] | ||||
Debt Instrument interest rate | 12.50% |
Schedule of Leased Vehicle Obli
Schedule of Leased Vehicle Obligations (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Convertible Notes | |||
Leased vehicle obligations | $ 14,658,413 | $ 8,531,471 | $ 3,989,210 |
Less current portion | (4,839,040) | (1,810,374) | |
Long-term portion | $ 9,819,373 | $ 2,178,836 |
Schedule of Vehicle Lease Oblig
Schedule of Vehicle Lease Obligations (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended |
Sep. 30, 2022 | Jun. 30, 2022 | Sep. 30, 2022 | |
Convertible Notes | |||
Lease vehicle obligations, beginning balance | $ 8,531,471 | $ 3,989,210 | $ 3,989,210 |
New lease obligations | 8,953,442 | 7,966,487 | |
Disposal of leased vehicles | (1,526,515) | ||
Lease obligation converted to note payable | |||
Payments on lease obligations | (2,826,500) | (1,897,711) | |
Lease obligations, ending balance | $ 14,658,413 | $ 8,531,471 | $ 14,658,413 |
Schedule of Future Lease Obliga
Schedule of Future Lease Obligations (Details) - USD ($) | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Convertible Notes | |||
2022 | $ 2,705,192 | ||
2023 | 6,347,491 | ||
2024 | 6,979,478 | ||
2025 | 2,747,076 | ||
2026 | 548,652 | ||
Total payments | 19,327,889 | ||
Amount representing interest | (4,669,476) | ||
Lease obligation, net | $ 14,658,413 | $ 8,531,471 | $ 3,989,210 |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) - USD ($) | 9 Months Ended | ||||||
Mar. 22, 2022 | Jan. 22, 2022 | Apr. 12, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Jul. 31, 2021 | |
Warrants granted to purchase common stock | 8,847,842 | 4,454,717 | |||||
Fair value adjustment of warrants | $ 961,107 | ||||||
Holder [Member] | |||||||
conversion price | $ 0.50 | ||||||
Number of common shares warrant issued | 128,125 | ||||||
Common Stock [Member] | |||||||
conversion price | $ 0.35 | $ 0.35 | |||||
Number of shares issued in conversion | 3,157,857 | 3,152,143 | |||||
Series B Preferred Stock [Member] | |||||||
Class of warrant or right, exercise price | $ 3 | ||||||
Preferred stock, shares redemption | 230,375 | 230,375 | |||||
Number of shares converted | 110,525 | 110,325 | |||||
Number of shares redeemed | 9,525 | ||||||
Securities Purchase Agreement [Member] | Investors [Member] | |||||||
Discount convertible promissory note percentage | 12.50% | ||||||
Convertible notes payable | $ 2,250,000 | ||||||
Debt instrument, unamortized discount | $ 250,000 | ||||||
Debt instrument, interest rate, stated percentage | 10% | ||||||
conversion price | $ 3 | ||||||
Debt instrument, maturity date | Jan. 12, 2022 | ||||||
Warrants granted to purchase common stock | 187,500 | ||||||
Class of warrant or right, exercise price | $ 3 | ||||||
Additional warrant issued | 93,750 | ||||||
Fair value adjustment of warrants | $ 623,373 | ||||||
Warrant and right outstanding term | 5 years | ||||||
Fair value assumptions risk free interest rate | 0.089% | ||||||
Fair value assumptions dividend yied | 0% | ||||||
Fair value assumptions expected volatility rate | 190% | ||||||
Debt instrument, convertible, beneficial conversion feature | $ 810,633 | ||||||
Securities Purchase Agreement [Member] | Investors [Member] | Convertible Note Payable [Member] | |||||||
Convertible notes payable | 1,761,866 | ||||||
Securities Purchase Agreement [Member] | Investors [Member] | Warrant [Member] | |||||||
Convertible notes payable | 488,134 | ||||||
Securities Purchase Agreement [Member] | Investors [Member] | Convertible Note and Warrant [Member] | |||||||
Debt instrument, unamortized discount | $ 1,298,767 |
Schedule of Operating Lease Obl
Schedule of Operating Lease Obligations (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Operating Lease Obligations | ||
Operating lease assets | $ 30,340 | $ 149,759 |
Total lease assets | 30,340 | |
Total lease liability | 38,532 | 143,894 |
Operating lease liability, noncurrent | $ 12,988 |
Schedule of Lease Obligation Ma
Schedule of Lease Obligation Maturity (Details) - USD ($) | Sep. 30, 2022 | Dec. 31, 2021 |
Operating Lease Obligations | ||
2022 | $ 25,382 | |
2023 | 13,150 | |
Total payments | 38,532 | |
Less: current portion | (38,532) | $ (143,894) |
Non-current capital leases obligations | $ 12,988 |
Summary of Stock Option Activit
Summary of Stock Option Activity (Details) - Equity Option [Member] - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Offsetting Assets [Line Items] | ||
Number of shares options outstanding, Beginning Balance | 766,750 | |
Weighted average exercise price outstanding, Beginning Balance | $ 0.53 | |
Weighted average remaining contractual life outstanding | 3 years 9 months 3 days | |
Aggregate intrinsic value outstanding, Beginning Balance | $ 98,937 | |
Number of options, granted | 60,000 | |
Weighted average exercise price, granted | $ 0.43 | |
Weighted average remaining contractual life granted | 4 years 6 months 7 days | |
Aggregate intrinsic value, granted | $ 5,400 | |
Number of options, forfeited | (104,750) | |
Number of options, exercised | (206,250) | |
Number of shares options outstanding, Ending Balance | 515,750 | 766,750 |
Weighted average exercise price outstanding, Ending Balance | $ 0.46 | $ 0.53 |
Weighted average remaining contractual life outstanding, Ending | 4 years 1 month 6 days | |
Aggregate intrinsic value outstanding, Ending Balance | $ 97,822 | $ 98,937 |
Number of shares options, exercisable | 494,500 | |
Weighted average exercise price, exercisable | $ 0.46 | |
Weighted average remaining contractual life, Exercisable | 3 years 10 months 9 days | |
Aggregate intrinsic value outstanding, exercisable | $ 97,822 |
Schedule of Options Outstanding
Schedule of Options Outstanding by Exercise Price Range (Details) | Sep. 30, 2022 $ / shares shares |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 515,750 |
Number of options, exercisable | 494,500 |
Exercise Price Range One [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.21 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.21 |
Exercise Price Range Two [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 205,750 |
Number of options, outstanding, exercise price | $ / shares | $ 0.215 |
Number of options, exercisable | 205,750 |
Number of options, exercisable, exercise price | $ / shares | $ 0.215 |
Exercise Price Range Three [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 15,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.22 |
Number of options, exercisable | 15,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.22 |
Exercise Price Range Four [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 155,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.53 |
Number of options, exercisable | 133,750 |
Number of options, exercisable, exercise price | $ / shares | $ 0.53 |
Exercise Price Range Five [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.94 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.94 |
Exercise Price Range Six [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 2.12 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 2.12 |
Exercise Price Range Seven [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 3.80 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 3.8 |
Exercise Price Range Eight [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.39 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.39 |
Exercise Price Range Nine [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.55 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.55 |
Exercise Price Range Ten [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options, outstanding | 20,000 |
Number of options, outstanding, exercise price | $ / shares | $ 0.36 |
Number of options, exercisable | 20,000 |
Number of options, exercisable, exercise price | $ / shares | $ 0.36 |
Summary of Warrant Activity (De
Summary of Warrant Activity (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Warrants Outstanding Beginning | 4,454,717 | |
Weighted Average Exercise Price, Outstanding Beginning | $ 2.53 | |
Weighted average remaining contractual life, warrants outstanding Beginning | 3 years 2 months 1 day | |
Aggregate Intrinsic Value, Warrants Outstanding Beginning | ||
Warrants Outstanding Granted | 4,393,125 | |
Weighted Average Exercise Price, Outstanding, Granted | $ 0.34 | |
Weighted average remaining contractual life, warrants outstanding, Granted | 4 years 9 months 18 days | |
Warrants Outstanding Forfeited | ||
Warrants Outstanding Exercised | ||
Warrants Outstanding Ending | 8,847,842 | 4,454,717 |
Weighted Average Exercise Price, Outstanding Ending | $ 1.44 | $ 2.53 |
Weighted Average remaining contractual life, warrants outstanding | 4 years 2 months 15 days | |
Warrants Exercisable Ending | 8,847,842 | |
Weighted Average Exercise Price, Exercisable Ending | $ 1.44 | |
Weighted average remaining contractual life, warrants exercisable | 4 years 2 months 15 days |
Schedule of Warrants Outstandin
Schedule of Warrants Outstanding by Excise Price Range (Details) | Sep. 30, 2022 $ / shares shares |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 8,847,842 |
Exercise Price Range One [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 1,500,000 |
Exercise price | $ / shares | $ 4 |
Exercise Price Range Two [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 65,625 |
Exercise price | $ / shares | $ 5 |
Exercise Price Range Three [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 65,625 |
Exercise price | $ / shares | $ 5 |
Exercise Price Range Four [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 187,500 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Five [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Six [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Seven [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 711,656 |
Exercise price | $ / shares | $ 1.33 |
Exercise Price Range Eight [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Nine [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Ten [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Eleven [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 1,174,311 |
Exercise price | $ / shares | $ 0.71 |
Exercise Price Range Twelve [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Thirteen [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Fourteen [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 93,750 |
Exercise price | $ / shares | $ 3 |
Exercise Price Range Fifteen [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 128,125 |
Exercise price | $ / shares | $ 0.50 |
Exercise Price Range Sixteen [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 625,000 |
Exercise price | $ / shares | $ 0.40 |
Exercise Price Range Seventeen [Member] | |
Share-Based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of warrants | 3,640,000 |
Exercise price | $ / shares | $ 0.33 |
Stockholders_ Equity (Details N
Stockholders’ Equity (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Mar. 22, 2022 | Jan. 22, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Jul. 31, 2021 | |
Class of Stock [Line Items] | |||||||||
Capital stock, 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 | ||||||
Conversion price percentage | 70% | ||||||||
Weighted average fair value of options | $ 0.43 | ||||||||
Weighted average exercise price | $ 0.46 | ||||||||
Stock or unit option plan expense | $ 58,188 | $ 356,227 | |||||||
Unamortized stock option expense | $ 18,004 | ||||||||
Board of Director [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 27,400,000 | ||||||||
Shares issued price per share | 0.50 | $ 0.50 | |||||||
Holder [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Debt instrument, conversion price | $ 0.50 | $ 0.50 | |||||||
Number of common shares warrant issued | 128,125 | 128,125 | |||||||
Common Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued on conversion | 3,157,857 | 3,152,143 | |||||||
Debt instrument, conversion price | $ 0.35 | $ 0.35 | |||||||
Number of shares issued | 9,375 | 27,400,000 | 100,000 | ||||||
Common Stock [Member] | Scenario One [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 3,152,143 | ||||||||
Shares issued price per share | $ 0.35 | $ 0.35 | |||||||
Common Stock [Member] | Scenario Two [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 3,157,857 | ||||||||
Shares issued price per share | $ 0.35 | $ 0.35 | |||||||
Common Stock [Member] | Scenario Three [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares issued | 196,875 | ||||||||
Series B Preferred Stock [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Preferred stock, par value | $ 0.000001 | ||||||||
Preferred stock share redemption | 230,375 | 230,375 | 230,375 | ||||||
Right to purchase common stock, shares | 93,750 | 93,750 | |||||||
Exercise price | $ 3 | $ 3 | |||||||
Conversion price per share | 3 | ||||||||
Preferred stock redemption price per share | $ 10 | $ 10 | |||||||
Proceeds from equity financing | $ 10,000,000 | ||||||||
Number of shares converted | 110,525 | 110,325 | |||||||
Number of shares redeemed | 9,525 | ||||||||
Series B Preferred Stock [Member] | Scenario One [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares redeemed | 110,325 | ||||||||
Series B Preferred Stock [Member] | Scenario Two [Member] | |||||||||
Class of Stock [Line Items] | |||||||||
Number of shares redeemed | 110,525 |
Related Party Transactions (Det
Related Party Transactions (Details Narrative) - USD ($) | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Insurance expense | $ 1,671,630 | $ 2,386,623 |
Due to related parties, noncurrent | $ 600,000 | |
Number of warrants | 8,847,842 | |
Board of Directors Chairman [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Due to related parties, noncurrent | $ 600,000 | |
Board of Directors Chairman [Member] | Terren S Peizer Warrant [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Number of warrants | 3,640,000 | |
Exercise price | $ 0.33 |
Contingencies (Details Narrativ
Contingencies (Details Narrative) - $ / shares | 3 Months Ended | 9 Months Ended |
Mar. 31, 2021 | Sep. 30, 2022 | |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Numer of warrants to be exercised | ||
Warrant Holder [Member] | ||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | ||
Numer of warrants to be exercised | 1,500,000 | |
Warrant exercise price | $ 4 |
Settlements (Details Narrative)
Settlements (Details Narrative) $ in Millions | Jan. 13, 2022 USD ($) |
Settlements | |
Litigation settlement | $ 1 |